Cameron pledges to roll back green energy regulation

David Cameron during Prime Minister's Questions Photo: ITV News

The Prime Minister has announced a review of competition within the energy market as part of his determination to "get to grips" with green regulations which are driving up energy bills.

David Cameron's intervention came after former prime minister Sir John Major 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."

Labour, which is calling for a freeze on gas and electricity bills, dismissed the move as "panicked and totally inadequate".

ITV News Political Correspondent Romily Weeks reports:

The Prime Minister's comments put him on collision course with the Liberal Democrats.

Earlier this month, Lib Dem Energy Secretary Ed Davey, said it would be "silly" to cut green levies which help low-income households install energy efficiency measures.

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".

Read: PM vows green energy tax cuts