UK homes near pylons to get £2,500 off electricity bills under new scheme
Key Points
- Households living within 500 meters of new or recently upgraded pylons will be given discounts of around £2,500 over the next 10 years.
- Overground transmission infrastructure built by operators qualify for the scheme, as does substations, convertors, and switching stations.
- The first payments will be made within the first half of 2027.
- Most household under the scheme will get the discount automatically.
- It is estimated that some 160,000 households could be eligible for the scheme between its launch next year and 2044.
Households living within 500 meters of new or recently upgraded pylons will be given discounts of around £2,500 over the next 10 years as part of a new government scheme.
The Department for Energy Security and Net Zero has named 43 transmission projects which will form part of the Bill Discount Scheme. The projects will cover more than 40 different locations from the Scottish highlands to the South of England, but only projects which began on or after 10 March 2025 qualify.
Overground transmission infrastructure built by operators qualify for the scheme, as does substations, convertors, and switching stations.
The government estimates that the £2,500 total will work out to around £250 a year, paid a s £125 discount every six months.
The first payments will be made within the first half of 2027, as they are dependent on the commencement of the Planning and Infrastructure Act. Government confirmed that the scheme will be managed by energy regulator Ofgem.
Most household under the scheme will get the discount automatically through their energy suppliers, but some may have to apply for the discounts, including those who rely on commercial meters.
The first areas confirmed for the scheme include National Grid’s Bramford to Twinstead reinforcement in East Anglia, the North London Reinforcement project, and the Emmock substation in north-east Scotland.
It is estimated that some 160,000 households could be eligible for the scheme between its launch next year and 2044.
Seperate guidance published in March 2025 will see communities given separate funding of £200,000 per km of overhead electricity cables in the area, and £530,000 per substation.
“Upgrading Britain’s electricity grid is a vital part of how we deliver secure, homegrown energy and unlock economic growth across the country,” said Michael Shanks, Energy Minister.
“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.”
