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The UK Government has announced new Nuclear Regulated Asset Base (RAB) charges, which will soon appear on all electricity bills. These charges are designed to fund the development of Sizewell C, a major nuclear power project in Suffolk, and may also apply to future nuclear developments.
What is the Nuclear RAB charge?
The RAB funding model provides nuclear investors with a reliable income stream during construction, rather than waiting until the plant is operational. While this approach helps reduce financing risks and aims to lower long-term costs to consumers, it does mean a levy is applied directly to electricity bills.
The confirmed charges are:
- From 1st October 2025: Nuclear RAB Operational Levy – £0.0028/MWh
- From 1st November 2025: Nuclear RAB Supplier Obligation Levy – £3.455/MWh
Although initial rates have been set, they may vary in the future as forecasts are reconciled.
What this means for electricity contracts…
- New customers: All new tenders for fixed or flexible contracts with fixed non-commodity elements will now include these charges. In some cases, we may be able to offer them as pass-through charges if preferred.
- Existing customers: Contracts with pass-through non-commodity costs will see the RAB charge added to bills from the applicable dates. Fixed contracts priced before 18th August 2025 do not currently include these costs, but we are reviewing each case and will notify any customers impacted.
Supporting your business through the change…
Energy costs can be complex, especially when new government levies are introduced. Our priority is to ensure our customers have clarity, consistency, and confidence when managing their contracts.
📩 Have questions or want expert support managing these changes? Get in touch with us at hello@gleg.co.uk.