To cope with the increase in prices for the consumers, the negotiations of the “Tripartite” led to the agreement of September 2022, in which one of the measures was to limit the increase in gas prices to 15% compared to the average price of September 2022.

This part of the agreement was translated into national law by the Law of December 2, 2022 which determines a price capped at €0.8325 per m3 of natural gas consumed for customers with a gas meter of a maximum hourly flow of less than 65 cubic meters.
In practice, the supplier continues to display its prices as before. Given that the suppliers offer several products, each with its own selling price, the ceiling is applied in relation to a so-called “basic” offer, namely the product of the supplier with the most subscribed customers.
In other words, the State will cover the price difference between the basic offer and the ceiling of €0.8325 per m3.

It should be noted that the prices displayed by the suppliers may be “integrated” prices, containing part of the network costs. For the purpose of determining the State contribution, it is therefore necessary to only consider the price of the supply, excluding network costs and excluding all taxes and levies.

In the event that the displayed price of the basic offer is higher than the capped price, the difference between these two prices constitutes the maximum payment by the State. However, for customers who have not subscribed to the basic offer (such as customers of products offering green attributes), it is likely to pay slightly more than the ceiling. Indeed, these products are generally more expensive than the basic offer, while the State support is limited as described above.

On your invoice you will see these different price elements. The supplier invoices his published energy prices and deducts the State contribution separately on the invoice.

It should also be noted that the network costs have been entirely borne by the State since May 2022.
As with the energy price cap, this measure affects customers having a gas meter with a maximum hourly flow of less than 65 m3 (categories 1 and 2).
On your invoice you will find a line containing a negative amount which cancels these network cost. The network tariffs themselves are made up of a volume component paid per m3 of natural gas consumed, as well as of metering charges. For category 2 customers, there is in addition a capacity component, billed on the basis of installed capacity.

Let’s start with the total amount. The total amount is the final bill total for a given billing period. It shows the quantities actually consumed, i.e. taken from the network, during the period in question (start of period index, end of period index or consumption during the period, if indexes are not provided, or load curve) as well as the various prices applicable for the different services provided during the period in question, and the taxes and other elements that form part of the bill. If prices or taxes have changed during this period, the quantities are distributed over the different periods to apply the corresponding price.

The bill total is therefore the sum of all costs attributable to you for the billing period. Any advance payments or deposits are deducted if you have paid them beforehand.

Advance payments are payments made in advance of the forthcoming total amount due. They may simply stipulate an amount calculated on the basis of the estimated total amount over the entire billing period or be based on an estimate of consumption in the period concerned. However, advance payments may be adjusted, even during the billing period, for example in the event of significant changes in market prices for electricity or gas.

With the introduction of smart meters, it is possible to take a meter reading more frequently than in the past. Previously the billing period was normally one year or, sometimes, 6 months. If you want to pay your bills on the basis of your consumption at shorter intervals and not on the basis of an annual or half-yearly statement, ask your supplier if they can adjust your billing method. However, you should bear in mind that a monthly statement exposes you to greater variation in your regular (monthly) payments than the advance payment system with accompanying statement, especially for the energy used for your heating. This is because if you chose to pay monthly, the bills in winter would be significantly higher, whereas in the advance payment system these variations are spread over an annual calculation.

It should be noted that this recommendation is not to heat with electricity, but to heat using an electric heat pump. Direct electric heating is inefficient and should not be considered as the main heating system in a building.

So the question is in fact: Why are we told to heat with an electric heat pump?

An electric heat pump consumes less energy than traditional heating (natural gas, oil, wood). Indeed, due to its higher efficiency, a heat pump consumes 3 to 5 times less energy than a traditional boiler (e.g. 5’000 kWh of electricity instead of 20’000 kWh (2’000 m3) of natural gas). So there are huge energy savings!

However, electricity must be produced to power the heat pump.

As the burning of fossil fuels harms the climate (carbon dioxide emissions), it is important to get stop using these fuels.

The technologies to produce renewable, non-carbon electricity are available and are being deployed on an industrial scale around the world.  These include wind power plants, photovoltaic plants, hydroelectric plants and biogas or biomass plants. Some people even consider nuclear power plants to be ‘sustainable’ because of their low carbon emissions.

If we can heat by replacing fossil fuel burning systems with heat pumps running on renewable electricity, this avoids carbon emissions which impact the climate  and reduces energy consumption due to the higher efficiency of the heat pumps. Obviously, the massive deployment of heat pumps must be accompanied by an increase in renewable electricity production and, where necessary, the reinforcement of electricity networks.

In order to decarbonise combustion heating systems by using renewable combustion fuels, it should be recognised that the production of biofuels requires huge areas of monocultures of energy-providing plants. To return to the example at the beginning, the production of 5,000 kWh of electricity from photovoltaic panels requires an area of 22m2, whereas it takes about 4,000m2 of energy-providing plants to produce 20,000 kWh of biogas. As a source of renewable energy, electricity is therefore not only efficient in terms of use, but also in terms of production.

Irrespective of whether your electricity is renewable or not, it does not come from a single power plant, but from a combination of sources. Except for very large customers, your supplier does not buy electricity for you at the time you sign the contract, but regularly buys slices of the foreseeable future consumption at different points in time, depending on its purchasing strategy and the opportunities that arise.

Some of these contracts are indexed to the stock market price, even if they are renewable sources. This means higher prices on the wholesale markets lead to new contracts, including with renewable generators, being concluded at higher prices. These new contracts replace expired contracts or those covering additional demand.

It should be noted, however, that the evolution of retail prices lags behind the evolution of wholesale market prices, either because some contracts from before the price increase continue to exist, or simply because the supplier has its own production facilities.

In Luxembourg, the term “green electricity” is not legally defined. On the other hand, renewable energy sources are clearly defined by law.

Physically speaking, the electricity you consume comes mainly from the production plants closest to you (in the electrical sense) (N.B. the Cattenom plant, although close to the border, is far from the Luxembourg network in electrical terms).

To represent the electrical system, an analogy can be made with a large lake of water. This lake may be fed by many sources and there may be many withdrawal points. The aim is to keep the lake’s water level stable, so that the same pressure is always available at the withdrawal points. In the electrical system, it is the frequency of the alternating current (50 Hz) that must be kept stable. When there is more being withdrawn than being fed in, the frequency decreases, while it increases in the opposite situation.

To return to the example of the lake, if you want to take water from it, you can draw up a contract with any source that feeds the lake, because for the water level in the lake, it doesn’t matter if the source is close to your withdrawal point or not, the level of water in the lake will remain constant, as long as the source supplies as much water as you take from it.

It’s a similar situation for electricity. You can therefore sign a contract with a producer using renewable sources to supply the electricity system with the amount of electricity you consume. Even if this producer is not close to you, the electricity system is kept in balance (within certain technical limits). So contractually you consume the renewable electricity that is fed into the system for you.

To certify that the electricity that is fed into the electricity system for you comes from renewable sources, a system of certificates (guarantees of origin) has been implemented. This system makes it possible to trace electricity from its origin to its destination.

If you buy renewable electricity from your supplier, they must therefore have acquired the respective guarantees of origin from the respective producers, transferred them to Luxembourg and cancelled them for your consumption.

This system of guarantees of origin is clearly regulated to avoid abuses (e.g. double counting). For Luxembourg, the ILR monitors the system and checks each year that the quantities of renewable electricity sold are covered by the respective renewable production. The supplier will send you a ‘label’ showing the sources of the electricity they have supplied. These labels are verified by the ILR. The mechanisms currently in place guarantee that, on an annual basis, the quantities of energy sold by your supplier are actually produced from renewable sources.

Answering the question of whether the green electricity you consume is really green depends on your expectations. Physically, it will only be 100% renewable once all electricity generation within the interconnected network is generated using renewable sources. Contractually, it is renewable, insofar as the quantity consumed by you is produced somewhere from renewable sources. Your renewable supply contract therefore helps to replace non-renewable production with renewable production, thereby make the electricity system greener.

However, a contract for the supply of electricity from renewable sources should not prevent you from producing renewable electricity yourself, for example with solar panels, if your situation allows for this. By consuming the renewable electricity you produce yourself, you can actively contribute to the energy transition.

Your load curve can be obtained from your distribution network operator (DNO) or from your supplier.

DNOs and suppliers usually offer a customer portal on their website, from which the load curve can be downloaded.

Your electricity consumption or production, as well as your gas consumption, is continuous, but at variable intensity. You do not consume or produce the same amount at all times. For example, when preparing your meals, you consume more because of the high power required by your hob or oven.

Your smart meter registers the amount of electricity and the amount of gas for each quarter of an hour. It therefore keeps a list which, for each 15-minute or 60-minute interval, indicates the average power consumption or generation that has taken place during that interval. This list of values is referred to as the “load curve”.

Power is expressed in watts (W) or, more commonly, kilowatts (kW). It is a momentary value representing the intensity of the action, comparable to the speed of a vehicle or the flow of a river.

The amount of energy is expressed in Watt-hours (Wh) or kilowatt-hours (kWh). It is therefore the result of applying a power for a certain time (power x time). It is cumulative over time, like the distance a car travels (speed x time) or the amount of water flowing (flow x time). The longer the duration, the greater the quantity. It is therefore the duration and intensity of the action that determines the amount of energy.

The amount of energy is represented by your meter reading, which increases over time. It increases more quickly if the transmitted power is high (e.g. if your oven is in use) and less quickly if the power is low (when most of your electrical equipment is switched off).

You can also find out how much momentary (or instantaneous) power you are using on your smart meter. Please refer to the meter manual which you can find here.

The Klima-Agence and other sector stakeholders (e.g. energy advisors) are available to inform and advise you on energy efficiency and renewable energy sources. Some suppliers also have their own energy advice service.

You can find many tips and practical information on how to save energy on the websites www.klima-agence.lu. A free hotline is also available from Klima-Agence on 8002 1190 to help you find practical solutions to reduce your energy consumption and therefore your energy bill.

It should also be noted that certain energy improvement services can be promoted and subsidised through the social offices of the municipalities.

In principle, as long as you pay your bills, you will not be disconnected. If you find yourself in a precarious situation that makes it impossible to pay your bills, we advise you to inform your supplier as soon as possible of your precarious financial situation in order to avoid disconnection. You can also contact the social office of your municipality of residence for possible assistance with your energy costs, subject to certain conditions.

When your supplier intends to suspend your energy supply for non-payment, they are obliged to inform you and the social office of your municipality of residence at the same time. The social office can then eventually decide whether to settle the unpaid bills.

Your electricity or natural gas supply cannot be disconnected while your application for social assistance is being processed by the social office of your municipality of residence.

If you qualify for social assistance, your supplier is entitled to instruct the network operator to replace your meter with a prepayment meter at your expense until all outstanding bills are paid. Once all the debt to your supplier has been paid, you may ask to have your normal meter reinstalled at your expense.

In the first instance, your supplier will send you a payment reminder within 15 days of the due date of your bill. You will then have another period of 15 days from the date the reminder was sent. If you still do not react within the time limit, your supplier is entitled to disconnect you within 30 days.

However, your supplier is only permitted to disconnect the supply of electricity or natural gas after having informed you in writing in advance of the suspension of supply. Restoration of supply will only take place after full payment of the debt and all associated disconnection and reconnection costs.

Reconnection is carried out by the network operator within 3 working days of receipt of the proof of payment by the supplier.

Your supplier is required to state how complaints are dealt with either on your electricity and natural gas bills or on its website. In addition, out-of-court dispute settlement arrangements must be set out in the terms and conditions of your supply contract.

Your supplier’s contact details are shown on the contract documents and invoices.

Suppliers may change their prices in accordance with the terms and conditions set out in their general supply conditions.

With the exception of contracts that provide for other price adjustments (e.g. fixed-price contracts), your electricity or natural gas supplier can change the price of the energy supply at any time. Nevertheless, they are required to give you timely notice, and in any case 30 days’ notice, of their intention to change the supply price, either upwards or downwards. They are also obliged to inform you of your right to terminate the supply contract without notice and free of charge before the change comes into effect.

The right to terminate the contract does not apply to changes in other elements such as taxes or regulated tariffs for use of the network.

Generally speaking, there are two types of contracts:

• On the one hand, there are fixed-term contracts with a fixed price for which price changes are generally excluded.
• On the other hand, there are contracts for an indefinite period of time, for which your natural gas or electricity supplier is required to give you transparent and comprehensible notice in good time, and in any case 30 days in advance, of any intention to change the contractual terms and conditions and of any change in the price of the natural gas or electricity supply, both upwards and downwards.

Your supplier is also obliged to inform you of your right to terminate the supply contract without notice and free of charge before the change comes into effect.

The right to terminate the contract does not apply to changes in the network operator’s regulated tariffs. The terms and conditions of termination are set out in your general terms and conditions of supply.

As all meters are now smart meters, meter readings are being performed automatically by the network operator. Only in isolated cases, when the data transmission system does not properly work or in rare cases where a conventional meter still exists, network operator agents come on site to read the meters.

Your supplier calculates your bill on the basis of data collected automatically or manually by your network operator.

At any time you may ask your network operator or supplier to provide you with your recent consumption data. Some suppliers and network operators provide this information via their Internet portal.

In order to differentiate between the different supply products, you should check the characteristics of the product (i.e. the origin of the electricity or natural gas and its environmental impact, payment possibilities, possible discounts, the extent and quality of customer services, additional services, etc) and the duration of the supply contract for the chosen product (i.e. open-ended contracts and fixed-term contracts for which a price is guaranteed for a predefined period, preventing you from changing supplier during the contract period).

You can get information on unit prices from the suppliers’ websites or from the ILR price comparison tool available at www.calculix.lu. The supply contract may provide for price indexation mechanisms for the chosen product.

To connect your house or flat to the electricity and/or natural gas network, you must contact the distribution network operator in your municipality. They will be able to inform you about the technical conditions for connection, the connection tariffs and the estimated time for completion of the connection work. The costs of the initial establishment of the connection shall be borne by the applicant. These costs can be charged as a lump sum. The civil engineering costs required for the connection are also borne by the applicant. Your network operator will not ask you for a deposit for you connection.

It should be noted that a change of supplier at a later date will not result in a change in your connection to the network and therefore no additional connection fee will be charged. However, any modification or relocation of your connection installation, at your request, will be carried out at your expense.

Your supplier must state the billing, payment and settlement terms in their general conditions for supply.

You are supplied with energy exclusively by means of an integrated supply, which, in addition to the supply of energy, includes the services required to transport the energy to the point of supply, in particular access to and use of the network.

Your electricity and natural gas supplier indicates the integrated energy supply price (€/kWh or € ct/kWh or €/mᶟ) transparently on your bill. The latter consists of the price of the electricity or natural gas supplied by your supplier and the network usage charges managed by your network operator. However, the composition of the integrated supply price might not be detailed on your bill.

In addition to the price of the integrated supply of electricity, there are the fixed monthly premiums, including the monthly premium for network usage costs (e.g. metering), the VAT and the statutory charges, i.e. the contribution to the compensation mechanism (€ ct/kWh) and the tax on the consumption of electrical energy (€ ct/kWh), all of which are included in your bill.

In the case of natural gas, in addition to the price of the integrated supply, there is the fixed monthly fee for access to the network (i.e. the charges relating to the metering activity), the power premium, the VAT, as well as the tax on the consumption of natural gas (€ ct/mᶟ or €/kWh), all of which are included on your bill.

Finally, it is also possible to consult the presentation sheets for electricity and natural gas supply offers available on the respective suppliers’ websites. In addition, the ILR price comparison tool, available on the website www.calculix.lu, makes a clear distinction between prices, statutory charges and tariffs for electricity and natural gas.

If, as a residential customer, you are in default of payment (i.e. if you have not paid your electricity or natural gas bill), the following rules apply:

1. a) If you do not pay within 15 days of the due date of your bill, your supplier will send you a payment reminder.
2. b) In the event of non-payment within 15 days from the date of the payment reminder, your supplier will inform you in writing of its intention to have you disconnected within 30 days. A copy of this letter is sent by the supplier to the social office of your municipality of residence. If you fail to pay your bill or make arrangements with your supplier for payment in instalments after the 30-day period, your network operator will disconnect you on the basis of a written mandate from your supplier.
3. c) If your debt is paid in full, your supplier will immediately request the relevant network operator to reconnect you, which must be done within 3 working days at your expense (if a network operator’s agent is present).
4. d) By way of derogation from point (b) above, if you receive assistance from the social office of your municipality of residence, no disconnection may be performed. In return, your supplier is entitled to have a prepayment meter installed through your network operator until your debt is paid in full. After your debt has been paid in full, your supplier will, at your request, instruct the network operator to replace the prepayment meter with a normal meter.
5. e) Neither the disconnection nor the installation of a prepayment meter suspends the requirement to pay the outstanding sums owed from the unpaid bills. The granting of an arrears payment plan does not change the conditions under which subsequent bills from your supplier are due.

f) You will be responsible for all costs incurred in the installation and removal of a prepayment meter and for the disconnection and reconnection costs.

– If you move and your supply contract is terminated/you change supplier, you must pay the outstanding bills sent to you by the former supplier, including the final statement, which must be sent within 6 weeks of the change of supplier.

If the supply contract for the old address is not terminated, the supplier is entitled to claim payment of taxes, fees and energy consumed until the contract at the old address is terminated.

– If you change supplier, you must pay the outstanding bills from the previous supplier until the statement is issued (to be sent by the supplier within 6 weeks of the change of supplier).

– prices are changing ? If the price of the energy supply changes, either upwards or downwards, the law allows you to terminate the supply contract without notice and without incurring charges. Your supplier is obliged to notify you of any price changes in due time and in all cases 30 days before the change comes into effect.

The procedures for prior information and termination are specified in the general conditions of supply. The right to terminate the contract only applies to changes in the energy price itself, not to changes in other components such as taxes or regulated tariffs for network usage.

– I move ? If you do not wish to continue your contract at your new address, the supply contract for the old home must be terminated with the notice period as stipulated in your contract before you leave, indicating the date of departure. In all cases, you need to inform your supplier of your departure and, if necessary, your new address.

It may be useful to read the meter reading on the day of the move and notify the supplier about it. However, if smart metering data is available, this data is used to settle any sums due or owed. The cancellation will take effect on the date of the last meter reading at your old address. A final closing statement must be issued by the supplier within 6 weeks after termination of the contract.

If you forget to terminate the contract, the payment of the energy consumed and the applicable fees and taxes is due, including for the period after your departure from the address.

The contract (including the general, special and tariff conditions) must clearly specify the conditions and modalities of cancellation. The supplier must also answer any question on this subject.

The rules for terminating the contract are set out in the general conditions of your supply contract. There are three different situations in which the supply contract can be terminated:

– In case of an address change: you need to notify your current supplier before moving to a new address. If you do not terminate the supply contract with effect from the day you move out, you will remain liable for payment of the fixed monthly premium and the energy consumption recorded at your old address over the period between your departure and the arrival of a declared new occupant.

If, however, you decide to stay with the same supplier and not terminate your supply contract, you should refer to your supply contract to determine whether your move only results in a change of the place of consumption in the contract and not in a termination of the contract.

In some contracts, a change of address is not a legitimate reason for termination. In any case, as long as you do not move out of the Grand Duchy, your current supplier can continue to supply you, unless of course, in the case of gas, when your new address is not connected to the gas network.

– In case you rent out your flat or house: it is the responsibility of the occupant of the premises, either as the owner or as the former tenant, to terminate the supply contract with the supplier in the same way as for a change of address (see above).

The new tenant is required to contact a new supplier of his choice to conclude a supply contract before moving into the flat or house.

– In case you change supplier: you have the right to terminate your supply contract at any time and without incurring costs. However, if you have a fixed-term contract, you cannot, in principle, terminate your supply contract before its regular expiry date. If you nevertheless change the supplier, possible penalties may apply.

To facilitate the necessary administrative procedures, suppliers take care of the termination of your supply contract. By signing a new contract, you normally also give your new supplier the mandate to terminate your existing contract; you do not need to take any further steps. Your new supplier will be able to supply you with energy no later than 3 weeks after the date of your change request.

Before signing a contract, it is your right to ask for the following information:

• the identity and address of the supplier;
• the number of the point of distribution used by the supplier to identify you, respectively the place of consumption;
• the maximum power to be supplied, the service provided, the quality of service levels, as well as the start-date of supply and, where applicable, the types of maintenance services offered;
• the means by which up-to-date information on all applicable prices and rates can be obtained;
• the duration of the contract, the conditions for renewal and interruption of the services and the contract, the existence of a clause for contract termination without incurring charges;
• compensation and reimbursement formulas, if any, applicable in the event that the contracted service quality levels are not met, including inaccurate and delayed billing;
• how to initiate out-of-court dispute resolution procedures and, more generally, information about your consumer rights, including how to handle complaints.

In addition, in accordance with consumer law, you are entitled to receive pre-contractual information on the essential characteristics of the energy, i.e. the total price including taxes or the method of calculating the price, where the price cannot reasonably be calculated in advance, as well as the terms of payment.

The metering of electricity and natural gas is the responsibility of the network operators. They collect data either automatically from communicating smart meters or by “manual” meter reading.

Your network operator passes this data on to your supplier who will then calculate your bill on this basis. You may thus obtain your consumption data from your supplier and from your network operator.

Some suppliers and network operators have set up an Internet portal through which their customers can access their consumption data. If the consumer has a communicating smart meter installed, suppliers are now able to offer the possibility of monthly billing based on actual consumption.

Your supplier is obliged to give you timely, and in any case 30 days in advance in a transparent and comprehensible manner, of any intention to change the contractual conditions and of any change in the prices of the energy supply, both upwards and downwards. Your supplier must inform you of your right to terminate the contract, without notice and without charge, before the change comes into effect. The right to terminate the contract, however, only applies to changes in the energy price itself, but not to increases in other elements of the bill such as taxes or regulated tariffs for the use of the network.

If your supplier does not comply with these formal conditions, you must first send a written complaint to the supplier before you can refer the matter to the ILR under the mediation procedure (you will find a specific tab on this issue on the ILR website).

You can also take legal action to have your supply contract terminated or, as a first step, contact a consumer rights organisation (e.g. the ULC).

Electricity suppliers attach this information at least once a year to their bills in the form of an “energy label”. This is drawn up in compliance with the model determined by the Ministry of Energy and specifies the energy sources and the environmental impact in terms of CO2 emissions and radioactive waste of the electricity.

In addition, information on the energy mix of electricity suppliers’ products is disseminated with the promotional documents for electricity product offers and is provided by the price comparison tool www.calculix.lu for each electricity product.

You can find more information on electricity labelling on the ILR website and at www.STROUMaGAS.lu. The ILR also publishes on its website www.ilr.lu a bi-annual report on labelling under the section “Publications/ Reports and Studies”.

The organisation Klima-Agence (www.klima-agence.lu), your supplier as well as other stakeholders in the sector, such as energy advisers and heating and electricity professionals can inform and advise you on energy efficiency matters. The information provided by www.oekotopten.lu may also be useful.

The bill is subdivided into the following sections:

• the price of the integrated energy supply which includes:
• the price of electricity and/or natural gas supplied by your supplier;
• network charges calculated on the basis of use tariffs of the electricity and/or natural gas networks;
• taxes and contributions to public service obligations (PSOs) ;
• the VAT (8% on 01/10/2022).

In the context of the application of value added tax, bills in which the total exceeds EUR 100 including VAT must also contain the following compulsory information:

• the issuing date of the bill;
• a sequential number which uniquely identifies the bill;
• the VAT number of the supplier or service provider and its contact details;
• the quantity and nature of the goods delivered or the extent and nature of the services delivered;
• the date on which the supply of goods or services was effected or completed or the date on which the payment on account was made where it differs from the issuing date of the bill;
• the tax base for each rate or exemption as well as any rebates, discounts and allowances;
• the VAT rate;
• the amount of tax to be paid.

In addition, your electricity supplier must specify at least annually, on your bill or in an attached document, the following information:

• the contribution of each energy source to the total energy sources used to produce the electricity supplied by your electricity supplier;
• the environmental impact, at least in terms of CO₂ emissions and radioactive waste resulting from the production of electricity from all energy sources used by the supplier during the past year;
• your rights in relation to the dispute resolution channels available to you in the event of a dispute.

In order to assess other offers, you need to know, in addition to your place of consumption, your annual consumption of electricity (kWh) or natural gas (m3 or kWh) and, for natural gas, your installed capacity (kW). This information should be indicated on your last bill.

In addition, the ILR provides an online price comparison tool www.calculix.lu which allows you to easily compare the different electricity and natural gas offers available on the Luxembourg market.

Your supplier will inform you about the available payment methods and their respective costs. You can also consult the general conditions of the integrated supply in which specify the possible methods of payment are specified (cash, transfers, bank cards, direct debit).