You will have to pay more for electricity in Luxembourg
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From the beginning of 2025, Luxembourg will be subject to new electricity tariffs. To soften the blow to citizens' wallets, the state has allocated an impressive budget of 171 million euros to reduce costs for households. However, even with government support, electricity bills will increase significantly.
The Ministry of Economy has published data illustrating how bills will change depending on electricity consumption and type of dwelling:
- For a flat with an annual consumption of 1,500 kWh, the cost will increase from 490 to 590 euros (+100 euros). The state subsidy will be 110 euros.
- For an individual house with a consumption of 3,500 kWh, the costs will increase from €880 to €1,150 (+270 euros), thanks to the government support of €300.
These measures are designed to prevent a price spike, but even with subsidies included, the increase is noticeable.
The office emphasised that the switch to electric solutions - cars and heat pumps - remains economically viable compared to the use of fossil fuels. For example:
- A house with a heat pump (annual consumption of 13,000 kWh) will face a cost increase from €2,300 to €3,130.
- For a home using fossil fuels, costs will rise to €3,840, which is €710 more expensive than heat pump homes.
It looks rational, but it is necessary to remember about the cost of heat pumps, the price of their installation and laying of communications. In the long run, this solution will indeed be more economical, but the one-off costs of the equipment may take several years to pay off.
