Energy prices, consumption and volumes supplied: the Luxembourg Regulatory Institute (ILR) releases, this Friday June 14, the key figures for the electricity and gas markets for the first part of 2023. During this period, capping measures, aid and bonuses were put in place by the State, which is reflected in the supply prices of these two energy sources.
Regarding electricity, “energy and supply prices as well as network costs have increased significantly between 2022 and 2023,” notes the ILR. But “a negative contribution as part of the compensation mechanism for all electricity consumers with consumption below 25,000kWh” was introduced in order to keep electricity prices stable for affected customers.
Ultimately in 2023, the average residential customer paid 201.3€/MWh (i.e. 0.2013€/kWh) for the integrated supply of electricity (the integrated supply includes, in addition to supply, all other services necessary for the transport of energy to the customer’s point of supply, such as access and use of networks). For an average consumption of 4,000 kWh/year, this corresponds to an annual charge of €805, or €67 per month. Without the State mechanism, the price of electricity would have been €309.3/MWh. During his State of the Nation speech, Prime Minister Luc Frieden (CSV) announced that this capping of electricity prices will be maintained until 2025. Then, households will receive aid which will cover half of the increase in prices planned for 2025.
Price of integrated electricity supply for the residential customer. (Graphic: ILR)
For gas, the ILR highlights the fact that in the absence of State intervention, “the high level of natural gas prices in 2023 would have led to an increase in the final price for the residential consumer”. From May 1, 2022, it has in fact covered network usage costs and a state contribution aimed at limiting the increase in the price of energy which has applied since October 2022.
The price of gas therefore finally fell slightly between 2022 and 2023 since “these measures reduced the average final price for the year 2023 from €141.8/MWh to €86.6/MWh”. For an average consumption of 30,556kWh of natural gas, this amounts to an annual charge of €2,646, or €221 per month. In 2022, the price was €87.2/MWh.
Price of integrated natural gas supply for residential customers. (Graphic: ILR)
While most energy price caps will be removed from January 1, 2025, Statec envisaged in its inflation forecast of May 8, 2024, “an increase in the price of gas and electricity of respectively 17% and 60%” arising “from the evolution of prices on derivative markets and the method of supply of energy suppliers in Luxembourg”.
Consumption falling thanks to manufacturers
Concerning consumption, both on the electricity and natural gas side, the figures have fallen. In 2023, the country’s total electricity consumption decreased by 2.1% compared to 2022 and that of natural gas decreased by 6.3%. But the ILR specifies: “it can be noted that the drop in the volume of electricity supplied took place mainly among industrial consumers” since the volume of electrical energy supplied to them increased from 3,471 GWh to 3,188 GWh, compared to only 3 GWh difference for the residential and professional markets.
Same observation for gas. When we compare the volumes for the residential segment and that of professionals and industrials, it is the latter which has decreased the most: less 12 GWh for residential and less 252 GWh for professionals and industrials. That leaves the electricity production segment which was supplied 71 GWh less between 2022 and 2023.
