Consumers could pay significantly less for electricity from future nuclear power stations as a result of a new approach to funding being proposed by the UK government, according the Nuclear Industry Association.

The regulated asset base (RAB) funding method, which is the subject of a government consultation, encourages investment into major infrastructure projects by delivering reliable returns, at a reduced rate, before a plant is operational, the London-based industry group said. “This reduces the need for large-scale, long-term borrowing at high interest rates, which significantly increases the cost of power.”