Thousands of households living near new electricity pylons could be in line for a £2,500 discount on their energy bills under a major new Government scheme.
The bill-saving payments will begin next year, with more than 40 locations across Britain revealed as the first areas expected to benefit.
Households living within 500 metres of eligible new or upgraded electricity transmission infrastructure are expected to receive £2,500 off their electricity bills over 10 years.
The first payments are due to be made in the first half of 2027.
The Government says hundreds of thousands of homes could ultimately benefit as the scheme expands.
Could your home qualify?
The first wave includes 43 transmission projects, stretching from the Scottish Highlands to the south of England.
However, simply living near an existing pylon will not be enough to qualify.
The scheme applies to eligible new onshore overhead transmission infrastructure where construction started on or after March 10, 2025.
How do the rules work and how do households claim?
Households will only become eligible once the relevant project has received all necessary consents and major construction work has started.
Most eligible households will not have to do anything to claim the money.
The discount is expected to be applied automatically to electricity bills every six months through energy suppliers.
Some households, including those using commercial meters, may need to apply.
Energy suppliers or Ofgem are expected to contact qualifying households with more information during the first half of next year.
How much could households save?
Eligible households are expected to receive a total of £2,500 over 10 years.
That works out at an average of £250 a year, although the payments will be made every six months rather than as one annual payment.
The Government says the scheme is designed to make sure communities hosting major new energy infrastructure see a direct financial benefit.
Energy Minister Michael Shanks said communities hosting pylons should benefit from the infrastructure being built in their areas.
He said the Government was determined to bring down energy bills while upgrading an electricity grid that was largely built in the 1960s.
The scheme comes as ministers push ahead with plans to expand Britain's electricity network and connect new sources of clean energy.
More than 40 locations could benefit
The Government has published details of the first 43 projects expected to fall within the scheme.
Further projects are expected to be added as the programme is rolled out.
An earlier Government impact assessment estimated that between 120,000 and 160,000 households could be eligible for bill discounts between the launch of the scheme and 2044.
The final number will depend on which projects ultimately qualify and their exact locations.
Pylon communities could get millions more
The bill discount is separate from wider community funding being made available to areas hosting new grid infrastructure.
Under Government guidance, communities can receive £200,000 per kilometre of overhead electricity cable and £530,000 per substation, converter station or switching station.
For example, communities near National Grid's Bramford to Twinstead reinforcement project are expected to receive more than £4 million for local projects.
In Scotland, communities near SP Energy Networks' Chirmorie overhead line project could be eligible for around £2.4 million in community benefit funding.
Full list of areas and projects expected to qualify
The Government has published its first list of projects expected to fall within the scheme.
England
National Grid Electricity Transmission:
- Bramford to Twinstead – East Anglia
- Norwich to Tilbury – East Anglia and East of England
- Eastern Green Link 3 converter station – East of England
- Eastern Green Link 4 converter station – East of England
- Sea Link converter station – East Anglia
- Grimsby to Walpole – Yorkshire and the Humber, and East of England
- North Humber to High Marnham – Midlands
- Brinsworth to High Marnham – Yorkshire and the Humber, and the Midlands
- Chesterfield to Willington – Midlands
- North London Reinforcement – London and South of England
Scotland
SSEN Transmission:
- Banniskirk Hub 400kV substation and HVDC converter station – North Scotland
- Cambushinnie 400kV substation – North and central Scotland
- Fort Augustus Substation 400kV Upgrade – North Scotland
- Spittal - Loch Buidhe - Beauly 400kV overhead line – North and North West Scotland
- Beauly - Peterhead 400kV overhead line – North and North East Scotland
- Carnaig 400kV substation – North Scotland
- Hurlie 400kV Substation – North East Scotland
- Kintore - Tealing 400kV overhead line – North East Scotland
- New Fanellan 400kV substation and Converter Station – North Scotland
- Creag Dhubh - Dalmally 275kV overhead line – West Scotland
- Edinbane substation – West Scotland
- Broadford substation – West Scotland
- Skye 132kV overhead line reinforcement – West Scotland
- Netherton Hub – North East Scotland
- Tealing - Westfield 400kV overhead line – Central and East Scotland
- Bingally 400kV Substation – North Scotland
- Greens (New Deer 2) 400kV substation – North East Scotland
- Lewis Hub – West Scotland
- Emmock 400kV Substation – North East Scotland
- Crarae 275kV Substation – West Scotland
SP Energy Networks:
- Coalburn Substation – Central Scotland
- Mark Hill Substation – South West Scotland
- Stranoch OHL and Substation – South West Scotland
- Chirmorie – South West Scotland
- Branxton Substation – South East Scotland
- Sanquhar Substation – South Scotland
- Denny to Wishaw 400kV Reinforcement (DWNO) – Central and South Scotland
- Eastern Subsea HVDC Link from Westfield to South Humber (TGDC/EGL4) – East of Scotland
- Kincardine North - Tealing 400kV Substation (TKUP) – East of Scotland
- Kincardine North 400kV Substation (LWUP) – East of Scotland
- Kincardine North - Wishaw 400kV Reinforcement (DWUP) – Central Scotland and East of Scotland
- Gala North - Harker Area 400kV (CMN4) – Scottish Borders
Wales
National Grid Electricity Transmission:
- Pentir to Trawsfynydd – North Wales
Why is the Government building more pylons?
Britain's electricity network is undergoing a major expansion as ministers seek to connect new sources of power and improve energy security.
The Government says much of the existing grid was built in the 1960s and needs to be upgraded for the country's changing energy needs.
A recent independent study also found that building new overhead pylons remains the most cost-effective way of upgrading the transmission network.
New undergrounding methods can be cheaper than traditional underground construction, but the Government said underground transmission remains significantly more expensive than overhead lines.
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The bill discount scheme is designed to encourage communities to accept the new infrastructure by ensuring households living closest to it receive a direct financial benefit.
Ofgem will administer the scheme and is expected to oversee payments to eligible households.
The Government says the first payments will begin in the first half of 2027.
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