More than 100,000 households living near new or upgraded electricity transmission lines will receive annual £250 reductions on their energy bills.
Labour has unveiled the first 43 energy grid projects whose neighbouring residents will qualify for the new electricity bill discount.
According to the Department for Energy Security and Net Zero (DESNZ), households situated within 500 metres of newly constructed or upgraded overhead transmission lines will be eligible.
Payments are expected to begin during the first half of 2027, with qualifying households able to receive up to £2,500 over a decade.
The scheme will benefit households across Scotland, East Anglia, the Midlands, North Wales and areas north of London.
It has been introduced as part of efforts to modernise Britain’s electricity network and provide financial benefits to communities living close to new energy infrastructure.
Among the 43 projects named by the Government are National Grid’s Bramford to Twinstead transmission infrastructure in East Anglia, the North London Reinforcement scheme and the Emmock substation in the north-east of Scotland.
Around two-thirds of the qualifying developments are located in Scotland, with the remaining projects spread across areas including north of London, East Anglia, the Midlands and North Wales.
‘Pylon neighbours’ to receive £250 energy bill cuts as Government names first 43 projects
|
PAOnly developments where construction began on or after March 10, 2025, will qualify for the scheme.
The 500-metre distance will determine which properties are eligible, meaning residents must live within that range of new or upgraded overhead power lines to receive the annual reduction.
Energy developers have also been providing separate financial packages to communities hosting new transmission infrastructure since last year.
For most eligible households, the £250 reduction will be applied automatically to their electricity bills every six months through their energy supplier.
Residents are expected to receive direct contact from either their supplier or Ofgem with further information during the first half of 2027.
Households using commercial meters will not receive the reduction automatically and will instead need to submit an application
|
PALabour’s announcement comes as major electricity grid upgrades are being planned and constructed across Britain to support the expansion of the country’s energy network.
The projects are intended to help increase the capacity of the transmission system as Britain moves towards a more modern electricity network.
Critics have argued that the £250 annual payment may not provide sufficient compensation for homeowners affected by the construction of major infrastructure.
Concerns have included disruption to properties and local communities, as well as noise, road closures and increased heavy vehicle traffic during construction.
Some opponents have also argued that the scheme does not fully address concerns over the potential long-term effects on property values and quality of life for residents living close to transmission infrastructure.
Energy Minister Michael Shanks said the investment in the electricity grid was necessary to support Britain’s future energy needs.
Mr 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 described the programme as “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.”
He added: “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.”
Neil Lawrence, Ofgem’s executive director for delivery and schemes, said the regulator would ensure payments were provided to eligible households.
Mr Lawrence said the payments would be “delivered effectively, fairly and transparently to eligible customers.”
He added that communities hosting new transmission infrastructure were playing an essential role in developing the cleaner and more resilient energy system required by Britain.