Environment Victoria is predicting electricity prices will continue to rise under the new Coalition Government.
A spokesman for the environment group, Mark Wakeham, says the Coalition has no plan to retire Hazelwood power station.
He says the uncertainty will limit investment in new technology and alternative power sources.
Mr Wakeham says the lack of new generation capacity will increase the price of electricity in times of high demand.
"We actually saw the unions in the Latrobe Valley welcome the certainty that the decision provided and we no longer have that certainty," he said.
"The Latrobe Valley is going to need to be second guessing its future and it's going to be very difficult to plan for those alternative industries without that certainty."