Warfare over energy policy within the coalition Government broke into the open on Wednesday as Liberal Democrats branded David Cameron’s plan to roll back green levies a “panicky u-turn”.
In an unexpected move at Prime Minister’s Questions, Mr Cameron announced a review of competition within the energy market and signalled he wanted to “get to grips” with green regulations which were driving up energy bills.
Labour, which is calling for a freeze on gas and electricity bills, dismissed the move as “panicked and totally inadequate”.
And, in a mark of the depth of divisions within the coalition on the issue, a senior Liberal Democrat source said that Conservatives had not put forward any “properly worked-up policies” in discussions inside government and suggested the PM was “making policy up on the hoof”.
“Everybody knows the Tories are getting cold feet on the environment,” said the source. “The Tories have put no properly worked up policies in front of us.
“But we will not allow a panicky u-turn during PMQs to dictate Government policy. The way to provide stable fuel bills now and in the future is not to make policy up on the hoof.”
Mr Cameron’s intervention came after former prime minister Sir John Major yesterday called on the Government to impose a windfall tax on the profits of the energy companies.
Challenged on Sir John’s remarks by Labour leader Ed Miliband, Mr Cameron said: “I want more companies, I want better regulation, I want better deals for consumers. But yes, we also need to roll back the green charges that he put in place as energy secretary.”
The Prime Minister’s comments put him on collision course with Lib Dem Energy Secretary Ed Davey, who earlier this month said it would be “silly” to cut green levies which help low-income households install energy efficiency measures.
The Lib Dem source said: “Liberal Democrats in Government will not allow the Tories to undermine our commitment to the environment; hurt the fuel-poor; or destroy our renewable energy industry.
“Nick Clegg has always said that we should stress test every policy to make sure that there isn’t a penny more on bills than necessary.
“Of course, we will look at the specific details of what the Tories propose. That is coalition Government.
“We will discuss the means but we are not prepared to compromise on the ends – protecting the environment; helping the fuel poor; and safeguarding our green industries and jobs.”
Recommended for you
