Economics of Nuclear

UK / Consumers Could Pay Significantly Less If RAB Is Used For New Nuclear, Says NIA

By David Dalton
16 October 2019

Association says funding model is widely used for major infrastructure projects
Consumers Could Pay Significantly Less If RAB Is Used For New Nuclear, Says NIA
Tom Greatrex: New nuclear stations are urgently needed for the UK to reach its goal of net zero carbon emissions by 2050.
Consumers could pay significantly less for electricity from future nuclear power stations as a result of a new approach to funding being proposed by the UK government, according the Nuclear Industry Association.

The regulated asset base (RAB) funding method
, which is the subject of a government consultation, encourages investment into major infrastructure projects by delivering reliable returns, at a reduced rate, before a plant is operational, the London-based industry group said. “This reduces the need for large-scale, long-term borrowing at high interest rates, which significantly increases the cost of power.”

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