Understanding the New Nuclear Regulated Asset Base (RAB) Levy

From 1st November 2025, a new government levy will be introduced to all electricity bills across the UK: the Nuclear Regulated Asset Base (RAB) Levy.

This charge has been created by the government to help fund the construction of new nuclear power stations, starting with Sizewell C. It applies to all UK electricity consumers, unless you qualify for an Energy Intensive Industry (EII) exemption.

Importantly, this is a government-imposed cost. It is not set by your energy supplier or broker, and it must be applied consistently across the industry.

Key Facts About the RAB Levy

• Starts 1 November 2025 - it will appear as a new line on your bill from this date.

• Separate from your fixed contract price - even if you are in a fixed deal, this charge is added by law.

• Q4 2025 rate – set at £3.455/MWh (0.3455 pence per kWh) plus a very small operational cost of £0.0028/MWh.

• Displayed like other pass-through charges - for example, similar to Renewables Obligation (RO) or Feed-in Tariff (FiT) charges.

• Not a supplier or broker margin - all suppliers are legally required to apply it in the same way.

What This Means for Your Business

The RAB levy will show as a separate line item on your electricity bill, ensuring transparency around how the funds are used. Since it is mandated by government legislation, suppliers are simply acting as a collection mechanism - it is not an additional margin or hidden fee.

If you’d like a more detailed breakdown of how this levy will look on your bills, or an estimate of its financial impact based on your consumption, our team can provide tailored guidance.

In summary: this new levy is part of the UK’s long-term investment in secure, low-carbon energy infrastructure. While it does introduce a small additional cost, it is designed to help ensure a more stable and sustainable energy future.