The UK has relied on nuclear power for more than 70 years — and it remains a crucial part of the nation’s plan to reach Net Zero by 2050. Alongside renewables like wind and solar, nuclear power provides low-carbon, reliable electricity that keeps Britain’s lights on.
Now, a new government-backed funding model — the Nuclear Regulated Asset Base (RAB) Levy — will soon appear on electricity bills across the UK. Here’s what it is, why it’s being introduced, and what it means for your business.
What Is the Nuclear RAB Levy?
The Nuclear Regulated Asset Base (RAB) Levy is a new government charge that will appear on all UK electricity bills from 1 November 2025.
It’s designed to help fund the construction of new nuclear power stations — starting with Sizewell C in Suffolk — by allowing investors to receive regulated payments while the plant is being built.
This new model spreads the cost and financial risk between investors and consumers, encouraging more private investment and helping projects get off the ground faster.
Only businesses that hold a valid Energy Intensive Industries (EII) exemption certificate will be excluded from the charge.
Why Has the Nuclear RAB Levy Been Introduced?
Supporting the UK’s Net Zero Ambitions
The UK’s existing nuclear plants are nearing the end of their operational lives. Replacing them is essential to maintain energy security and reduce carbon emissions. The RAB model supports the government’s Net Zero 2050 strategy by ensuring a steady flow of investment into clean, domestic energy.
Lowering Long-Term Costs
Previously, nuclear projects were funded through the Contracts for Difference (CfD) model. Under CfD, developers carried most of the financial risk — meaning they demanded higher prices for the electricity they eventually sold.
The RAB model changes that by letting developers earn regulated returns during construction, cutting financing costs and making future energy prices more stable.
Government estimates suggest this approach could save between £30 billion and £80 billion over the lifetime of a single nuclear station.
How Will the Nuclear RAB Levy Work?
The scheme will be regulated by Ofgem and administered by the Low Carbon Contracts Company (LCCC), the same body that manages other low-carbon funding schemes like CfD.
The Three Key Components
- Interim Levy Rate (ILR) – The main charge that businesses will see on their bills.
Set at £3.455 /MWh (0.3455p /kWh) from 1 November 2025.
- Operational Costs Levy (OCL) – A smaller charge of £0.0028 /MWh to cover administration.
- Reserve Payments (TRA) – Funds held in reserve to protect the scheme if any suppliers default.
Suppliers will make quarterly payments based on their market share, and most will pass these costs on to customers.
How It Appears on Your Bill
- Pass-through contracts → You’ll see a new line item, likely labelled “Nuclear RAB Levy”, from November 2025.
- Fixed-price contracts → Some deals include protection from new government levies, but others don’t. Check your contract terms or speak with your broker to confirm.
- EII-exempt businesses → Those holding a valid EII certificate will not be charged.
How Much Will the Nuclear RAB Levy Cost Businesses?
The levy is estimated to add around 0.35p per kWh to electricity costs.
Example Costs
| Business Type |
Estimated Annual Usage |
Estimated Annual RAB Cost |
| Small Office |
10,000 kWh |
£35 |
| Café / Coffee Shop |
19,000 kWh |
£66.50 |
| Hairdresser / Barber |
40,000 kWh |
£140 |
| Supermarket |
1,130,000 kWh |
£395.50 |
| Leisure Centre |
125,000 kWh |
£66.50 |
Charities and non-profits will also pay the levy, as exemptions only apply to certified EIIs.
While the cost may seem minor per unit, larger consumers could see annual increases in the hundreds or even thousands of pounds, depending on their energy use.
What Will the RAB Levy Fund?
Funds raised through the RAB levy will go directly towards developing new UK nuclear projects — beginning with Sizewell C.
The £38 billion site will take around a decade to build and is expected to supply low-carbon electricity to six million homes for at least 60 years.
This investment strengthens the UK’s domestic energy supply and reduces dependence on imported gas, helping stabilise long-term energy prices.
You can find out more on the Ofgem website by clicking here
How Long Will Businesses Pay the Levy?
The levy will remain in place for as long as the RAB funding model is required – covering the construction and early operational phases of new nuclear plants. In practice, this could mean several decades.
While it represents a small short-term cost increase, it’s designed to reduce overall energy price volatility and support the UK’s shift to clean, independent power.
Preparing Your Business for the Nuclear RAB Levy
- Review your energy contract – Check if government levies can be passed through under your current agreement.
- Audit your energy usage – Small efficiency gains can offset the added cost per kWh.
- Stay updated – LCCC will publish quarterly ILR forecasts; these may fluctuate slightly each quarter.
- Budget ahead – Factor the RAB levy into your electricity forecasts from November 2025 onwards.
Final Thoughts
The Nuclear RAB Levy marks an important step in securing the UK’s clean energy future. While it adds a small short-term cost, it supports the construction of vital low-carbon infrastructure that will help stabilise power prices for decades to come.
At WeSave, we’re here to help businesses stay informed, compare tariffs, and make sure you’re not paying more than you need to.