New Support Measures Introduced for Households Amid Energy Crisis

Luxembourg's Minister of Energy, Claude Turmes, recently presented a series of new measures aimed at supporting households in the context of rising energy prices and drew up an inventory of national energy consumption reduction efforts.

"In 2023, the government continues to do everything to reduce the impact of the energy crisis on households, while accelerating and facilitating the energy transition in order to increase our resilience to future crises and to achieve our climate objectives," stated Minister Turmes.

Reduction of energy consumption

In December 2022, the reduction in natural gas consumption corresponded to approximately 18% compared to the reference period from 2017 to 2022, thus continuing to exceed the European Union's (EU) reduction target of 15%.

"Despite a month of December with very low temperatures for a few days, the latest figures have once again shown that all the actors - the State, the municipalities, companies and citizens - have significantly saved gas. I thank everyone for their efforts to save energy!", commented Minister Turmes, before adding: "Even if we are on the right track, caution still applies: if temperatures are very low in the coming months, the consumption of gas related to heating could still increase considerably."

Electricity consumption has been in continuous decline since June 2022. In December, there was a decrease of 8.56% compared to the reference period of 2017 to 2022.

New and extended subsidies to help households

To help households amid the energy crisis and rising prices, the tripartite agreement of 28 September 2022 provided for various support measures.

Temporary stabilisation of electricity prices

The stabilisation of electricity prices at their average level in 2022 applies automatically for all residential customers with an annual consumption of less than 25,000 kWh, from 1 January to 31 December 2023. More information is available online at www.subvention-electricite.lu.

Temporary gas price subsidy

The limitation of the increase in natural gas prices to +15% compared to the average price level in September 2022 applies automatically for residential customers from October 2022 until December 2023. The State will also continue to pay the network costs until the end of December 2023. Further information: www.subvention-gaz.lu.

Temporary subsidy on the sale price of wood pellets

The temporary reduction in the sale price of bulk wood pellets used for primary heating in households of up to 35%, with a maximum amount of €200 (including VAT) per tonne, applies from 1 January to 31 December 2023 for orders from pellet suppliers registered in the register provided for this purpose.

The reduction applies to deliveries of bulk wood pellets, by tank truck, on the territory of the Grand Duchy, to single-family households, with a maximum amount of 5 tonnes per delivery, and to residences (at least two housing units), with a maximum amount of 10 tonnes per delivery.

Further information: www.subvention-pellets.lu.

Temporary subsidy on liquefied petroleum gas price

The reduction in the selling price of liquefied petroleum gas to the tune of €0.20 per kilogram for households using liquefied petroleum gas in tanks (bulk household propane) for heating their homes applies automatically from 31 October 2022 to 31 December 2023.

Temporary subsidy on the sale price of heating oil

The reduction in the price of heating oil came into effect on 1 November 2022 and will remain in effect until 31 December 2023. This measure also applies automatically; no action is required. Further information: www.subvention-mazout.lu.

Temporary subsidy on the sale price of electricity for users of public electric vehicle charging stations

The price reduction for the benefit of end users of public charging stations for electric vehicles applies from 1 January to 31 December 2023. This relates to mobility service providers registered in the register provided for this purpose for all charges made on terminals located on the territory of the Grand Duchy. It is therefore necessary to check whether one's mobility service provider is already on the register. The reduction is set at €0.33 (excluding VAT) per kilowatt hour.

Temporary price subsidy on the supply of heat for households connected to a district heating network

The legislative procedure is underway to introduce a temporary subsidy aimed at limiting the price for residential customers connected to a district heating network to approximately +15% compared to the average price level of September 2022. This measure will apply retroactively from 1 October 2022 to 31 December 2023.

Measures to accelerate the energy transition

Moving towards buildings without fossil fuels

For new buildings, built after 1 January 2023, heat pumps are becoming the reference technology. For Luxembourg's Ministry of Energy and Spatial Planning, the replacement of gas boilers by heat pumps is an important step towards zero carbon.

The bonus for the replacement of a fossil boiler has been increased within the framework of the "Klimabonus" aid scheme.

Subsidies for energy renovations have also been increased and procedures simplified.

Tom Oberweis, President of the Chamber of Trades, highlighted that "craftsmanship is ready to play a key role in the implementation of the energy transition, particularly in the field of photovoltaics and energy renovation." He also presented the "Nohalteg an d'Zukunft+" label, which "offers specialised training to, among other things, prepare craftsmen to become 'certified craftsmen' and thus enable craft businesses to act within the framework of the KlimaBonus programme".

Exceptional conditions for photovoltaics

The subsidies for self-consumption photovoltaic installations ordered from 1 January 2023 have been increased and a reduced VAT rate of 3% has been applied to new photovoltaic installations since 1 January 2023.

The extension of the elements eligible for the actual costs of a photovoltaic installation to a storage installation for the electricity produced (battery) also applies as of 1 January 2023.

More information on the measures to accelerate the energy transition is available on www.klimaagence.lu.