As Luxembourg prepares for the forthcoming recalculations of electricity pricing related to grid usage, Klima-Agence Director Fenn Faber shared insights during an interview with our colleagues from RTL Radio.
Fenn Faber, Managing Director of Klima-Agence, the national body responsible for promoting a sustainable energy transition, spoke with our colleagues from RTL Radio on Tuesday about the upcoming changes to electricity pricing linked to grid usage.
Last week, the Luxembourg Regulatory Institute (ILR) announced that grid usage pricing would be recalculated in 2025. Faber explained that the pricing will depend on the intensity of grid use rather than the specific times at which electricity is consumed.
"For a significant portion of customers, there will be no change, and some may even see a reduction in their bills," Faber stated. However, he also noted that customers with average consumption who operate multiple appliances simultaneously could face a maximum annual increase of €200 to €300. The pricing will be based on past consumption patterns.
Faber highlighted that this applies particularly to major household appliances, such as washing machines, cookers, saunas, electric vehicles, and heat pumps. He advised consumers to "spread out" their use of these devices throughout the day, stating, "There’s no need to get worked up."
"It's always better to drive non-fossil than fossil"
Faber further emphasised the importance of investing in photovoltaics, despite the rising price of electricity and the expected lowering of the energy price cap next year. He concluded, "It’s always better to drive non-fossil than fossil," noting that using electricity is more efficient and adds value.
Faber stated that government financial support for investments in renewable energy and electromobility in Luxembourg remains "extremely attractive" by international standards, despite recent reductions.
The changes to grid usage charges are part of Luxembourg's and the EU's efforts to accelerate electrification in order to achieve greater energy independence, ensure security of supply, and meet climate targets. This transition requires the development of new infrastructure, which comes at a cost. Under the new pricing mechanism, those who place the greatest demand on the grid will bear a larger share of the costs.
Watch the full interview in Luxembourgish:
