UK businesses are preparing for higher energy bills as a new nuclear levy is set to appear on electricity bills from 1st December 2025. Interest is rising fast, with Google searches for “nuclear levy” up 126% in the past week, highlighting growing concern among SMEs.
The charge comes under the Regulated Asset Base (RAB) model, which front-loads funding for nuclear power stations. Instead of waiting for plants like Sizewell C to generate electricity, revenue streams start early to cover construction, financing, and operational costs. The levy also supports the UK’s net-zero goals by helping fund low-carbon nuclear capacity.
Whether you run a small corner shop or a massive chemical production plant, the small business comparison site, Bionic, reveals what you need to know about the new levy.
The RAB levy is compulsory for businesses
Les Roberts, business energy expert at Bionic, comments, “The RAB nuclear levy is a new, mandatory charge on electricity bills for both homes and businesses. It was introduced to fund new nuclear power stations to guarantee long-term funding for developers.
“Almost all standard electricity users, including small shops, offices, and factories, will pay it. The main exception is for businesses with an Energy Intensive Industries (EII) exemption – otherwise, only special cases such as off-grid properties or private power arrangements might avoid the charge.”
The levy could cost small businesses over £100 a year more
The impact of the RAB (Regulated Asset Base) nuclear levy depends on a business’s size, energy usage, and sector. Typical annual costs for different types of businesses are:
|
Business type |
Business Size |
Annual usage |
Annual RAB payment |
|
Hairdresser/Barber |
Small |
40,000 kWh |
£140.00 |
|
Cafe/Coffee Shop |
Small |
19,000 kWh |
£66.50 |
|
Newsagent |
Small |
11,000 kWh |
£38.50 |
|
Small Office |
Small |
10,000 kWh |
£35.00 |
|
Supermarket |
Medium to Large |
1,130,000 kWh |
£3,904 |
|
Leisure Centre |
Medium to Large |
125,000 kWh |
£432 |
Les added, “Most small and micro businesses, like high street shops, cafes, offices, or small warehouses, will see only a modest increase in their electricity bills because the charge is linked to energy use. However, larger businesses with higher consumption, such as supermarkets or manufacturers, will face a proportionally higher RAB cost – the more electricity you use, the higher the charge.”
Businesses warned to plan ahead
Les advised, “SMEs should factor the levy into their 2025 energy budgets and monitor communications from their suppliers. Understanding how the RAB charge affects annual costs will help businesses prepare and avoid unexpected increases on their electricity bills.
“To manage the impact, businesses can review energy contracts for potential savings, consider energy efficiency measures to reduce consumption, and compare options to ensure they are getting the best deal available.”
Bionic has created an explanation video for more information.
