“Substantial gas price increase" announced in Luxembourg

Luxembourg's energy minister recently announced on Twitter that Enovos – presumably along with other gas suppliers – would significantly increase its gas prices.

"For a typical 4-person household with an average consumption of 3,300 m3/year (36,300 kWh/pa) the total annual cost including VAT will amount to +/- 5,400 €/year (excluding grid costs, which are currently subsidised by the state). The price would be €6,070/year (including grid costs) if the government did not cover the grid costs," Enovos states.

Based on this theoretical calculation, this would mean an increase of 68% over current prices. It should be remembered that the Luxembourg government has undertaken to cover the costs of the grid up until 31 December 2022. No guarantees have yet been given beyond this date.

Enovos points out that prices are highly dependent on the cost of procurement on the European markets. These are prices that remain "highly unpredictable" at this juncture due to the current geopolitical situation. The price per MWh before summer 2021 was between 20 and 30 euros, and it has now increased tenfold to between 200 and 300 euros.

Another important factor is the level of demand. This is because future market prices will also be influenced by consumer behaviour, hence the importance of saving energy.

It is therefore becoming essential to switch to more economical and environmentally friendly alternative sources of energy. For example, wood and pellets remain the most competitive sources of energy in Luxembourg, despite the rise in their price.

“Substantial gas price increase" announced in Luxembourg