As energy prices surge, invoices become a challenge for Luxembourg households.  Photo: Shutterstock

As energy prices surge, invoices become a challenge for Luxembourg households.  Photo: Shutterstock

Energy prices worldwide and in Luxembourg broke new records in 2021, making it difficult for households to keep up with their bills. A freezing of energy prices is needed, as demands the Luxembourg consumer union (ULC).

“The drastic increase in energy costs is placing an increasing burden on households,” says the union in a press release criticising the government’s energy policy: “Low-income families, in particular, are facing real financial problems, as their financial resources no longer allow them to pay the energy costs.” The some households are granted, would not cover the difference.

Natural gas prices for consumers have more than doubled (+61.33%) from December 2020 to December 2021, while consumer prices for liquid fuels increased by 64.27% over the same period, explains the union. The indexation of salaries , with a 2.5% rise cannot not bridge the gap, though the increase of energy prices is predicted to slow down over 2022.

The government should not only grant additional financial aids to citizens, but also consider freezing fuel and gas prices. Alternatively, the government should consider a “legally prescribed unit price for a minimum quantity of natural gas, which would allow households to bridge the winter months.”

To this, the ministry of energy answered that the increase in cost-of-living aids should help with the increased charge. The ministry is “is committed at European level to the introduction of clear rules for gas storage in Europe. It should be noted that many gas reservoirs were not filled sufficiently during the summer of 2021 and this situation is currently contributing to the development of gas prices. The possible introduction of clear rules on the level of filling of gas storage would avoid this situation in the future and make Europe less dependent on short-term gas imports and price fluctuations on the international market,” the ministry told Delano. 

In addition, energy prices are included in the index, meaning that pensions and salaries are adapted accordingly, according to the ministry. 

Around 3% of Luxembourg’s households spend more than 10% of their household income on electricity, heating and warm water, which is the considered definition of energy poverty, There are 30 social offices which can financially aid households with their energy bills.  

Nevertheless, the ULC underlined the urgency of finding a solution to the government’s current energy policy, which it considers to be at the expense of the consumer.

Delano has reached out to the ministry of energy and energy suppliers for a comment. The article was edited to include the comment by the ministry of energy.