The federal government will reportedly underwrite billions of dollars in investment in new coal- and gas-powered plants as it looks to shore up support for its National Energy Guarantee.

The announcement is likely to calm the waters within the divided coalition partyroom, with sources telling The Daily Telegraph the new assets will supply power to large energy users. This would have the effect of lowering power prices in general.

‘The focus is on getting cheap power into the system. It decreases prices for everyone,’ a source told the paper, as well as curtailing the control major energy providers have on the market.