Thousands of households living close to new or upgraded pylons are set to receive discounts on their electricity bills under a government scheme announced on Wednesday.
The government said communities in more than 40 locations, from the Scottish Highlands to the south of England, could benefit from hosting grid infrastructure intended to connect new sources of electricity generation and strengthen energy security.
Households within 500 metres of projects in scope are expected to receive £2,500 off electricity bills over 10 years. Payments are due to start from next year, with most eligible households receiving the discount automatically every six months through their energy supplier.
The first wave covers 43 transmission projects, with further projects expected to follow as the scheme is rolled out. The government said hundreds of thousands of homes are expected to benefit in total over the next decade.
Eligibility will apply only once projects have secured all necessary consents and main construction works have started. Projects where construction began on or after 10 March 2025 will be eligible under the scheme.
Some households, including those on commercial meters, may need to apply rather than receive the discount automatically. The government said qualifying households can expect further information in the first half of next year, when they will be contacted directly by their energy supplier or Ofgem.
The bill discounts sit alongside wider Community Funds guidance for areas hosting grid infrastructure. The government said people living near National Grid’s Bramford to Twinstead reinforcement project are set to benefit from more than £4 million in payments for local community projects.