Understanding the Nuclear RAB Charge on Your Energy Bill
At Unify Energy, we believe in transparency and would like to take a moment to explain an important new development in the UK energy market: the introduction of the Nuclear Regulated Asset Base (Nuclear RAB) Levy.
This is a mandatory, government-led charge that will affect all electricity consumers, and we want to ensure you have a clear understanding of what it is, why it’s being introduced, and what it means for your business.
What Exactly is the Nuclear RAB Levy?
Simply put, the Nuclear RAB Levy is a non-commodity, pass-through charge designed to finance the construction of large-scale nuclear power infrastructure in the UK, starting with the Sizewell C project in Suffolk.
It is a mechanism set up by the Government that requires all licensed electricity suppliers, including Unify Energy, to collect from customers to help fund these strategic national projects.
The Shift in Financing:
RAB vs CfD
For years, large infrastructure projects like renewable energy farms and the Hinkley Point C nuclear project were funded through the Contracts for Difference (CfD) model. Under CfD, consumers would only start paying towards the project once it was operational and generating power.
The Nuclear RAB model, however, is a fundamental shift in approach. It allows investors to begin receiving revenue earlier during the construction phase. While this means the consumer begins paying sooner, the strategic rationale behind this approach is sound:
Lower Cost of Capital: By providing revenue certainty during the complex, multi-year construction period, the financial risk for private investors is dramatically reduced. This translates directly to a lower overall cost of borrowing for the project. The Government anticipates that this approach will save consumers billions of pounds over the lifetime of the power station compared to the CfD model.
Attracting Investment: Lower risk makes these essential national projects more attractive to large-scale private and institutional investors, ensuring the necessary capital is secured to complete construction without heavy reliance on taxpayer funds.
Why is Nuclear Power So Crucial Right Now?
The UK has ambitious targets to reach Net Zero emissions and secure its long-term energy independence. Nuclear power plays a unique and essential role in this strategy:
Baseload Reliability: Unlike intermittent sources like solar and wind, nuclear energy provides baseload power, a reliable, 24/7 supply that can sustain the grid regardless of weather conditions or time of day. This stability is critical for a modern, digital economy.
Decarbonisation: Nuclear power is a low-carbon energy source, producing virtually no greenhouse gases during operation. Expanding nuclear capacity is a key pillar of the UK's plan to phase out fossil fuels and secure a cleaner energy mix.
Energy Security: Developing new domestic power generation capabilities, such as Sizewell C, reduces the UK’s dependence on volatile international energy markets, enhancing national energy security and price stability.
In essence, the Nuclear RAB Levy is an investment which is shared across the entire consumer base to secure the reliable, low-carbon energy supply that will power the UK for decades to come.
Key Details for Unify Energy Customers
We know you want to understand how this change directly impacts your billing.
When does the charge begin?
The Nuclear RAB Levy will be applied to all electricity consumption from December 1st, 2025, onwards.
How will I see the charge?
The charge will appear as a distinct, separate line item on your monthly or quarterly electricity bill.
What is the average cost impact based on Business size?
| Business Type | Annual Usage/kWh | Estimate RAB cost(Based on Initial Rate, 2025) |
|---|---|---|
| Micro Businesses (small office, cafe, etc.) | 10,000 | ~£34.55/annum |
| Small Businesses (retail unit, small factory, etc.) | 50,000 | ~£172.75/annum |
| Medium (large office building, mid-sized manufacturer, etc.) | 100,000 | ~£354.50/annum |
| Large Businesses (significant industrial/commercial use, etc.) | 1,000,000 | ~£3455/annum |
The initial published rate for this levy, known as the Interim Levy Rate, has been confirmed at approximately £3.455/MWh
Will the rate change?
Yes, the rate is not fixed. The Low Carbon Contracts Company (LCCC), the body responsible for managing this mechanism, will review and update the Interim Levy Rate on a quarterly basis. As the construction project progresses, the rate is expected to fluctuate, reflecting the funding requirements at different stages.
No Action Required
As this is a mandatory, non-negotiable government charge, you do not need to take any action.
Unify Energy is committed to regulatory compliance and will ensure this pass-through charge is calculated and applied correctly to your consumption from the effective date. Our focus remains on helping you manage and reduce your overall energy usage, which is always the most effective way to control your costs.
If you have any further questions about the Nuclear RAB Levy, your invoice, or how Unify Energy is helping you navigate the evolving energy landscape, please do not hesitate to contact us.
Email: billing@unifyenergy.co.uk Call: 0330 058 0580
Unify Energy
Your Business Energy Partner
