Page type: primary-anchored (mirrors Nuclear RAB Model (Revenue Collection) Regulations 2023)
Nuclear RAB Revenue Collection Regulations 2023
Source: si-2023-254-nuclear-rab-revenue.md Last updated: 2026-04-05
What this instrument does
The Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023 (SI 2023/254) establish the practical cost-recovery mechanism for nuclear RAB projects under the Nuclear Energy (Financing) Act 2022. Electricity suppliers pay a daily levy to the revenue collection counterparty, who funds the nuclear company's allowed revenue during construction.
Three payment streams
Interim daily levy (Regs.5-8). The counterparty sets an interim levy rate per MWh for each quarterly obligation period. Suppliers pay daily based on their supply volume multiplied by the rate. Payment is due within 5 working days of notice. Late payments incur simple interest.
Reserve payments (Regs.9-10). Each supplier pays a proportional share of the total reserve amount based on their supply volume (excluding EII excluded electricity). The reserve provides a cash buffer for the counterparty.
Operational costs levy (Reg.23). Fixed per-MWh rates fund the counterparty's running costs: £0.0020 (pre-April 2023), £0.0025 (April 2023 to March 2024), £0.0028 (from April 2024).
Credit protection
Mutualisation (Regs.17-18). If a supplier defaults, the unpaid amount is spread across solvent suppliers. Mutualised amounts must be repaid if subsequently recovered from the defaulter.
Collateral (Regs.19-22). Suppliers must maintain collateral covering 21 days of rolling obligations, via cash or irrevocable letters of credit from rated institutions. A breach must be cured by the second working day.
EII exclusion
Energy-intensive industry excluded electricity (defined by reference to the Electricity Supplier Obligations Regulations 2015) is carved out from the levy calculation, reducing the burden on EII consumers.
Defined terms
See the source file defined terms register for 11 defined terms.
Cross-references
- Legal basis: Nuclear Energy (Financing) Act 2022
- Supply licence: Electricity Act 1989, s.6(1)(d)
- Settlement: BSC, Section K (BM Unit definition)
- EII exclusion: Electricity Supplier Obligations Regulations 2015
- Parallel framework: CfD supplier obligation (SI 2014/2014)
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