The government has published details of its long-awaited Energy Bill, designed to keep lights on and emissions down.
The government will allow energy companies to charge households an extra ?7.6bn, to go towards low-carbon electricity infrastructure by 2020.
A decision about setting carbon emission targets for 2030 has been delayed until 2016, after the election.
Labour said this was a "humiliating failure" by the Lib Dems, who want gas banished from the electricity system.
Environmentalists also condemned the bill, saying it would make it very hard to meet the UK's law on climate change.
Details of the bill were announced late on Thursday although the bill itself will not be published until next week.
Crudely speaking, the bill has been a battleground between Chancellor George Osborne, who favours gas-powered generation, and the Liberal Democrats, who want clean energy.
The chancellor is adamant that gas will help keep down power bills in the future. He and the Treasury want flexibility in energy choices.
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End Quote John Sauven GreenpeaceDavid Cameron has allowed a militant tendency within his own ranks to derail the Energy Bill?
But the Lib Dems want to banish gas from the electricity system almost entirely by 2030 to reduce CO2 emissions in line with the Climate Change Act, although gas will be needed as a back-up.
They say this will also keep power bills down overall by reducing the UK's exposure to volatile gas prices in a power-hungry world.
Lost the battleOn-going uncertainty over energy strategy has infuriated the firms that are expected to invest more than ?100bn to renew the UK's decaying energy infrastructure by 2020.
It is clear from the announcement that the Lib Dems have lost the battle over the clean energy target.
The decision runs counter to the resolution at the Lib Dem party conference.
In a compromise, the principle of the target will be attached to the bill, but details will not be decided until 2016.
The delay will make it hard for the UK to meet its long-term emissions targets under the Climate Change Act.
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End Quote Angela Knight Energy UKThis is a huge investment and must bring forward the jobs and economic growth that the UK needs?
The advisory committee on climate change estimates the increase that the ?7.6bn allowed for in the bill will add about ?110 to the average household energy bill by 2020.
The Department for Energy and Climate Change (DECC) has a lower estimate of ?95 - or 7% - although some analysts think it would be more.
DECC believes the clean energy measures will save on bills in the long run. The Energy and Climate Change Secretary, Ed Davey, told the BBC that the measures would eventually save about the same amount. He said the figures being bandied about by others about the impact on bills were "rubbish".
The chairman of the Commons energy select committee, Tim Yeo, said it was worrying that the government had not introduced an emissions goal for 2030: "There will be concern that the government hasn't accepted the full implications - which are already clear - of the extent to which electricity generation needs to be decarbonised by 2030".
Labour criticised the government's failure to set an emissions target for electricity for 2030.
"It is outrageous that on the day Ed Miliband committed to a tough cut in Britain's carbon levels by 2030, George Osborne and Ed Davey abandoned their target," said Caroline Flint, shadow energy and climate change secretary.
Mr Yeo, a Conservative MP, also said he was disappointed at the lack of a target, describing the omission as "significant." He said it would add to uncertainty for investors.
'Bill derailed'Environmental groups have also criticised the government's announcement.
"By failing to agree to any carbon target for the power sector until after the next election, David Cameron has allowed a militant tendency within his own ranks to derail the Energy Bill," said John Sauven, executive director of Greenpeace.
"It's a blatant assault on the greening of the UK economy that leaves consumers vulnerable to rising gas prices, and sends billions of pounds of clean-tech investment to our economic rivals."
But Energy UK, which represents the energy industry, welcomed the measures.
"This agreement is good news and we look forward to seeing the details of the bill," said Angela Knight, chief executive of Energy UK.
"We are pleased to see that the levy control framework means that the UK will be building new power stations, including nuclear and renewables. This is a huge investment and must bring forward the jobs and economic growth that the UK needs."
There are many more fragments to come in the energy jigsaw.
Decisions on the way subsidies from bills will be shared between nuclear and various renewable technologies will be made later.
Key decisions on how to ensure there are enough gas power stations to keep the lights on when the wind is not blowing will be announced alongside the chancellor's autumn statement.
Source: http://www.bbc.co.uk/news/business-20451189#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
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