Nuclear RAB Levy

The Nuclear RAB levy comes from the Nuclear Energy (Financing) Act 2022, which set up a Regulated Asset Base (RAB) model for new nuclear power stations. Under this model the project company receives an allowed revenue, set by Ofgem, from the start of construction rather than once the plant starts generating. Sizewell C in Suffolk is the first and so far only project funded this way.

The Low Carbon Contracts Company (LCCC) acts as the revenue collection counterparty. It charges Elec suppliers an Interim Levy Rate in £/MWh on the volumes they supply, and suppliers pass the cost on to their customers. The mechanics follow the CfD Levy, with a reserve payment held against shortfalls and a later reconciliation.

Key facts:

• Supplier obligations set by the Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023
• Collection began on 1 December 2025
• Interim Levy Rate set per financial quarter (Q1 is April to June)
• A small Operational Costs Levy covers LCCC's running costs
• Eligible energy intensive industries are exempt

EnergyCode validates the Nuclear RAB levy using the LCCC's published rates and includes it in the Pricing Engine.