What Is the RAB Nuclear Levy?
The RAB nuclear levy is a new government charge that all homes and businesses connected to the UK electricity grid will need to pay. RAB stands for Regulated Asset Base.
It supports the cost of building new nuclear power stations, which begins with Sizewell C in Suffolk. This forms part of the UK’s plan to reach net zero by 2050 and assists in more stable energy prices for the future.
Who Must Pay The RAB Nuclear Levy?
All homes and businesses connected to the UK electricity grid must pay the RAB levy.
Some energy-intensive industries can be exempt if they meet the government’s guidelines and hold a valid exemption certificate. If you believe your business may qualify, you can apply through the government website.
How Much Will It Cost Your Business?
The current rate is about 0.35p to 0.46p per kilowatt hour of electricity used.
For example, a small business using 10,000 kilowatt hours each year would pay about £35 to £46 extra annually. Your total cost will depend on how much electricity your business uses. Higher usage will lead to higher overall charges.
The levy is reviewed every quarter, so the rate may change.
When Does The RAB Levy Start?
The date you begin paying the levy depends on your electricity supplier and when you agreed to your fixed-term contract.
Some suppliers included the levy in contracts agreed from August 2025, while others will add it from 1 December 2025.
If your supplier has not already included it in your unit rate, or if you do not have a fixed-term contract, the levy will appear as a separate charge on your electricity bill.
It is important to check updates from your supplier so you understand how the levy will apply to you.
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