If Luxembourg removes its energy price cap, Statec predicts electricity prices will rise by around 60 percent by 2025.

Earlier this week, Prime Minister Luc Frieden announced that a new cap on electricity prices would be introduced in the near future, with the state to cover half of the projected price increases.

The government will also introduce three targeted measures to support low-income people. Energy subsidies for current beneficiaries will be tripled and then gradually reduced.

This means that a family of four with a combined income of up to €6,800 will receive €1,050 in energy subsidies next year, instead of €350. A single person with a combined income of up to €3,200 will be entitled to €600, up from €200.

A family of four with an income of just over €7,000 is currently not eligible for any bonus, but by 2025 will be entitled to an energy subsidy of €525.

The energy tax credit for people on the social inclusion income (REVIS) will be increased to €90. The government also plans to subsidize part of the energy costs for nursing homes from 2025.