Luxembourg to extend energy subsidies into 2026

Luxembourg will continue to subsidise electricity costs next year in a bid to help lower energy bills for companies and households, Prime Minister Luc Frieden said on Thursday, following the final government council meeting before the summer recess.

The state will cover part of the electricity grid charges, which will cost the taxpayer €150 million, Frieden said at a press conference.

“As the state will cover approximately €150 million, we are confident that electricity prices for consumers will remain stable or only increase slightly in the coming year,” he said, adding the measures will apply to both residents and companies.

The new law is still to be approved by parliament but is scheduled to come into force in 2026, Energy and Economy Minister Lex Delles told the Luxemburger Wort. “This law will only be valid for one year, so we can be flexible for 2027 and 2028 if necessary,” Delles added.

The existing law is valid until 31 December and offers a €171 million buffer to help firms and households with rising energy bills.

Meanwhile, Frieden also addressed the issue of negotiations between the government and trade unions and employers’ representatives over planned reforms in areas such as pensions and shop opening hours. The sides have agreed to resume talks on 3 September.

“I would have preferred to have completed the whole thing in the summer. However, we are not in a crisis like the financial crisis or the coronavirus pandemic, which required quick decisions,” Frieden said.

(This article was originally published by the Luxemburger Wort. Machine translated, with editing and adaptation by John Monaghan)