Image d'illustration / © Fré Sonneveld / Unsplash
After noticing that electricity prices have surged, the Luxembourg Regulatory Institute (ILR) has urged consumers to compare electricity suppliers in order to get the best deal.
The ILR has noted a significant increase in electricity prices in January 2020. Costs have surged by 10%, equating to an additional €80 a year for a household with an average consumption of 4,000 kWh. The increase is due to a combination of three elements that make up the final electricity bill all increasing, namely:
- the price of energy, which includes the electricity supply, administrative fees, and commercialisation costs (increasing by 13%),
- grid-usage tariffs, which cover the cost of transporting electricity (increasing by 7%),
- and taxes and fees (increasing by 10%).
As with any other consumer products, it would be wise to compare prices before choosing a supplier. Ever since the electricity and natural gas market was liberalised in 2007, every consumer has the right to choose the supplier and offer that best fits their needs.
Consumers can compare gas and electricity offers on www.calculix.lu. This could help consumers play on competition and avoid an increase in their electricity bills. Differences between suppliers for a consumption of 4,000 kWh can reach up to €83.
Changing electricity supplier is easy, free, and involves very few administrative processes and no technical installations. Consumers could also opt to produce their own electricity with the help of solar panels. As of 1 January 2020, consumers hoping to produce their own electricity can benefit from fees being waived, allowing them to save 16 cents per kWh autoconsumed.