Households living near new electricity transmission lines will get up to £2,500 off their bills over 10 years, the government has announced. The scheme applies to those within 500 metres of new or upgraded overhead lines and other eligible infrastructure.
43 projects in first wave
On Wednesday (August 12), the Energy Department (Desnz) named 43 projects expected to be covered by its “bills discount scheme”. Eligible households will start receiving money off their bills in the first half of next year.
The first wave includes National Grid infrastructure from Bramford to Twinstead in East Anglia, the North London Reinforcement project, and the Emmock substation in north east Scotland. Other projects include new transmission from North Humber to High Marnham in the Midlands, from Pentir to Trawsfynydd in north Wales, and at substations across Scotland.
Automatic discounts and eligibility
Most qualifying households will receive the discount automatically every six months via their energy supplier, though some, such as those on commercial meters, may need to apply. Ministers said eligible customers will be contacted by their supplier or Ofgem in the first half of 2027.
Projects will only be in scope once they have secured all necessary consents and main construction has started. Only overground transmission projects – including substations, converters, switching stations, and onshore converter stations for subsea lines – are eligible if construction began on or after March 10 2025.
Government response
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.” He added that the scheme ensures “those communities which host pylons should benefit”.
Neil Lawrence, Ofgem executive director for delivery and schemes, said the discount scheme will help ensure eligible households “see a direct benefit through discounts on their energy bills”.
The government faces pressure over the cost of living and exposure to volatile fossil fuel markets. It recently announced a VAT cut on electricity bills, while Prime Minister Andy Burnham is considering whether to back new oil and gas drilling in the North Sea. Environmental groups have urged him to refuse permission for the Jackdaw and Rosebank projects, while opposition politicians, the oil and gas industry, and US President Donald Trump have called for approval.
