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MPs speak out over government’s clean energy plans

The Treasury has come under fire from MPs who claim that the government’s clean energy plans are impractical and will impact on household bills.

They said Treasury changes to the draft Energy Bill will increase the risk of borrowing for investors.

They added that it would put up the cost of renewable and nuclear power, with customers bearing the extra cost.

A Treasury spokesman said the aim was to achieve government goals while protecting businesses and consumers.

Tim Yeo, chairman of the energy and climate change select committee, said: “The Treasury has clearly intervened in the draft bill in a way that will put up bills to consumers and put off investors by increasing their risks.

“This is exactly the opposite of what the Treasury says it wants,” he told BBC News.

It is the latest in a series of exchanges between the committee and the Treasury.

Mr Yeo recently criticised Chancellor George Osborne for, in his view, trying to undercut subsidies to onshore wind - the cheapest option of expanding the UK’s renewable energy portfolio.

The MPs wanted Treasury ministers to answer questions about their influence on energy strategy, but they declined.

A Treasury source said it would be inappropriate for ministers to be questioned at this stage in parliamentary proceedings.

The Treasury says it has backed carbon pricing in order to make alternatives more financially appealing The committee has two major worries about the finance department’s impact on the draft bill.