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TICGN: Understanding and Optimising France’s Natural Gas Excise Duty
The TICGN (Taxe Intérieure sur la Consommation de Gaz Naturel), now officially referred to as the excise on natural gas (accise sur le gaz), is France’s main tax on natural gas. Appearing on every energy bill, its rate more than doubled between 2023 and 2024, raising many questions: what is the TICGN for? How is it calculated? What is the natural gas excise rate in 2026? And what exemptions are available?
What Is the TICGN?
The TICGN is a French tax applied to the consumption of natural gas used as fuel and as a vehicle fuel. Introduced in 1986 and now referred to as the excise on natural gas (accise sur les gaz naturels), it aims to encourage a reduction in CO₂ emissions by fiscally penalising fossil fuels.
Historically governed by Article 266 quinquies of the French Customs Code, the TICGN has been regulated since 1 January 2022 by the Code of Taxes on Goods and Services (CIBS). It is collected by natural gas suppliers on each invoice and then paid over to the French Public Finance Directorate (DGFiP).
In 2017, the TICGN absorbed two other contributions:
- The CTSSG (Contribution au Tarif Spécial de Solidarité Gaz), which funded solidarity tariffs on gas, since replaced by the energy voucher scheme (chèque énergie)
- The CSPG (Contribution au Service Public du Gaz), designed to promote the development of a biogas industry in France
The TICGN applies to both private individuals and businesses. It covers:
- Natural gas consumption for heating, hot water production and cooking
- Natural gas for vehicles (NGV), since 1 January 2020, under the 2020 Finance Act
Good to know: the excise on natural gas is not a new tax , it is simply the new name for the TICGN since 1 January 2022, following alignment with the European directive governing the general excise regime. The term accise sur les gaz naturels is now the official designation used in the CIBS.
Who Pays the TICGN?
The TICGN applies to all natural gas consumers in France : private individuals, businesses, and public bodies alike. If you consume natural gas for combustion or vehicle fuel purposes, you are liable for this tax. Since 2014, private individuals have been subject to the TICGN on the same basis as professional users.
In practice, the TICGN is deducted directly by gas suppliers on your invoices and then paid over to the DGFiP. The tax also applies to producers or importers of natural gas who use it for their own consumption.
Note: until 2021, the consumption of biomethane was exempt from TICGN. This tax incentive was designed to encourage the energy transition, but it is no longer in force. Specific TICGN exemptions remain available for certain industrial and agricultural uses.
TICGN Rate in 2026
Current Rates
Since 1 February 2026, the standard rate of the excise on natural gas (ex-TICGN) is set at €16.39/MWh for combustion use. This rate was confirmed by the 2026 Finance Act.
As a reminder, from 1 August 2025, the reduced VAT rate of 5.5% on gas subscriptions was abolished. Subscriptions are now subject to the standard 20% VAT rate, in compliance with European law. This reform was accompanied by a slight reduction in the TICGN rate from August 2025.
For natural gas vehicles (NGV), the specific excise rate is €5.23/MWh.
Historical Rate Overview
The TICGN rate has changed significantly in recent years, with a near-doubling between 2023 and 2024 after several years of freeze:
| Year | TICGN rate (€/MWh) | Annual change |
|---|---|---|
| 2016 | 4,34 | +64% |
| 2017 | 5,88 | +35,5% |
| 2018 | 8,45 | +43,7% |
| 2019 | 8,45 | 0% (yellow vest freeze) |
| 2020 | 8,45 | 0% |
| 2021 | 8,43 | -0,24% |
| 2022 | 8,41 | -0.24% (COVID/energy crisis freeze) |
| 2023 | 8,37 | -0,48% |
| 2024 | 16,37 | +95,6% |
| 2025 (Jan–Jul) | 17,16 | +4,83% |
| 2025 (Aug–Dec) | 15,43 | -10.08% (VAT reform) |
| 2026 (from Feb) | 16,39€ | 2026 Finance Act rate |
⚠️ The TICGN was originally projected to reach €16.02/MWh by 2022 under the 2018 Finance Act. The freeze introduced after the yellow vest movement, followed by the 2021–2022 energy price crisis, delayed this trajectory. The adjustment eventually materialised in 2024, with a near-96% increase.
How Is the TICGN Calculated?
The TICGN is calculated in euros per megawatt-hour (€/MWh) of natural gas consumed. It is based on the Higher Heating Value (HHV), which accounts for the total energy released by combustion, including water vapour. This tax is subject to VAT and must be declared quarterly to the DGFiP.
Calculation example: for a business consuming 500 MWh of natural gas in 2026, the TICGN amounts to: 500 × €16.39 = €8,195 in gas tax, before the application of 20% VAT.
Exemptions and Reduced Rates
Certain businesses and agricultural operators can benefit from partial or total exemption from the TICGN. These arrangements, derived from the European energy taxation directive and transposed into French law, remain largely underused by eligible companies.
⚠️ Important: TICGN exemptions apply only to very specific uses of natural gas. Eligibility must be assessed site by site and use by use. An incorrect assessment can expose your company to a tax reassessment covering the previous three years.
Who Can Claim a TICGN Exemption?
Exemptions apply when natural gas is used for one of the following purposes, as set out in the Customs Code (notably Article 266 quinquies):
- Use of natural gas other than as fuel or combustible
- Certain industrial processes, notably the manufacture of non-metallic mineral products
- Production of energy products and the energy needed to manufacture them
- Electricity generation
- Use of non-injected biogas
- Dual use situations, for example in metallurgical, chemical reduction or electrolysis processes
- Activities related to the extraction and production of natural gas
To obtain a TICGN exemption, the company must generally complete Cerfa form No. 13714*04 and submit a request to its gas supplier and to the customs administration, providing the necessary consumption documentation.
Good to know: the exemption certificate is valid for the duration of the contract but must be renewed annually.
Reduced Rates: Eligibility Conditions
In addition to full exemptions, certain businesses can benefit from reduced TICGN rates. These arrangements primarily target industrial sites with high natural gas consumption that are exposed to international competition:
- Companies subject to the EU Emissions Trading System (ETS): reduced rate of €1.52/MWh, these companies already bear a carbon cost through the purchase of allowances, justifying a reduction in gas excise
- Energy-intensive businesses exposed to carbon leakage risk: reduced rate of €1.60/MWh
- Businesses whose natural gas consumption exceeds 800 Wh per euro of value added, engaged in the dehydration of certain vegetables and aromatic plants: reduced rate of €1.60/MWh
These reduced rates limit the impact of energy taxation on the most energy-intensive industrial sectors.
Special Cases: Agricultural Sector
The agricultural sector benefits from specific arrangements linked to the TICGN and natural gas excise duties:
- Use of natural gas as fuel for agricultural or forestry work: reduced rate of €0.54/MWh (Article L.312-61 of the CIBS)
- Dehydration of certain vegetables and aromatic plants (excluding potatoes, mushrooms and truffles): reduced rate of €1.60/MWh, where consumption exceeds 800 Wh per euro of value added
- Certain agricultural operators can also request a partial refund of TICGN as well as excise duties applied to non-road diesel (GNR) and heavy fuel oil
Eligible parties include agricultural operators, agricultural and forestry contractors, agricultural cooperatives (CUMA), and certain companies engaged in recognised agricultural activities under the French Rural Code.
To benefit from these refunds or reduced rates, operators must generally complete a Cerfa form and submit their request to the relevant tax authority.
Tax Optimisation and Fiscalead Support
The procedures relating to the TICGN can quickly become complex for industrial businesses and heavy natural gas consumers. Between eligibility conditions, supporting documents, and declarative obligations, an error can delay or jeopardise the granting of an exemption or reduced rate.
How Fiscalead supports you
- ✅ Site-by-site and use-by-use eligibility audit for TICGN exemptions and reduced rates
- ✅ Preparation and filing of Cerfa forms and exemption requests
- ✅ Management of refund claims with French customs and tax authorities
- ✅ Monitoring of rate changes and regulatory updates
- ✅ Support for agricultural operators, energy-intensive industries and ETS-covered sites
FAQ
Written by Marcie Reyno-Dalle
CEO – Fiscalead
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