Luxembourg Signs Declaration on Collective Action to Stabilise Diesel Markets

On Thursday 29 October 2026, Luxembourg's Ministry of the Economy reported that Minister for the Economy, SMEs, Energy and Tourism, Lex Delles, participated in the meeting of the Energy Council of Ministers, in Luxembourg.

Electricity Network Tariff Regulation

The ministry reported that discussions opened with a roundtable on the Network Costs Regulation, a legislative initiative presented by the European Commission in July 2026 to address the various components of electricity bills.

Luxembourg fully supports the objective of this proposal, which is broadly aligned with several initiatives already implemented in Luxembourg, such as the rollout of a smart metering system, the State's contribution towards network costs, and new tariff structures for network users.

However, Luxembourg cautioned against encroaching on the EU's governance framework in the area of taxation and advocated taking national specificities into account, such as the size of the country and consumer characteristics.

Energy security for the winter of 2026–2027 and beyond

The European Union's energy ministers reviewed energy security for the winter of 2026–2027 and over the longer term.

Discussions focused on short-term pressures on energy supplies and prices, triggered by the war in Ukraine and exacerbated by the conflict in the Middle East, as well as longer-term challenges, particularly those arising from Europe's competitiveness and climate change.

For Luxembourg, the structural response is to accelerate electrification and the deployment of local, lower-cost renewable energy sources in order to reduce dependence on imported fossil fuels.

Luxembourg also advocates a clear and coordinated approach to the future role of gas storage.

Decarbonisation of the energy sector: post-2030 targets

Following the adoption earlier this year of the target to reduce greenhouse gas emissions by 90%, ministers also discussed targets for 2040 relating to energy efficiency, electrification, interconnections, flexibility and energy resilience.

Luxembourg's priority is to ensure a degree of regulatory stability so that policy efforts can continue and the investments required for the energy transition can be made.

Joint declaration on collective action to stabilise diesel markets

Ministers adopted a joint declaration concerning withdrawals from strategic stocks of oil and petroleum products (see annex), as part of the collective action agreed in March 2026 under the International Energy Agency (IEA).

Luxembourg, which rapidly fulfilled its commitments under the IEA's collective action in March 2026, supported the joint declaration.

Bilateral meeting and signing of a Memorandum of Understanding (MoU) with Germany

On the sidelines of the Council meeting, Minister Lex Delles met Frank Wetzel, State Secretary at Germany's Federal Ministry for Economic Affairs and Energy, to sign a Memorandum of Understanding (MoU) on the electricity supply reliability standard, which will replace the existing 2021 agreement.

Minister Delles stated: “Cooperation with Germany is a crucial element of Luxembourg's security of supply. Although the share of renewable energy produced within our national borders continues to increase, our country remains dependent on electricity imports from Germany. This signature establishes a very high standard of electricity supply reliability for our common market and reaffirms the continuation of close cooperation between our two countries in the areas of energy supply and energy security.”

The ministry noted that due to his participation in the Tripartite Monitoring Committee, Minister Delles was only able to attend the second part of the Energy Council meeting.