Phase
Energy code
Native name
Code de l'énergie
Type
Employer's obligation to improve energy efficiency
Added to database
28 April 2021

Article

article L341-4-2, D341-9, D341-10, D351-5, D351-7


Description

The reduction in the electricity transmission tariff for electro-intensive industries was introduced by article 157 of Law 2015-992 (17 August 2015) on energy transition for green growth. 

Since 2016, article L.341-4-2 of the Energy Code stipulates that electro-intensive industrial sites can enjoy a reduction in electricity transmission tariffs ("Tarif d'Utilisation du Réseau Public de transport de l'Electricité - TURPE") if they have a predictable and stable, or countercyclical, consumption profile. The beneficiaries are consumption sites "connected directly to the transmission system or those equipped with a metering device managed by the transmission system operator".

To benefit from tariff reductions, the electro-intensive industrial sites concerned must:

  • justify a level of energy used higher than a minimum level; In practice this covers mostly industrial sectors (paper, metal, chemical, cement sectors, etc.)
  • meet criteria for using the public transmission network (minimum duration of use and minimum rate of use in off-peak hours);

Article D341-9 of the Energy Code (as amended by decree n°2021-420 of 10 April 2021) includes an annex listing four categories of eligible sites and the applicable electricity transmission tariff reduction. For instance, sites with a stable consumption profile are those "whose annual electricity consumption drawn from the electricity transmission network is greater than 10 GWh and  whose duration of use of the network is greater than or equal to 7,000 hours; excluding sites allowing energy to be stored for subsequent return to the network". This category enjoys the highest reduction of tariff, at 81% of the Tariff for the Use of Public Electricity Networks (TURPE).

To benefit from this reduction, companies must:

  • submit an annual certificate to public authorities (Prefect of the region where the site is located) to justify that the sites concerned meet the eligibility criteria (art. D351-7 Energy Code);
  • send their request to the transmission network operator, along with a copy of the above certificate (art. D.341-10).

As per article D.351-5 of the Energy Code, companies can benefit from this tariff reduction if, within 5 years of their first request, they reach an energy performance target with indicators defined as the ratio between energy consumption and a unit of production. These indicators are certified as part of the implementation of an energy management system according to  an international standard (ISO 50001).


Commentary

Set up by law n°2000-108 of 10 February 2000 on the modernisation and development of the public electricity service, the Tariff for the Use of Public Electricity Networks (TURPE) is used to remunerate electricity transmission and distribution network operators.  Concretely, electro intensive companies are mainly found in industrial sectors (paper, metal, chemical, cement sectors, etc.) strongly exposed to international competition. The reduction of TURPE thus aims to alleviate the costs supported by those sectors to contribute to their competitiveness. In return, these companies are required to improve their energy performance and thus to contribute to environmental objectives. According to the Energy Regulation Commission (CRE -2021), the estimated amount of TURPE reductions is approximately €230 million per year.


Additional metadata

Cost covered by
None
Involved actors other than national government
National government
Involvement (others)
None
Thresholds
Affected employees: No, applicable in all circumstances
Company size: No, applicable in all circumstances
Additional information: No, applicable in all circumstances

Citation

Eurofound (2021), France: Employer's obligation to improve energy efficiency, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/employers-obligation-to-improve-energy-efficiency/france

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