Phase
Organisation of the electricity and natural gaz market in Luxembourg
Native name
Organisation du marché de l'électricité et du gaz naturel au Luxembourg
Type
Employer's obligation to improve energy efficiency
Added to database
17 May 2021

Article

Loi du 9 juin 2023 modifiant : 1° la loi modifiée du 1er août 2007 relative à l’organisation du marché de l’électricité ; 2° la loi modifiée du 1er août 2007 relative à l’organisation du marché du gaz naturel.


Description

Related to the transposition of the EU directive 2012/27/UE, the government introduced and consecutively modified the legal framework as regards the organisation of the electricity and natural gas markets in Luxembourg.

The organisation of the electricity market (Loi électricité)

According to the legal framework in place, the organisation of the energy market is based on a strict separation between regulated activities (infrastructure management) and unregulated activities such as production, sale and purchase, which have remained open to competition. Access to the networks has been since 2007 organised and supervised by a regulator, the Luxembourg Institute of Regulation (Institut Luxembourgeois de Régulation, ILR). This independent body approves network access tariffs. The regulator's task is to guarantee non-discrimination, effective competition and the efficient organisation of the markets.

  • The organisation of the natural gas market*

The 2021 law modifying the existing legal framework is based on the EU Directive 2018/2002 / EU related to energy efficiency and which imposes on EU Member States a new cumulative energy savings target at the end-use stage for the entire 2021-2030 obligation period, equivalent to new annual savings of at least 0, 8% of final energy consumption. Luxembourg has set the objective of final energy savings of between 1.2 and 1.5% per year for all sectors as part of the Integrated national energy and climate plan (PNEC) for the period 2021 to 2030, voted by the government in May 2020. The legal framework stipulates that electricity and gas suppliers in Luxembourg encourage consumers to reduce their energy consumption by carrying out energy efficiency measures, such as for example the energetic renovation of hours or measures implemented at company level.

During the COVID-19 pandemic, the government enforced a temporary legal framework related to the electricity and natural gas market.

The new 2023 legal framework also provides the legal framework for electro mobility and charging stations.


Commentary

The recent partly reorganisation of the organisation of the electricity and natural gaz markets in Luxembourg has been fuelled by EU efforts to reduce energy consumption in the context of the Paris climate goals. The new legal framework should encourage companies and citizens to continue investing into green technologies with the objective to meet climate objectives in the medium run.


Additional metadata

Cost covered by
Companies Employee Employer National government
Involved actors other than national government
National government Other
Involvement (others)
Institut Luxembourgeois de Régulation (ILR)
Thresholds
Affected employees: No, applicable in all circumstances
Company size: No, applicable in all circumstances
Additional information: No, applicable in all circumstances

Citation

Eurofound (2021), Luxembourg: Employer's obligation to improve energy efficiency, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/employers-obligation-to-improve-energy-efficiency/luxembourg

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