Nuclear RAB ChargesThe Nuclear Regulated Asset Base (RAB) charge is a new funding model introduced by the UK Government

Nuclear RAB Charges

Nuclear Regulated Asset Base (RAB) Charges – What This Means for Your Energy Costs

Nuclear RAB Charges – The Government has now confirmed the Nuclear Regulated Asset Base (RAB) charges, and we want to explain what this means and how it affects your energy contracts.

What Is the Nuclear RAB Charge?

The Nuclear Regulated Asset Base (RAB) charge is a new funding model introduced by the UK Government to help finance the construction of Sizewell C, a major nuclear power station being developed in Suffolk.

Traditionally, nuclear investors would wait until a plant became operational before receiving any returns. Under the RAB model, investors receive a regulated return during construction.

This approach spreads the cost of financing and is designed to make nuclear projects more affordable in the long run, helping to reduce overall costs for consumers.

The scheme is funded through a small levy on electricity bills.

While initially linked to Sizewell C, the Government has indicated that RAB could be used to support other nuclear projects in future.

Confirmed Nuclear RAB Charges

The Government has announced the following charges, which will apply to all electricity bills:

  • Nuclear RAB Supplier Obligation Levy: £3.455/MWh, effective from 1st November 2025

  • Nuclear RAB Operational Levy: £0.0028/MWh, with the effective date to be confirmed

Looking Ahead

Nuclear power remains a key part of the UK’s energy strategy, supporting energy security and the transition to a low-carbon future.

Some suppliers may have already expected this new charge and factored that into their fixed price energy contracts.

But it’s important to be aware that not all suppliers have taken the same approach.

Some energy providers may need to “unlock” their fixed contracts in order to add the Nuclear RAB charge back in.

This means that customers who believed they were fully fixed could still see additional costs introduced partway through their contract.

 

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