Nats ‘not consulted’ as Malcolm Turnbull to cap power prices, penalise firms

Malcolm Turnbull insists NEG changes are about electricity bills and not his job as Tony Abbott keeps up the pressure.

Malcolm Turnbull insists his focus is on power prices - not his own job - as infighting over energy policy threatens to cut short his time as prime minister.

There is growing speculation Mr Turnbull could be in strife amid internal divisions over his government’s flagship National Energy Guarantee. The prime minister has flagged a number of changes to his signature policy in an attempt to shore up support, including a price cap, stricter controls on electricity retailers and a shift in the way carbon emission reductions are set. However, it is far from certain whether the revised position will be enough to quell a rebellion inside his own ranks.

Mr Turnbull was asked on Sunday if he was concerned by critics claiming the numbers against him within the coalition party room were rising.

“I’m focused on getting energy prices down and I’ll leave you to all of the speculation,” he told reporters in western NSW.

Mr Turnbull will seek cabinet approval for a redesign of his proposed NEG that will scrap the plan to legislate the 26 per cent emissions reduction target for the energy sector.

NEG opponent Tony Abbott called Friday’s emissions change “no way to run a government” during a radio interview on Saturday, and kept up the pressure on Mr Turnbull today on Twitter.

“Emissions targets that made sense three years ago when all countries were supposed to be in Paris and we didn’t need policy change and wouldn’t face economic dislocation do not make sense now. @TurnbullMalcolm take note,” Mr Abbott wrote.

Emissions targets that made sense three years ago when all countries were supposed to be in Paris and we didn’t need policy change and wouldn’t face economic dislocation do not make sense now. @TurnbullMalcolm take note.

— Tony Abbott (@TonyAbbottMHR) August 19, 2018

Meanwhile, Deputy Nationals leader Bridget McKenzie — a member of Mr Turnbull’s cabinet — says she had not been consulted on the Prime Minister’s changes to the government’s energy policy.

The Sports Minister has withheld her support for the changes — which will be discussed at a dinner with cabinet ministers tonight — until the Nationals party room meeting tomorrow.

Mr Turnbull today used Facebook to announce a new power price cap policy and said he plans to penalise energy companies that fail to deliver on cheaper prices.

It comes as Bill Shorten intensified the political contest over power bills by announcing that Labor would take tough new measures to lower prices for households by up to $165 a year and $1500 for small businesses.

Today the Prime Minister also said his government “will not hesitate to use a big stick … to make sure the big (energy) companies do the right thing” by customers.

“Through more competition and all our other changes, that price will come down and we will demand and ensure these price savings are passed on,” Mr Turnbull said.

.@TurnbullMalcolm on energy: We are focused on price. Everything we have done in the past and doing now is focused on getting energy prices down. We are working with our colleagues to make sure everything is going to work better.

MORE: https://t.co/yu5LuqXi6P #weekendlive pic.twitter.com/iJvcdcyAvd

— Sky News Australia (@SkyNewsAust) August 19, 2018

Responding to the latest moves, Senator McKenzie told Sky News: “The Prime Minister has made a decision around changes on how we will proceed with that, I haven’t seen the details of those changes.

“Following that announcement by the PM we will be considering those at our party room on Monday.

“I’m not going to comment on something I haven’t seen the detail of, we are going to take that to the National Party party room, we’ve got a meeting at the Lodge where I am assuming we will be briefed on that tonight.

“And post that briefing, post discussing with National Party colleagues and party room I will be much more comfortable in discussing those changes.”

Senator McKenzie said she was “comfortable” the Prime Minister was amending the policy after consultations with angry Coalition MPs.

After being pushed three times, Senator McKenzie said she would “like” Mr Turnbull to stay in the top job, after twice avoiding the question.

Deputy Nationals leader Bridget McKenzie. Pic: AAP

Meanwhile Mr Shorten and his Energy Minister Mark Butler today took aim at the Coalition for wanting to give a tax break to the major energy companies and said Labor would move towards a cap on prices to protect consumers from price gouging.

Labor has also indicated that it will move to act on recommendation 30 from a recent report conducted by the Australian Competition and Consumer Commission which would replace so-called “standing offers” from energy companies with a cheaper “default offer” which would impose a price cap.

The recommendation is one of those being adopted by Mr Turnbull as he seeks to quell a backbench revolt against the NEG.

Labor argues that 1.2 million households would benefit from its plan and that the default price would be set independently in Victoria, NSW, South Australia and south east Queensland.

The shake-up would sit alongside Labor’s commitment to a 50 per cent renewable energy target by 2030.

“Malcolm Turnbull is too out of touch and the Liberals are too divided to tackle the power price crisis,” Mr Shorten and Mr Butler said. “Instead of acting, Malcolm Turnbull has politely asked the big energy companies to do the right things — and wants to give them a huge tax hand-out at the same time”.

The latest changes to Mr Turnbull’s signature National Energy Guarantee policy come after The Australian revealed on Friday the Prime Minister would dump plans to legislate the 26 per cent Paris emissions target to appease malcontents within the Coalition.

Mr Turnbull is facing a backbench revolt and ministers crossing the floor to vote against his energy policy. Yesterday, Home Affairs Minister Peter Dutton publicly backed his leader amid speculation he was preparing to challenge for the Liberal leadership.

The Sunday Mail reports along with the price cap sweetener Mr Turnbull is also considering scrapping his company tax cuts.

Senator McKenzie today urged the government to stick with its tax cut plans.

She says tax relief is crucial for export industries like agriculture and mining.

“We need an internationally competitive tax rate for our globally exposed industries,” Senator McKenzie told Sky News.

Former prime minister Tony Abbott, who has been vocal in his opposition to the NEG, yesterday took yet another swipe at Mr Turnbull’s tactics.

“It’s no way to run a government, making absolute commitments on Tuesday and breaking them on Friday,” Mr Abbott told 2GB radio on Saturday.

“To have a chance of winning the next election, the Coalition must create a policy contest on energy, not a consensus (with Labor),” he then tweeted.

Mr Turnbull today stressed that Mr Abbott once spruiked the emissions reduction target in his energy plan, the 26 per cent cut by 2030 pledged under the Paris climate agreement.

“As Tony Abbott said in 2015, it is a strong and responsible target, environmentally and economically responsible,” the Pime Minister said.

Meanwhile, after last week threatening to resign if division within cabinet continued, leading conservative Mr Dutton yesterday insisted the Prime Minister had his support.

In relation to media stories today, just to make very clear, the Prime Minister has my support and I support the policies of the Government. My position hasn’t changed from my comments last Thursday.

— Peter Dutton (@PeterDutton_MP) August 17, 2018

Senior government sources confirmed that Mr Turnbull’s praetorian guard had come to the conclusion on Thursday night that threats to his leadership were real and that a bold move was needed to head off the growing likelihood of a revolt.

This followed a group of ­marginal-seat MPs from Victoria, Queensland and NSW approaching Mr Dutton over the course of the past week to express their concerns that the government was heading towards a disastrous defeat. The Weekend Australian has confirmed with several of those MPs that Mr Dutton would have their support should Mr Turnbull’s leadership become terminal.

The plan to carve out the Paris emissions target from the federal legislation follows a rearguard action from a group of 10 rebel Coalition MPs who have withheld their support for the ­national energy guarantee and threatened to cross the floor in a direct challenge to Mr Turnbull’s authority as leader.

Today, ACT Energy Minister in the Labor/Greens government, Shane Rattenbury, said it was “hard to form a view” on whether he could support the NEG given the changes to the policy flagged by Mr Turnbull.

The NEG will need the approval of all the states and territories — including the ACT and the Labor governments in Victoria and Queensland — if it is to be successfully implemented.

Some states had raised concerns about Mr Turnbull’s initial plan to legislate the proposed 26 per cent emissions reduction target because they wanted a more flexible mechanism that would more easily allow a future government to scale up the ambition of the emissions reduction task. One idea canvassed by states and territories was to set the target by regulation.

“As the details are coming out, we certainly have increasing reservations,” Mr Rattenbury told Sky News. “When various governments have talked about putting a regulation in, it was on the assumption that 26 per cent would be a legislated minimum target.

“And certainly my view would be that, if we were going to change it by regulation, you’d want to have what’s called a no backsliding provision”.

This provision would prevent governments from ever lowering the emissions reduction target.

However, Mr Rattenbury conceded the move towards a target set by regulation was a positive step from Mr Turnbull.