ORD008: Nuclear Regulated Asset Base (RAB)
Formal title: DESNZ direction to enable Elexon to perform the Nuclear RAB Settlement Services Provider role and for Elexon to provide relevant data to the Nuclear RAB Settlement Services Provider
On 31st March 2022, the Nuclear Energy (Financing) Act (“the Act”) received Royal Assent. The Act provides the legislative framework to implement a Regulated Asset Base (“RAB”) model to fund new nuclear energy generation projects. The Low Carbon Contracts Company Limited (“LCCC”), as the Revenue Collection Counterparty under nuclear RAB, has appointed the Elexon (who will fulfil the role via its subsidiary, EMR Settlement Limited (EMRS)) as the RAB Settlement Services Provider.
Amendments to the BSC required
To enable Elexon to fulfil this role, amendments are needed to the Balancing and Settlement Code (“BSC”). Alongside this change in vires, changes are also needed to the BSC to:
- Require Elexon to provide data to the Nuclear RAB Settlement Services Provider and the Revenue Collection Counterparty;
- Ensure Elexon and BSC Parties are not in breach of BSC confidentiality provisions where they provide BSC data where they are required to do so under a nuclear RAB legal obligation; and
- Introduce various new defined terms to support the changes to the BSC, improving clarity.
Authority to perform
The amendments to the BSC are for the purpose of providing Elexon (and therefore EMRS) with the authority under the BSC to perform the Settlement Services Provider role for nuclear RAB. In performing this role, EMRS will be using existing open BSC data to settle supplier payments on behalf of the Revenue Collection Counterparty.
The amendments to the BSC have been directed by the Secretary of State for the Department for Energy Security and Net Zero, using powers granted under the Act, section 29.
The government response to the consultation on nuclear RAB industry code and licence modifications has been published at https://www.gov.uk/government/consultations/nuclear-regulated-asset-base-rab-industry-code-and-licence-modifications
Key dates
The Secretary of State directed the change on 22 February 2024 and required the change to become effective on 29 February 2024.