Energy Prices: New Household Subsidies Announced – How do sanctions impact?

Energy
Luxembourg Source:

On Thursday 22 December 2022, Luxembourg’s Ministry of Energy and Spatial Planning announced that, given the current energy crisis and price increases, the tripartite agreement of 28 September 2022 provides for measures aimed at countering the disproportionate increase in energy prices; earlier in the day, the Chamber of Deputies adopted three laws – unanimously – which introduce aid for households:

– the price of electricity for households is stabilised at 2022 levels for the year 2023;

– a temporary reduction in the sale price of wood pellets used for primary household heating is introduced from 1 January 2023;

– the prices for charging electric vehicles at charging stations accessible to the public are stabilised for the year 2023.

More information on all the measures can be found on www.subventions-energie.lu.

1. Measures adopted on 22 December 2022

Temporary electricity price subsidy for households: The stabilisation of electricity prices for residential customers on average at their 2022 level, for all residential customers with an annual consumption of less than 25,000 kWh, applies from 1 January 2023 until 31 December 2023. This measure applies automatically, no action is required.

Temporary subsidy of the sale price of wood pellets (pellets) for households: The temporary reduction in the sale price of bulk wood pellets, used for the primary heating of households, up to 35%, with a maximum amount of €200 including tax per tonne, applies from 1 January 2023 to 31 December 2023 for orders from registered pellet suppliers (it is therefore necessary to check whether your supplier is already on the register before placing an order). The reduction applies for deliveries of wood pellets in bulk, by tank truck, across the Grand Duchy of Luxembourg to single-family homes, with a maximum amount of 5 tonnes per delivery and to residences (at least two units housing), with a maximum quantity of 10 tonnes per delivery.

Temporary subsidy of the sale price of electricity for the benefit of users of charging stations for electric cars accessible to the public: The price reduction for the benefit of end users of charging stations accessible to the public will be applied from 1 January 2023 to 31 December 2023 for all stations located withon the Grand Duchy of Luxembourg. The reduction is limited to a maximum amount excluding tax of €0.50 per kilowatt hour.

2. Measures already introduced and extended

Temporary gas price subsidy for households: 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 will apply from October 2022 to December 2023. This measure applies automatically, no action is required.

Temporary subsidy of the sale price of liquefied petroleum gas for households: The reduction in the selling price of liquefied petroleum gas (LPG) to the tune of €0.20 per kilogram for households using liquefied petroleum gas in tanks (bulk household propane) for heating their buildings applies automatically from 31 October 2022 to 31 December 2023. As with natural gas, this measure also applies automatically, no action is required.

Temporary subsidy of the sale price of heating oil for households: The reduction in the price of heating oil (fuel oil) came into force on 1 November 2022 and will remain in effect until 31 December 2023. This measure also applies automatically, no action is required. The website www.subvention-mazout.lu provides information on the details of the measure.

3. Measure during the legislative procedure

Temporary price subsidy for the supply of heat for households connected to a district heating network: The legislative procedure is underway to introduce the temporary subsidy aimed at limiting the price for residential customers connected to a district heating network to around +15% compared to the average price level in September. However, it will apply retroactively from 1 October 2022 to 31 December 2023.

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