Energy Efficiency Obligation

The obligation seeks to achieve energy savings by 2016 of 285 381 MWh final energy per year. All suppliers of electricity and natural gas serving residential, service sector and industrial customers, located in Luxembourg, are declared obligated parties by regulation. Also, they are assigned a public service task to achieve energy savings targets imposed by the Article 7 of the Directive in Luxemburg. This obligation will apply to all suppliers operating within Luxembourgregardless of the size of their client base. To that end, the obligation scheme is defined by Luxembourg laws as a service of general economic interest, which the obligated parties will be mandated to provide. Such an arrangement will make it possible to finance the obligation scheme, at least, partly through public funds.The obligation applies only to electricity and gas suppliers. The obligated parties are, however, free to record energy savings achieved in other sectors, e.g. fuel oil. Energy savings in the residential, service and industrial sectors can also be taken into account, as well as savings in the transport sector, insofar as these are provided for at the regulatory level.

 

The energy savings obligation scheme is to run for six years  from 1 January 2015 to 31 December 2020. The obligated parties may undertake measures in all sectors (including transport) and involving all types of energy. This flexibility will allow the obligated parties to achieve energy savings with the best cost-benefit ratio. A catalogue of standard measures is included in the regulation, which specifies the energy savings that can be assigned to specific measures.   Obligated parties have to report annually on the energy savings achieved during the preceding year. Supporting documentation regarding the savings declared will have to be retained for ten years by the obligated parties and produced in the event of a control or verification.

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