Malcolm Turnbull facing big-name revolt on National Energy Guarantee

Prime Minister Malcolm Turnbull is set for a showdown with Coalition MPs over his National Energy Guarantee.

Tony Abbott and Eric Abetz are throwing down a challenge on energy. Picture: Aaron Francis

Malcolm Turnbull’s National Energy Guarantee is being challenged by a group of Coalition MPs who have formed an internal faction to pressure the government to intervene in the energy market and support the construction of new coal-fired power stations.

The Australian can reveal Tony Abbott, Kevin Andrews and Eric Abetz are among a group claiming the support of more than 20 government MPs that have signed onto the Monash Forum, named after World War One military hero Sir John Monash, a key figure in opening up Victoria’s Latrobe Valley to coal production.

Liberal MP Craig Kelly and Nationals MP George Christensen claimed more than 20 government MPs had joined the newly-created internal lobby group, which will test the Prime Minister’s pledge the NEG is technology neutral or whether it disadvantages coal.

The Australian has been told that former deputy prime minister Barnaby Joyce had thrown his support behind the new informal political faction along with up to eleven other Nationals but did not respond to requests for comment.

The Australian understands the manifesto of the Monash Forum was given to backbenchers when parliament sat in Canberra last week with some MPs encouraged to sign documents to confirm their support.

“It says the government is building a Snowy 2.0 so why can’t it build a Hazelwood 2.0,” Mr Kelly said of the manifesto.

“The group wants to see the replacement of Australia’s existing coal-fired power fleet with new high efficiency, low emissions coal-fired power stations.”

Mr Kelly told The Australian the new group would pressure the government to take a more active role in the construction of high efficiency, low emissions (HELE) coal-fired power plants under the NEG.

Mr Kelly and Mr Christensen today said they expected more than 30 MPs to join the forum, which would be more than half of the backbench. Mr Christensen said 10 Nationals had formally joined the group and another two had verbally told him they would join.

Energy Minister Josh Frydenberg said the government’s policy was technology neutral. He said independent modelling by the Energy Security Board had suggested coal would make up more than half of the energy mix in 2030.

“The National Energy Guarantee, as recommended by the experts from the Energy Security Board, will deliver more affordable and reliable energy without subsidies, taxes or trading schemes, levelling the playing field for all types of generation,” Mr Frydenberg said.