Energy prices in the spotlight as Reeves addresses MPs

Rachel Reeves MP today announced a package of measures to shield the public from rising energy prices. Plans include launching an ‘anti-profiteering network’, potential targeted support with energy bills, and speeding the delivery of new nuclear.

Her speech comes off the back of a barrage of government announcements on energy over the last few days, as well as a toughening of its tone around expanding oil extraction in the North Sea. This has included bringing forward the next auction for Contracts for Difference to July.

Many of the measures announced in the last few days are technical – see Friday’s news about the purchase of new radar systems to unlock additional offshore wind capacity. Much of the detail around preventing short-term prices increases and support with energy bills is also yet to be defined.

Given this, it’s not clear whether today’s announcements will reassure bill-payers worried about short-term increases in energy prices – or even be noticed. The public already face a daily round of news about world events, straining attention spans. In a war where one side has said it’s having promising peace talks, and the other denies ever speaking to them, anyone could be forgiven for not keeping up.

There’s evidence to suggest that repeated headlines about crises leads people to switch off from the news, rather than tune into it. Governments communicating complex policy responses to developing situations face an uphill struggle in breaking through.

Advocates of oil and gas expansion have an easier task here – least of all because they do not have to follow through in reducing pressure on bill-payers. Their call to expand North Sea drilling is simple and feels intuitive.  

Emotive language around ‘price-gauging’ in the Chancellor’s speech today likely responds to this, as does the robust position taken towards North Sea drilling by Energy Minister Michael Shanks MP this morning.

The question is not just whether the government takes action on energy prices, but whether it’s recognised for that. Clear and simple communication about the detail of the measures announced by the Chancellor today, once it’s available, will be essential to that end.