1. Temporary electricity price subsidy
The stabilisation of electricity prices for residential customers at their average 2022 level and for all residential customers with an annual consumption of less than 25,000 kWh applies from 1 January 2023 to 31 December 2023. This measure applies automatically, meaning that no action is required.
2. Temporary gas price subsidy
The cap of the natural gas price increase for residential customers to +15% compared to the average level of September 2022, applies from October 2022 to December 2023. This measure applies automatically, so no action is required.
3. Temporary pellet price subsidy
The temporary price reduction of 35% on wood pellets used for primary heating in households up to a maximum of €200 per tonne (including VAT) applies from 1 January 2023 to 31 December 2023 for orders from registered suppliers. It is advised that people check whether their supplier is already on the register before placing an order.
The reduction applies to deliveries of wood pellets in bulk by tanker to single-family houses on the territory of the Grand Duchy with a maximum amount of five tonnes per delivery. The same applies to apartment buildings (at least two dwelling units) with a maximum amount of 10 tonnes per delivery.
4. Temporary liquefied-petroleum gas subsidy
The reduction in price of liquefied petroleum gas by €0.20 per kilogram for households using tanks (household bulk propane) for heating their homes applies automatically from 31 October 2022 to 31 December 2023. As with natural gas, no action is required to benefit from the measure.
5. Temporary heating oil subsidy
The reduction in the price of heating oil came into force on 1 November 2022 and will remain so until 31 December 2023. This measure also applies automatically, no additional action is required.6. Temporary subsidy of electricity benefitting users of publicly accessible charging points for electric cars
The price reduction benefitting users of publicly accessible charging points is applied from 1 January 2023 to 31 December 2023 by mobility service providers in the register and located in Luxembourg. Individuals are advised to check whether their mobility service provider is already on this register.
The reduction is set at €0.33 (excl. VAT) per kilowatt-hour.
7. Temporary heat supply subsidy for households connected to a district heating network
The legislative procedure is underway to introduce a temporary subsidy to limit the price for residential customers connected to a district heating network to approximately +15% compared to the average price level in September 2022. This measure will apply retroactively from 1 October 2022 to 31 December 2023.
1. Towards buildings without fossil fuels
Heat pumps become the new reference technology for buildings constructed after 1 January 2023. This replacement of gas boilers is considered an important step towards zero carbon emissions.
The ambition on building insulation was revised with the Grand Ducal Regulation of 9 June 2021 on energy performance for buildings. Requirements for the construction of new functional buildings were increased, requiring new minimum insulation requirements for all building types with effect from 1 January 2023.
Marc Feider, vice president of the Order of Architects and Consulting Engineers (OAI), welcomes the government’s initiative to move towards buildings that no longer rely on fossil fuels.
In addition, the bonus for the replacement of a fossil boiler is increased thanks to the framework of the ‘Klimabonus’ grants.
Subsidies for energy renovations are also being increased and procedures simplified. For instance, it is no longer necessary to call in a certified advisor for individual renovation measures, a certified craftsman can carry out the work.
2. Exceptional conditions for photovoltaics
Subsidies for photovoltaic installations for self-consumption ordered from 1 January 2023 onwards have been increased. Additionally, a reduced VAT rate of 3% has been applied to new photovoltaic installations since 1 January 2023.
Finally, the extension of actual costs involved in the installation of a photovoltaic storage facility for produced electricity (battery) is applied since 1 January 2023.
Minister for Energy Claude Turmes pointed out that December 2022 was a particularly cold month. For this reason, a decrease in gas consumption equivalent to previous months, around 30%, was not achieved in December.
Read also: Luxembourg gas consumption down 18% in DecemberA drop in gas consumption is still particularly noticeable in the industrial sector, with a 45% drop compared to the average of the last five years in December. As industry accounts for only one third of national consumption, the overall savings are not so high. For buildings, both private homes and offices, gas consumption declined by 10%.
Efforts were also made in the area of electricity consumption, which went down by 8% in December.
The Minister for Energy admitted that the energy consumption of some buildings was only checked during the energy-saving awareness campaign. Turmes emphasised that conserving energy should always be done, not only in times of a crisis. The Greens politician hopes that the fight against waste will continue after the current crisis is overcome.
