Electricity bills will soon include a new line item: the Nuclear Regulated Asset Base (RAB) levy.
The new charge will start appearing on bills from 1 November 2025 as part of a move to help fund the next generation of nuclear power stations, beginning with the development of Sizewell C in Suffolk.
In this article, we explain everything you need to know about the Nuclear RAB levy, including how it will impact UK business energy bills.
What is the Nuclear RAB model?
As part of the UK Government’s strategy to improve energy security and meet climate change targets, the Nuclear Energy (Financing) Act 2022 included a provision allowing for the use of a Regulated Asset Base (RAB) model to help pay for new nuclear energy generation projects.
RAB models have been used for decades as a way of financing large-scale infrastructure projects such as transport, water and energy networks.
The Nuclear RAB model essentially shares the development costs of nuclear facilities with end-users, de-risking projects to encourage much-needed investment into the UK energy system.
How will the Nuclear RAB levy affect energy bills?
While it’s electricity suppliers that fund the Nuclear RAB, they will pass the levy onto consumers. These costs can be broken down as:
- Interim levy rate (ILR): The main charge to fund Sizewell C.
- Operational cost levy: A small fee to cover the scheme’s administration.
- Reserve amounts: Contributions to the Total Reserve Amount (TRA) to cover any potential supplier shortfalls.
The levy will appear as a separate item on your bill, similar to other pass-through charges like the Renewables Obligation.
Businesses with an Energy Intensive Industries (EII) exemption won’t be charged the Nuclear RAB levy.
How Leyton can help
With prices already high, energy costs have become a huge concern for businesses in the UK, particularly for those in manufacturing, chemicals, or heavy industry. The good news is that there are some exemptions from the Nuclear RAB levy, but many businesses find navigating the eligibility criteria and application process to be complex and time-consuming.
That’s where we come in.
If you’re not sure whether your business is eligible, or you simply want to explore your options, we’re here to help. Our experienced Energy Tax Exemptions team can let you know if your business qualifies for EII exemption based on energy intensity and sector classification.
If you’re worried about compliance, or are keen to maximise your chance of approval, we can also manage the full exemption process, from gathering the necessary data to submitting your application.
And if you’re paying any levies that you shouldn’t be, we’ll help you to reclaim the overpayments that you’ve made, as well as adjust your future billing.
Get in touch with one of our energy experts today to find out more.
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