A cross-party scrutiny committee will examine Southwark Council's decision to abandon proposals for a scheme to supply locally generated power to new developments at Elephant & Castle.
Southwark Liberal Democrat councillors have used their positions on the borough's cross-party overview and scrutiny committee to "call in" the Labour cabinet's decision to discontinue plans for a unified system for electricity, heating, cooling and communications at the Elephant & Castle.
This means that the decision to terminate the scheme cannot be implemented until the cabinet member responsible – Cllr Fiona Colley – has been cross-examined by the committee.
The proposal to create a Multi Utility Services Company (MUSCo) to supply sustainable locally generated electricity and heating was a key part of the proposals to regenerate the Elephant & Castle area.
The MUSCo was part of the package of green measures praised by former US President Bill Clinton as an example of sustainable growth.
The proposals included a power plant to be built at Mandela Way.
Earlier this month the council revealed that it was pulling the plug on the scheme.
"We think Labour Southwark are making a massive mistake," says Lisa Rajan, the Lib Dem councillor who chairs the overview and scrutiny committee.
"The green energy plans for the Elephant & Castle are good for the planet and good for local residents.
"Labour needs to think again and look at the alternatives otherwise they could completely undermine the regeneration plans for the area."
The council says that it was not satisfied that the MUSCo proposals put forward by the Dalkia-led consortium were workable.