What Is the RAB (Regulated Asset Base) Levy and How Does It Affect Your Business Energy Bills?

12 January 2026

Over recent months, you may have seen the RAB (Regulated Asset Base) Levy mentioned in the news, particularly in relation to rising energy costs. While it might sound like another bit of industry jargon, the RAB levy is something that can directly impact business energy bills – including those of TST clients.

What is the RAB Levy?

The Regulated Asset Base (RAB) model is a way for the UK government to fund major national infrastructure projects, particularly within the energy sector. The most high-profile example is its use to help finance new nuclear power stations, such as Sizewell C.

Under the RAB model, energy suppliers begin collecting money from customers before the project is completed. This helps reduce financial risk for investors, but it also means customers contribute to the cost via their energy bills.

How does the RAB Levy affect businesses?

For businesses, the RAB levy appears as a small additional charge within overall energy costs. While it may seem minor in isolation, when combined with other levies, wholesale energy prices and network charges, it contributes to the upward pressure on bills.

Key points for businesses:

  • The levy applies to electricity bills
  • Costs are spread over time, meaning ongoing impact rather than a one-off charge
  • Businesses with high energy usage may feel the effects more noticeably

Why has it been in the news recently?

The RAB levy has gained attention due to:

  • Increased transparency around how large infrastructure projects are funded
  • Wider conversations about energy affordability
  • Rising scrutiny of non-wholesale charges on energy bills

As energy costs remain a major concern for UK businesses, understanding what you’re paying for – and why – has never been more important.

How TST can help

At TST, we don’t just look at your unit rate. We help businesses:

  • Understand every element of their energy bill
  • Identify opportunities to reduce unnecessary costs
  • Secure competitive business energy contracts aligned to usage and risk appetite

If you’re unsure how levies like RAB affect your business, our team is here to help make sense of it.