The different elements of your bill
The electricity bill is divided into three parts, of which only one is determined by your energy supplier:
1. The price of electricity in the narrow sense
This is the price that your supplier, in this case SUDenergie, charges to cover the procurement and marketing of the electricity you consume. This price consists of a variable part which is calculated based on your consumption (cents per kWh) as well as a fixed component, the monthly fee, which remains the same each month.
2. Legal taxes and levies collected by the State
Each consumer pays a tax on their electricity consumption and contributes to the compensation mechanism. This mechanism ensures that the additional costs that grid operators must bear under feed-in contracts – for electricity produced from renewable sources or from high-efficiency cogeneration benefiting from guaranteed remuneration – are fairly distributed among all consumers.
The amount of legal taxes and levies varies according to consumption.
Please note: for customers in category A (i.e. those consuming ≤ 25,000 kWh per year), the contribution to the compensation fund is currently negative. This is a government measure aimed at stabilising electricity prices to support households during the energy crisis. This measure is in effect until 31 December 2025.
3. Network usage tariff
This part is up to the grid operator responsible for the transmission and distribution of electricity. The corresponding fees are calculated according to tariffs approved by the Luxembourg Regulatory Institute (ILR).
The network fees consist of the following components:
Fixed component payable per month of consumption: based on your electricity consumption behaviour over the past 12 months, your grid operator has assigned you a power threshold (in kW), known as the “reference power”. You pay a fixed monthly charge according to the power category assigned to you. In addition, a monthly metering charge is applied based on the power of your connection.
Variable component linked to your consumption and therefore varying from month to month: for each kWh you consume, you pay the volumetric charge. If your electricity consumption exceeds your reference power, an additional charge will be applied for each kWh exceeding this threshold.
To know more on the way network costs are calculated, please visit your grid operator's website: Creos respectively Sudstroum.