Skip to main contentUpdated 06.10.2025: The implementation date of the Nuclear RAB charge has been pushed back to December.
From December, the RAB Interim Levy Rate (ILR) will be £3.54/MWh instead of the original ILR of £3.48/MWh.
The UK Government has announced its Nuclear Regulated Asset Base (RAB) charges, which will soon affect electricity bills across the country. Energy suppliers are now confirming how these charges will be included within fixed non-commodity costs for customers.
What is the Nuclear Regulated Asset Base (RAB) charge?
The Regulated Asset Base (RAB) model is a government-backed financing model designed to attract private investment into large-scale infrastructure projects, such as new nuclear power stations.
Traditionally, investors in nuclear plants wait until the site is operational to see returns. The RAB model changes this by providing investors with a reliable income stream during the construction phase. This funding is supported through a levy on consumers, meaning an additional charge will appear on electricity invoices.
Key details of the new RAB charges
The Government has confirmed that the following Nuclear RAB charges will apply to all UK electricity bills:
Nuclear RAB Supplier Obligation Levy: £3.455/MWh (0.3455p/kWh) from 1st November 2025
Nuclear RAB Operational Levy: £0.0028/MWh from 1st October
While these initial costs have been confirmed for the first few months, they are forecast beyond this and could be reconciled at a later date. This means that charges are likely to vary over time.
How will suppliers apply the RAB charge?
Suppliers will add the new charge to customer pricing. For existing customers in “fully fixed” contracts, suppliers may issue updates on how these costs will be managed.
For those on contracts with pass-through non-commodity costs, the Nuclear RAB charge will automatically be added to bills for consumption from November onwards.
It’s important to note that while some suppliers may initially absorb the cost for existing fixed contracts until renewals, most have terms and conditions allowing them to amend charges in line with changes to laws or industry rules.
There is positive news for businesses qualifying for the Energy Intensive Industries (EII) exemption scheme; these companies will not be required to pay the Nuclear RAB charges.
Do businesses need to take action?
For most customers, no action is required. However:
Customers with pass-through contracts will see charges applied automatically from November.
Customers with fixed contracts should check with their supplier for updates.
Need advice on Nuclear RAB charges?
If you have questions about the Nuclear Regulated Asset Base (RAB) scheme or are unsure how it will affect your business, our expert energy procurement team can help you understand the impact on your energy bills and contracts. You can contact us here.
Categories
Tags
Share this article
Explore our Procurement services:
Day One Fix contracts
Day One Fix contracts are designed to give businesses clarity and cost savings, without the complexity of managing market risks,
Discover moreFlexible Energy Baskets
Energy Baskets enable businesses to access the most competitive rates, by combining purchasing power. Envantage’s experts will help you to access the benefits of flexible purchasing, unlocking valuable savings for your business.
Discover moreFlexible Energy Purchasing
With the right flexible procurement strategy, it’s possible to align the control of your energy costs to your long-term business planning. Our expert consultants will help you to take advantage of the energy markets, bringing valuable insights on how they can work for your business.
Discover moreFixed Price Energy Contracts
A fixed approach can be a good choice to secure strong budgetary control if your energy consumption is predictable. With energy prices fluctuating from season to season, month to month and day to day, engaging with our experts early on maximises your chances of achieving the best fixed rate for your organisation.
Discover moreProcurement Strategy Review
Our expert consultants have the knowledge and experience to quickly and clearly identify an optimum approach to energy purchasing that fits with your appetite for risk and long-term goals.
Discover more
Don & Low
Operating in an energy-intensive industry, Don & Low is firmly committed to managing the risk that this brings to its operations from a financial and regulatory perspective, as well as embracing new approaches and technologies to meet its decarbonization goals.
Discover moreSubscribe to receive exclusive content and industry insights from our team of carbon and business energy experts, and our Daily & Monthly Market Updates.