Thousands of households living near new or upgraded pylons will be the first to get money off their electricity bills, the government has announced. Payments will start from next year, as the first projects expected to qualify for a new bill discount scheme are unveiled.
Communities in over 40 locations will get direct benefits for hosting vital infrastructure that will provide cheaper, clean electricity to the whole country. Those living within 500 metres of the projects could get £2,500 off their electricity bills over 10 years.
First wave of projects
The first wave of projects include National Grid transmission infrastructure from Bramford to Twinstead in East Anglia, the North London Reinforcement project and the Emmock substation in north east Scotland.
Energy Minister Michael Shanks said: “Upgrading Britain’s electricity grid is a vital part of how we deliver secure, homegrown energy and unlock economic growth across the country.
“It is a moment of national renewal – upgrading what was built largely in the 1960s for the modern age and is our route to bringing down electricity bills for households across the country.
“It’s vital we build again as a country and we are determined those communities which host pylons should benefit, which is why we’re bringing down the energy bills of those hosting this vital national infrastructure.”
How the scheme works
A Government impact assessment earlier this year found that more than 100,000 households could benefit from the scheme in the coming decades as further projects follow.
Most households that qualify for the scheme will receive the discount automatically on their electricity bill every six months via their energy supplier, officials said, although some may need to apply, such as those on commercial meters.
Ministers said they will be directly contacted by their energy supplier or Ofgem with further information in the first half of 2027.
Neil Lawrence, Ofgem executive director for delivery and schemes, said: “Communities that host new electricity transmission infrastructure are playing a vital role in delivering the cleaner, more secure energy system Britain needs.
“The bill discount scheme will help ensure eligible households living near these projects see a direct benefit through discounts on their energy bills. As the scheme administrator, Ofgem’s role is to make sure payments are delivered effectively, fairly and transparently to eligible customers.”
