To protect consumers against volatile prices, MEPs made sure they have the right to access fixed-price contracts, dynamic price contracts, and receive key information on the options they sign up to, banning suppliers from being able to unilaterally change the terms of a contract. This is to ensure that all consumers, as well as small businesses, benefit from long-term, affordable and stable prices and to mitigate the impact of sudden price shocks.

MEPs also secured the possibility that EU countries prohibit suppliers from cutting the electricity supply of vulnerable customers, including during disputes between suppliers and customers.

Contracts for Difference

The agreed text provides for so-called “Contracts for Difference” (CFDs), or equivalent schemes with the same effects, to encourage energy investments. In a CfD, a public authority compensates the energy producer if market prices fall too steeply, but collects payments from them if prices are too high. The use of CfDs…