Thousands of households living near new or upgraded electricity pylons and power lines are set to start receiving an energy bills discount worth £250 a year.
The government has revealed the first locations where outdated electricity infrastructure will be upgraded, with households living close to these projects eligible for money off their bills.
The scheme is due to start in the first half of 2027, with most eligible households getting an automatic discount on their electricity bill every six months via their electricity supplier.
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It is understood up to 50p a year will be added to all energy bills to fund the initiative.
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Michael Shanks, energy minister, 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 to bring down electricity bills for households across the country.
“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.”
Who is eligible for the discount?
Households who live within 500 metres of the new or upgraded electricity infrastructure, such as pylons and power lines, will be eligible for the Bill Discount Scheme.
The government expects between 120,000 and 160,000 homes to receive a discount through the scheme over the next 10 years.
However, the locations where the updates will be carried out are being released in waves. The first 43 locations where these upgrades are planned to take place have now been released by the Department for Energy Security and Net Zero (DESNZ).
England
- 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/ South of England
Scotland
- Banniskirk Hub 400 kV substation and HVDC converter station – North Scotland
- Cambushinnie 400 kV substation – North, and central Scotland
- Fort Augustus Substation 400 kV Upgrade – North Scotland
- Spittal – Loch Buidhe – Beauly 400 kV overhead line – North and North West Scotland
- Beauly – Peterhead 400 kV overhead line – North, and North East Scotland
- Carnaig 400 kV substation – North Scotland
- Hurlie 400 kV Substation – North East Scotland
- Kintore – Tealing 400 kV overhead line – North East Scotland
- New Fanellan 400 kV substation and Converter Station – North Scotland
- Creag Dhubh – Dalmally 275 kV overhead line – West Scotland
- Edinbane substation – West Scotland
- Broadford substation – West Scotland
- Skye 132 kV overhead line reinforcement – West Scotland
- Netherton Hub – North East Scotland
- Tealing – Westfield 400 kV overhead line – Central, and East Scotland
- Bingally 400 kV Substation – North Scotland
- Greens (New Deer 2) 400 kV substation – North East Scotland
- Lewis Hub – West Scotland
- Emmock 400 kV Substation – North East Scotland
- Crarae 275 kV Substation – West Scotland
- 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 400 kV Reinforcement (DWNO) – Central Scotland, and South Scotland
- Eastern Subsea HVDC Link from Westfield to South Humber (TGDC) (EGL4) – East of Scotland
- Kincardine North – Tealing 400 kV Substation (TKUP) – East of Scotland
- Kincardine North 400 kV Substation (LWUP) – East of Scotland
- Kincardine North – Wishaw 400 kV Reinforcement (DWUP) – Central Scotland and East of Scotland
- Gala North – Harker Area 400 kV (CMN4) – Scottish Borders
Wales
- Pentir to Trawsfynydd – North Wales
If you live within 500 metres of the above locations, you may start receiving a discount on your energy bills from early 2027.
Some of the 43 projects in this first wave have not yet received planning consent or are still going through an appeals process though. Households will only qualify for the Bill Discount Scheme after construction has started on them.
How will the discounts be applied?
Most qualifying households will automatically receive the discount.
Some households, such as those on commercial meters, may need to apply for the discount. The government or Ofgem will contact you if you need to take action.
Discounts will be applied to households’ electricity bills by their supplier every six months.
Why is the government updating the network?
The government wants to update the network as most of it was built in the 1960s.
The network is being upgraded to handle a higher capacity of energy, including from renewable energy produced by solar panels and wind farms.
The government also says upgrading the network will reduce the UK’s reliance on imported gas and lead to cheaper energy bills for consumers.
It comes as ministers look to tackle higher energy bills more broadly for households, including removing VAT on electricity bills from October which is expected to take £45 off the yearly price cap.
