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.
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
Forward Markets and Term Prices
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.
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.
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
At the top of the list for the highest electricity prices are countries like Germany, Ireland, Belgium, Liechtenstein, and Denmark, all with prices exceeding 0.35 per kWh euros.
As of the second half of 2023, ten countries with the most expensive electricity, including taxes and levies, are:
- Germany: 0.4020 euros/kwh
- Ireland: 0.3794 euros/kwh
- Belgium: 0.3778 euros/kwh
- Liechtenstein: 0.3587 euros/kwh
- Denmark: 0.3554 euros/kwh
- Cyprus: 0.3452 euros/kwh
- Italy: 0.3347 euros/kwh
- Czechia: 0.3151 euros/kwh
- Latvia: 0.2774 euros/kwh
- Austria: 0.2748 euros/kwh
On the other end of the spectrum, countries like Montenegro, Georgia, Bosnia and Herzegovina, Kosovo, and Türkiye have the lowest electricity prices, all below 0.1 euros per kWh.
Ten countries with the cheapest electricity in the second half of 2023, including taxes and levies, are:
- Bulgaria 0.1192 euros/kwh
- North Macedonia 0.1159 euros/kwh
- Hungary 0.1132 euros/kwh
- Albania 0.1089 euros/kwh
- Serbia 0.1046 euros/kwh
- Montenegro 0.0970 euros/kwh
- Georgia 0.0866 euros/kwh
- Bosnia and Herzegovina 0.0845 euros/kwh
- Kosovo* 0.0749 euros/kwh
- Türkiye 0.0562 euros/kwh
Luxembourg gas prices
The prices of gas in Luxembourg are influenced by a combination of global, regional, and local factors.
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.
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
At the top of the list are Sweden, Liechtenstein, Ireland, and the Netherlands all with prices above 0.15 euros/kwh. The 10 countries with the most expensive prices in the second half of 2023, considering the price including taxes and levies are:
- Sweden: 0.2070 euros/kwh
- Liechtenstein: 0.2053 euros/kwh
- Ireland: 0.1638 euros/kwh
- Netherlands: 0.1500 euros/kwh
- Austria: 0.1477 euros/kwh
- Lithuania: 0.1454 euros/kwh
- Portugal: 0.1374 euros/kwh
- Italy: 0.1347 euros/kwh
- Denmark: 0.1220 euros/kwh
- France: 0.1181 euros/kwh
At the bottom of the list are Serbia, Croatia, Hungary, Georgia and Türkiye all with prices below 0.05 euros/kwh. The 10 countries with the cheapest prices in the second half of 2023, considering the price including taxes and levies are:
- Poland: 0.0730 euros/kwh
- Bulgaria: 0.0703 euros/kwh
- Slovakia: 0.0611 euros/kwh
- Romania: 0.0558 euros/kwh
- Bosnia and Herzegovina: 0.0514 euros/kwh
- Serbia: 0.0489 euros/kwh
- Croatia: 0.0457 euros/kwh
- Hungary: 0.0335 euros/kwh
- Georgia: 0.0177 euros/kwh
- Türkiye: 0.0161 euros/kwh
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.
Plan | Energy Premium (euros/year) | Energy consumption per day (euros/kWh) |
TERRA ONLINE | 24 | 0.15.99 |
TERRA INVEST ONLINE | 24 | 0.16.39 |
LV (low tension) | From January 1st, 2024 |
40A – 120A | 0.0750 euros / kWh |
40A | 181.92 euros/year |
50A | 210.12 euros/year |
63A | 320.64 euros/year |
80A | 368.64 euros/year |
100A | 425.04 euros/year |
120A | 742.68 euros/year |
supplement for 20A tranche | 56.40 euros/year |
Contact information
- Phone: (+352) 2 67 83 78 76 86
- Mail: backoffice@sudstroum.lu
- Website: sudstroum.lu
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.
Plan | Price |
Plan naturstroum | 0.18736 euros/kWh |
Plan nova naturstroum | 0.19086 euros/kWh |
Monthly premium home | 4 euros/month |
Monthly premium home connect | 1.5 euros/month |
Billed natural gas price | 0.78170 euros/m3 |
Monthly premium | 0.30 euros/kW installed |
Contact information
- Phone: (+352) 2 73 71
- Mail: info@enovos.eu
- Website: enovos.lu
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
- Phone: (+352) 8 00 2– 80 32
- Mail: info@electris.lu
- Website: electris.lu
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.
Based in Luxembourg, Klima-Agence specializes in consultancy and management aimed at enhancing sustainability and energy efficiency. They offer a wide range of services, from energy audits to the implementation of renewable technologies in residential, commercial, and industrial buildings. The company is dedicated to transitioning towards a low-carbon economy, collaborating closely with both public and private sector clients to reduce carbon footprint and optimize energy management.
n addition to their core services, Klima-Agence assists individuals and businesses in navigating available subsidies for energy and gas-related projects. You can contact them by:
- Phone: (+352) 80 02 11 90
- Website: klima-agence.lu
They provide detailed information on government grants and other financial support opportunities, aiding clients in implementing efficient and sustainable energy measures. The company also emphasizes continuous innovation, leveraging advanced technologies to deliver effective and customized solutions to clients locally and internationally.
Luxembourg's Energieagence is a governmental entity dedicated to promoting energy efficiency and sustainable energy use across the country. Its mission includes implementing policies and programs to reduce energy consumption, promote renewable energies, and enhance efficiency in buildings and industrial sectors.
The agency offers services such as technical consultancy, economic support for energy projects, and public awareness campaigns. Here are their contacts:
- Phone: (+352) 40 65 64
- Website: energieagence.lu
Energieagence collaborates closely with public, private, and international entities to develop initiatives that foster a cleaner and more efficient energy system. They manage subsidy programs and financing aimed at incentivizing the adoption of sustainable energy technologies and practices in Luxembourg, thereby supporting the country's transition to a low-carbon economy.
The National Energy and Climate Plan (PNEC) of Luxembourg outlines the country's strategy to achieve its energy and climate objectives by 2030. Submitted to the European Commission, this roadmap aims to reduce greenhouse gas emissions by 55%, increase renewable energy sources to 25% of the energy mix, and improve energy efficiency by 40-44%.
Financial Supports under PNEC include:
- Grants for energy audits and advisory services essential for energy renovation projects.
- Special bonuses for replacing existing boilers with heat pumps or wood boilers.
- Subsidies for solar thermal installations, heat pumps, wood boilers, and connections to district heating networks.
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”.
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?
Source: opera-energie.com, justarrived.lu, ec.europa.eu, ec.europa.eu, ec.europa.eu, sudstroum.lu, enovos.lu, electris.lu, meco.gouvernement.lu, klima-agence.lu, energieagence.lu
We took photos from these sources: Arthur Lambillotte, Unsplash