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Energy in Luxembourg: The gas bill is soaring, the bill looks steep

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  • Reading time:40 mins read

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Energy in Luxembourg The gas bill flies away, the bill looks salty

LUXEMBOURG – Enovos carried out for The essential a theoretical calculation for a typical four-person household. The supplier predicts that the “painful” will increase from 3,050 to 5,400 euros per year.

The government invites residents to reduce their gas consumption.

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Enovos announced on Tuesday a “significant increase” in the price of gas. Consequently, the bill for households will soar. “For a typical four-person household with an average consumption of 3,300 m³ per year (36,300 kWh/year), the total annual cost including tax will amount to more or less 5,400 euros per year (without network costs, subsidized currently by the State), illustrates the energy supplier. Without state coverage of network costs, the price would amount to 6,070 euros/year (network costs included)”.

In comparison, the annual cost amounts to approximately 3,050 euros per year including tax without network costs, and 3,600 euros/year including tax with network, according to the current rate in force until the end of September (applied over twelve months) . “Either an increase of 77% (without network costs), or 68% (network costs included) for this theoretical calculation”, underlines Enovos.

The company specifies its future prices “will strongly depend” on the price of supply on the European wholesale markets, which remain for the moment “very nervous and unpredictable” due to the difficult geopolitical situation in Europe. Future prices “will also be influenced by the level of demand, which will be highly dependent on temperatures as well as consumption behavior, hence the importance of the energy savings that can be made by households which have a direct effect on the price level”, adds Enovos, which has set up a dedicated website.

+550%

For its part, SUDenergie had indicated at the beginning of August that the bill should almost double, with an expected increase of 80 to 90% before winter.

For its part, Electris explains that its purchase prices for energy needs for the 2022 calendar year increased by 550% between February and August of this year. As such, the price traded on the stock exchange has gone from around 60 euros/MWh in February to 340 euros/MWh today. “Prices for consumers can be expected to increase in 2023, if the current extreme price level in the market persists”, explains the company, without however being able to make a forecast of the actual cost increases for population.

How is Luxembourg warmed?

Natural gas is the most common heating method in Luxembourg. According to figures from Statec for the year 2020, 60% of households in the Grand Duchy use it. Fuel oil (20%) follows by far, ahead of electricity (17%). Finally, the pellet, which is currently experiencing a shortage, only concerned 3% of Luxembourg households in 2020.