Rebel MPs demand investment in a rebuilt Hazelwood power station

REBEL Coalition MPs who want the Turnbull government to back more coal in exchange for supporting its signature energy policy are demanding a massive investment in a rebuilt Hazelwood power station, according to a letter circulated by the so-called Monash Forum.

REBEL Coalition MPs who want the Turnbull government to back more coal in exchange for supporting its signature energy policy are demanding a massive investment in a rebuilt Hazelwood power station, according to a letter circulated by the so-called Monash Forum.

But Prime Minister Malcolm Turnbull denied tensions within the Coalition and said the government’s National Energy Guarantee has the support from the states.

Rebel MPs are demanding a massive investment in a rebuilt Hazelwood power station.

“Our National Energy Guarantee has been endorsed by the whole party room, the whole Coalition party room,” he said.

“It’s vitally important that it is adopted because what we need is a technology agnostic energy policy that encourages investment and that’s precisely what the National Energy Guarantee will do.”

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But the letter circulated by the Monash Forum, which counts around 20 MPs including former prime minister Tony Abbott and former deputy prime minister Barnaby Joyce as supporters, said the government should intervene “to build Hazelwood 2.0”.

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“All the transmission infrastructure already exists; all the environmental permits have already been obtained; and a new, low emissions coal fired power station can certainly be built for no more than $4 billion,” the letter reads.

Malcolm Turnbull says his energy policy is endorsed by the whole party room. Picture: AAP Image/Glenn Hunt

The Monash Forum letter also suggests the government intervene to stop NSW’s Liddell coal station open.

Liberal MP Eric Abetz, a supporter, yesterday said “we were promised that when Hazelwood closed that it would not impact energy prices, yet they have gone up 20 per cent”.

“We know that if that were to be repeated with Liddell, there would be a further increase in the cost of energy which our households cannot afford”.