BEIS published on 14 June its consultation on the revenue stream element of the proposed Regulated Asset Base (RAB) model to incentivise the deployment of new nuclear projects. BEIS is responsible for implementing this as legislated by the Nuclear Energy (Financing) Act 2022 which received Royal Assent on 31 March 2022.
The nuclear RAB approach delivers top-up payments to ensure nuclear plants within the scheme always receive the total allowed revenue assigned to them. This is funded by a regulated revenue stream derived from levies placed on energy suppliers – collected and administered by a counterparty.
Given its similarity to the current Contracts for Difference (CfD) scheme, which supports low carbon generators, BEIS have determined to re-use much of its framework for specific policy arrangements of the nuclear RAB revenue stream. However, the extent to which it will match these arrangements is under consideration in this consultation with BEIS suggesting several possible changes and additions. Responses are sought by 9 August 2022.
