EU proposes electricity rules revamp to boost fixed-price contracts

The European Commission proposed a revamp of Europe's electricity market rules on Tuesday, aimed at expanding the use of fixed-price power contracts to shield consumers from severe price spikes and speed up the shift to renewable energy.

Among the proposals is a requirement that any state support European Union countries provide for new investments in renewable and nuclear electricity must be done through a two-way contract for difference (CfD). CfDs pay generators a fixed "strike price" for their electricity, regardless of the price in short-term energy markets.

EU countries and lawmakers must negotiate and approve the power market reforms.