Households living near new pylons to save thousands on bills

• Government reveals the communities in over 40 locations eligible for cheaper electricity bills
• Households near new pylons could save up to £2,500 over 10 years
• Upgrading an electricity grid largely built in the 1960s will lower energy costs for households across Britain

Thousands of households living near new or upgraded pylons are set to be the first to get money off their electricity bills. The first payments will start from next year, as the first projects expected to be in scope of the government's bill discount scheme are unveiled today (12 August).

From the Scottish Highlands to the south of England, communities in over 40 locations are set to receive direct benefits for hosting vital infrastructure that will provide cheaper, clean electricity to the whole country. This includes new or significantly upgraded overhead transmission lines and eligible associated infrastructure.

Those living within 500 metres of these projects are expected to get £2,500 off their electricity bills over 10 years

Energy Minister Michael 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.

It is 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.

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."

With much of Britain's electricity grid built in the 1960s, the government is rolling out the upgrades Britain needs to connect new sources of electricity generation, strengthen Britain's energy security and deliver a more affordable energy system for billpayers.

The government is now delivering on its landmark commitment to put communities at the heart of a cleaner, more affordable, homegrown energy system. This will in turn help to bring down bills for every household, by reducing Britain's dependence on the volatile fossil fuel markets seen in recent months.

This forms part of a wider plan to bring bills down for good, after government action to cut VAT on electricity bills to give families across Britain immediate cost-of-living breathing space.

The 43 transmission projects announced today form the first wave, with further projects to follow as the scheme is rolled out. It is expected that hundreds of thousands of homes will benefit from the scheme in total over the next decade.

Following the launch of the scheme, projects will only be in scope for the discounts once they have secured all necessary consents and the main construction works have started. Projects where construction started on or after 10 March 2025 will be eligible.

Most eligible households will receive the discount automatically on their electricity bill every six months via their energy supplier. However, some households may need to apply - such as those on commercial meters. Households can expect to receive further information in the first half of next year, when they will be directly contacted by their energy supplier or Ofgem if they qualify.

Projects being delivered by National Grid Electricity Transmission, SP Energy Networks, and SSEN Transmission are set to be eligible.

Earlier this month National Grid unveiled a commitment to support 5,000 young people who are not in employment, education or training to develop skills and access career opportunities in the energy and infrastructure sectors, after the Prime Minister unveiled plans to drive more young people into work.

The discounts build on wider government Community Funds guidance in place for areas hosting grid infrastructure projects since last year, which is set to drive millions of funding into communities across Britain. Under that guidance, communities living close to National Grid's Bramford to Twinstead reinforcement project are set to benefit from more than £4 million in payments to fund community projects in their area. In Scotland, communities near SP Energy Networks' Chirmorie overhead line project would be eligible for around £2.4m of community benefit funding to support local projects.

The announcement also comes after new independent research, published in June, confirmed that building pylons remains the most cost effective way of upgrading Britain's outdated electricity networks, so present the best value for bill-payers.

Ofgem Executive Director for Delivery and Schemes, Neil Lawrence, said:

Communities that host new electricity transmission infrastructure are playing a vital role in delivering the cleaner, more secure energy system Britain needs.

The Bill Discount Scheme will help ensure eligible households living near these projects see a direct benefit through discounts on their energy bills. As the scheme administrator, Ofgem's role is to make sure payments are delivered effectively, fairly and transparently to eligible customers.

We look forward to working closely with government, electricity suppliers and transmission owners to ensure the scheme is ready to support households when payments begin.

Nicola Connelly, CEO, SP Energy Network, said: 

Communities are playing a role in enabling and supporting the greatest re-wiring of the UK energy system in decades and it is good to see them directly benefiting, through bills and our community benefit funds. Funds, shaped by the local communities that will deliver lasting, sustainable improvements for years to come.

Scottish Secretary Douglas Alexander said:

Scotland is playing a central role in the UK's energy transition, and as we build the modern grid needed to harness that power, it is only right that local families living alongside new pylons see real, direct savings on their electricity bills.

"These projects are essential for energy security and lower bills, and the communities hosting key infrastructure for this long-awaited grid upgrade deserve cheaper energy in return.

I encourage households across Scotland living near these new or upgraded sites to check if they qualify for a discount.

Notes to editor: 

• More information is available on the Bill Discount Scheme FAQ page [LINK]
• The Impact Assessment published in March 2026 estimated that 120,000 160,000 households could be eligible to receive a bill discount in the period from scheme launch out to 2044. The actual number of eligible properties that will receive these payments will be dependent on the projects that will be in scope of the scheme and the projects' finl locations.
• The Bill Discounts Scheme will be administered by Ofgem. The first payments will be made in the first half of 2027, following the commencement of secondary legislation to be made under the Planning and Infrastructure Act. Only new onshore, overground transmission infrastructure built by Transmission Operators, where construction started on or after 10 March 2025 will be in scope for the Bill Discount Scheme. This includes associated onshore transmission infrastructure (e.g. substations, convertors, switching stations and sealing-end compounds) and the onshore infrastructure of any subsea power lines (e.g. converter stations) 
• The government introduced new guidelines in March 2025 on how network operators should allocate Community Funds for their transmission projects, with communities to get £200,000 worth of funding per km of overhead electricity cable in their area, and £530,000 per substation, converter station or switching station.
• A new report by engineering consultants Ramboll found that while new undergrounding methods such as cable ploughing are cheaper than traditional cut and cover' techniques - the average build of costs are still between 3.5 and 5 times more expensive than overhead lines, depending on the capacity of the circuit. This is due to the high cost of the cables and the need foradditionalinfrastructure to support long underground circuits.