The law on the limit of gas prices was adopted

Tripartite agreement Signed on September 28, 2022 between the government and the social partners, various measures to fight inflation were envisaged, including limiting the increase in gas prices to 15%. This Wednesday, November 23, in the House of Representatives, the deputies gave the green light to this measure with the adoption of the bill No. 8.088.

Capping gas prices by freezing the price of electricity and lowering certain VAT rates has a dual purpose: to strengthen the purchasing power of households and prevent inflationenergy prices, especially gas prices, experienced an exceptional increase after Russia’s aggression against Ukraine.

In practice, the measure consists in limiting the increase of the price of natural gas to +15% compared to the average price level of September 2022. If the law was adopted two months after the agreement, its entry into force is retroactive to October. 1 will be in force until the end of 2022 and 2023. During this period, it will compensate the supplier who will provide the difference between the quoted price (the supply of the offer subscribed by the end customer). and excluding capped pricing, network usage charges and applicable taxes and fees.

Households and small businesses

All households are affected by the measure, targeting customers with maximum hourly flow meters below 65 cubic meters. Even the smallest companies benefit from this measure, as it is not possible to differentiate by meters. However, large companies with high gas consumption are virtually excluded. “What is decisive is the volume of gas, not the status of the customer,” explains the deputy who is the speaker of the law. Josee Lorsche (déi Gréng).

At the budget level, the state has planned to provide a total and maximum envelope of 390 million euros, including 78 million euros for 2022 (so from October 1) and 312 million euros for 2023.

In addition, the law provides for the extension of the state guarantee of the costs incurred as a result of the use of natural gas distribution networks until December 31, 2023. The government already decided in May of last year to reduce the fee for using the gas network. Reduce household payments by the end of 2022. Therefore, this measure was extended for an additional year. The budget for 2022 was 35 million euros. It will be 80 million for 2023.

Adaptation of the business assistance scheme

In addition to helping households, business was also on the agenda of the Chamber this Wednesday. Deputies also adopted bill 8.075, which allows for adaptation Law of July 15, 2022transposition of the tripartite agreement in March.

This law was later secured two aid schemes for businesses: the first by paying part of the monthly additional costs due to price increases for companies that require a lot of energy; and the second for sectors heavily dependent on diesel – mainly transport and delivery.

For the first regime, the reference period for determining the energy intensity of companies will no longer be 2021, but the month of the survey. Secondly, the ceiling of the total amount of aid to companies covering part of the additional costs of diesel used as road fuel is increased from 400,000 euros to 500,000 euros. And the eligibility period for these two aids is extended.

Additional help

In addition, a new energy subsidy has been added for companies whose energy costs are at least 2% of their turnover in the month in which they are applied for. Compared to 2021, a subsidy of 70% of the added value can be allocated from an 80% increase in electricity or gas prices to an 80% increase.

Assures the Ministry of Economy that this draft law has no additional impact compared to the budget originally intended for the aid scheme. According to the ministry, it amounts to 225 million euros, even if it is “particularly difficult” to estimate the number of beneficiaries and therefore the impact on the budget. Between 150 and 200 companies should be able to benefit from this scheme in March.

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