Get clear answers about the RAB nuclear levy, a new charge set to appear on UK electricity bills from late 2025.

Full Audio Transcript:

What is the RAB nuclear levy?
The Regulated Asset Base, or RAB, nuclear levy is a new charge that will appear on electricity bills for both homes and businesses across the UK. It’s a government-introduced levy to help fund the building of new nuclear power stations, like the Sizewell C project in Suffolk. Essentially, it guarantees funding for developers through a long-term, regulated charge added to your energy bill.

Why has the government introduced this levy?
Nuclear power is essential for the UK’s future energy security and to meet net zero climate targets by 2050. However, building nuclear plants isn’t cheap. The RAB levy helps spread the cost of these projects among electricity users so the UK can diversify its energy mix and reduce reliance on imports. While this helps avoid future price shocks, it means everyone will pay a little more for their energy.

Who has to pay the RAB nuclear levy?
The levy is compulsory for virtually all homes and businesses with a standard electricity supply in the UK. Whether you run a small corner shop or a large factory, the charge will apply to you. It’s an unavoidable non-commodity cost added to electricity bills.

Are there any exemptions from the levy?
The main exemptions apply to Energy Intensive Industries, or EIIs, such as steelworks, chemical plants, glass manufacturers, and paper mills, provided they meet certain energy use criteria and hold certification. Most small businesses, charities, and households do not have exemptions and will pay the levy.

When will the RAB levy start appearing on electricity bills?
The levy is scheduled to start showing up on bills starting from November or December 2025. Some suppliers may begin applying it slightly earlier. On your bill, it will typically appear as a separate non-commodity charge.

How much will the RAB levy cost businesses?
For businesses, the levy is currently estimated at about 0.35p per kilowatt-hour of electricity used. For example, a small business using 10,000 kWh per year would pay roughly £35 more annually. Larger or higher energy use businesses will pay proportionally more.

How does the levy impact different types of businesses?
Small and micro businesses like local shops, cafes, and offices will see a modest increase—generally tens of pounds per year. Medium and large businesses such as supermarkets and leisure centres will face higher charges based on their energy consumption. Energy Intensive Industries that qualify for exemptions won’t pay the levy, helping protect their competitiveness.

What will the money raised by the RAB levy be used for?
All funds collected go directly towards building and operating new nuclear power stations, which provide low-carbon electricity and boost the UK’s energy security. Sizewell C is currently the first major project funded by this levy.

How long will businesses need to pay the RAB nuclear levy?
The levy will stay in place for as long as the funding model is required—likely several decades, covering the construction and early operational life of new nuclear plants. The timeline may change depending on policy and project progress.

How can I identify the RAB levy on my electricity bill?
From late 2025, look for a line item titled “RAB nuclear levy” or “nuclear funding levy” under the non-commodity or third-party charges section of your electricity bill. If you’re not sure, ask your supplier to explain the charge.

What should businesses do to prepare for the RAB nuclear levy?
Since the levy is unavoidable for most, businesses should factor it into their annual energy budgets starting in 2025. Keep an eye on communications from your energy supplier and review your contracts and energy efficiency strategies accordingly.


The Regulated Asset Base (RAB) Nuclear Levy—What Small Businesses Need to Know

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