Decree of the National Development and Reform Commission No. 50 promulgating the Administrative Measures for Managing Medium- and Long-Term Energy Supply Security Contracts (Trial).

These Measures are formulated to strengthen the development of the energy production, supply, storage, and marketing system, better leverage the foundational role of long-term contracts in ensuring energy supply, and safeguard the legitimate rights and interests of all parties involved in supply and demand, as well as the public interest. The Measure establishes rules for the signing, performance, variation and supervision of medium- and long-term contracts intended to guarantee the supply of key energy commodities (coal for power generation, electrical energy and natural gas) within the territory of the People's Republic of China.
The Measures define the scope and minimum duration of contracts, identify obliged supply and demand parties for each sector, require market-based negotiation of contract quantity and price mechanisms, and encourage multi-year agreements.
Sector-specific provisions set signing-volume targets tied to regional or enterprise demand, require suppliers to secure resources to meet contracted volumes, and prescribe price adjustment mechanisms. The Measures prohibits diversion, resale or misappropriation of contracted coal resources and requires consideration of transport capacity when planning flows.