The Department for Energy and Net Zero (DESNZ) has revealed the first 43 projects eligible for the "pounds for pylons" scheme, offering households up to £2,500 off their electricity bills over 10 years. The discount, worth £250 a year, applies to those living within 500 metres of new or upgraded overhead transmission lines and other eligible infrastructure.
Who is Eligible and How It Works
Eligible households will start receiving the discount at the beginning of next year. Most will get it automatically every six months through their energy supplier, but some, such as those on commercial meters, may need to apply. Energy suppliers or Ofgem will contact customers with details in the first half of 2027.
Only overground transmission projects—including substations, convertors, switching stations, sealing-end compounds, and onshore converter stations for subsea power lines—are included, provided construction started on or after March 10, 2025. Projects by National Grid Electricity Transmission, SP Energy Networks, and SSEN Transmission are eligible.
Areas Included
The majority of projects are in Scotland, with upgrades also planned in parts of England, including London, Essex, Suffolk, Norfolk, and North Wales. Some locations will see new pylons, lines, and cables, while others will get upgrades to existing infrastructure or new substations.
Confirmed projects include the North London Reinforcement, Bramford to Twinstead Tee, Norwich to Tilbury, and several in Scotland such as the Beauly–Peterhead line and the Kintore–Tealing link. More projects are expected, and an impact assessment suggested over 100,000 households could eventually benefit.
Government and Ofgem 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. 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."
Neil Lawrence, Ofgem executive director for delivery and schemes, added: "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."
Criticism of the Scheme
Kate Matthews of the Save Our Mearns campaign group told the BBC the plans have caused "mental anguish" for residents and argued they would negatively affect house prices and the environment. She said: "£2,500 off electricity bills over 10 years is a slap in the face for residents facing ruined businesses and unsellable homes. This Government is either massively out of touch or is showing their contempt for affected residents and energy consumers."
