However, it will be some time before retail customers notice a cost difference. On Wednesday morning, the country’s three gas suppliers Enovos, Sudenergie, and Electris were invited to a meeting of a parliamentary committee.
Aside from the fact that suppliers make long-term purchases, the government’s gas price cap is also still in effect, as Alain Fürpass, the director of Sudenergie, pointed out. Fürpass noted that prices have dropped considerably since October, from 171 cents/m3 to 105 cents/m3. The gas price cap is already triggered at 83 cents/m3.
Luxembourg’s residents have also saved a lot of gas, just like the rest of Europe. Authorities in the Grand Duchy have recorded gas savings of 26% between August and March compared to the previous five years. This is due in part to the mild winter, but it is also because the public has become more aware of the importance of conserving energy: Turning the heater down by one degree already leads to a 6% drop in consumption. As a result, the budget earmarked by the state for the gas price cap was not fully depleted. Minister for Energy Claude Turmes is likewise hopeful for 2023, predicting that the €390 million budget for gas price subsidies will not be fully used.
However, caution is still advised, according to Claude Simon, head of the Energy Sales department at Enovos. Simon noted that there is still a war in Europe, and that a technical issue is enough to cause renewed supply bottlenecks. There is still a risk of shortages, if Luxembourg were to experience a particularly cold winter.
The gas price cap will remain in effect until 2024. Luxembourg, like the rest of Europe, plans to reduce its gas usage by 15% this year.
