Elexon is to play a key role in supporting the development of new nuclear plant including Sizewell C.
Elexon will be achieving this through our subsidiary Electricity Market Reform Settlement (EMRS) which will be administering a levy to fund the Government’s nuclear regulated asset base (RAB) approach.
The construction of more low carbon generation is critical for progress to Net Zero.
The Secretary of State directed a change to the BSC on 22 February 2024, so that from 29 February 2024, EMRS can perform the new Nuclear RAB Settlement Services Provider role.
New nuclear developers can recover design and construction costs
In March 2023, The Nuclear Regulated Asset Base Model (Revenue Collection) Regulations came into force. These rules allow nuclear plant developers to receive funding from all licensed electricity suppliers to fund the design and construction phase of new nuclear plant.
RAB payments to be funded by Suppliers
RAB payments to relevant nuclear companies would be funded by all licensed electricity Suppliers in Great Britain. EMRS would be responsible for carrying out the processes to calculate each Supplier’s payments and collecting the funds they owe, according to each Supplier’s market share.
EMRS delivers the role on behalf of the LCCC
EMRS will be doing this on behalf of the Revenue Collection Counterparty, in this case the Low Carbon Contracts Company (LCCC). The is an arms-length Government body that would make the payments to the relevant nuclear companies.
Elexon is a trusted delivery partner
Elexon Chief Executive, Peter Stanley, said: “Elexon is a trusted, independent delivery partner for LCCC, Government and Ofgem. We are pleased to be supporting the nuclear RAB scheme, which will play an important part in encouraging development of the low carbon generation GB needs to meet Net Zero.
“We have significant experience in delivering support schemes such as this, as since 2015 we have been successfully delivering similar functions to support suppliers’ funding of the Contracts for Difference (CfD) and Capacity Market schemes.”