FRANCE - "TARIFF SHIELD" IN THE EVENT OF ELECTRICITY PRICES RISE
June 23, 2022
France has introduced a reduction of excise duty on electricity JORF on 30 January 2022, Decree No. 2022-84 which came into force on 31 January 2022.
This is an exceptional measure implementing the tariff shield provided for in Article 29 of the 2022 Finance Act.
In order to limit the effects of electricity prices rise on households, businesses and public bodies, the French legislator has provided for a mechanism to reduce the excise duty on electricity. This mechanism is triggered when the so-called "blue tariff" of electricity for residential use provided for in Article R. 337-18 of the Energy Code, including all taxes, exceeds by more than 4% that applicable on 1 August 2021, which remains unchanged until 31 January 2022.
The CSPE, and therefore the excise duties on electricity, are then reduced so that the increase of price all tax included does not exceed 4%, without being able to reach a level of less than €1/MWh for private individuals and similar persons and €0.5/MWh for businesses. The reduction in the TICFE / CSPE is applicable until 31 January 2023.
For companies liable for the ex-TICFE / CSPE
You should remain informed about the applicable rates (considering the above-mentioned fluctuation criteria) and ensure that your invoices show the amount and rate of excise duty expected.
For companies that were exempt from the former TICFE/ CSPE on the basis of the TICFE amounts paid
You may wish to entrust us with an impact study in order to anticipate the maintenance (or not) of your exemptions for the year 2022. Indeed, with the entry into force of the CIBS (Code des Impositions des Biens et des Services), opportunities as well as new areas of potential risks have been introduced.