The Luxembourg Institute of Regulation (ILR) and the network operators have implemented a low-voltage tariff structure for the electricity market that reflects changes in network usage in the context of the energy transition. It encourages consumers to adopt greater flexibility in their use of the networks.
The electrification of our society has been accompanied by an increase in energy flows on our networks. For this reason, network operators closely monitor the state of the networks and their expansion, so that they can meet current and future electricity needs. At present, the increase in energy flows is well under control, notably thanks to the excellent quality of the country’s networks. In the future, however, an expansion of network capacities will be necessary, particularly due to the rise in simultaneous consumption. Alongside investments in the networks, the operators have sought to put in place a fair response to accompany the evolving patterns of network usage.
In this context, a new tariff structure for the low-voltage electricity network (households, retail businesses, etc.) was introduced as of 1 January 2025, reflecting a better consideration of the actual costs of using the electricity network.
In the short term, this change has little impact on the vast majority of consumers, notably because the most significant component of the total electricity price remains the energy price itself, rather than the network usage tariff. In the medium term, however, this adjustment will encourage a more efficient use of existing networks and thereby contribute to the stability of network usage tariffs.
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