Stark divisions have been exposed within the electricity industry, investors and politicians about the urgency and need for an overhaul of electricity market rules after the country's top energy market supervisor suggested measures may be needed to extend the life of coal power plants to ensure security of supply.

The potential reforms suggested by Australian Energy Market Operator head Audrey Zibelman on Friday primarily involve the introduction of separate markets for services that used to be supplied by coal power. Those services aren't being valued in today's market, where wholesale power prices can spend hours at a stretch near zero or in negative territory, she signalled.