A study by economic consultants ACIL Tasman has concluded that the state's dirtiest power producers are in line to get $5.22 billion worth of cash payments and free permits out of a total $5.4 billion national compensation pool announced to ensure no generator is forced to close so rapidly that it risks electricity supply.

State Energy Minister Michael O'Brien said the tax would mean financial stress for Latrobe Valley brown-coal stations. He warned it would create incentives to pare back non-essential maintenance and lead to a risk of plant closures and more frequent blackouts.

Asked if he believed Victoria was getting a good deal with 96.6 per cent of the cash and free permits, Mr O'Brien said: ''Not if they have to close, and not if they are getting 96 per cent of an inadequate total.''

The study, commissioned by the Baillieu government to boost its campaign against the tax, found that Hazelwood (Australia's so-called ''dirtiest'' power plant) would be in line to get $287 million as a cash payment next financial year, plus almost $1.3 billion worth of free permits in the three years to 2016.

Loy Yang A, the next most polluting plant, would be eligible for a $226 million cash payment and $996 million worth of free permits.

Government compensation will rise as power plants become more emissions intensive, partly to prevent the sudden closure of major baseload stations. That means Latrobe Valley plants, which rely on brown coal, have received the lion's share.

In contrast to the large handouts to Victoria's brown-coal producers, New South Wales, Queensland and South Australia get a tiny fraction, while Western Australia and Tasmania get nothing. The study found the NSW Redbank plant, running on less-polluting black coal, will get just $41 million, while SA's relatively dirty Playford plant will get $112 million.

The NSW O'Farrell government is furious about the level of compensation for Victoria.

The report said that although Victoria's brown-coal power producers would receive the vast bulk of the compensation, the scheme would still put the state's power stations - some of which are heavily in debt - ''under significant stress''.

''It will also be difficult for plants under financial stress and threat of closure to retain highly skilled staff as they are likely to be highly employable and undoubtedly will be looking for alternative employment with a sounder future,'' the report said.

Premier Ted Baillieu has backed putting a price on carbon and supports a legislated target to cut Victoria's carbon

emissions by 20 per cent by 2020. But the state government has in recent weeks ramped up its rhetoric against Canberra's carbon tax, which it says was dumped on Victoria with little consultation and no compensation to offset the increased cost of providing services such as health and public transport.

The state government is also worried about a federal plan to buy out the most polluting plants, which could result in the closure of Hazelwood, responsible for about 25 per cent of Victoria's baseload power capacity.

Tony Wood, energy director of the Grattan Institute think tank, said last night that generators would continue to operate if demand for power existed.

''If there is a shortage of supply, wouldn't it make sense for these guys [Latrobe Valley generators] to continue to run like mad but charge like hell, when they do run,'' Mr Wood said.

He said banks would want to get the most out of their investment in generators and would be reluctant to refuse refinancing in the short-term.

As embattled Prime Minister Julia Gillard fended off questioning about her leadership after a disastrous Age/Nielsen poll, Labor received welcome backing for the carbon price from the Australian Workers Union, which has undertaken consultations in the past week.

The union said yesterday that the scheme was responsible and ''no jobs need to be lost as a result'' of it. ''The union's leaders are committed to naming and shaming any boss who uses the carbon price package as an excuse to sack workers,'' a statement from the union's leaders said.

With MICHELLE GRATTAN