What is the Nuclear RAB?

As part of the UK’s strategy to reach Net Zero by 2050, the government is committed to a fully decarbonised power sector by 2030, with nuclear-powered electricity generation identified as one of the key enablers. The UK’s first Regulated Assert Base (RAB) nuclear project will be Sizewell C nuclear power plant. 

The Regulated Asset Base (RAB) is a government backed financing model designed to attract private investment into large scale infrastructure projects. The Nuclear Energy Financing Act 2022 introduced the option of a Regulated Asset Base (RAB) model for nuclear projects such as Sizewell C. 

The model enables investors to share the project’s construction and operating risks with consumers, significantly lowering the cost of capital to developers, allowing large scale infrastructure projects in the UK to be possible.  

The RAB allows private investors in major infrastructure project such as Sizewell C, to earn a regulated return on their investment during the construction phase, rather than only after the plant is operational. It lowers financing risks, reduces reliance on public borrowing, and is designed to encourage private investment into nuclear projects. 

Ofgem is the economic regulator, and the Low Carbon Contracts Company (LCCC) will administer the scheme. 

The funding is supported through a levy being added to all domestic and non-domestic UK consumers electricity invoices.  

You can find more information about the scheme here