Energy prices rise starting January 2025 in Luxembourg
Rudolphe ABEN
As of January 1, 2025, electricity and gas bills in Luxembourg will undergo significant changes due to several factors:
Reduction in state subsidies Although the government has decided to maintain subsidies to stabilize electricity prices, the amount will be reduced compared to previous years. This reduction will directly lead to higher bills for many consumers.
New tariff structure Costs related to the use of the electricity grid will now be calculated based on power usage in addition to energy consumption. This reform aims to encourage more responsible use of energy-intensive devices such as electric vehicles or heat pumps, which often generate consumption peaks.
Increase in network fees Network usage fees will also rise, further increasing the total bill amounts.
Impact on households
Average 30% increase in electricity bills: Households consuming less than 25,000 kWh per year and benefiting from state subsidies will see an average 30% increase in their bills. This rise is due to reduced subsidies and the introduction of the new tariff structure based on power usage.
Average 16% increase in gas bills: Household gas bills in Luxembourg will increase by 14% to 17%. This estimate is directly tied to price trends in derivative markets and the supply methods used by energy providers in Luxembourg.
Impact on property values
Energy pricing changes are also likely to affect property values:
Energy-efficient properties in demand: Properties with low energy consumption, especially those rated A or B, will retain their value better. These types of properties are expected to become a top priority for investors and buyers in the coming years.
Pressure on properties needing renovation: Older properties, poorly insulated and heated with gas, are likely to lose appeal unless they undergo significant energy-efficient renovations. Such upgrades will be essential to maintain or increase the value of these properties.
Adapting consumption: a priority It is crucial for all consumers to consider these changes and adopt more responsible habits to manage their expenses. Investing in energy-efficient equipment, optimizing device usage, and considering energy-efficient home renovations are essential actions to mitigate the impact of these changes.