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The UK government has confirmed the Nuclear Regulated Asset Base (RAB) scheme, with the first project being Sizewell C in Suffolk.
Cost & Investment: Construction costs are now estimated at £38bn, with the government holding a 44.9% stake.
Consumer Impact: From 1 November 2025, a RAB levy will appear on energy bills at £3.46/MWh, rising to £3.93/MWh from January 2026. For households, this is forecast to add about £1/month during construction.
How it Works: Unlike the Contracts for Difference (CfD) model, RAB lets developers recover costs during construction, lowering investor risk but passing some costs to consumers earlier.
For Businesses:
- Pass-through/flex contracts – expect charges from November 2025.
- Fixed contracts – impact will depend on supplier terms; some may adjust mid-contract.
- Energy-intensive users will feel costs more significantly.
This model is central to the UK’s net zero strategy, aiming for 24 GW of nuclear by 2050. While it helps attract private investment, it also makes energy efficiency and carbon reduction projects even more important for managing costs.
At GLEG, we’re helping businesses understand these changes and explore ways to offset rising non-commodity costs. Contact us at hello@gleg.co.uk.