Update to Revenue Commencement date for Nuclear RAB Scheme

The Department for Energy Security & Net Zero (DESNZ) and Ofgem have notified LCCC that – having reached Final Investment Decision for the project on 22 July 2025 and aiming for the revenue collection contract to come info force this Autumn – they are now targeting 4 November 2025 for the go-live of the Nuclear RAB levy.

Given the shorter charging year period, the Allowed Revenue will likely require an update.

In the interests of transparency, and to provide more notice to make arrangements in readiness for the commencement of levies, we have updated your levies based on the shorter charging year period.

While the original RABP notified to LCCC remains legally valid, the practical effect is that there will be one fewer collection month in the first charging year.

Consequently, although the total amount to be collected currently remains unchanged, the Interim Levy Rate (ILR) for the remaining months of the first charging year (ending March 2027) will need to be increased.

The start of levy collection, originally expected in November, will now take place in December 2025.

How this impact suppliers

The ILR/TRA determination shared on 12 August 2025 for the scheme has been amended as detailed below for Q4:

From 1 November 2025 to 30 November 2025, the amounts are:

• RAB ILR = £0.000/MWh
• RAB TRA = None

From 1 December 2025 to 31 December 2025, the amounts are:

• RAB ILR = £ 3.540 /MWh
• RAB TRA = £ 8,307,825.45

These adjustments were calculated on the 1 October 2025.

The previously announced TRA will be adjusted twice: to none for November and to £8,307,825.45 in December. The TRA invoice will be issued on 17 November 2025, with payment due 17 December 2025, in line with the 30-day payment terms.

Operational Costs Levy (OCL)

The Operational Costs Levy rate is set, and the amount is:

• RAB OCL = £ 0.0028 /MWh

The RAB OCL will apply to all settlement dates, from the point at which LCCC enters into the revenue collection contract with the generator. It will be levied using SF run date from the Balancing and Settlement Code (BSC), following the same methodology as the CfD OCL.

DESNZ and Ofgem are working together to finalise the updated Allowed Revenue as quickly as possible. Once this has been confirmed, LCCC will provide a further update with the final levies and reserve amounts.

Quarterly webinar and contact information

We understand this delay may cause inconvenience and will raise questions.

LCCC will be hosting the quarterly webinar on 15 October 2025 to discuss the levy rates for the Contracts for Difference scheme.

The session will also be covering RAB, please do register for the event.

For any questions on the levy rates – info@lowcarboncontracts.uk.

For any questions on credit cover or invoicing please refer to EMRS – contact@emrsettlement.co.uk

For any questions for DESNZ - SZCpublicenquiries@energysecurity.gov.uk