Nuclear Regulated Asset Base - RAB Levy

Back in 2022, the previous government set out its ambition to increase the UK’s nuclear capacity. In simplistic terms, the UK needs new nuclear power stations to replace its ageing fleet and boost energy security. Consequently, the Nuclear Energy (Financing) Act 2022 was introduced, which provided a Regulated Asset Base (RAB) model to help fund nuclear energy projects. Such a model has been used in separate infrastructure projects such as the construction of Heathrow T5.

With Ofgem as the Economic Regulator and the provisions in the Act being modelled on the existing Contract for Difference (CfD) legislative framework, legislation now allows nuclear companies (such as Sizewell C Limited) to receive a regulated revenue stream for the construction, commissioning, and operation of nuclear projects.

How is the RAB scheme funded?

Regulations were introduced in 2023, placing an obligation on electricity Suppliers to fund the RAB scheme. The funding mechanism introduced largely “borrowed” the same approach used for the CfD Scheme, namely that suppliers would make daily interim and operational cost payments, and then every quarter make a reserve payment and a reconciliation payment.

What does the RAB Levy mean for Crown Gas & Power’s customers?

In August 2025 the first RAB charges for electricity Suppliers were published, with a notice that the RAB Levy obligation would commence from 1st December 2025.

Any customer with a fixed-term Supply Agreement signed before the 18th August 2025 will have a RAB Levy Pass Through Charge added to their bill. The RAB rate will be charged based on energy consumption from the 1st December 2025. For the avoidance of any doubt, all fixed-term Supply Agreements signed on or after 18th August 2025 will have the RAB Levy incorporated within their electricity unit rate(s) at the point of sale.

What are the RAB Levy charges, and how often will they change?

Using the latest published charges, we will introduce a universal RAB Levy rate for all of our customers. The RAB Levy rate will be reviewed and updated on a quarterly basis. The table below outlines what RAB Levy rate and the period that it will be effective:

RAB Levy Rates: Last Updated 10/10/2025