Energy royal commission possible: PM

Scott Morrison is open to starting a royal commission into energy companies, after admitting he was wrong to oppose one into the banks.

The prime minister is also standing by Australia's commitment to the Paris emissions reduction targets because they will be met without any extra action.

The idea of a royal commission into the energy sector was floated by his Liberal leadership rival Peter Dutton two weeks ago.

"I'm open to it though, and I'll look at it," Mr Morrison told 3AW radio on Monday.

He said he made a mistake opposing the banking royal commission.

"Where I failed was to properly understand the real pain people had been feeling about being treated so badly," he said.

"What I didn't do - and this is where I do regret - is that Australians needed to work through the deep hurt they've had on this."

Labor leader Bill Shorten said any royal commission into the energy sector needed to look at how privatisation of energy assets forced prices up.

Mr Shorten also announced Labor will introduce a permanent gas reserve policy to keep power prices down if he wins the next election.

"We want to make sure that Australian gas is developed for Australian interests first, and then we export the rest and still make a lot of money," he told reporters.

Under Labor's plan, the Australian Competition and Consumer Commission will be given extra powers to crack down on gas providers.

But Mr Morrison said the government had already wielded the "big stick".

"I was the one who gave the ACCC the very powers Bill Shorten is now saying he wants."

Mr Morrison said he would not match Labor's proposal for a 45 per cent emissions reductions target, which would put it above Australia's Paris agreement pledge of 26 per cent.

Instead he's focused on building more sources of dispatchable power - generation from gas, batteries and pumped hydro - that can be switched on and off to meet demand.

"Could you stop using the word 'dispatchable'? Out there they don't understand it," radio host Alan Jones asked him.

"Well, real power, okay? Real, fair dinkum power," the prime minister said.

"Reliable, keeps the lights on, all of that. That's what I'm about."