A new non-commodity charge is on the horizon for business energy users. The Nuclear Regulated Asset Base (RAB) levy was created to support the development of critical infrastructure to support the UK’s increase in nuclear capacity, including the ongoing Sizewell C development.
Ofgem regulates the scheme, and the levy’s start date is now expected in Autumn 2025. The levy is actually applied to suppliers, but they are certain to pass this cost on to customers, other than those exempt via the Energy Intensive Industries (EII) Scheme.
During the build of new nuclear projects, a small charge will be added to your energy bill, helping to spread the cost and avoid large upfront interest fees. This approach is designed to keep future energy prices more stable and affordable for businesses like yours.
The Nuclear RAB levy will be based on consumption and set quarterly by the Low Carbon Contracts Company (LCCC). Although the details are still being finalised, and businesses will not welcome yet another development at their expense, this charge does represent a strategic investment in the UK’s energy future, one that could help stabilise supply and reduce the use of fossil fuels over time.
At Procure Smart, we believe in transparency and proactive support, but updates have so far been thin on the ground. We have heard from one supplier that this will be added as a charge line on bills and passed through. This is the most common approach we expect, but how you see this charge will vary based on your supplier.
You will see the charges for the first time on your November bill, split into “Interim Levy Rate” (ILR) and “Operational Costs Levy” (OCL). The costs of these will be set and reviewed every quarter starting January 2026.
To find out more about non-commodity charges, check out our in-depth blog or speak to our expert team today.
