Luxembourg electricity bills set to rise in January

Household electricity bills in Luxembourg are set to go up by around 30% next year, according to the director of Encevo, the country’s largest energy group.

“Prices have not yet changed due to the legal ceilings,” Claude Seywert said on RTL radio, explaining that the price of electricity has risen consistently on the global market while Luxembourg residents have been protected by the energy price cap, a measure put in place by the government in 2022 to shield consumers from the Russian energy crisis. The cap will expire on 31 December, which is why prices are set to skyrocket in 2025.

The Endevo CEO’s comments add to those made on the radio a week ago by Fenn Faber, director of Klima-Agence: “A customer with an average consumption, who uses several household appliances at the same time, will have to expect a maximum increase of €200 to €300 per year.”

How much more people pay will depend on the intensity and frequency of their energy usage, Faber emphasised. A 30% rise represents around €250 to €300 more per year for an average family of four.

The Encevo and Klima-Agence predictions come as better news than expected this summer, when the Chambre des Salariés estimated the scaling back of aid from next year would see electricity prices go up 60%.

In addition to the wholesale price of electricity, taxes and the cost of using the grid also weigh on electric bill. A new pricing system for using the electricity grid will soon be introduced, with the Luxembourg regulator ILR taking part in the work.

New support for families in need

Prime Minister Luc Frieden has already announced that new measures will be adopted to lower the electricity bills of needy families after the current support ends this year.

One of the measures is the reinforcement of the prime énergie (energy supplement), which “will be tripled for current beneficiaries, progressively”.

In addition, the crédit d’impôt énergie (energy tax credit) for Revis beneficiaries will go up to €90 and the state will continue to cover part of energy costs for elderly people’s homes in 2025.

(This article appeared in Contacto. Translation and editing by Alex Stevensson.)