UK Government have released a consultation on using the Regulated Asset Base” (RAB) model for financing new nuclear.
The consultation (available here) assesses the use of the RAB model for new nuclear in the UK. The consultation is currently open for responses and closes on 14 October 2019. If applied to Sizewell C in Suffolk, it would lead to lower financing costs and significant savings for consumers. The RAB is already widely used for UK infrastructure, notably for the Thames Tideway Tunnel, as well as for electricity, gas, telecoms and transport infrastructure.
The University of Cambridge’s Energy Policy Research Group have published a working paper on the RAB model for low carbon generation in the UK which can be accessed below.
cambridge-working-papers-in-economics-1969
If you would like any support drafting a response, please get in touch or contact john.wilkins@cliffordchance.com directly.