According to the Financial Review, large power companies are demanding that the Federal Opposition rethink its plan to abolish carbon taxes and implement a “direct action’’ plan for reducing carbon emissions.

The Energy Supply Association of Australia, which represents big power companies such as Origin, TRUenergy and International Power, says that the Coalition must review its energy and climate change policy if it gains power at the September federal election.

Business groups and companies are reluctant to talk publicly about the ­Coalition’s plan because they don’t want to be seen as taking sides close to an election. But the warning comes amid growing support by multinational companies and major business groups for a market-based scheme, such as Labor's emissions trading scheme, linked to European and other international markets.

However, the opposition’s spokesman on ­climate action, Greg Hunt, has rejected the demands saying that “We remain completely committed to the policy” of abolishing carbon taxes.