Regulated Asset Base (RAB) model consultation for nuclear, launched by the UK government, has closed. A RAB financing model is used to attract private investment into public projects by providing a secure payback and return on investment for developers.

The Institution of Civil Engineers (ICE) has published a report on the RAB model for nuclear. ICE believes nuclear is required as part of a diverse energy mix to provide a stable level of long-term baseload power.

Accodring to the report: "The proposal for the RAB model is credible, but further work is now needed to develop the details of the mechanism for new nuclear projects. It will be vital to confirm and clarify important aspects including risk apportionment, construction cost overrun, time overrun, approvals and payment sequencing, particularly to ensure consumers are not unfairly burdened with risk."

"A nuclear project under RAB will require close scrutiny and full transparency. The consultation recognises the important role of an economic regulator within the framework; we welcome this and consider that a body with effective capability would need to be appointed to both protect the interests of consumers and provide reassurance to investors, with Ofgem appearing the most suitable organisation."

"There must be a responsibility on the project proposer under a RAB model to have a mature design from the outset. Clearly not all risks will be known, but scope, design and exploration works should be completed before the commencement of work is allowed, to mitigate the risk of scope creep or retroactive changes, taking steps to include contractors in design at an early stage."