What is happening to gas and electricity prices in Luxembourg?
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Luxembourg's Minister of Economy, SMEs, Energy and Tourism, Lex Delles, has given a detailed response to a parliamentary enquiry by MPs Mars Di Bartolomeo and Georges Engel on rising energy prices and the current supply situation.
According to ENTSOG, the association responsible for analysing the sustainability of gas supplies in Europe, there is no risk of disruption for the winter of 2024/2025. Storage facilities are filled in advance and EU countries are obliged to have at least 90% of their gas reserves in place by 1 November each year. Luxembourg has a rule: gas suppliers are required to reserve 15 per cent of their average annual supply in underground storage facilities in the EU.
As Luxembourg is part of the common gas area with Belgium and receives supplies via the liquefied natural gas terminal in Zeebrugge, the country remains well integrated into the European energy system.
Despite the decrease in market gas prices at the beginning of 2024, consumers pay more again in 2025. This is due to the increase in network tariffs: the average household with an annual consumption of 2,500 m³ will pay around €300 more than in 2024, corresponding to an increase of 4-5% compared to the two previous years.
The fuel oil situation remains volatile: the price depends on international crude oil prices, currency fluctuations, seasonality, as well as on inventory levels and refining capacity in the region. Current fuel oil price levels remain high, but there have been periods in the past with similar values.
According to Ministry estimates, heat pumps remain more cost-effective than gas heating. For a private house, annual savings can amount to between 400 and 700 euros. However, in 2025, you will also have to pay more for electricity: for a well-insulated house with a heat pump (consumption of about 7,000 kWh per year), the additional costs compared to 2024 will be about 400 euros, and up to 800 euros in a poorly insulated house.
The Ministry emphasises that before installing a heat pump, it is necessary to modernise the thermal insulation, especially in older houses. This is the only way to maximise the efficiency of the new heating system.
