Generating investment – Nuclear RAB charges

02/12/25

One of the key services we offer is Invoice Validation. This is a very useful and efficient way for our clients to check that their energy and utility bills are accurate and correct before payment. It ensures that they are not being overcharged for their usage, as we check costs against contract agreements, tariffs and consumption. Invoicing errors are common, from estimated meter readings, mistakes when switching contracts or transferring energy suppliers. Sometimes, new charges are introduced that may need some explanation.

Investment for the future

One new charge to look out for on business electricity invoices is the Nuclear Regulated Asset Base (RAB). This is a non-commodity charge that’s designed to provide the future funding for nuclear plant projects, such as supporting the development of Sizewell C, the nuclear power station project in Suffolk. With the build phase of this project estimated to cost £38bn and take 10 years to complete, this funding mechanism aims to give investors in UK nuclear power plants a reliable income stream through the construction phases.  This is instead of having to wait until the plant is operational and also reduces consumer costs in the long-term.

Using the RAB model, a company receives a licence from an economic regulator to charge a set price to consumers, in exchange for providing the infrastructure project in question. It shares the cost with consumers from the start, reducing the amount of interest owed on loans. This is designed to make new nuclear projects cheaper.

As a guaranteed income stream, RAB will provide a safety net and funding for nuclear projects, to ensure they reach completion. It is important news for energy consumers too, as it should reduce reliance on fossil fuels and also exposure to volatile global gas prices. Analysis has shown that using the RAB model should produce a cost saving for consumers of between £30 billion and £80 billion, compared to funding it through a Hinkley Point C-style scheme. In that instance, which was a Contract of Difference model, the developer agreed to pay the entire cost of constructing the plant, in return for an agreed fixed price for electricity output once the plant was online.

The government has announced the following charges will apply to all electricity bills in relation to RAB from the end of this year.

• From 1 November 2025, the Nuclear RAB Operational Levy will be charged £0.0028/MWh.
• From 1 December 2025, the Nuclear RAB Supplier Obligation Levy charge will apply at £3.54/MWh.

These initial costs have only been confirmed for the first month, so are likely to vary over time.

At IEC, we provide a professional Business Energy Invoice Validation service, which is a cost-effective and easy way to ensure you’re not being over-charged for business energy. If you’d like to find out more about the impact of the Nuclear RAB charge, or to discuss how we could meet your business energy needs and reduce your costs with Invoice Validation, please get in touch https://www.innovativeenergy.co.uk/contact/