Reform of local electricity taxes and creation of the domestic tax on final electricity consumption (TICFE)

Article 23 of the act of 7 December 2010 on the new organisation of the electricity market (NOME) reforms the taxation of electricity consumption. The municipal and departmental electricity taxes, previously based on bill amounts, become taxes on final consumption based on volumes supplied (Articles L. 2333-2 and L. 3333-2 et seq. of the General Local Authorities Code). The reference rate is €0.75 per megawatt-hour for non-business consumption and business consumption up to 36 kVA, and €0.25/MWh between 36 and 250 kVA; municipalities apply a multiplier between 0 and 8 and departments a multiplier between 2 and 4. A domestic tax on final electricity consumption (TICFE, Article 266 quinquies C of the Customs Code), collected by the State at €0.50/MWh, applies to supplies above 250 kVA of subscribed power. These provisions enter into force on 1 January 2011.