Nuclear financing legislation being introduced in the UK has been approved by the upper house of parliament, meaning it only needs the formality of royal approval before becoming law and removing barriers to private investment in new nuclear energy projects.

The Nuclear Energy (Financing) Bill will provide finances for new nuclear power stations by introducing the regulated asset base (RAB) model, which empowers the economic regulator to levy charges on consumers.

By using the RAB model, a company’s investors share some of a project’s risks with consumers. For new nuclear plants this can lower the cost of finance, which is the main driver of project cost.