It was announced last week that people heating their homes with wood pellets will receive financial support in 2023. Many regret that it took this long for a decision to be taken on that front, especially since most filled up their stocks at the beginning of winter.
Mr Scarpellini from Michelau lives in one of 1,000 houses in Luxembourg that use wood pellets. Wood pellet heating has become much more popular in recent years, but serious price increases since the war in Ukraine fueled demand to eventually outweigh the offer.
Mr Scarpellini explained: “The last delivery I received cost around €220 per metric tonne. Now we are at €700 per tonne, VAT included. That is 2.5 times as much as was the case one and a half years ago. One really feels the price increase.”
Since his stocks were empty at the start of winter, Mr Scarpellini was forced to make a new order. Unfortunately, this means that he narrowly missed out on the government’s offer of capped pellet prices, which will come into effect on 1 January 2023.
Private households will thus receive a 35% compensation with a maximum of up to €200 per tonne. The respective law will be in place for the entirety of next year. Mr Scarpellini now hopes that the government might still decide to create a retroactive support for the period between the actual decision and 1 January next year.
Other forms of heating material are already capped, subsidised, or stabilised. Since 1 October, gas has been capped to a maximum of 15% above the September price. Heating oil has been subsidised since mid 2022; 7.5 cents since mid May and 15 cents since 1 November. Electricity prices will be stabilised to this year’s rate as of 1 January 2023.
“It is important that pellet users are supported. In my view, the measure could have been announced earlier as the winter period has already started for those using pellets”, commented Mr Scarpellini.
As of 1 January 2023, a household of three to four people will be able to save between €1,000 and €1,200. Most pellet users, including Mr Scarpellini, therefore only order as much as they need for the rest of the year.
According to Minister for Energy Claude Turmes, the announcement of the support was delayed by administrative issues: “The pellet aid is very complicated. We did not know for a long time who exactly sells pellets. Contrary to those selling electricity and gas, who are registered providers. That was all very complicated and also the reason why it took a while before the announcement was made.”
Minister Turmes further elaborated that there are no plans to introduce a retroactive support measure: “We cannot do it retroactively. Temperatures were relatively mild in recent weeks. If some people were forced to stock up now, then I feel sorry for them. I apologise for not being able to help. As of 1 January, however, everyone will be eligible for the aids.”
