Labor advises on increases in energy prices after Energy Guarantee is discarded

File: Mark Butler, Shadow Minister for Climate Change and Energy.

Electricity prices will rise by hundreds of dollars as a direct result of the federal government eliminating its energy plan, the Labor opposition warned.

The government claimed that its flagship, the National Energy Guarantee, would see that electricity prices fell by $ 550.

But Prime Minister Scott Morrison has disinherited the "dead and buried" policy after it proved unpleasant to some of his conservative colleagues.

Mark Butler, spokesman for labor power, expects that the failure to implement the plan will increase prices by almost $ 300 for Australian households due to the total lack of certainty or investment of investors.

"So that's the price, really, for Australian households of the abject and abject surrender of Scott Morrison to Tony Abbott, prices continue to skyrocket," he told ABC on Monday.

Butler said that Labor had been willing to work with the government on energy policy for at least two or three years, but Abbott and a group of "right-wing ideologues" within the coalition had sabotaged their efforts.

"I think that means very bad things for Australia's energy system and prices continue to rise for households and businesses," he said.

Australian companies are hungry for a long-term bipartisan plan to meet the country's energy needs, according to an important lobby group.

Energy spokesman Mark Butler (AAP)

AAP

The Australian Chamber of Commerce and Industry has applauded Scott Morrison's government for its focus over the past two weeks on falling energy prices and improving reliability.

But it is still pushing for a national climate policy to ensure certainty for companies that want to invest.

"The investments that have to be made are investments that will be long term," ACCI CEO James Pearson told AAP.

"They will not be measured in weeks, or months, or even in the three years of the political cycle."

The Ai Group also emphasized the importance of investment security and the fight against emissions in any policy that succeeds the NEG.

"Without the emissions component, to reduce uncertainty, their costs may be higher and state agreement may be more difficult to achieve," Ai Group executive director Innes Willox told AAP.

Treasurer Josh Frydenberg says the government has a history of reducing emissions, but stressed that reducing energy costs was more important.

"People in Australia want to see their electricity bills go down and want to see the government take all possible measures to do it," he said.

Pearson said that both elements are important, as is reliability.

"Now that the NEG has been declared dead, it is important that the government sooner or later tell the community what will replace it."