On Wednesday 31 August 2022, Luxembourg energy provider Enovos announced an increase in natural gas prices, coming into effect from October 2022.
For a typical household of four people with an average consumption of 3,300 m3/year (36,300 kWh per annum) the total annual cost including tax will amount to approximately €5,400 per year (without network costs, currently subsidised by the State). Without state coverage of network costs, the price would amount to about €6,070 per year (network costs included). With the current tariff in force until the end of September 2022, the annual cost amounted to approximately €3,050 per annum including tax (without network costs) and approximately €3,600 per year including tax (with network costs), hence an increase of 77% (without network costs), or even 68% (network costs included) for this theoretical calculation.
Enovos has further communicated that the future prices will strongly depend on the supply price on the European wholesale markets, which for the moment remain very unpredictable due to the difficult geopolitical situation in Europe. Enovos further noted that on the wholesale markets, the situation has been very tense for an year, i.e. since the summer of 2021, when the price per MWh was between €20 to €30 while the current prices are between €200 and €300 per MWh, therefore multiplied by a factor of ten or more.
Future market prices will also be influenced by the level of demand, which will be highly dependent on temperatures as well as consumption behaviour, hence the importance of the energy savings that can be achieved by households, will have a direct effect on the price level.
Enovos has set up a dedicated website to support its customers in their energy savings. More information is available online via: https://www.lets-save-energy.lu/.
