The whole truth about Energy Savings Certificates (CEE)

At the dawn of their 20th anniversary, energy savings certificates (EECs) are singled out by the Court of Auditors. In a press release dated September 17, 2024, the institution called for an in-depth reform of the system. “more and more complex”, generating “increasingly important costs” And victim “significant fraud phenomena”. Its real effectiveness is in doubt. The energy savings achieved would be “significantly overrated”.

Would everything be good to throw into this device at the heart of France's energy policy since 2005? What is certain is that the conclusions of the Court of Auditors should influence the arbitrations of the sixth period of the EECs 2026-2030. A look back at this energy transition mechanism and its future prospects.

The EEC system: how does it work?

Les energy savings certificates (CEE) were created in 2005, with the POPE program law of 13 July 2005 setting out the guidelines for energy policy. With this system, France was then at the forefront of the energy transition.
The objective? Encourage businesses, professionals and individuals financially to save energy.

The EEC principle: “polluter pays”

The mechanism of energy savings certificates is complex. At the heart of the system: the required actors. They are called that because they have theobligation to obtain a certain volume of EECs for a given period of time, under penalty of financial sanctions. These certificates attest to the quantities of energy saved thanks to their actions.

The volume of CEEs is set by the State by period. It is shared between the actors obliged in proportion to their energy sales.

The obligated actors are the energy suppliers (electricity, natural gas, LPG, heat, cold, fuel oil) and fuel distributors. Among them are big names like EDF, Engie, TotalEnergies, Leclerc, Auchan or Carrefour.

Other actors who are not required are eligible for the scheme. These are local authorities, public institutions, the National Housing Agency (ANAH) and social landlords.

How does the CEE system work?

For achieve energy savings and to obtain their CEE volume, the “obliged” actors have three possibilities:

• Carry out their own energy saving work to contribute to the achievement of the overall objective.
• Buy energy savings certificates on the organized CEE market, orchestra of the encounter between sellers and buyers.
• Helping consumers to carry out renovation and energy efficiency work through the “Coup de Pouce” grants. The supplier obtains 1 energy savings certificate for 1 kWh cumac of energy savings achieved by its customer. We have thus seen the multiplication of “energy premium”, “CEE premium” or even “eco-energy bonus” offers, dedicated to thermal insulation, boiler replacement and, more recently, to the installation of a heat pump. Suppliers are free to set the amount of their financial contribution to eligible energy performance works. They are also free to define the form of their aid (bonuses, vouchers, free services, discounts, etc.).

Les EEC obtained by the obligated actors are delivered directly to their EMMY account in the national digital register.

A bit of history: the five periods of CEEs

Since 2005, five EEC periods have succeeded one another. Energy saving goals have been affirmed from period to period. The increase of more than 4,000% in bonds between 2005 and 2022 is dizzying and reflects France's ambitions.

The first EECs' transition period (2005-2010)

When the system was launched, the State set a reasonable energy savings target of 54 TWh cumac (the kWh cumac is the unit used in calculating the obligation). This objective was largely achieved at the end of the period, with more than 65.3 TWhc saved.

The second CEE period (2011-2014)

Following the success of the first period, the energy savings objective increases to 447 TWh cumac. THEbroadening the scope of obligated actors compensates for this spectacular increase, with the integration of fuel distributors.

The third CEE period (2015-2017)

The objective of saving energy is almost multiplied by two. The ambition is set at 700 TWh cumac, to meet European requirements in terms of energy reduction.

During this period, the standardization of documents And a declarative application process are put in place. The EEC precariousness is born. It requires an additional 150 TWhc to be dedicated to the fight against fuel poverty.

The fourth EWC period (2018-2021)

The objective of saving energy, of 2,133 TWhc, always follows an upward curve.

The fourth EEC period highlights some limitations of the EEC system. The law is evolving to fight fraud. The control order of September 28, 2021 reinforces systematic and random checks. It tightens quality requirements and lowers the threshold for authorized non-compliant transactions.

The fifth EWC period (2022—2025)

Over this fifth period, the objectives achieved 2,400 TWh cumac, in line with European and national energy transition objectives.

This period is marked by the strengthening of EEC aid to the most modest households. The distribution of obligations between suppliers is also changed., illustrating France's desire to decarbonize. Gas and oil suppliers saw their obligations increase by 83% and 52% respectively, while electricity suppliers saw their bond ratio fall by 11%.

EEC: a mixed record

In 2023, consultation was launched to set the modalities and objectives for the sixth EWC period. Today is the time to take stock. A mixed balance according to the conclusions of the Court of Auditors report published in September 2024.

Real energy savings

Even if they would be overestimated by at least 30% according to estimates by the Court of Auditors, real energy savings have been achieved since 2005 thanks to theacceleration of energy efficiency works.

According to figures from the Court, more than 1 million operations have been financed every year since 2021. And from 2014 to 2020, the CEE system “would have made it possible to reduce energy consumption in France by 106 TWh in 2020, or 6.5% of it.”

In 2024, the CEEs are supporting nearly 200 types of energy saving work. Businesses, industries and households can benefit from EEC aid for their workisolation building thermal systems, the energy renovation, the replacement of equipment heating, regulation, hot water or ventilation (heat pump, thermostat, high energy performance boiler, heat recovery unit, etc.) or the installation of a energy performance services contract.

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But... an impact on energy bills

The EEC system has a direct impact on customers. Suppliers pass on to consumers the cost of obtaining energy savings certificates.

The Court of Auditors denounces a hidden energy tax. In 2023, each household contributed in this way “up to 164 euros on average under the EEC system, i.e. just over 4% of the amount of its energy bills ”.

But... a still high risk of fraud

At the end of the third CEE period, Tracfin, the agency of the Ministry of Economy and Finance responsible for these issues, noted an increase in fraud linked to energy savings certificates.

Swelling in the amount of work, overestimation of energy savings, fraudulent work ...: despite the strengthening of controls, this system leaves room for multiple scams, especially in the building sector. Like what happened with the carbon tax, Scammer networks also take advantage of the CEE system, with companies set up from scratch to recover the funds generated by the certificates.

But... a complex EEC system

Since its creation in 2005, the EWC system has undergone numerous developments. The level of obligation has increased. Of additional goals have been added, such as the precariousness CEE or temporary subsidies to support specific operations (boiler change, attic insulation, heat pump).

The rules “multiple and unstable” In the eyes of the Court of Auditors complicate, weaken and opacify the system.

What is the future for CEEs (2026—2030)?

There is no doubt that the report of the Court of Auditors will feed into the ongoing discussions on the sixth EWC period (2026-2030). The stakes are high as the 2030 deadline approaches. As part of the European “Fit for 55” package, France has in fact committed to reducing its final energy consumption by 30% in 2030 compared to 2012.

While France should not deprive itself of this financial incentive tool at the heart of its energy strategy, the in-depth reform of the EECs is defended by the Court of Auditors. To regulate and control the system, she calls for the simplification of the mechanism, the measurement of real energy savings after operations, the end of bonus practices, the automation of controls and the increased participation of Parliament. Another solution proposed by the Court: refocus energy savings certificates on the most precarious households.

In advance, the Directorate-General for Energy and Climate (DGEC) launched a Call for programs to evaluate the system of energy savings certificates. Its long-awaited conclusions will be decisive for the sixth EWC period.

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