Let’s talk a little about nuclear energy. We've been generating nuclear energy for over 70 years now in the UK, and it remains an important part of our energy mix. Alongside renewable sources such as solar, wind, and hydropower, nuclear energy is a low-carbon option that can support the UK in achieving its net-zero target by 2050. While there are differences between green and clean energy, there is no doubt that nuclear energy plays a significant role in reducing our greenhouse gas emissions.

So, what’s new? With a major push towards a greener and cleaner future, the government has introduced schemes that appear on our electricity bills as levies under the non-commodity section. You may have noticed charges such as the Renewables Obligation (RO) or the Feed-in Tariff/Solar Export Guarantee. These are examples of schemes designed to encourage and fund the generation of additional green energy to the grid.

In this case it’s the same story for the new Nuclear RAB Levy.

How much has the levy been so far?

The scheme formally went live on 4 November 2025, but collection only started on 1 December 2025, and the rate has moved every quarter since rather than staying at the 0.35p it was first set at. LCCC, which collects the levy, sets the Interim Levy Rate each quarter:

  • December 2025: £3.494/MWh
  • Q1 2026: £3.663/MWh
  • Q2 2026: £4.683/MWh, about 0.47p per kWh
  • Q1 2027: £3.676/MWh, announced on 27 October 2026

Sizewell C, the station the levy pays for, reached its final investment decision in July 2025 at an estimated £38bn in 2024 prices. When you compare quotes, ask whether the levy is included, and see where it sits among the other non-commodity costs on a business bill.

What is the Nuclear RAB Levy?

The Nuclear Regulated Asset Base (RAB) Levy is a government charge that has been added to electricity bills since December 2025. The main reason for this charge is to fund new nuclear power stations and unfortunately, they aren't cheap. Only companies that qualify under the Energy Intensive Industries (EII) scheme are exempt from this charge. Businesses holding a valid EII certificate will not be required to pay the Nuclear RAB Levy.

Previously, large nuclear developments were financed through the Contracts for Difference (CfD) model. Under this approach, developers carried the financial risk and therefore negotiated a “high strike" price for the electricity produced. As a result, consumers ended up paying a higher price for electricity to compensate developers for the risks involved in building and operating the projects.

The Nuclear RAB Levy balances this risk and opens the pool up to more investors, as now it’s not only a selection of developers with strong financial backing that can fund these projects. This is particularly interesting, as investors and consumers will now also play a part in the construction and operational costs.

In short, the government estimates that consumers will save anywhere between £30 billion and £80 billion over the plant's potential 60-year lifespan. With older nuclear power stations nearing the end of their lifespan, it’s important that new power stations get built in order for the UK to meet electricity demand and manage low carbon emissions.

What is the levy actually funding?

The first project financed under the RAB model is Sizewell C in Suffolk, a planned twin-reactor station expected to power around six million homes once complete. The levy you see on your bill is contributing to its construction. Future nuclear projects may be added to the scheme over time. The next big project is a fleet of small modular reactors at Wylfa on Anglesey, and the government hasn't yet said whether it will use the RAB model. We explain what's planned and when in our guide to small modular reactors in the UK.

How will the new levy be regulated?

The new levy will be regulated by Ofgem, the energy regulator, and will be administered by the LCCC (Low Carbon Contracts Company).

Key elements to note:

The Interim Levy Rate (ILR): This is the main charge you will see. It was first set at £3.455/MWh (0.3455p/kWh), but collection started a month late, in December 2025, and the rate is reset each quarter.

The Operational Costs Levy (OCL): This is a small additional annual cost at £0.0028/MWh

Suppliers will bill based on their forecast each quarter, with adjustments to payments made after. If any suppliers default, meaning they fail to meet their contractual obligations, other suppliers have no choice but to cover the shortfall. They would resolve this by passing the charges over to the customers.

How much will this cost businesses?

The Nuclear RAB Levy was first set at around 0.35p per kWh of electricity used. If you run a small office using 10,000 kWh per year, that's roughly £35 extra annually. A site using 500,000 kWh would pay around £1,750 a year. The impact scales directly with consumption, which is another reason reducing waste pays twice: you save the unit rate and the levies charged on top of it. The rate is expected to change over time as construction progresses, so the figure on your bill won't stay fixed for the life of the project.

Contract types

Pass-through contracts: you'll see this charge appear automatically after 1st November 2025. Look out for 'Nuclear RAB Levy' or similar wording on your bill.

Fixed Contracts: whether you're protected depends on your terms. Some fixed contracts absorb new government levies; others contain clauses allowing suppliers to pass them through mid-contract. It's always worth reading your contract to see whether you're covered when new levies land.

Get in touch

When arranging future energy contracts, we will ensure that the RAB Levy is included in the prices quoted to you. However, it is always advisable to double-check with your supplier or broker, as not all quotes will automatically include these charges.

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