On 27 April the Chamber of Deputies voted in a bill which will result in the costs incurred by delivering and distributing gas to customers being subsidised by the state. Photo: Shutterstock.

On 27 April the Chamber of Deputies voted in a bill which will result in the costs incurred by delivering and distributing gas to customers being subsidised by the state. Photo: Shutterstock.

The Luxembourg government will subsidise natural gas grid costs for all residents between 1 May and 31 December 2022 to mitigate the rise in energy prices.

On 27 April the Chamber of Deputies voted in a bill which will result in the costs incurred by delivering and distributing gas to customers being subsidised by the state. This includes the purchase price of the gas itself as well as taxes and will be applied automatically without any action required by the consumers. Energy suppliers will automatically take into account the state subsidy in their calculations which will result in the price surge being absorbed by the energy scheme.

The energy ministry has set up a on how the state will take the sting out of the rise of energy prices for residential customers.

The energy ministry cited “the exceptional increase in gas prices due to the international situation” as the reason for this decision.

Energy prices have increased considerably since Russia’s invasion of Ukraine. State-owned energy giant Gazprom halted gas supply to Poland and Bulgaria over the countries' refusal to pay for it in roubles. In March Russia announced that so-called unfriendly countries will have to pay for gas in roubles, a move which has been seen as a way to stabilise the Russian currency following sanctions from the West. European Commission president Ursula von der Leyen likened Russia’s decision to halt gas supply to the two EU member states to blackmail.