Energy makes the headlines, but reset on diplomacy is Albanese’s real power play

Anthony Albanese’s meeting with China’s president, Xi Jinping, in Bali was a key part of his attempts to reconfigure foreign policy. Photograph: Mick Tsikas/AAP

For weeks, all eyes have been on soaring energy prices, and what the governments of Australia will do to give households and businesses relief. Governments answered part of the national water cooler question on Friday, agreeing to new price caps for coal and gas, and to rebates for people on low and middle incomes.

The impact of the proposed price caps seems clear. Power bills will increase, but they will be lower than they otherwise would be in the absence of government intervention. Consumer rebates are still a bit of a work in progress, requiring final agreement between the treasurer Jim Chalmers and his state counterparts.