The exchange comes as the Turnbull government continues its push to convince energy retailer AGL to extend the operating life of the Liddell coal-fired power station.
The plant, located in Mr Fitzgibbon’s Hunter electorate in NSW, is scheduled to close in 2022.
But Mr Frydenberg and Malcolm Turnbull met with AGL chief Andy Vesey for 90 minutes in Canberra on Monday, trying to convince the company to extend Liddell’s life by five years or to sell it to another operator.
“I think you're missing an opportunity to support your own constituents,” Mr Frydenberg told his Labor rival.
“You know 10 percent of NSW power comes from Liddell. You know these energy companies are making record profits on the back of Australian families.”
“Don't be No-Coal Joel,” Mr Frydenberg said.
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Mr Fitzgibbon hit back, accusing the Coalition of “bullying” the AGL executive.
"Josh, I think you're embarrassed," Mr Fitzgibbon said.
"I think you're embarrassed because every day you've got to roll out and support the prime minister's desperate attempts to mislead the Australian community."
“You come up to the Hunter next week and I'll introduce you to some of my power station workers,” he offered. “Probably be the first time you've met one.”
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Mr Vesey has asked the government for 90 days to come up with an alternative plan to avoid an electricity shortfall after the closure of Liddell. The option is likely to involve a combination of renewables, gas and storage, he said.
Mr Vesey has agreed to pitch a potential sale of Liddell to a “responsible party” to AGL’s board, but he told the ABC’s Lateline program he still intended to close Liddell.
The government remains hopeful the plant can be sold, citing an expression of interest from Delta Energy.