THE SQUIZ
It’s less than 3 weeks to Christmas, but a big cost of living issue will be tackled this week when federal, state and territory leaders come together for Wednesday’s National Cabinet meeting. That’s when the Albanese Government wants to get an agreement on “temporary and meaningful” measures to force down the price of energy for households and business. It’s an important one, with the government projecting that power prices will rise by about 20% this financial year and a further 30% next financial year without any intervention. But #itscomplicated…

WHEN IS IT EVER SIMPLE?
True dat. And we don’t have the full details on what Team Albanese is cooking up – but neither do the states/territories… And yesterday, NSW Treasurer Matt Kean criticised one proposal that would see the states cap coal prices. To explain: half of our electricity is produced by coal-fired power plants. This year, the cost of coal has risen from about $100/tonne to $600 because the Ukraine has created a scramble for fuel given the sanctions imposed on big energy exporter Russia. Kean says compensation would be required – for coal producers and the state, which would miss out on mining royalty revenue. And he says the national government should be doing the heavy lift because “this is a national problem that requires a national solution.” So look out for that, along with proposals on gas, as we head towards Wednesday.

AND HOW ARE WE CAPPING THIS ONE OFF?
With an agreement that was struck on Saturday by G7 nations + the European Union + Australia to cap the price of Russian oil transported by sea, which accounts for about 85% of its oil exports. Set to take effect today, the agreement caps the price at US$60 a barrel. Those wanting to punish Russian President Vladimir Putin’s regime for the war on Ukraine would prefer a complete ban, but that’s not possible with so many countries relying on Russian oil. So how does it work? Nations that sign up will deny insurance to the tankers delivering oil that’s more expensive than the price cap – and most insurers are based in G7 nations. Russia isn’t having a bar of it, and experts say it could be kept afloat by big markets like China and India, which have stayed mates with Moscow. Again, #itscomplicated, but the hope is it will take the sting out of global energy markets – something that would be welcomed everywhere.