Natural Gas Carbon Tax (NGCT)

Rate of tax

The NGCT rate up to 30 April 2021 was expressed in legislation as Net Calorific Value (NCV). The NCV rate had to be converted to GCV for returns to Revenue.

The legislation for the rate of NGCT was amended in Finance Act 2020. Along with a rate increase, from 1 May 2021 the NGCT rate is expressed in legislation as Gross Calorific Value (GCV). From that date, a conversion from the NCV rate to GCV rate for NGCT returns to Revenue is no longer be required.

  • From 1 May 2021 a rate of €6.06 per MWh at GCV applies. This increase is based on the amount charged per tonne of carbon dioxide (CO2) emitted increasing from €26 to €33.50.
  • Previously, from 1 May 2020 to 30 April 2021, a rate of €4.71 (€5.22 at NCV) per megawatt hour applied. This rate was based on a carbon charge of €26 per tonne of CO2 emitted when natural gas is combusted.

The following table provides a breakdown of the current and previous NGCT rates. It also includes the conversion factors used to convert from NCV to GCV.

Current and previous rates for Natural Gas Carbon Tax
Rate effective from GCV to NCV Rate Conversion Factor Supply Measured at NGCT rate per MWh 
01/05/2020 to 30/04/2021   0.9018 GCV €4.71
NCV  €5.22
       
01/05/2021  0.9017 GCV €6.06
NCV  €6.72
   

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