Commercial Energy Market & Solutions, Latest Update
RAB Charges to Appear on Bills from December
The government has delayed the rollout of the new Nuclear Regulated Asset Base (RAB) charges. Implementation now begins December 2025.
What is the Nuclear RAB Charge?
The Regulated Asset Base (RAB) model is a government-supported funding mechanism aimed at encouraging private investment in major infrastructure projects like nuclear power stations.Under traditional investment models, returns are only realised once a project is operational. In contrast, the RAB model allows investors to begin recouping costs during the construction phase, funded by a levy on consumer electricity bills.
How Will This Affect Energy Bills?
Suppliers will incorporate the new charges into customer pricing. For customers on fully fixed contracts, energy providers may issue further information on how the RAB costs will be handled.If you’re on a contract with pass-through non-commodity charges, the new RAB fees will be automatically added to your bills for energy used from November onwards.While some suppliers might initially absorb the costs for fixed contracts, most contracts contain clauses allowing them to update charges in line with regulatory changes or new government policies.
Exemptions for Energy-Intensive Industries
Businesses that qualify under the Energy Intensive Industries (EII) exemption scheme will be exempt from paying these Nuclear RAB charges.
Business Costs Are Changing
Nuclear RAB charges begin rolling out December 2025
New charges will appear as part of non-commodity costs on bills
Rates confirmed: £3.455/MWh from 1st Nov; £0.0028/MWh from 1st Oct
Fixed contract holders may still be exposed depending on contract terms
Pass-through contracts will see automatic cost increases
These upcoming charges are part of government efforts to support nuclear infrastructure. While long-term, this may stabilise UK energy security, it poses short-term challenges for cost control—especially for SMEs and those on pass-through agreements.
How We Can Help
Clarify how RAB costs apply to your current contract type
Review and optimise your procurement strategy to absorb new charges
Model full impact with scenario planning and risk assessments
Guide Energy Intensive Industries on securing exemptions
Support fixed-price renegotiations or restructuring options
We’ll ensure you understand exactly what’s changing and how it affects you. Whether you’re on a fixed or pass-through deal, we can help you respond strategically, avoid surprises, and reduce reliance on volatile grid pricing.
The Strategic Response: Plan Ahead with Confidence
The rollout of the Nuclear Regulated Asset Base (RAB) charge has been postponed and is now set to begin in December. From that time, the Interim Levy Rate (ILR) under the RAB model will increase slightly to £3.54/MWh, up from the previously proposed £3.48/MWh.The UK Government has confirmed the upcoming implementation of Nuclear RAB charges, which will start appearing on electricity bills nationwide. Energy suppliers are now outlining how these charges will be reflected within customers' fixed non-commodity cost structures.
Why Act Now?
With further price rises forecast this autumn, waiting could mean higher costs locked into your next contract.
How can I reduce non-energy costs?
1. Use your business' data
If you can't measure it, you can't manage it
Reducing your costs starts with controlling your consumption, and for that you need insights into your usage. Advantage Analytics is a world-class data analytics platform that gives you insights into every aspect of your energy usage.
Check out our Advnatage Analytics platform that allows you to access site data and usage from anywhere in the world.
2. Spread your usage
Time of day affects your costs
By avoiding using energy at certain times of the day, you could potentially make savings on time-sensitive non-energy charges. This includes ‘Transmission Network Use of System’ (TUoS) and ‘Distribution Use of System’ (DUoS) costs.
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3.Reduce your usage
Small changes can make a big difference
Making changes to your energy usage through increasing your efficiency—including improving your insulation, upgrading your lighting and investing in new equipment—not only reduces your wholesale costs, but can lower your non-energy costs. Your Climate Change Levy (CCL) contribution depends on the volume of energy your business uses, so lowering your usage could reduce your costs beyond just what you’re saving on your consumption.
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