IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jan 2016 | Removal date: 31 Dec 2025
Still in force

Tax or social insurance relief

According to France, "The objective of the tax [selective rebate] is to reduce energy consumption. The aim of TICFE as an environmental tax is to increase the costs of environmentally harmful behavior (ie. electricity consumption), discouraging such behavior and increasing the level of protection of the environment. [...] The annual estimated amount of the tax reduction is EUR 1,425.5 million [...]. The aid scheme covers reductions granted during the period from 1 January 2016 to 31 December 2025." (translation of para. 3, 7 and 9 letter from the EC to France, Brussels 07.10.2016)

Based on the findings of the European Commission, "The measure notified constitutes a reduction of the electricity tax. It therefore eases the burden normally borne by the undertakings concerned. In addition, the reduction is granted only to electro-intensive, hyper-intensive industrial installations or used for guided transport. The measure thus confers a selective advantage on certain undertakings within certain sectors. The sectors concerned (electro-intensive industries and rail transport) are open to competition and trade between Member States. The support measure is therefore likely to affect competition and trade between Member States." (translation of para. 25 letter from the EC to the France, Brussels 07.10.2016)

In the GTA database the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

642 Long-distance transport services of passengers
651 Land transport services of freight
691 Electricity & gas distribution (on own account)

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