The nuclear RAB levy explained: what it means for your business

Nuclear power is vital to the UK’s goal of cutting carbon emissions and keeping the lights on, while avoiding the price shocks we saw in 2022. But building power stations like Sizewell C takes billions of pounds. To fund them, the government has introduced the nuclear Regulated Asset Base (RAB) levy.

If you run a business in the UK, this new charge will appear on your electricity bill from November 2025. Here’s what you need to know, including how much you’ll pay and why this levy matters.

What is the nuclear RAB levy?

The nuclear RAB levy is a government charge added to all UK electricity bills to help fund new nuclear projects, starting with Sizewell C in Suffolk. It’s based on the “Regulated Asset Base” model. This gives investors long-term funding security by collecting small contributions from all electricity users throughout the construction and early operation of the plant.

Why is the government introducing it?

Building nuclear power stations is expensive, and that cost has historically fallen entirely on developers. Under the RAB model, consumers share a portion of the cost while the project is being built, and the government will be the majority owner of Sizewell C.

This 'nationalised' model will mean the government has more control over the UK's nuclear power supply, instead of companies like EDF Energy and Centrica, as is currently the case.

Building new nuclear plants will also reduce reliance on imported gas, support low-carbon energy production, and provide a more stable, home-grown electricity supply for the UK.

According to Ofgem, the model aims to lower financing costs compared to previous funding methods. This can ultimately reduce overall project costs in the long term.

Who has to pay the nuclear RAB levy?

Almost every business and household connected to the UK electricity grid will pay the levy. It’s a mandatory charge set by the government and regulated by Ofgem, not by energy suppliers.

The only exemptions are Energy Intensive Industries (EIIs) — such as steel, glass, and chemical manufacturing — that hold an official EII exemption certificate.

If you run a small or medium-sized business such as a restaurant, shop, or office, you will not be exempt and will see the levy automatically applied to your electricity bill.

When will the levy appear on bills?

The levy will officially appear on electricity bills from November 2025, but some suppliers may start applying it earlier. It will be shown as a separate “non-commodity” or “third-party” cost, alongside other government levies such as the Renewables Obligation or Feed‑in Tariff.

How much will it cost businesses?

The initial rate is set at 3.455 pounds per MWh (around 0.35 pence per kWh). That means:

• A small office using 10,000 kWh per year will pay roughly £35 more annually.
• A café using 19,000 kWh will pay around £66 more.
• A large supermarket using over a million kWh could pay several hundred pounds extra per year.

Here’s how it looks in practice:

Business type	Annual usage	Estimated annual cost (RAB levy)
Small office	10,000 kWh	£35
Café/Coffee shop	19,000 kWh	£67
Newsagent	11,000 kWh	£39
Hair salon	40,000 kWh	£140
Supermarket	1,130,000 kWh	£3,904

Most small businesses will see a modest increase, but the impact grows for higher‑use organisations.

Charities and non‑profits are not currently exempt and will also pay the levy based on consumption.

How long will the levy stay on bills?

The levy will remain in place for as long as the RAB funding model operates. Since this covers the construction and early operation of new nuclear power stations, businesses can expect it to last for several decades.

What is the levy funding?

All money collected through the levy is used to finance the construction of new nuclear power plants under the RAB model. The first supported project is Sizewell C, which will eventually supply reliable, low‑carbon electricity to around six million homes.

Future projects could also use the same model, meaning the levy plays a direct role in building the UK’s clean‑energy infrastructure.

How will the RAB levy show on your electricity bill?

You’ll find the RAB levy itemised in the non‑commodity or third‑party section of your electricity bill. This area usually lists government policy and environmental costs such as:

• Renewables Obligation.
• Contracts for Difference.
• Feed‑in Tariff or Smart Export Guarantee.
• System balancing or network charges.

If you’re unsure where to find it, your supplier can point it out or explain its inclusion in your charges.

How to prepare your business

• Check your energy usage: The levy is based on consumption, so understanding your kWh usage helps predict the extra cost.
• Factor it into budgets: Add 0.35 pence per kWh to annual forecasts to cover the levy.
• Watch for supplier updates: Energy companies will confirm how it appears on bills from November 2025. The levy will also be reviewed every quarter, so it's a charge to keep an eye on alongside the energy price cap.
• Review energy efficiency: Reducing usage remains the most effective way to keep bills down.

If your business qualifies as an Energy Intensive Industry, you can apply for exemption via the government’s EII Exemption Scheme. To find out more, visit the government website.

How MoneySuperMarket can help you cut the cost of your energy bills

No one wants to pay more for their energy, and this charge is another cost that your business will have to factor in. So it pays to make sure you're on the cheapest possible rates. To compare business energy quotes from a range of suppliers, click the "Compare Tariffs Today" button on the left of the page.

RAB nuclear levy FAQs

If there's still any part of the RAB nuclear levy you're unsure about, check out the answers to the most frequently asked questions below:

When will the RAB levy start appearing on bills?

It will appear on all UK electricity bills from November or December 2025, though some suppliers may introduce it earlier.

How much will it cost?

About 0.35 pence per kWh. The total will depend on how much electricity your business consumes.

Who has to pay?

Nearly all homes and businesses that are connected to the grid. Only certified EIIs are exempt.

What is it funding?

It funds new nuclear projects like Sizewell C, supporting affordable and reliable UK‑generated energy.

How long will it last?

Likely for several decades, covering the construction and operational phases of future nuclear plants.

Where can I find it on my bill?

Look for “RAB nuclear levy” or “nuclear funding levy” listed under non‑commodity or third‑party costs.

Can my supplier choose not to charge it?

Suppliers are required to include it, but in rare cases they might absorb the cost under specific contract terms.