Eida stops electricity delivery as supplier goes under
Luxembourg energy provider Eida saw itself forced to halt the supply of electricity as its Dutch supplier declared bankruptcy saying it had been unable to ride the choppy waves of global energy markets.
Luxembourg's state-owned Enovos will step in to keep the lights on for the clients of Eida, which touts its green credentials.
Two days ago, Anode Energie of the Netherlands said it would file for bankruptcy in a Rotterdam court and stopped delivering electricity to Luxembourg without notice, Eida's Managing Director Paul Kauten said in a press release on Monday. Anode Energie had been unable to successfully hedge rapid price rises in the electricity market, the company said.
An energy crunch in Europe, driven largely by the economic recovery from the pandemic and supply falling behind demand, is hitting electricity, fuel and gas supplies. In the UK alone, 26 energy suppliers went bust between August and December, according to the UK newspaper The Times.
Power prices surged over 15% in Germany and almost 14% in France last week as cold weather leads the continent to burn more gas, coal and oil to keep the lights on, while low wind speeds have reduced renewable energy supplies.
Eida - based in Beckerich - said it had been unable to find an alternative electricity supplier, forcing it to close an agreement with the government, the regulator and Enovos to provide continuity to its customers.
Enovos, as the country's "supplier of last resort" on Tuesday started supplying Eida's customers with electricity. Some 1,600 households and 1,200 businesses could be affected in Luxembourg, based on user statistics from last year.
Eida will continue to supply natural gas, the company said, while other products, such as the installation of charging stations for electric cars or IT services, would not be affected either.
A rise in fuel prices caused inflation to reach 4.5% in Luxembourg in November – up from 3.6% compared with the same month last year, Luxembourg's official statistics agency Statec said last week.
Prices of heating oil - used in boilers and water heaters - doubled in the past year while fuel costs were up 6.4% compared with October this year, Statec said. Petrol prices rose 5.2% between October and November, diesel 2.5% and heating oil 3%. Fuel was twice as expensive per litre compared with the same period last year, Statec found.