Nuclear regulated asset base (RAB): Balancing and Settlement Code modifications
The Secretary of State has made changes to the Balancing and Settlement Code (BSC) using her power under section 29(1) of the Nuclear Energy (Financing) Act 2022.
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The Nuclear Energy (Financing) Act 2022 makes provision for the implementation of a Regulated Asset Base (RAB) funding model to finance new nuclear energy generation projects. The Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023, made under the powers in Part 2 of the Act, set out the detailed mechanics of how the revenue stream would operate under the model.
Section 29(1) of the Act gives the Secretary of State powers to make modifications to Transmission and Distribution Licences, and the industry codes maintained in accordance with these licences so that the revenue stream can function as intended.
In accordance with section 29(4) of the Act we consulted on nuclear RAB industry code and licence modifications which sought views on proposed amendments to the Balancing and Settlement Code (BSC). We have now published the government response to the consultation.
Taking responses into account, the Secretary of State has made modifications to the BSC. The modifications establish EMR Settlement Limited (EMRS) as Settlement Services Provider to carry out nuclear RAB settlement functions on behalf of the revenue collection counterparty, the Low Carbon Contracts Company (LCCC) and to ensure EMRS and LCCC receive the BSC data that they need to carry out their functions.
The legal instrument makes the changes to the BSC.
The letter requests that Elexon updates the BSC with the changes the Secretary of State has made using the power at section 29(1) of the Nuclear Energy (Financing) Act 2022.
Modifications will take effect from 29 February 2024.