Luxembourg's Government Council (Cabinet) has adopted a package of measures aimed at accelerating the energy transition of households.

On Friday 11 November 2022, the Government Council approved a package of measures on which the government and the social partners agreed within the framework of the tripartite agreement "Solidaritéitspak 2.0", aimed at accelerating the transition of households to renewable energies and the reduction of household dependence on fossil fuels.

All these measures will enter into force subject to the finalisation of the legislative procedure.

Stabilisation of electricity prices

To support households following the exceptional rise in electricity prices due to the tense situation on the electricity markets, the government has introduced a state contribution measure in order to stabilise electricity prices on average for residential customers at their 2022 level for all residential customers with an annual consumption of less than 25,000 kWh.

This measure applies automatically from 1 January 2023 until 31 December 2023.

Limiting the increase in natural gas prices

Following the exceptional increase in gas prices due to geopolitical circumstances linked to the invasion of Ukraine by Russia, the government has also decided to limit the increase in natural gas prices for residential customers to +15% compared to the average natural gas price level of September 2022.

This measure applies automatically; no action is required. It already applies from 1 October 2022 until December 2023. The state will also continue to bear the network costs until the end of December 2023.

Reduced price per litre of heating oil

The government has decided to extend, until the end of December 2023, the temporary reduction in the selling price of heating oil by 15 cents per litre (including tax), and this already since 31 October 2022.

As with the other measures, this reduction applies automatically; no action is required.

Reduction in the price of liquefied petroleum gas

In the same vein, the price of liquefied petroleum gas is reduced by 20 cents per kilogram during the period from 31 October 2022 to 31 December 2023.

Temporary subsidy of the sale price of wood pellets for households

The government has also decided to introduce a temporary reduction in the sale price of bulk pellets used for primary heating of up to 35%, with a maximum amount of €200 per tonne (including tax).

The reduction applies for deliveries to the territory of the Grand Duchy of bulk wood pellets by tanker to private households, with a maximum amount of 5 tonnes per delivery, and to residences (at least two residential units), for a maximum quantity of 10 tonnes per delivery.

This measure applies automatically from 1 January 2023 to 31 December 2023 for pellet suppliers registered in the register provided for this purpose.

"Klimabonus wunnen" top up

The government in council also approved a bill and a draft grand-ducal regulation aimed at modifying the provisions of the "Klimabonus wunnen" financial aid scheme on an ad hoc basis. These are supplemented by an additional adaptation concerning photovoltaic installations.

This represents an increase from 30% to 50% of the "replacement bonus", increasing the "Klimabonus" financial aid allocated in the case of the replacement of an existing fossil fuel-fired boiler combined with an improvement in the energy performance of the heating system by a heating system based on renewable energy (heat pump, hybrid heat pump and wood boiler). This measure is valid for any installation ordered between 1 November and 31 December 2023.

This also includes a supplement of 25% (top up) on the financial aid allocated for photovoltaic installations operated for self-consumption or as part of an energy community. This measure is valid for all orders placed between 1 January 2023 and 31 December 2023.

A 25% top up on the financial aid allocated for sustainable energy sanitation is also valid for any request to obtain an agreement in principle made between 1 November 2022 and 31 December 2023.

In addition, the storage facilities for the electricity produced by a photovoltaic installation will be now covered among the items eligible for the effective costs of a photovoltaic installation, provided that this storage installation is built at the same time as the photovoltaic installation.

For more information about ways of reducing energy consumption, visit the website