Thousands of UK households living near new or upgraded electricity pylons are set to receive automatic savings of up to £2,500 on their electricity bills, with payments starting from 2027.
The Department for Energy Security and Net Zero (DESNZ) has announced plans to give money off electricity bills to homes within 500 metres of new or upgraded transmission infrastructure. The government said more than 40 locations across the UK could benefit from hosting “vital grid infrastructure” that will provide cheaper, clean electricity to the whole country.
Eligibility and payment details
The first projects are expected to be in scope of the government’s Bill Discount Scheme, with households living within 500 metres of these projects getting up to £2,500 off their electricity bills over 10 years. Households will only be eligible once projects have secured “all necessary consents” and main construction works have started, with projects started on or after March 10, 2025, eligible.
Most eligible households will receive the discount automatically on their electricity bill every six months via their energy supplier, although some may need to apply, such as those on commercial meters. Households can expect to receive further information in the first half of 2027 when they will be contacted directly by their energy supplier or Ofgem if they qualify.
Government and Ofgem statements
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 to bring 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.”
According to an Impact Assessment published in March 2026, it’s estimated that 120,000 to 160,000 households could be eligible to receive a bill discount in the period from the scheme launch to 2044.
Scheme administration and scope
The Bill Discounts Scheme will be administered by Ofgem, with the first payments due to be made to households in the first half of 2027, following the commencement of secondary legislation to be made under the Planning and Infrastructure Act.
Only new onshore, overground transmission infrastructure built by Transmission Operators, where construction started on or after March 10, 2025, will be in scope. This includes associated onshore transmission infrastructure such as substations, convertors, switching stations and sealing-end compounds, and the onshore infrastructure of any subsea power lines, like converter stations.
Ofgem Executive Director for Delivery and Schemes, Neil Lawrence, 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.
“We look forward to working closely with government, electricity suppliers and transmission owners to ensure the scheme is ready to support households when payments begin.”
