How the Regulated Asset Base (RAB) model can boost UK infrastructure investment

Graphic: The RAB model will be used to help finance the Lower Thames Crossing between Kent and Essex

The Regulated Asset Base (RAB) model has been a cornerstone in financing major UK infrastructure projects, striking a vital balance between protecting consumer interests and providing stability for long-term investors.

As the UK government seeks to attract increased capital into energy and infrastructure, this model is evolving to support novel, capital-intensive developments with tailored mechanisms that reduce the cost of capital.

Written by leading legal adviser Slaughter and May in partnership with the Global Infrastructure Investor Association, this article explores how the RAB model works, its regulatory safeguards, and its growing importance as a model used by governments and understood by investors. It highlights how consumer contributions during construction phases help prevent cost escalation, while regulatory oversight ensures value for money and risk mitigation.

With the UK’s infrastructure investment needs growing, the RAB model represents a key tool in enabling sustainable project delivery and investment certainty across sectors, from energy transition to utilities.

Read the full article to discover the future potential of the RAB model, and what it means for those shaping the UK’s infrastructure landscape.

Caption: The RAB model will be used to help finance the Lower Thames Crossing between Kent and Essex