Nuclear regulated asset base (RAB) model: statement on procedure and criteria for designation
This statement sets out the procedure and criteria for a nuclear project to be designated under the nuclear RAB model.
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The Nuclear Energy Financing Act (NE(F)A) 2022 implements the nuclear RAB model as an essential part of the actions being taken to encourage investment in new nuclear projects. Such projects are needed to help reach our targets for reducing carbon emissions, and to support our energy security and independence by reducing our reliance on fossil fuels.
The NE(F)A enables the Secretary of State to designate a nuclear company, provided that certain criteria have been satisfied. The designated nuclear company’s electricity generation licence can then be amended by the Secretary of State and new conditions, and modifications to the licence terms, inserted. The conditions, among other things, would permit the nuclear company to receive a regulated revenue stream in respect of its activities relating to the design, construction, commissioning, and operation of the nuclear project.
The Secretary of State is required under the provisions of the Act to publish a statement setting out the procedure they expect to follow in making this judgement, and how they expect to determine whether the designation criteria in the legislation have been met in relation to a given nuclear company. This statement has been published in line with the provisions of the Act.
It includes some of the factors the Secretary of State is likely to take into account when assessing the maturity of the projects of prospective nuclear companies, and whether designating a company for the purposes of the RAB model is likely to result in value for money for consumers and taxpayers. Prospective applicants should have regard to this statement, and other relevant guidance as mentioned in the statement, as these will be considered when deciding whether to accept applications for assessment.
The Statement also sets out the procedure that nuclear companies should follow in order to apply to be designated, having assessed themselves as compatible with the criteria.
If you have any questions or would like to liaise regarding the nuclear RAB designation process, then please contact [email protected].