The different elements of your bill
The price you pay for your electricity has three main components, of which only one is determined by your energy supplier:
1. The actual electricity price
This is the price that your supplier, in this case SUDenergie, charges to finance the supply and marketing of the electricity you consume. This price consists of a variable part which is calculated according to your consumption (15.99 cents per kWh) as well as a fixed monthly fee of €3.50.
2. Taxes and legal fees levied by the State
Each consumer pays a tax on their electricity consumption and contributes to the compensation mechanism. The amount of taxes and legal fees varies depending on your consumption:
Contribution to the compensation mechanism
To promote the transition to renewable energies, the regulator requires certain electricity companies to buy this energy from producers for a fixed price. However, in most cases, the price they pay for the repurchase is higher than what they receive when they resell the energy on the open market. To counterbalance these additional costs, the regulator has set up a compensation mechanism financed by contributions collected from all consumers. On your invoice you will therefore find an amount with which you contribute to this initiative.
Contributions to the compensation fund are currently negative for category A customers. This is one of the subsidy measures taken by the government aimed at stabilising electricity prices to help households in the context of the energy crisis. This measure is still in place until 31st December 2024.
3. Fee for using the grid
This part is up to the grid operator who transports electricity from production sites to your home. Network costs and the fixed monthly fee (which includes, among other things, meter rental) are approved by the Luxembourg Regulatory Institute (ILR).
