This statement sets out the procedure and criteria for a nuclear
project to be designated under the nuclear RAB model.
From:
Department for Business,
Energy & Industrial Strategy
Published
11 April 2022
Documents
Nuclear RAB model:
statement on procedure and criteria for designation
PDF, 335
KB, 27 pages
Details
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 rabdesignation@beis.gov.uk.
