Thomas McGlynn • 16 September 2025

Nuclear RAB Levy: What It Means for Your Business Energy Bills

Share this article

Nuclear RAB Levy: What it Means for Your Business Energy Bills

Man pointing to text: Nuclear RAB Levy starts November 2025. Expect new charge on electricity bills.

⚡ From November 2025, a new Nuclear Regulated Asset Base (RAB) levy will appear on UK electricity bills. This additional non-commodity cost will help fund the government’s long-term nuclear programme, starting with Sizewell C.

📌
Latest Update Available

Suppliers are now implementing the Nuclear RAB Levy in different ways. Read what you need to know and ask your supplier →

🔎 What is the Nuclear RAB Levy?


The Regulated Asset Base (RAB) model is a government-backed funding approach used for major infrastructure projects like water networks and energy grids.


Traditionally, investors in nuclear plants waited until a site was generating power before seeing a return. With the RAB model, they receive secure payments during construction, funded through a small levy on electricity bills.



The aim is to make nuclear projects more affordable to build while spreading the costs more evenly across businesses and households.

📌 How Will the Levy Work?


The levy is regulated by Ofgem and administered by the Low Carbon Contracts Company (LCCC), with suppliers responsible for collecting payments through customer bills.

It’s made up of three main elements:


  • Interim Levy Rate (ILR): the main charge, set quarterly
  • Operational Costs Levy (OCL): a small fixed annual charge to cover scheme running costs
  • Reserve Payments (TRA): to protect the scheme if any supplier defaults



Suppliers contribute based on market share, and most will pass charges on to customers.

💷 How Much Will It Cost?


The government has confirmed the first charges:


  • £3.455/MWh (0.3455p/kWh) from 1st November 2025
  • £0.0028/MWh OCL from 1st October 2025


Further quarterly forecasts from LCCC suggest the levy will vary between £3.50/MWh in winter and around £4.50/MWh in summer up to March 2027.



Businesses with a valid Energy Intensive Industries (EII) exemption certificate will not be charged.

👉 Avoid paying more than you need to.

Get your free quote today.

🏢 What This Means for Your Business


  • Pass-through contracts → The levy will be added automatically to bills from November.


  • Fixed contracts → Most suppliers have terms allowing them to amend prices if government levies change. Some may absorb the cost until renewal, but many won’t.


  • EII-exempt businesses → No charges will apply if you hold a valid exemption certificate.



While the levy itself is relatively small per unit, for large consumers it could add up quickly — making it even more important to review your overall contract position.

📈 Why Is This Happening?


The UK needs to double its electricity supply and quadruple low-carbon generation by 2050 to meet Net Zero. With older nuclear stations due to retire, new capacity is vital.



The RAB model reduces financing costs by spreading risk across bill payers. The government estimates this approach could save consumers at least £30 billion per project compared to the old funding model.

✅ Final Thoughts


The Nuclear RAB Levy marks the start of a new era in UK energy financing. While it increases short-term costs for businesses, it’s designed to reduce long-term financing costs for nuclear projects and secure reliable low-carbon supply.



If you’re on a pass-through contract, expect to see the levy itemised from November. If you’re fixed, it’s worth checking your supplier’s position now.

Review Your Energy Costs

Offset New Levies

Or click below to review your energy costs and see how we can help offset new levies.

0151 459 3388


info@smart-energy.uk

Recent Posts

TNUoS charges April 2027: forecast increases by band, with a pylon and business building.
by Thomas McGlynn • 29 October 2026
NESO forecasts business TNUoS residual charges rising 17–37% from April 2027, depending on band. See the figures, find your band and check your charges.
Budget 2026 business energy guide with gold line illustrations of Parliament, a business building and an electricity meter.
by Thomas McGlynn • 29 October 2026
Budget 2026 explained for UK businesses: BICS electricity relief, back payments, CCL changes and what the announcements mean for your energy contract.
High business electricity standing charges: DCP412 explained, with an electricity meter and business premises.
by Thomas McGlynn • 20 October 2026
High business electricity standing charges despite low usage? Understand kVA capacity, TCR bands, CoMC and Ofgem’s DCP412 proposal, plus your review options.
Half-hourly meters: understand the costs, by The Smart Energy Company
by Thomas McGlynn • 19 October 2026
Understand half-hourly meter costs, kVA capacity and CT to whole-current reviews. Check network charges and compare your next business electricity contract.
Manufacturing electricity relief: could your business qualify? Smart Energy BICS checker with a factory illustration.
by Thomas McGlynn • 2 October 2026
Check BICS eligibility, electricity relief and the Budget 2026 back-payment update. See the 30 November deadline and what manufacturers need to apply.
A building with solar panels on it and the words how market-wide half-hourly settlement will transfo
by Thomas McGlynn • 25 September 2026
A plain-English guide to MHHS for UK businesses: how half-hourly settlement works, the rollout timeline to 2027, and the one myth that could cost you money.
Show More