UK / RAB Funding Model For New Nuclear Could Save Consumers £30 Billion, Parliament Told

New legislation ‘could help get new reactor projects off the ground throughout Britain’, minister tells MPs
RAB Funding Model For New Nuclear Could Save Consumers £30 Billion, Parliament Told
The Sizewell C project to build two EPRs is the subject of negotiations between France’s state-owned energy company EDF and the government. Courtesy EDF.
Using the regulated asset base (RAB) funding model for a nuclear project in Britain could produce a cost saving for consumers of more than £30bn, compared with funding projects through a contract for difference, parliament was told.

New nuclear power plants could also reduce the UK’s exposure to volatile global gas prices, MPs heard during a debate on new legislation to use the RAB model for new nuclear power stations in Britain.

The minister for business, energy and industrial strategy Greg Hands said the £30bn saving equates to more than £10 a year for an average domestic dual-fuel bill throughout the life of a nuclear power station, which can operate for 60 years.

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