EU to revamp power market, aiming to blunt price spikes

The European Commission is set to propose 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 like those experienced last year.

The European Union vowed to overhaul its electricity market after cuts to Russian gas after its invasion of Ukraine last year sent European power prices soaring to record highs, forcing industries to close and hiking households' bills.

Draft versions of the EU proposal, seen by Reuters, outline measures designed to make consumers less exposed to short-term swings in fossil fuel prices - by nudging countries to use more contracts that lock in stable, long-term electricity prices.

Future state support for new investments in wind, solar, geothermal, hydropower and nuclear electricity, for example, must be done through a two-way...