07 Nov RAB LEVY WHAT IS IT ? AND HOW WILL IT AFFECT YOUR BUSINESS?
Understanding the Nuclear RAB Levy & What It Means for Your Business
At Energy Smart, we’re committed to helping your business navigate the evolving energy landscape. One important change for the UK energy sector is the introduction of the Nuclear Regulated Asset Base (RAB) Levy — a new cost element on electricity bills, introduced to support the construction of new nuclear power generation capacity under the government’s net-zero strategy.
What is the RAB model?
The RAB model is a financing structure that allows private investment into major new nuclear power stations ahead of their commissioning. The cost of financing is recovered via a levy added to consumer electricity bills, enabling the government and investors to share risk and accelerate delivery of new capacity.
What does the RAB Levy mean for you? what’s it going to cost businesses?
From 1 December 2025, the RAB levy will start appearing on eligible business electricity invoices. The initial published rate is 0.345 pence per kilowatt-hour (kWh) — equivalent to £3.45 per MWh.
This means that for a business consuming 50,000 kWh annually, the additional cost will be approximately:
50,000 kWh × 0.345 p/kWh = £172.50 per year (approximately £14.40 per month)
We’ll continue to monitor and publish updates when we know more, as the rate is reviewed and published by the Low Carbon Contracts Company (LCCC) and applies for the remainder of your contract term.
If you’d like any further clarification on how the levy is shown on your invoice, or whether your business qualifies for any exemptions (for example under the Energy Intensive Industries scheme), please don’t hesitate to contact us.
Thank you for your continued support.
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