Energy audit requirements and standards in France

1. What is the current status in your jurisdiction of implementation of the mandatory energy audit requirements of Article 8 of Directive 2012/27/EC on Energy Efficiency (the Energy Efficiency Directive or EED)?

Fully implemented by Article 40 of Law No. 2013-619 of 16/07/2013 containing various provisions adapting the law of the European Union in the field of sustainable development (Loi n° 2013-619 du 16 juillet 2013 portant diverses dispositions d’adaptation au droit de l’Union européenne dans le domaine du développement durable) and in force (18/07/2013).

Articles L.233-1 to L.233-4 of the French Energy Code provide for mandatory energy audits.

2. What are the routes to compliance/key obligations?

Under Article L.233-1 of the Energy Code, an energy audit must be carried out every four years. This audit shall be conducted independently by recognized auditors. The first audit is carried out no later than 05/12/2015.

Under Article 1 of Decree No. 2014-1393 dated 24/11/2014, laying down detailed rules for implementing the energy audit provided for by Chapter III of Title III of Book II of the French Energy Code, “audits must cover at least 80 per cent of the qualifying undertaking’s/its group’s energy consumption across buildings, industrial processes and transport, but only 65 per cent if audits are performed before 5 December 2015”.

3. Who has to comply/what are the qualification criteria?

Under Article L.233-1 of the Energy Code, “the legal persons registered in a French Trade and Companies Register and the legal persons other than controlled by public entities mentioned in Article L.612-1 of the French Commercial Code, whose total of balance sheet, turnover or workforce exceed the thresholds set by a decree, must carry out, every four years, an energy audit (…)”.

Article 2 of Decree No. 2013-1121 which determines the thresholds from which companies are required to conduct energy audit provides that a company must carry out an energy audit if for two consecutive financial years preceding the energy audit obligation date, the company meets one or more of the following criteria:

  1. i. has > 250 employees; and/or
  2. ii. has an annual turnover of > EUR 50m or total balance sheet > EUR 43m.

In the case of corporate groups, once one corporate group member qualifies, the obligation to undertake audits extends to the qualifying entity only.

4. If relevant, what is the first qualification date?

Please see the answer to question 3 above in respect of the two preceding financial years.

5. What are the sanctions for non-compliance?

Under Article L.233-4 of the French Energy Code, the Administration may impose sanctions upon legal persons who fail to comply with Article L.233-1 of the same Code, after serving notice on the concerned person of having to comply with its obligations. This notice may be published. If the person does not comply within the time specified in the notice, the Administration may impose a fine, which shall be proportionate to the seriousness of the failure, the extent of the damage, and the benefits derived from the failure. The fine may increase as high as 2 per cent of the turnover before tax of the last financial year, increased to 4 per cent in case of new violation of the same obligation. The limitation period is four years.