Absolute Value II decree: what are the new values?

I. Summary: which articles have been modified?

The articles affected by this new order are as follows:

• article 1 - definition of a taxable business unit
• articles 3 & 5 - reference energy consumption
• article 7 - contents of the technical file
• article 8 - skills required to complete the technical file
• article 11 - adjustment of targets
• article 14 - pooling of results
• article 16 - changing energy sources

II. The definition of a Taxable Functional Entity

The first article now gives a precise definition of the APE or functional entity subject to taxation:

A functional entity corresponds to an establishment as defined by INSEE, i.e. a geographically individualized unit of production or activity operated by a legal entity.

The notion of a " geographically individualized unit " refers to a precise geographical location in which activities are housed. A functional unit can be either a single business premises, or a group of related business premises, contained in a building, part of a building or a group of buildings located on the same land unit or on the same site.

III. Reference energy consumption

Changing the consumption surface

Article 3 has been amended to simplify the notion of energy consumption surface area.

The energy consumption surface area corresponds to the surface area for which all energy consumption is taken into account under the tertiary sector decree. From now on, it can also include surfaces that are not subject to the decree.

Let's take the case of a building with 900m2 of commercial floor space. Under this building, there is a 400m2 parking lot. The building will not be subject to tax.

However, if the tertiary surface area of this building is 1200m2, it will be subject to tax, and the consumption of all the surface areas, i.e. 1600m2, will be declared on OPERAT.

In certain cases, this modification makes it possible to :

• reduce undercounting
• simplify declaration
• reduce surface consumption

Correction of reference energy consumption for new buildings

The decree specifies that, for new buildings, it is now possible to correct the reference energy consumption based on the first full year of operation.

This makes it possible to deduce any excess energy consumption linked to the hygrometric overload of the new building. It also allows us to take into account the optimization of the building after optimal adjustment of the technical systems.

This correction must be made within 3 years of the date of acceptance of the building.

Definition of reference year energy consumption of storable fuels.

It has now been established that base-year energy consumption of storable fuels can be determined using :

• counting data
• estimated delivery volumes based on level readings
• an estimate by smoothing delivery volumes over a period covering the most recent years of energy consumption, in which the reference year is included, up to a maximum of 4 years of consumption.

Calculating reference energy consumption

The formulas for calculating reference consumption have been modified: from now on, the absolute consumption to be achieved must be known in order to calculate the adjustment for climatic variations of the share of energy consumption linked to heating and cooling.

Finally, for cooling-related consumption, a distinction must now be made between 4 situations:

• Business premises in all categories, with the exception of cold logistics, commercial refrigeration and document or collection storage activities.
• Commercial refrigeration premises
• Cold logistics premises
• Storage facilities for documents or collections with hygrometric constraints

IV. Pooling results across all or part of an estate

While it was already possible to pool results across all or part of an estate in the May 3, 2020 version, this order provides further clarification in Article 14.

• The scope of pooling is defined within the framework of a group of structures
• Validation by the legal representative of each functional entity is required to accept the principle of solidarity and integration into the group of structures.
• A functional entity can only be present in a single structure group.
  
  

V. Minor clarifications

This order also specifies a number of points:

• For example, with regard to the modulation technical file, article 7 states that the modulated target, expressed in absolute terms, cannot be greater than or equal to the reference energy consumption.
• In the same spirit, Article 8 states that several service providers may be used to produce a complete technical modulation file.
  

VI. New absolute values

This decree was long-awaited for the definition of new absolute values. However, we'll have to wait and see: while the decree lists numerous additional categories and sub-categories, it defines very few new values. The only new values are those for the offices - public services and logistics categories, which appeared in the Absolute Value I decree.

As a result, we are currently missing out on a wide range of value-added services, including restaurants, shops and shopping arcades, healthcare and hospitals, laundries and garden centers.

We look forward to seeing you this summer as we decipher the Absolute Value III decree!