Liberalisation of the UK’s energy market should be reversed, with ministers taking more control of decisions such as building new renewable energy generation, the government’s Committee on Climate Change will say on Monday.

The call for a U-turn on 20 years of government policy that has created one of the world’s most liberal energy markets came as the committee, chaired by Lord Turner, concluded that the deregulated markets produced neither the needed investment in low-carbon forms of energy nor a diversity of supply.