Daniel Andrews’ green wish-list on energy guarantee rejected

Labor Premier Daniel ­Andrews has been accused of sabotaging a solution to Australia’s ­energy crisis by capitulating to the Greens.

Victorian Premier Daniel Andrews. Picture: AAP.

Energy Minister Josh Frydenberg is on a collision course with Victorian Labor Premier Daniel ­Andrews, accusing him of sabotaging a solution to Australia’s ­energy crisis by capitulating to the Greens before the November state election.

Ahead of a crucial energy meeting in Sydney on Friday — where the Turnbull government hopes to win state and territory endorsement of its electricity reform blueprint — Mr Frydenberg yesterday rejected a set of “eleventh-hour demands” issued by Victoria. He said any decision by Vic­toria to scuttle the proposed national ­energy guarantee would risk blackouts across the state and ­result in higher power bills.

“Who is in control in Spring Street? Is it the Labor Party or is it really the Greens,” Mr Frydenberg said. “There’s only one reason to explain Victoria’s actions. And that is they are caving in to the Greens on the eve of an election.”

The attack came as Tony ­Abbott continued to challenge modelling suggesting that power prices would fall under the NEG, with the former prime minister contradicting Malcolm Turnbull’s assurance that the Coalition backbench had endorsed the policy.

“We haven’t agreed to the ­national energy guarantee,” Mr Abbott told 2GB. “All the Prime Minister can legitimately claim is that he and Mr Frydenberg were given a hunting licence to go and do their best with the state Labor premiers.”

The Labor/Greens ACT government has also signalled it is unlikely to support the NEG, while the Queensland Labor government has expressed concerns about signing before the policy is put to Mr Turnbull’s partyroom next week. Victoria has made its support for the NEG contingent on four demands which were rubbished by Mr Frydenberg yesterday as “very inconsistent”, including a push for emissions ­reduction targets to be set by regulation and revisited every three years. Other demands include a commitment that emissions reduction targets can “never go backwards” and that a registry be established to ensure the NEG advances consumers’ best interests.

The push to set targets by regulation was rejected by Mr Frydenberg, who noted that Victoria had legislated its own renewable ­energy target and that the setting of emissions reduction targets under the NEG was not “within the remit of state governments”.

Mr Turnbull yesterday assured Coalition MPs there was “no doubt” he would adopt a competition watchdog recommendation to underwrite new dispatchable power generation.

The Prime Minister has been under pressure to commit to the policy option as part of a “NEG-plus” proposal to secure support of wavering ­Coalition MPs.

Mr Turnbull delivered the ­assurance to pro-coal backbenchers as he blasted Mr ­Andrews for his list of demands, saying the state Labor leader had to “decide whether he wants Victorians to pay more for electricity or less”.

“What Daniel Andrews has got to do is stop being pushed around by the Greens, who basically want to de-industrialise Australia,” Mr Turnbull said. “He’s got to ... stand up for Victorian families and sign up to the NEG.”

South Australian Liberal Premier Steven Marshall said Mr Andrews needed to “think about the people in his state”.