Luxembourg has taken 20 measures to fight the energy crisis
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The European Energy Regulatory Agency (ACER) has published research reviewing the contribution of different EU member states to the resolution of the energy crisis. In total, 439 measures were suggested and adopted. 20 of them were introduced by Luxembourg. The Grand Duchy has set aside 2.5 billion euros to help people and businesses, which is equivalent to 3.4% of the country's GDP.
The energy crisis has accelerated the process that had been postponed for many years: the process of transition from fossil energy to renewable energy. It is worth saying that the people of Luxembourg have been active in this issue, going far beyond the recommendations for saving natural gas. Earlier, in April, the Ministry of Energy and Regional Planning announced new results on gas consumption in Luxembourg. In 2022, Luxembourg has reduced its natural gas usage by 26.3%.
A significant part of the state aid was aimed at direct support to citizens. It consisted of subsidizing the purchase of gas and wood pellets, reducing energy tariffs and even the obligation to maintain the network.
According to ACER's research, more than half of these measures are aimed at increasing affordability for customers. There are some measures to replace gas in heating and electricity production. About 40% of the measures are aimed at helping households. 60% of them are income support, such as one-off payments or discounts on energy bills.
The report of the European Energy Regulatory Agency is based on the list of measures published in March 2023. The experts also evaluate each measure according to its benefits, advantages and disadvantages according to the main objective. The main objective is to approve a package of measures that will be most beneficial both for customers and for energy efficiency.
The report also includes various recommendations about customer support, balancing decisions during the crisis and others. ACER notes that during the crisis it might be necessary to temporarily stop some of the measures. But such kinds of solutions should be with minimal negative impact.