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State aid to reduce electricity bills
State contributions to network costs
Attractive electricity prices are essential for the competitiveness of our businesses and the purchasing power of our households. At the same time, investing in the network and its digitalisation is essential to ensure the security and sustainability of our energy supply.
The government has therefore decided to make targeted investments in this area: from 1 January 2026 and for at least three years, the state will cover a substantial proportion of the costs associated with the electricity network. This means that part of the costs of developing the network will be financed by the national budget, totalling €150 million.
The measure applies to all customers, households and businesses. This measure applies automatically, no action is required.
The government has committed to supporting electricity network costs for at least three years.
The State will finance renewable energies directly
From 1 January 2026, the development of renewable energies will no longer be financed by a contribution levied on every electricity customer. The contribution to the compensation mechanism will now be paid directly from the state budget.
This is in addition to the State's contribution to network costs.
New: Electricity Price Subsidy for Households
To strengthen households' purchasing power, curb inflation amid high volatility on international energy markets and at the same time accelerate the energy transition, the government has introduced, as part of the Resilienzpak 2026, a new electricity price subsidy of EUR 0.04 (VAT included) per kWh. The measure will be applied automatically to all residential customers with an annual electricity consumption of less than 25,000 kWh, from 1 August to 31 December 2026.
This subsidy is in addition to the existing support measures to reduce electricity prices, namely the subsidy on network charges and the State's financing of the compensation mechanism for 2026, 2027 and 2028.
FAQ
Who is eligible for this measure?
The State contribution towards network charges and the contribution to the compensation mechanism apply to all customers, households and businesses.
The new measure introduced as part of the Resilienzpak 2026 applies to all residential customers with an annual consumption of less than 25,000 kWh.[1]
What steps do I need to take?
All measures are applied automatically; no action is required.
What is the average cost of electricity for a household (based on a standard customer and weighted averages)?
The new subsidy introduced as part of the Resilienzpak 2026 reduces the price of electricity by 4 euro cents (including VAT) per kWh[2].
For the period from 1 August to 31 December 2026, the State’s total contribution towards the price of electricity[3] amounts to approximately 11.3 euro cents (including VAT) per kWh for households with an annual consumption of less than 25,000 kWh.
Examples of standard customers based on weighted averages:
Average apartment with an annual electricity consumption of 1,500 kWh
Without subsidy: 275€ over 5 months[4]
With subsidy: 205€ over 5 months[4]
State contribution: 70€ over 5 months[4]
Average household with an annual electricity consumption of 3,901 kWh
Without subsidy: 540€ over 5 months[4]
With subsidy: 360€ over 5 months[4]
State contribution: 180€ over 5 months[4]
Household with an electric vehicle and a heat pump in a new-build home, with an annual electricity consumption of 10,000 kWh
Without subsidy: 11,250€ over 5 months[4]
With subsidy: 775€ over 5 months[4]
State contribution: 465€ over 5 months[4]
[1] To view your electricity consumption, please visit www.leneda.lu.
[2] This is an indicative price. The actual price depends on your consumption, your supplier and your contracted product.
[3] New electricity price subsidy for households, State contribution to network charges and contribution to the compensation mechanism.
[4] Between 1 August and 31 December 2026.