High energy prices: measures to help households and the state of play of efforts to reduce energy consumption

"In 2023, the government will continue to do its utmost 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", says Claude Turmes, Minister for Energy.

Reduction of energy consumption

In December, the reduction in natural gas consumption corresponded to about 18% compared to the reference period of the years 2017 to 2022, thus still well above the EU Member States' reduction target of 15% of natural gas demand.

"Despite a very cold December, the latest figures have once again shown that all actors, the state, the municipalities, the companies and the citizens, have consistently saved gas. I would like to thank everyone for their efforts to save energy", says Claude Turmes, and adds: "Even if we are on the right track, caution is still required: if temperatures are very low in the coming months, heating-related gas consumption could still increase significantly".

As for electricity consumption, it has been steadily decreasing since June 2022. In December, the decrease was -8.56% compared to the reference period of 2017 to 2022.

More information on energy saving efforts and tips for saving energy can be found at www.zesumme-spueren.lu.

New and extended subsidies to support households

Due to the energy crisis and the increase in prices, the Tripartite Agreement of 28 September 2022 provided for measures to counteract the exceptional increase in energy prices.

Please visit www.subventions-energie.lu for more information on these measures.

a. Temporary subsidy on electricity prices for households

The stabilisation of electricity prices for residential customers at the average level of 2022 for all residential customers with an annual consumption of less than 25,000 kWh will apply from 1 January 2023 and until 31 December 2023. This measure applies automatically, no action is required.

Please visit www.subvention-electricite.lu for more information.

b. Temporary subsidy of gas prices

The limitation of the increase in natural gas prices for residential customers to +15% compared to the average natural gas price level of September 2022 has been in force since October 2022 and until December 2023. This measure applies automatically, no action is required.

Please visit www.subvention-gaz.lu for more information.

c. Temporary subsidy on the sale price of wood pellets for households

The temporary reduction of the sale price for bulk wood pellets used for primary heating of households by 35% with a maximum amount of €200 incl. VAT per ton applies from 1 January 2023 to 31 December 2023 for orders placed by pellet suppliers registered in the designated register.

You must therefore check whether your supplier is already listed in the register before placing an order.

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

For more information and the register of listed pellet suppliers, please visit www.subvention-pellets.lu.

d. Temporary subsidy on the sale price of liquefied gas for households

The reduction in the sales price of liquified petroleum gas of €0.20 per kilogram for households using liquified petroleum gas in tanks (propane in bulk for household use) to heat their houses will apply automatically from 31 October 2022 to 31 December 2023. As with natural gas, this measure applies automatically, no further action is required.

Please visit www.subvention-gaz.lu for more information.

e. Temporary subsidy on the sale price of heating oil

The price reduction for heating oil (gas oil) came into effect on 1 November 2022 and will apply until 31 December 2023. This measure also applies automatically, no action is required.

Please visit www.subvention-mazout.lu for more information.

f. Temporary subsidy of the sales price of electricity for the benefit of users of publicly accessible charging stations for electric cars

The price reduction in favour of end-users of publicly accessible charging stations is applied from 1 January 2023 and until 31 December 2023 by mobility service providers registered in the designated register for all charging operations at charging stations on the territory of the Grand Duchy of Luxembourg.

You must therefore check whether your mobility service provider is already listed in the register.

The reduction is set at €0.33 (excluding VAT) per kWh.

Please visit www.subvention-electricite.lu for more information.

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

The legislative process is currently underway to introduce a temporary subsidy to limit the price for household customers connected to a district heating network to about +15% of the average price level in September 2022. This measure will apply retroactively from 1 October 2022 to 31 December 2023.

 Measures to accelerate the energy transition

a. Towards buildings without fossil fuels

For new buildings constructed after 1 January 2023, heat pumps will become the reference technology. This replacement of gas boilers by heat pumps is an important step towards zero carbon.

The ambitious goals for the insulation of buildings have been revised with the Grand-Ducal regulation of 9 June 2021 concerning the energy performance of buildings; more ambitious requirements for new construction of functional buildings with effect from 1 January 2023 and new minimum insulation requirements for all building types. Marc Feider, Vice President of OAI, welcomes the government's initiative to move towards buildings that do not need to rely on fossil fuels.

In addition, the bonus for the replacement of a fossil boiler is increased as part of the Klimabonus subsidy.

The subsidies for energy renovations are also being increased and the procedures simplified. For example, it is no longer necessary to call in a certified advisor for individual renovation measures; a certified craftsman can carry out the work.

Tom Oberweis, President of the Chamber of Skilled Trades and Crafts (Chambre des métiers), emphasised that "the craft industry is ready to play a key role in the implementation of the energy transition, especially in the field of photovoltaics and energy renovation". In particular, he noted that "the Chamber of Skilled Trades and Crafts, guides craft businesses and passes on new technologies and skills in the context of apprenticeships, master's degrees and further training. For example, the 'Nohalteg an d'Zukunft+' label offers specialised training courses to prepare craftsmen to become 'certified craftsmen' and thus enable crafts enterprises to act within the framework of the KlimaBonus programme. All these actions are meant to prepare the craft industry for the challenges of sustainable development and support its role as a key player in order to make Luxembourg's ecological transition a success.

b. Exceptional conditions for photovoltaic installations

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.

Finally, the extension of the eligible elements for the actual costs of a photovoltaic installation to a storage facility for the electricity produced (battery) has been applied since 1 January 2023.

More information on the measures to accelerate the energy transition can be found at www.klimaagence.lu or on 80 02-11 90.

Press release by the Ministry of Energy and Spatial Planning