PARIS, April 3 (Reuters) - French utility EDF has signed 671 long-term electricity supply contracts under its new commercial policy, an executive said on Wednesday, suggesting demand for the firm's power has picked up.

The contracts are for a duration of four to five years and account for slightly more than 20 terawatt hours (TWh), a "considerable" volume, Marc Benayoun, executive director of the group in charge of EDF's Customer Centre told a Senate hearing.

EDF had said in February that the recent fall in power prices was hampering the signing of medium and long-term contracts with its customers, and that it had only sold a tiny portion of future power output, threatening its future finances.

EDF has also signed three letters of intent with energy-intensive customers, added Benayoun, with a view to concluding a total 10 TWh in "contracts for nuclear allocation" (CAPN).

The long-term CAPN contracts are part of a new policy that EDF agreed with the government in November and will enter into force in 2026.

The policy aims to stabilise electricity prices for retail and industrial customers at 70 euros ($75.78) per megawatt-hour (MWh) on average from 2026 when current contracts expire.

The current break even level for production costs is 60 euros/MWh.

The state and EDF plan to assess the viability of the new framework next month or in June. ($1 = 0.9238 euros) (Reporting by Benjamin Mallet. Writing by Dominique Patton; editing by David Evans)