Germany and France have agreed to draft rules despite differing opinions on the effect of contracts for difference (CfDs) on energy markets.

EU energy ministers have agreed draft rules for using CfDs after political disagreement had previously prevented power market reform.

The European Parliament will begin discussing the reform on Thursday and ministers hope to reach an informal deal by the end of the year.

Late on Tuesday evening, Teresa Ribera, the Spanish Energy Minister, told reporters: “We have achieved an agreement that would have been unimaginable only a couple of years ago. Thanks to this agreement, consumers across the EU will be able to benefit from much more stable prices of energy, less dependency on the price of fossil fuels and better protection from future crises. We will also accelerate the deployment of renewables, a cheaper and cleaner energy source for our citizens.”