China's National Development and Reform Commission (NDRC) has issued new rules governing medium- and long-term energy supply contracts, covering thermal coal, electricity and natural gas under a single framework for the first time.

The measures, published as NDRC Order No. 50 of 2026, take effect on December 1, 2026, according to the commission.

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The rules apply to all signing, performance, modification and supervision of medium- and long-term supply contracts for thermal coal, electricity and natural gas within China. The framework comprises six chapters and 45 articles, with tailored provisions for each energy type while maintaining a unified regulatory structure.

For thermal coal, contracts should generally run for one year or longer, with multi-year agreements encouraged. Signed volumes must reach a required share of total demand for each region and central enterprise group. Prices are to be set through negotiation based on a "benchmark plus floating" mechanism or a monthly adjustment mechanism. Railway authorities will give priority to transport capacity, and reselling or arbitraging coal secured under such contracts is strictly prohibited.

For electricity, contracts should cover annual, monthly and intra-month periods. Cross-provincial and cross-regional volumes tied to national energy strategy must be fully contracted for one year or longer, while intra-provincial signed volumes must reach a required proportion of the previous year's generation and consumption. Local authorities may not mandate fixed-price contracts, and unperformed contract shares may be transferred through market mechanisms.

For natural gas, contracts should generally run for one year or longer. Contracted volumes for residential use must fully cover residential demand in supply-guarantee areas, while non-residential volumes are subject to negotiation between buyers and sellers. Prices fall into government-guided and market-adjusted categories, and both parties are encouraged to agree in advance on interruptible volumes for non-residential users.

The rules establish a responsibility chain under which companies bear primary responsibility, governments supervise and duties are assigned by level. Energy producers, transport and pipeline operators and energy supply authorities at all levels are assigned corresponding obligations. The measures specify legal liabilities and accountability scenarios, with violations that seriously affect energy supply to be pursued under relevant laws and regulations. A supporting incentive and constraint mechanism is also established to improve contract performance.

The NDRC said it will carry out publicity and training on the measures, guide local authorities, energy companies and trading centers in implementation, and track progress to resolve issues arising during execution.

The rules mark the first time thermal coal, electricity and natural gas supply contracts have been brought under one institutional framework, ending the previous practice of managing each energy type separately under annual policies. Issued as an NDRC order, the long-standing "long-term contract" mechanism is elevated from a policy arrangement to a regularized, law-based national system with greater binding force and stability.

The measures are intended to stabilize supply and demand expectations, improve links across production, supply, storage and sales, and safeguard the resilience and security of the energy supply chain. They also enshrine a "living standards first" principle, under which suppliers cannot unilaterally stop fulfilling residential gas supply obligations.

Market-based pricing is retained, with electricity prices formed through market trading and local authorities barred from imposing fixed prices. The rules encourage price floating mechanisms linked to market supply and demand and fuel costs. Contract performance will be included in corporate credit records, with penalties for serious breaches.