Consultation on a Regulated Asset Base (RAB) Model for Nuclear

Overview

In his statement to Parliament in June 2018, the Secretary of State for Business, Energy and Industrial Strategy, Greg Clarke said that the Government would review the viability of a ‘Regulated Asset Base’ (RAB) model for new nuclear projects and committed in January 2019 to publishing an assessment of this model by the summer.

Our assessment, as part of this consultation, has concluded that, by providing regulated returns to investors, a RAB model has the potential to reduce the cost of raising private finance for new nuclear projects, thereby reducing consumer bills and maximising value for money for consumers and taxpayers.

This consultation sets out the basis for our assessment and seeks views from interested parties on how a Nuclear RAB model could be implemented within the current energy system in such a way that allows new nuclear to be built at low cost to consumers. It includes a set of suggested core principles that have resulted from our feasibility assessment and considers important issues such as the possible approaches to risk-sharing under such a model.

This consultation will be open for responses until 14 October 2019.

Why your views matter

The purpose of this consultation is to set out the basis for our assessment and to seek views from stakeholders on a nuclear RAB model and its high-level design principles, including risk sharing arrangements.

What happens next

Following our analysis of responses, we will aim to publish the Government's response by early 2020. Should we decide to proceed with introducing a RAB model to facilitate delivery of new nuclear projects, there could be further consultations on the specific design features of a nuclear RAB model.