Revenue stream for the Nuclear RAB model

The Nuclear Energy (Financing) Act 2022 (‘the Act’) makes provision for the implementation of a Regulated Asset Base (RAB) model for nuclear energy generation projects. Fundamental to the successful implementation of a nuclear RAB model is a robust revenue stream that ensures a secure and consistent flow of revenues between electricity suppliers and nuclear companies benefitting from the RAB model for the duration of their nuclear project’s regulatory period. The Act gives the Secretary of State powers to make ‘revenue regulations’ in order to set out the detailed mechanics of how the revenue stream would operate under the RAB model. The Act also places a statutory obligation on the Secretary of State to consult with the persons specified in section 25 of the Act before making revenue regulations. As the consultation will inform drafting of revenue regulations that could support multiple nuclear projects benefitting from the RAB model, response