A new charge is poised to appear on electricity invoices across the UK, and while it may seem modest at first glance, its long-term implications could be significant.
We’re looking at the upcoming implementation of the Nuclear Regulated Asset Base (RAB) charges set to appear on UK electricity bills from 1 November 2025.
These charges are part of the UK Government’s strategy to fund the construction of new nuclear infrastructure, beginning with Sizewell C, through a regulated financing model.
The RAB model, introduced under the Nuclear Energy (Financing) Act 2022, allows investors to receive returns during the construction phase of nuclear projects, reducing financing risks and enabling faster development of low-carbon energy sources. While this approach supports the UK’s net zero ambitions, it introduces new costs for energy consumers.
Key details of the RAB charges:
- Operational Levy: £0.0028/MWh from 1 October 2025
- Supplier Obligation Levy: £3.455/MWh (equivalent to 0.3455p/kWh) from 1 November 2025
- Charges will appear as a separate line item on electricity bills
Rates will be reviewed and updated quarterly by the Low Carbon Contracts Company (LCCC).
Rob Webb, Bureau Operations Manager at TEAM Energy, commented:
We understand that the introduction of the RAB charges may raise concerns for our customers, particularly those managing tight energy budgets. While these charges support critical infrastructure and long-term energy security, TEAM Energy is committed to helping businesses navigate the changes with clarity and confidence.
Businesses on pass-through contracts will see the charges applied automatically, while those on fixed contracts are advised to review terms with their suppliers.
While the RAB charge may seem small initially, its long-term impact could be substantial, especially for energy-intensive sectors. Proactive management, accurate forecasting, and expert support will be essential for UK organisations to stay ahead of these changes.
Footing the bill for net zero
Earlier this year, the UK government committed £14.2 billion to new nuclear infrastructure, including Sizewell C, as part of its net zero strategy. This sparked growing concern across industries about how such investments will be financed and who will ultimately bear the cost. A key worry is that the financial burden could be passed on through rising energy bills, hidden green levies, or mandated business contributions.
The Regulated Asset Base (RAB) charge, introduced under the Nuclear Energy (Financing) Act 2022 and administered by Ofgem, is a separate regulatory mechanism. Although it is not part of NESO’s Whole System Innovation Strategy, RAB and NESO operate independently yet complement one another in driving the UK’s energy transition.
You can read more about NESO’s Whole Energy Market Strategy (WEMS) in our blog “Net zero in the UK: Business, funding and growth”