Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what plans they have to legislate to allow the use of a Regulated Asset Base funding model for (1) new nuclear infrastructure, and (2) other energy projects.

As we stated in our response to the consultation on a Regulated Asset Base (RAB) for nuclear published on 14^th December 2020, we believe that a RAB is a credible model for funding nuclear projects, as it should reduce the cost of finance and thereby reduce consumer bills.

We are also considering whether a RAB model could be applied to other low carbon technologies, including transport and storage infrastructure for carbon dioxide (outlined in the government’s response to the carbon capture, usage and storage business models consultation).

We have always been clear that any new nuclear project must provide value for money for consumers and taxpayers.

Currently no decisions have been taken concerning Government financing of the Sizewell C nuclear power project, ahead of the final investment decision.

The Government continues to explore the use of a Regulated Asset Base model for new nuclear projects and believes that this could be a viable means by which to finance new projects. Decisions on how the model would be applied to new projects have yet to be taken and would be subject to value for money and all relevant approvals.

BEIS officials are engaged regularly with representatives from both EDF Energy and the Office for Nuclear Regulation (the ONR) on a wide range of matters relating to nuclear reactors.