Former PM Malcolm Turnbull speaks at the Clean Energy Summit. Credit:Janie Barrett "I know there are people who want to keep on fighting about energy. I tell you I think the electorate is fed up with it." He later tweeted that he encouraged all parties to stick with Coalition’s version of the energy guarantee and did not endorse Labor's 45 per cent emissions reduction target, which the party had failed to demonstrate "will not push up prices". Labor's energy policy announced last month confirmed it would adopt the energy guarantee framework devised under Mr Turnbull's leadership, which aimed to reduce emissions and ensure affordability and reliable supplies. Labor would apply its higher emissions reduction target - 45 per cent by 2030, based on 2005 levels - rather than keep the 26 per cent target that the government initially proposed. Under new leader Scott Morrison, the government has declared lowering electricity prices will be top of the agenda.

It has threatened to use a "big stick", such as the forced divestiture of assets, to ensure that major energy companies do not rip off consumers on price. It will also underwrite investment in new energy generation capacity, in line with recommendations by the Australian Competition and Consumer Commission. Mr Turnbull said "the devil will be in the detail" on divestment powers, legislation for which was being drafted. The move has been vehemently opposed by business and questions have been raised about its legality. He added that "with great respect [the big stick approach is] not a substitute for the National Energy Guarantee". "Ensuring a competitive market and the protections of consumers is very important, but you've also got to have the certainty of integrated climate and energy policy so that you get the investment," he said. Mr Frydenberg rejected suggestions the changes were made because the government feared the original proposal was unconstitutional, and said contrary to criticism the market intervention was not at odds with traditional Liberal values.

Speaking later in Canberra, Treasurer Josh Frydenberg said the government had replaced the energy guarantee with a "reliability guarantee" and had a suite of policies to put downward pressure on prices. This included a bill to be introduced by the government this week involving divestment powers to be used against energy companies that deliberately manipulate the market to distort prices. The government has amended the divestment proposal following objections from several Coalition MPs. Company divestment would now only occur by judicial order after referral to the Federal Court, rather than this power being vested in the Treasurer. The laws will expire in 2025 and the divestment power will be industry-specific", Mr Frydenberg said He said the proposal was strongly supported by the party room. He rejected suggestions that changes were made because the government feared the original proposal was unconstitutional, and said contrary to some criticism, such a dramatic market intervention was not at odds with traditional Liberal values. Mr Frydenberg said the issue in question was Labor's "recklessly high" 45 per cent emissions reduction target.

Loading "They haven’t produced any modelling on what the cost on the economy will be. The Business Council of Australia has said it will be an economy-wrecking target," the former energy minister said. "What will be the impact on agriculture, what will be the impact on the industrial sector, what will be the impact on the transport sector? "Their target is going to shut down coal-fired power stations across the country [and] drive up costs, particularly for households and industrial customers." The government has previously failed to produce its own modelling to support claims Labor's energy plan represents an economic-wrecking ball.

Independent modelling comparing scenarios with a 45 per cent and 26 per cent cut in emissions has found no difference in electricity reliability or price, and other analysis suggests prices will be cheaper under the higher targets. Labor MP Ed Husic described as "extraordinary" the government's divestiture measures. He applauded both Mr Turnbull's call for the major parties to work together on energy and his admission that the National Energy Guarantee was "the best way to go". Mr Husic predicted voters would see Mr Turnbull's views on the policy as more credible and honest, as opposed to the government's "politicking" over Labor's plan. Earlier in a speech, Mr Turnbull said the federal government’s efforts to craft a coherent energy and climate change policy was “bedevilled by what I would call ideology and ignorance". Addressing an audience made up largely of people involved in the solar industry, Mr Turnbull said many of his former colleagues disregarded basic climate science and clung to a set of beliefs that were simply untrue.