Nuclear Regulated
Asset Base (RAB) Levy
The UK is transforming its energy landscape. To meet the target of net-zero carbon emissions by 2050, we are moving away from fossil fuels and investing in
reliable, low-carbon alternatives.
One such initiative is the Nuclear Regulated Asset Base (RAB) Levy, which supports the development of sustainable energy infrastructure.
What is Nuclear Regulated Asset Base (RAB) Levy?
The Nuclear Regulated Asset Base (RAB) Levy is a government initiative introduced to fund the construction of new nuclear power stations, such as Sizewell C. This levy ensures the UK has the infrastructure needed for a stable, home-grown energy supply.
How does it work?
The RAB model is a well-established way of funding major infrastructure in the UK.
It enables developers to receive regulated funding during the build phase of a nuclear project, helping lower overall costs compared to funding everything after completion.
To deliver this funding in a clear and regulated way, the Nuclear RAB Levy is made up of several specific charge components, each with a defined purpose.
Components of the Nuclear RAB Levy
The levy consists of the following main components:
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Levy Components
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Purpose
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1: Interim Levy Rate (ILR)
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The main charge used to fund the construction of approved nuclear projects.
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2: Operational Costs Levy (OCL)
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It covers the running costs of the scheme (e.g., around £0.0028 per MWh for 2025/26, subject to change)
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Did you know?
The Nuclear RAB Levy comes into effect from Q4 2025 and appears on bills as a regulated (regulated pass-through cost) non-commodity charge.
Who Pays Nuclear RAB Levy?
All licensed energy suppliers in Great Britain are required to pay into the Nuclear RAB fund. These costs are then transparently passed on to customers.
Who Regulates It?
- Ofgem sets and regulates the overall framework.
- LCCC (Low Carbon Contracts Company) collects payments from suppliers.
- EMRS (EMR Settlement Ltd) manages settlement and invoicing processes.
Suppliers can pass these costs on to customers to ensure transparency. Customers with a valid Energy Intensive Industries (EII) exemption will not be charged.
Authoritative Resources
For detailed information on the legislation and regulations behind the Nuclear RAB Levy, please consult the following official sources:
Ofgem: Nuclear Regulated Asset Base (RAB) Model
GOV.UK: Future Funding for Nuclear Plants
Low Carbon Contracts Company: About the RAB Scheme
FAQs
What is a levy, and how much does it cost?
The English dictionary defines a levy as:
“A levy is a compulsory charge, similar to a tax, that is collected to fund specific national initiatives.”
The Nuclear RAB Levy is managed and collected by the Low Carbon Contracts Company (LCCC). Rates are reviewed every quarter, with updates published at least 30 days before the start of each new quarter.
This levy is based on electricity consumption and is applied per unit (kWh) of electricity used.
Who regulates the Nuclear RAB Levy scheme?
The scheme is regulated by Ofgem and administered by the Low Carbon Contracts Company (LCCC).
Maxen Power includes this charge transparently on bills, in compliance with regulatory requirements.
How will the levy appear on my bill?
The levy will be listed as a consumption-based electricity charge and will appear in your bill breakdown as the “Nuclear RAB Contribution.”
Who has to pay the Nuclear RAB Levy?
The Nuclear RAB Levy is a mandatory charge for businesses that consume electricity.
Exemptions are rare and primarily apply to certain Energy Intensive Industries (EII) that hold approved exemption certificates.
How do I know if my business qualifies for an EII exemption?
Your business may qualify if it operates in a sector that the UK Government recognises as an Energy Intensive Industry (EII). To be eligible, your business must hold a valid EII exemption certificate.
If your business qualifies for an exemption, any Nuclear RAB charges included in your electricity unit rate may be reconciled or reimbursed. It’s important to check your eligibility and ensure your exemption documentation is kept up to date.
Does this levy affect gas or non-electricity charges?
No, the Nuclear RAB Levy applies only to electricity. It does not impact gas or other non-electricity charges.
How long will the levy apply?
The RAB model is designed to provide long-term funding for the construction of new nuclear power stations.
As such, the Nuclear RAB Levy does not have a set end date and will remain in place for as long as it is needed to support these projects.