Yorkshire Gas And Power
Nuclear Regulated Asset Base (RAB)
Key information
What is the charge and why has it been introduced?
The Nuclear Regulated Asset Base (RAB) levy is a new, UK government imposed, charge on electricity bills, commencing 1st November 2025, to finance large-scale nuclear projects (such as Sizewell C) and is a supplier regulation levy.
The RAB model allows investors to receive regulated returns on their investment during the project’s construction phase.
This system helps lower overall financing costs and encourages private investment by sharing risk between the government, developers, and consumers, though it means consumers contribute to costs before the power plant produces electricity. This particular levy is funding nuclear energy which was passed in 2022 (Nuclear Energy (Financing) Act 2022).
The scheme is regulated by Ofgem and administered by the Low Carbon Contract Company (LCCC) through the UK government.
The RAB levy is a key part of the UK’s strategy to achieve its 2030 clean power targets by accelerating the build-out of nuclear power stations.
The Sizewell C nuclear power station will be the first project to be funded under this new framework.
The government anticipates that once operational, projects like Sizewell C will lower long-term energy costs by providing a stable source of clean power.
More Information
The English dictionary defines a levy as:
“an amount of money, such as a tax, that you have to pay to a government or organisation”.
The administration and collection of charges is managed by the Low Carbon Contracts Company (LCCC). The rate will be updated quarterly, with updates posted 30 days before the start of the next quarter by the LCCC. You can find information on rates here: Regulated Asset Base – Low Carbon Contracts
These charges are consumption based, and will therefore be applied against each unit (kWh) of energy charged on your bill during the period that the levy remains in place.
It is a small charge per unit (kWh) of electricity that you are charged on your bill. Based on a typical small business user consuming 12,000kWh of electricity per year, we estimate it to add between £3-£6 per month to your bill.
Customers who have already agreed a contract with YGP will see this as an extra line item on your bill from the next bill produced from 1st November 2025. If your bill includes applicable energy usage both before and after the charge starts, you will see ‘RAB Levy’ as £0.00 for energy used before the charge, and then a charge at the applicable rate for energy used from 1st November 2025. We will notify all customers who will have the charge added as an extra line in their bill.
In future, new customers will have this included in the prices agreed on their contract.
No. The way in which this cost is applied may vary by supplier, but all suppliers will need to account for this new levy.
All electricity customers will receive this charge.
Only customers with a valid Energy Intensive Industries (EII) exemption certificate will not be charged.
The levy will be in effect on customer bills issued from 1st November 2025. The rate will be reviewed as is set out by the government. The LCCC are the acting administrator and will publish these charges.
The RAB model is designed to ensure a stable revenue stream for nuclear projects over their entire lifespan, meaning the levy will continue for the duration of these projects. The Nuclear RAB levy does not have a specified end date, as its purpose is to cover the costs of new nuclear power stations, which is a long-term endeavor.
This has no impact on your contractual agreement with YGP. The RAB levy will be passed through on your bill pursuant to the whole of clause 6.6, including clauses 6.6.4 and 6.6.6, of your terms and conditions – a copy of which can be found online at: www.ygp.co.uk.
Your unit rate and daily standing charge is fixed for the duration of your contract. The RAB levy is a new charge introduced to the industry by the UK government and therefore is required to be passed on as an additional charge.
External information sources:
Ofgem: Nuclear Regulated Asset Base (RAB) model | Ofgem
Energy Advice Hub: Nuclear RAB Levy | Guide | New Charge On Energy Bills
LCCC (Rates & more information): LCCC determines the ILR and TRA for the Nuclear Regulated Asset Base scheme for Q4 2025 – Low Carbon Contracts
Government website: Sizewell C: Regulated Asset Base (RAB) – GOV.UK
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