Understanding the Nuclear RAB Levy

At The Utilities Group, we know how important it is for businesses to stay ahead of changes in the energy landscape—especially as the UK pushes towards its Net Zero 2050 target. One of the most significant updates coming down the line is the Nuclear Regulated Asset Base (RAB) Levy. Set to launch in late 2025, this government-backed scheme will help fund large-scale nuclear projects, playing a crucial role in the shift to a greener grid.

Here’s what you need to know: the RAB Levy changes when and how costs are recovered for new nuclear developments. Instead of waiting until a plant is up and running, investors will receive returns during construction, encouraging more private investment and accelerating progress on key projects like Sizewell C. All UK electricity suppliers will contribute to the levy based on their share of the market, with charges passed on as a separate line item on business electricity bills.

There are two components to the levy: the Operational Cost Levy (OCL), a small administrative charge starting 1 October 2025, and the main Interim Levy Rate (ILR), which funds actual construction, kicking in from 1 November 2025 at 0.3455 p/kWh and increasing slightly in December. Businesses can expect these rates to shift between 0.0350 p/kWh and 0.0450 p/kWh through March 2027 as funding needs change.

For businesses, this means you’ll soon see a new non-commodity charge on your energy invoices—a reflection of the evolving way the UK is investing in a low-carbon future. The Utilities Group will keep you updated and help you navigate these changes every step of the way.

Please reach out to 0151 5416767 or hello@utilitiesgroup.co.uk with any questions