The taxation of natural gas has changed radically in recent years.
Long perceived as a secondary tax on energy bills, the TICGN, now part of the’excise duty on natural gas, has become a an assertive lever of energy policy, aimed at increasing the use of fossil fuels in favor of less carbon-intensive solutions.
For gas-consuming companies, this trend means increased tax pressure, but also by the existence of exemptions and reduced rates, still largely under-exploited.
Against this backdrop, the TICGN should no longer be approached from a purely declaratory angle, but rather as an instrument of economic growth. an economic and strategic challenge, This enables us to secure tax positions and, in some cases, identify recoverable amounts.
What is the TICGN (excise duty on natural gas)?
The Domestic consumption tax on natural gas (TICGN) was introduced in 1986.
As a result of energy tax reforms, it is now included in the’excise duty on natural gas, which groups together all national levies on gas consumption.
In concrete terms :
- The tax is collected by gas suppliers; ;
- It is passed on to end consumers via their bills; ;
- It is subject to VAT of 20 %, which amplifies its financial impact.
Management and collection are the responsibility of General Directorate of Public Finances (DGFIP)
What is the purpose of the excise duty on natural gas?
The excise duty on natural gas is in line with a logic of energy and climate transition.
In particular, it aims to :
- Guide energy choices by penalizing fossil fuels; ;
- Encouraging energy sobriety and efficiency; ;
- Support the decarbonization of economic activities.
This tax system is part of a broader set of measures, combining regulatory constraints and price signals, designed to bring about changes in energy use.
Who is affected by TICGN?
Legally, TICGN is payable by gas suppliers.
In practice, it is supported by all consumers, both private and professional.
Any company that consumes natural gas is therefore concerned, regardless of sector or size, even if the terms and conditions of application vary widely depending on :
- Gas uses ;
- Processes used ;
- The energy intensity of the activity.
How much will the TICGN cost in 2026?
The excise duty on natural gas is set at 16.39 €/MWh as of January 1er February 2026.
This level of taxation is part of an overall trajectory of increased taxation on gas, consistent with the public commitment to reduce dependence on fossil fuels and promote the electrification of uses.
Does TICGN still apply at the standard rate?
No.
While the standard rate is the principle, the regulations provide for numerous cases of reduced rates and exemptions, often poorly identified or incompletely applied.
TICGN depends above all :
- Of real-life uses of natural gas ;
- Of industrial or thermal processes concerned ;
- Of energy profile of the company.
In most cases, a purely sector-based approach, or one based on NAF codes alone, is insufficient.
Does your situation warrant an in-depth analysis?
A large number of companies pay TICGN without having carried out an analysis. detailed analysis of gas usage.
A quick review can identify whether an in-depth analysis is relevant, particularly if :
- Natural gas is used in specific industrial and thermal processes; ;
- It represents a significant proportion of production or operating costs; ;
- Some plants operate continuously or intensively; ;
- Eligibility was assessed on the basis of NAF code only; ;
- No analysis by use or by installation has been carried out.
When one or more of these situations are present, a dedicated analysis may be warranted.
Audit Flash - Energy taxation
Reduced rate and exemption: making the difference
The regulations make a clear distinction between :
- The reduced rate, which reduces the level of taxation; ;
- Theexemption, which may lead to a total elimination of the TICGN for certain uses.
These mechanisms meet the objectives of maintaining competitiveness companies most exposed to energy costs and international competition.
What situations qualify for a reduced rate or exemption?
Eligibility is based on technical, economic and usage criteria, defined by the Code of Taxes on Goods and Services.
Energy-intensive activities
Certain companies can benefit from reduced rates when :
- Gas consumption accounts for a high proportion of value added; ;
- The business is exposed to risks of international competition and carbon leakage.
Specific uses of natural gas
Regardless of the sector, exemptions may apply when gas is used :
- Other than as fuel (raw material); ;
- In certain chemical or metallurgical processes; ;
- For the manufacture of energy products or the production of electricity; ;
- For gas extraction and production.
In many cases, only part of consumption is affected, which makes a detailed analysis by use essential.
The NAF code: a starting point, never a conclusion
The NAF code is frequently used as an exclusion or eligibility criterion.
In practice, it constitutes an indicator, but does not reflect the real diversity of gas uses within a company.
Depending on the situation :
- An eligible activity can be assimilated; ;
- Only certain installations are eligible; ;
- Analysis may vary from site to site.
Two companies belonging to the same NAF code may therefore present different very different tax situations.
Is it possible to recover TICGN that has already been paid?
Yes, under certain conditions.
When a company should have benefited from a reduced rate or an exemption, but has paid TICGN at the standard rate, a retroactive reimbursement may be envisaged, within the legal time limit corresponding to the end of the second year following the year of payment.
Amounts paid in respect of previous years may therefore still be recoverable, provided that a file has been compiled. documented and secure.
Why undertake a TICGN analysis?
The correct application of the TICGN is based on an analysis that takes into account taxation, technology and energy economics.
A TICGN analysis allows you to :
- precisely qualify the uses of natural gas ;
- Identify the measures applicable to the company's situation; ;
- secure the position held in the event of an inspection ;
- and, if applicable, highlight overpayments.
Our teams are with you every step of the way These include analysis of usage, identification of applicable systems, formalization of positions adopted, preparation for any future steps to be taken, and long-term security.
