On Wednesday 23 November 2022, the Chamber of Deputies (Luxembourg's parliament) adopted a bill aimed at limiting the increase in natural gas supply prices for households.
The Chamber of Deputies adopted bill 8088 instituting a state contribution aimed at limiting the increase in natural gas supply prices for certain end customers and amending the law of 17 May 2022 on the payment by the State of the costs generated by the use of the natural gas distribution networks.
This bill follows the exceptional increase in gas prices, which prompted the Luxembourg Government to decide to limit the increase in natural gas prices for residential customers to +15% compared to the average price level of natural gas from September 2022.
In total, the budgetary impact is estimated at approximately €500 million.
Luxembourg's Ministry of Energy and Spatial Planning has specified that this measure applies automatically; no action from the consumer is required. It applies from 1 October 2022 until 31 December 2023.
The state will also continue to bear the gas network costs until the end of December 2023.
For more information on limiting the increase in natural gas prices for residential customers, the Energy Ministry has set up a dedicated website: www.subvention-gaz.lu.
The ministry added that this state contribution is an exceptional measure in an exceptional context. It is direct aid to support all households as part of an inflation reduction strategy. The ministry argued that only everyone's contribution to saving gas will enable Luxembourg to continue to achieve a 15% reduction in natural gas demand during the winter months.
At the same time, all efforts to accelerate the energy transition towards renewable energies and energy efficiency will, according to the ministry, remain essential in order to continue to reduce dependence on countries that export fossil fuels, to fight against rising prices and to achieve the climate goals.