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Encevo director Claude Seywert says electricity prices are unlikely to rise next year

Electricity prices are lower this year than in previous years and there is no reason to raise them at the moment, Seywert declared on Friday. He explained that the US-Israel war in Iran and the closure of the Strait of Hormuz had affected petrol prices. Although electricity prices rose in the short-term on the market, Enovos, the subsidiary of the Encevo group, had a mid-and long-term purchasing strategy. This involves an estimation alongside a certain amount of risk, as the group purchases electricity "slowly" in line with consumption. If they purchase too much, there is a risk of a loss when selling.

For 2026, the group has "purchased all it needs" and for 2027 it has purchased "a lot", according to Seywert. Encevo is therefore confident that nothing major will happen next year, at least in terms of "residential" electricity. For industry, it could be a different story, as they often operate in a short-term "spot market".

As for gas, however, Seywert was a little more cautious in his predictions, as the company has not yet purchased everything for 2027. Structurally, prices have gone up since Russia invaded Ukraine in 2022. It is hard to envisage a return to how things were before, as Russia exports a lot of gas to Asia, and has to divert it. In the end, it is a political decision by the European Union.

Political decisions in this country are up to the tripartite. Employers are demanding that inflation be curbed, but the director of Encevo said that it is not electricity and gas that are driving up prices today. Encevo could not do much, but if the state wanted to, it would be implemented. The state is already contributing 150 million euros to the network costs for at least another 3 years.

Also today

• The impending end of Luxembourgish milk processing at the EKABE dairy as "devastating" for affected farmers
• Luxembourg's public prosecutor's office has now launched a preliminary investigation into Dr Philippe Wilmes
• The Left (déi Lénk) has criticised the government for not introducing binding regulations on workplace heat rules, despite such rules already existing in other countries
• Stock markets have been mixed while oil prices fell again today on investor optimism of a peace deal extension in the Middle East
• A Russian drone struck an apartment building in NATO-member Romania early today, wounding two people
• A former German transport minister faces a perjury trial related to a failed scheme to charge foreign motorists highway tolls, a debacle that cost the government hundreds of millions of euros.

On air

The team were jaded, but still buzzing after an amazing night and performance at the Rotondes by Antony Szmierek, who was incredible.

Figure of the day

STATEC has now confirmed that a 2.5% wage indexation will be triggered on 1st June

• It had already been anticipated, but was officially confirmed by the National Institute of Statistics and Economic Studies (STATEC) on Friday morning: A wage indexation will be triggered on 1 June, resulting in a 2.5% increase in salaries and pensions.
• The inflation rate reached 2.3% in May, and the half-yearly average of the index crossed the required threshold of 1,038.79 points. As a result, salaries and pensions in Luxembourg will rise by 2.5% on Monday.

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