Environment groups on Wednesday said that if the dirtiest coal-fired power stations didn't accept payments to close down generation they shouldn't receive any other carbon tax compensation.
"If these facilities now claim they have a profitable future and their asset values remain high, then there is no public policy justification for the compensation payments that are coming at great cost to Australian taxpayers," Environment Victoria campaign director Mark Wakeham said in a statement.
Four stations in Victoria's Latrobe Valley received the lion's share of $1 billion delivered mid-year to help coal-fired generators cope with the carbon tax.
Hazelwood received $266 million, Yallourn pocketed $257 million, Loy Yang Power got $240 million and Loy Yang B received $117 million.
The cash was the first tranche of assistance from the federal government's $5.5 billion energy security fund.
It will be followed by annual allocations of 42 million free carbon permits from 2013/14 to 2016/17 to assist highly emissions-intensive power stations.