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Housing and rent

Heating and electricity in Luxembourg

The cost of gas and electricity in Luxembourg constitutes one of the primary fixed expenses that households and businesses must manage monthly. Understanding the various providers and securing the best prices are essential steps for effectively managing these costs. In this article, we aim to shed light on this important topic, providing you with valuable insights into the gas and electricity landscape in Luxembourg.

Last time updated
12.08.24

Gas and electricity prices can vary significantly due to a multitude of factors. It's not enough to simply choose a plan with the lowest market price; it's crucial to consider other elements such as the terms of price evolution, whether the price is fixed for a certain period or fluctuates freely with the market.

Luxembourg electricity bills and prices

The cost of electricity is influenced by various factors, both macroeconomic and market specific. Let's explore these factors to gain a clearer picture of what determines electricity prices in Luxembourg.

What affects it?

One of the most significant macroeconomic factors affecting electricity prices is global geopolitical events. For instance, the war in Ukraine has had a substantial impact on energy markets worldwide. This conflict has disrupted supply chains and increased uncertainty in energy markets, leading to price volatility. Global economic conditions, inflation rates, and exchange rates also play crucial roles in determining electricity prices.

The electricity is also influenced by market specific factors, the electricity market operates on both spot and forward contracts, which influence the prices consumers ultimately pay.

Spot Market and Day-Ahead Prices

The spot market, also known as the wholesale market, is where electricity is bought and sold for immediate delivery. The "day-ahead" price is a key component of the spot market. The spot price is set the day before the electricity is actually delivered and consumed. This price fluctuates based on supply and demand dynamics, weather conditions, and the availability of renewable energy sources. High demand or low supply can lead to higher day-ahead prices, while the opposite conditions can lower prices.

Forward Markets and Term Prices

In addition to the spot market, there are forward markets where electricity prices are set for future delivery dates. These are known as term prices or futures contracts. Market participants can lock in prices for electricity to be delivered months or even years ahead. This helps manage price risk and provides some stability in planning for both providers and large consumers. However, these prices can also be influenced by long-term expectations of supply and demand, regulatory changes, and broader economic forecasts.

Current electricity prices in Luxembourg in 2024

As of mid-2023, the rate stood at 0.2015 euros per kilowatt-hour (kWh). Remarkably, these prices have remained relatively stable over the past few years despite various macroeconomic challenges. This stability is particularly notable given the broader context of rising energy prices across Europe.

Screenshot 2024-06-26 at 11.15.17.png
Source: Eurostat

Since 2021, the average electricity prices in Europe have been on an upward trajectory. This increase was significantly exacerbated in 2022 by the conflict between Russia and Ukraine, which caused disruptions in energy supply chains and heightened market volatility. However, Luxembourg has managed to keep its electricity prices much lower than the European average, offering a degree of relief to its residents and businesses.

Comparison of Luxembourg's electricity prices with other EU countries​​​​

To fully understand the electricity price in Luxembourg, it's essential to compare it with the prices in other European countries. Eurostat provides valuable insights in this regard, revealing that Luxembourg is positioned relatively well within the European framework. Its electricity prices fall into the middle range, not among the highest but also not the lowest.

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Source: Eurostat

Firstly, it is interesting to see how Luxembourg compares with its neighboring countries and in this area, we see that Luxembourg comes out well with prices lower than all of them.

  • Germany: 0.402 euros/kwh
  • Belgium: 0.3778 euros/kwh
  • France: 0.2591 euros/kwh
  • Netherlands: 0.2515 euros/kwh
  • Luxembourg: 0.2015 euros/kwh
Highest electricity prices in Europe
Lowest electricity prices in Europe
Electricity
Bills
Luxembourg
How to pay utility bills in Luxembourg: electricity, gas, water
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Luxembourg gas prices

The prices of gas in Luxembourg are influenced by a combination of global, regional, and local factors.

Global
On a global scale, international gas and oil prices play a crucial role. Geopolitical tensions in gas-producing regions also have a significant impact. In Europe, the regulatory framework of the European Union, storage and transportation capacities, supply diversification, and the carbon emissions market are key determinants affecting gas prices.
Local
Locally, national energy policies, internal demand, distribution costs, and market competition are pivotal. These factors directly influence the prices that consumers in Luxembourg experience.
Other
Additionally, the transition towards renewable energy and measures to combat climate change impact long-term gas demand and prices. Government subsidies and financial aid can also affect the final costs for consumers.

Current gas prices in Luxembourg

As of mid-2023, gas prices in Luxembourg were approximately 0.0850 euros per kilowatt-hour. This represents a considerable increase since mid-2021. Despite this rise, Luxembourg's gas prices remain lower than the European average, which stood at 0.1125 euros per kilowatt-hour in mid-2023.

Screenshot 2024-06-26 at 11.25.52.png
Source: Eurostat

Comparison of Luxembourg's gas prices with other EU countries​​​​

Now, in addition to prices in Luxembourg it is also important to understand how gas prices in Luxembourg compare with prices in other European countries. Eurostat helps us to see more clearly in this regard and shows us that as with electricity prices Luxembourg is positioned relatively well within the European framework with prices in what we could call a middle range, which are not the most expensive but not the cheapest.

When comparing Luxembourg's gas prices with its neighboring countries, Luxembourg fares well with lower prices than all its neighbors:

  • Netherlands: 0.1500 euros/kWh
  • France: 0.1181 euros/kWh
  • Germany: 0.1145 euros/kWh
  • Belgium: 0.0994 euros/kWh
  • Luxembourg: 0.0850 euros/kWh
Highest gas prices in Europe
Lowest gas prices in Europe

Electricity and gas providers in Luxembourg

There is a wide variety of electricity and gas providers in Luxembourg, making comparison a complex task. Many factors influence the decision beyond the price per kilowatt-hour. For instance, the final price comprises both a fixed part and a variable part. A plan with a low variable price may be attractive for someone with high consumption, while someone with low consumption might prefer a plan with a lower fixed part, even if the variable part is higher.

Where to look for benefits?

Other factors such as discounts for new customers and additional benefits also exist. To navigate these complexities, specialized websites like Calculix can help. They incorporate various factors into their analyses to provide comprehensive comparison tables tailored to your needs and preferences.

Principle providers in Luxembourg

Here are some of the principal electricity and gas providers in Luxembourg and their overview. For each we will present the current plans and prices, however, since prices vary constantly we recommend that you visit each provider's website directly.

Sudstroum

Sudstroum was established in 2007 when a European directive required the City of Esch to outsource its electricity supply services to a private company. On July 1, 2008, Sudstroum took over all the clients of the City of Esch and began providing electricity to these customers.

The national liberalization law allowed Sudstroum to supply clients outside its electricity network. As a result, Sudstroum now supplies at least one client in each of Luxembourg's twelve cantons.

Energy prices valid from January 1st 2024
PlanEnergy Premium (euros/year)Energy consumption per day (euros/kWh)
TERRA ONLINE240.15.99
TERRA INVEST ONLINE240.16.39
Network usage cost of the grid manager
LV (low tension)From January 1st, 2024 
40A – 120A0.0750 euros / kWh
40A181.92 euros/year
50A210.12 euros/year
63A320.64 euros/year
80A368.64 euros/year
100A425.04 euros/year
120A742.68 euros/year
supplement for 20A tranche56.40 euros/year
Contact information

Enovos

Enovos is a leading energy and gas company in Luxembourg with a history dating back to 1928, when Cegedel was founded to distribute electricity. In 2009, Enovos International was established following the restructuring of Soteg and the acquisition of Cegedel and Saar Ferngas. This restructuring led to the formation of Enovos Luxembourg and Creos Luxembourg.

Since 2011, Enovos has focused on green energy with the launch of "naturstroum," a product that emphasizes renewable energy sources. The company has significantly expanded its renewable infrastructure with photovoltaic projects starting in 2012. Enovos continues to innovate, providing sustainable energy solutions to meet the evolving needs of its customers.

Energy prices in Enovos
PlanPrice
Plan naturstroum0.18736 euros/kWh
Plan nova naturstroum0.19086 euros/kWh
Monthly premium home4 euros/month
Monthly premium home connect1.5 euros/month
Gas prices in Enovos
Billed natural gas price0.78170 euros/m3
Monthly premium0.30 euros/kW installed
Contact information

Electris

This is an energy company based in Mersch, Luxembourg, offering electricity, gas, and e-mobility solutions. As an energy provider, Electris focuses on supplying electricity and gas to both residential and commercial customers, with flexible and fixed tariff options.

The company is also distinguished by its commitment to sustainability and e-mobility, providing products and services to charge electric vehicles with 100% green and certified energy.

Electris offers a range of plans to cater to different consumption needs:

  • Switch FLEX: A variable price plan for electricity.
  • Switch Gas FLEX: A variable price plan for gas.
  • Switch FIX1: A fixed price plan for electricity.
  • Switch Gas FIX1: A fixed price plan for gas.
Contact information

Support and subsidies for gas and electricity in Luxembourg

In Luxembourg, support and subsidies play a crucial role in ensuring equitable access to essential utilities like gas and electricity. These initiatives aim to alleviate energy costs for vulnerable households, promote energy efficiency measures, and encourage the adoption of renewable energy sources.

Knowing the available support mechanisms is essential to optimize energy use and manage costs effectively, below we will present some of the most important subsidies

Measures of support for households and who can help?

To assist households amid the exceptional increase in electricity prices due to tense market conditions, the Luxembourg government has implemented a state contribution measure to stabilize electricity prices for residential customers.

This measure applies to all customers with an annual consumption of less than 25,000 kWh. It is automatically applied from January 1, 2023, to December 31, 2024, requiring no action from customers.

For perspective on the savings generated by this measure, consider that for a typical apartment with an annual consumption of 3,500 kWh, the announced electricity price increase by suppliers would have resulted in additional costs of approximately 430 euros per year. Similarly, for a typical single-family home consuming 5,000 kWh annually, the price increase would have amounted to about 610 euros in additional annual costs.

Klima-Agence
Energieagence
National Energy and Climate Plan (PNEC)

These financial incentives are part of Luxembourg's efforts to promote sustainable energy transitions and significantly reduce energy consumption and CO2 emissions through initiatives like the "Clever Wunnen" program under "Gréng Relance fir Lëtzebuerg”.

faq

Frequently Asked Questions (FAQ)

How do gas and electricity prices in Luxembourg compare to other European countries?

How can I switch electricity or gas providers in Luxembourg?

Are there government subsidies or financial assistance available for gas and electricity costs in Luxembourg?

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