If Luxembourg scraps the energy price cap, Statec predicts a price increase of around 60% for electricity in 2025.
Earlier this week Prime Minister Luc Frieden announced a new price cap on electricity in the near future, in which the State would cover half of the projected price increase.
The government will also introduce three targeted measures to support people on low incomes. The energy subsidy is to be tripled for current beneficiaries, and then will progressively decrease.
This means that a 4-person household with an overall income of up to €6,800 will receive an energy bonus of €1,050 next year, instead of €350. A single person earning up to €3,200 will be entitled to a bonus of €600, up from €200.
4-person households earning just over €7,000 are currently not entitled to any bonuses, but would be entitled to an energy subsidy of €525 in 2025.
The energy tax credit for people on social inclusion income (REVIS) will be increased to €90. The government also plans to partially contribute to energy costs for nursing homes in 2025.
