The Department for Energy Security and Net Zero (DESNZ) has announced the first wave of 43 projects expected to be in the scope of its “bills discount scheme,” which will give households living near new or upgraded overhead transmission lines money off their electricity bills.
Those living within 500 metres of the new infrastructure could start receiving discounts in the first half of next year. DESNZ said they could ultimately get £2,500 off their electricity bills over 10 years through the scheme.
Projects and eligibility
The first wave includes National Grid transmission infrastructure from Bramford to Twinstead in East Anglia, the North London Reinforcement project, and the Emmock substation in north east Scotland. A full list of projects has been published.
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. The upgrades are part of efforts to modernise the country’s electricity grid, connect new sources of greener electricity, strengthen energy security, reduce bills, and combat climate change.
Minister's comments
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 discount will work
Most households qualifying for the scheme 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. Ministers said they will be directly contacted by their energy supplier or Ofgem with further information in the first half of 2027.
The discounts build on so-called “community funds,” where energy developers have provided financial packages to communities hosting new infrastructure since last year. Projects will only be in scope once they have secured all necessary consents and the main construction work has started.
Only overground transmission projects – including substations, convertors, switching stations, sealing-end compounds and onshore converter stations for subsea power lines – will be eligible if construction started on or after March 10, 2025. Those being delivered by National Grid Electricity Transmission, SP Energy Networks and SSEN Transmission are set to be eligible.
Neil Lawrence, Ofgem executive director for delivery and schemes, said: “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.”
The Government is under growing pressure to tackle the soaring cost of living and reduce the country’s exposure to volatile global fossil fuel markets. Ministers recently announced a VAT cut on electricity bills, but Prime Minister Andy Burnham is also facing a dilemma over whether to back new oil and gas drilling in the North Sea.
Environmental groups have urged the Prime Minister to refuse permission for oil and gas production in two areas of the North Sea, known as Jackdaw and Rosebank, as part of the fight against climate change and argue it will make little impact on bills. But opposition politicians, the oil and gas industry and US President Donald Trump have called for him to grant permission, arguing this would cut bills and protect jobs.
Projects expected to be in scope for the bill discount scheme include:
- England - National Grid Electricity Transmission: Bramford to Twinstead – East Anglia; Norwich to Tilbury – East Anglia, and East of England; Eastern Green Link 3 - converter station – East of England; Eastern Green Link 4 - converter station – East of England; Sea Link - converter station – East Anglia; Grimsby to Walpole – Yorkshire and the Humber, and East of England; North Humber to High Marnham – Midlands; Brinsworth to High Marnham – Yorkshire and the Humber, and the Midlands; Chesterfield to Willington – Midlands; North London Reinforcement – London/ South of England.
- Scotland - SSEN Transmission: Banniskirk Hub 400 kV substation and HVDC converter station – North Scotland; Cambushinnie 400 kV substation – North, and central Scotland; Fort Augustus Substation 400 kV Upgrade – North Scotland; Spittal - Loch Buidhe - Beauly 400 kV overhead line – North and North West Scotland; Beauly - Peterhead 400 kV overhead line – North, and North East Scotland; Carnaig 400 kV substation – North Scotland; Hurlie 400 kV Substation – North East Scotland; Kintore - Tealing 400 kV overhead line – North East Scotland; New Fanellan 400 kV substation and Converter Station – North Scotland; Creag Dhubh – Dalmally 275 kV overhead line – West Scotland; Edinbane substation – West Scotland; Broadford substation – West Scotland; Skye 132 kV overhead line reinforcement – West Scotland; Netherton Hub – North East Scotland; Tealing - Westfield 400 kV overhead line – Central, and East Scotland; Bingally 400 kV Substation – North Scotland; Greens (New Deer 2) 400 kV substation – North East Scotland; Lewis Hub – West Scotland; Emmock 400 kV Substation – North East Scotland; Crarae 275 kV Substation – West Scotland.
- Scotland - SP Energy Networks: Coalburn Substation – Central Scotland; Mark Hill Substation– South West Scotland; Stranoch OHL and Substation – South West Scotland; Chirmorie – South West Scotland; Branxton Substation – South East Scotland; Sanquhar Substation- South Scotland; Denny to Wishaw 400 kV Reinforcement (DWNO) – Central Scotland, and South Scotland; Eastern Subsea HVDC Link from Westfield to South Humber (TGDC) (EGL4) – East of Scotland; Kincardine North – Tealing 400 kV Substation (TKUP) – East of Scotland; Kincardine North 400 kV Substation (LWUP) – East of Scotland; Kincardine North – Wishaw 400 kV Reinforcement (DWUP) – Central Scotland and East of Scotland; Gala North – Harker Area 400 kV (CMN4) – Scottish Borders.
- Wales - National Grid Electricity Transmission: Pentir to Trawsfynydd – North Wales.
