Energy supplier Enovos’s parent company Encevo released a statement on Wednesday morning saying that as had previously been announced, “Enovos will have to increase tariffs for natural gas.”
A tweet from energy minister Claude Turmes (dei Gréng), had spilled the beans on Tuesday.
According to the announcement, the T1 tariff will rise to €1.5748 per cubic metre, compared to €0.8897 in February 2022, when the last increase took place.
In a simulation, parent company Encevo has calculated that the annual average bill for Enovos natural gas for a household of four people that consumes 3,300m3/year will rise from €3,050 (including VAT but not the network costs that are currently being subsidised by the state) to around €5,400 from 1 October.
Turmes said on Tuesday that more measures were needed to assist those most in need. "In addition to the continuation of the temporary subsidy of gas network costs, new targeted government measures are needed to help all those who suffer most from the rise in gas prices," the minister said on Twitter.
Gas 10 times more expensive on the wholesale market
This increase will be the sixth since January 2021. In April 2021, the reference tariff (T1) still cost €0.40/m3. Today it is almost four times higher.
"On the wholesale markets, the situation has been difficult for a year," Encevo says. Before the summer of 2021, the price for MW/h was between 20 and 30 euros, compared to 200 to 300 euros today, which means that it has been multiplied by 10 or even more" at times.
In a statement released on Wednesday morning, Enovos said that its “future tariffs will depend heavily on the supply price on European wholesale markets, which remain for the moment very nervous and unpredictable due to the difficult geopolitical situation in Europe.”
The other gas supplier of the Encevo group, Leo has announced an increase of similar proportions.
Between them, the two suppliers deliver gas to 49.5% of the country's 81,029 residential customers. Three quarters of the gas consumed in Luxembourg comes from Belgium and the rest from Germany, according to statistics from the Luxembourg Regulation Institute.
Future market prices will also be influenced by the level of demand, Enovos said. This in turn will be highly dependent on temperatures during the winter months and consumption behaviour. “Hence the importance of energy savings that can be achieved by households that have a direct effect on the price level,” the supplier stated. Enovos has set up a dedicated website to support its customers in their energy savings--www.lets-save-energy.lu.