Eurostat figures indicate the Grand Duchy has seen the biggest increase in energy prices since the beginning of the year. MPs in the Chamber of Deputies have proposed solutions to help alleviate fuel poverty.

On Thursday afternoon, energy poverty was at the centre of discussions in the Chamber of Deputies during the current affairs hour requested by the Christian Social People’s Party (CSV).

It was stated more than once that Luxembourg had recorded the highest increase in energy prices since the beginning of the year. While prices are also rising in other countries, Luxembourg is experiencing the greatest increase by far. Minister for Energy Claude Turmes explained why, according to Eurostat, Luxembourg is in first place.

Turmes explained that since Luxembourg is the European country with the lowest taxes on diesel and petrol, it is “obvious” that when prices on the world market rise, the Grand Duchy is the country with the highest increase - relatively speaking at least. The minister added that Eurostat ultimately says “nothing other than that Luxembourg has the lowest taxes on diesel and petrol in Europe” and that is why the increase is so high in the Grand Duchy.

Turmes said that solidarity should be shown towards the people who suffer most from this increase and that, for instance, no one would have their gas or electricity supply cut off this winter.

In order to be less dependent on fossil fuels, the government would, for example, work on three concrete points in the area of home renovation: less bureaucratic bonuses, pre-financing via a voucher, and social modulation to ensure that lower incomes obtain more premiums, explained Claude Turmes.

Solutions proposed by MPs

As such, the debate focussed less on the causes of the price increase, but rather on potential ways to help those worst affected by them.

MP Gilles Roth from the CSV stated that instead of continuously telling people what they are not allowed to do, politicians should rather try to take care of the existing worries of the population. The “explosion” of energy prices, housing prices, and the risk of poverty is revealing itself to be “an increasingly substantial tax burden”, especially for the “broad middle class”, according to Roth.

Green Party MP François Benoy stressed that the issue of poverty “in general” must be mitigated “at its core”. According to Benoy, this mainly requires a fairer fiscal policy.

Lower income households must be generally supported so that situations like the current spike in fuel prices do not affect them as much, the MP explained.

Meanwhile, MP Fred Keup from the Alternative Democratic Reform Party (adr) stated that while his party has acknowledged that the government does not intend to withdraw the CO2 tax, the adr now has a different demand instead: The increases planned to enter into force in 2022 should be postponed by a year.

Read also: Carbon tax in 2022: Here's how high Luxembourg's fuel tax will be

The Chamber of Deputies passed a motion by the majority parties, which demands that the situation regarding energy poverty should be monitored while it should also be assessed whether further measures are required to relief low-income households and enable them to benefit from energy-related bonuses.