Tony Abbott has slammed the NEG, likening the plan to Julia Gillard’s infamous carbon tax

TONY Abbott has slammed Malcolm Turnbull’s proposed overhaul of the nation’s energy market, likening the plan to Julia Gillard’s infamous carbon tax.

TONY Abbott has slammed Malcolm Turnbull’s proposed overhaul of the nation’s energy market, likening the plan to Julia Gillard’s infamous carbon tax.

The former prime minister, who labelled the National Energy Guarantee (NEG) a “carbon tax in disguise”, said he would only support the policy if it allowed for a new coal-fired power station.

“We will lose all our heavy industry if we keep going down this path and my worry is my party room might be asked to back something which is effectively a carbon tax in disguise, now there is no way that this government can support anything which is a carbon tax in disguise,” Mr Abbott told 2GB radio.

“We went to the 2013 election, we got elected saying ‘let’s end Labor’s emissions obsessions, and let’s in particular get rid of the carbon tax’, now to bring it back, it would be a travesty, an absolute travesty.

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Tony Abbott made the comments on 2GB. Picture: Matrix Media Group

“I’m all in favour of a national energy guarantee with this fundamental proviso: it is to make it economically possible to build new coal-fired power stations, because without new coal-fired power stations in this country our heavy industry is dead and consumers are doomed to ever rising power prices.”

The budget allocated $28.7 million over five years to the energy policy including the design of the NEG, the implementation of the Finkel review into the national electricity market and better forecasting and modelling to ensure the security and resilience of the nation’s energy infrastructure.

Energy Minister Josh Frydenberg additionally announced a $12.8m ­investment, including an accelerated examination of Australia’s domestic liquid fuel security to be completed by the end of the year.

The money will also go towards a consumer website allowing Australians to get a better deal on their power bill and better forecasting and modelling to ensure the NEG is secure.

Abbott claimed the prime minister’s preference with renewables was clear due to his $12 billion investment in the Snowy 2.0 scheme.

“The government says it is technology neutral but plainly that is not true, plainly when the government goes out to spend maybe $12bn by the time you have bought out the states to build (Snowy 2.0),” Mr Abbott said.

“When the government goes out and spends $12bn on a pumped hydro scheme that is a massive intervention in the market, it is a sign of support for a particular technology, and this idea that we have got to let the market work, well the market was corrupted a long time ago here.”

Electricity prices and the NEG are again expected to be raised in the Coalition’s party room this week, as parliament resumes in Canberra.

State and federal energy ministers are set to meet in August to give their verdict on the NEG.

Originally published as Tony Abbott has slammed the NEG, likening the plan to Julia Gillard’s infamous carbon tax