Households Near New Pylons Offered Up to £2,500 Off Electricity Bills

Thousands of households living close to new pylons and other electricity transmission infrastructure could receive discounts worth £2,500 over ten years under a new government scheme.

The Department for Energy Security and Net Zero has named the first 43 transmission projects expected to qualify for its Electricity Bill Discount Scheme, spanning England, Scotland and Wales.

Eligible households would receive £250 a year for ten years. The headline £2,500 is therefore the total potential discount rather than a single payment.

Homes will generally need to be located within 500 metres of qualifying new or substantially upgraded above-ground transmission infrastructure. This can include pylons and overhead power lines, as well as eligible substations, converter stations, switching stations and associated onshore infrastructure for subsea cables.

Who could receive the discount?

A household will not qualify merely because a project appears on the Government’s initial list. Several conditions must first be satisfied:

1. The home must fall within the scheme’s 500-metre eligibility area.
2. The infrastructure must be new or significantly upgraded and within the scheme’s technical scope.
3. Construction must have begun on or after 10 March 2025.
4. The project must receive every necessary planning and regulatory consent.
5. Main construction work must have started before payments become due.
6. Parliament must approve the necessary secondary legislation.

Some of the 43 projects have not yet secured planning permission or remain subject to appeals. Inclusion on the list is consequently an indication of expected eligibility—not confirmation that every project will proceed or that every nearby household will receive money.

How will the £2,500 be paid?

The scheme provides £250 annually for ten years. Most qualifying households are expected to receive the money automatically as credits applied to their electricity bills every six months through their energy supplier.

Some people may need to apply, including certain households whose electricity is supplied through a commercial meter. The Government says eligible residents should receive information from their supplier or Ofgem during the first half of 2027.

No action is required at present. The first payments are expected during the first half of 2027, after the legislation commences and construction has begun on qualifying projects.

Expected eligible projects in England

The first English wave contains ten projects operated by National Grid Electricity Transmission:

1. Bramford to Twinstead – East Anglia
2. Norwich to Tilbury – East Anglia and the East of England
3. Eastern Green Link 3 converter station – East of England
4. Eastern Green Link 4 converter station – East of England
5. Sea Link converter station – East Anglia
6. Grimsby to Walpole – Yorkshire and the Humber and the East of England
7. North Humber to High Marnham – Midlands
8. Brinsworth to High Marnham – Yorkshire and the Humber and the Midlands
9. Chesterfield to Willington – Midlands
10. North London Reinforcement – London and southern England

Expected eligible projects in Scotland

Scotland accounts for 32 of the first 43 expected projects.

SSEN Transmission projects

1. Banniskirk Hub 400kV substation and HVDC converter station – northern Scotland
2. Cambushinnie 400kV substation – northern and central Scotland
3. Fort Augustus Substation 400kV upgrade – northern Scotland
4. Spittal–Loch Buidhe–Beauly 400kV overhead line – northern and north-west Scotland
5. Beauly–Peterhead 400kV overhead line – northern and north-east Scotland
6. Carnaig 400kV substation – northern Scotland
7. Hurlie 400kV substation – north-east Scotland
8. Kintore–Tealing 400kV overhead line – north-east Scotland
9. New Fanellan 400kV substation and converter station – northern Scotland
10. Creag Dhubh–Dalmally 275kV overhead line – western Scotland
11. Edinbane substation – western Scotland
12. Broadford substation – western Scotland
13. Skye 132kV overhead line reinforcement – western Scotland
14. Netherton Hub – north-east Scotland
15. Tealing–Westfield 400kV overhead line – central and eastern Scotland
16. Bingally 400kV substation – northern Scotland
17. Greens (New Deer 2) 400kV substation – north-east Scotland
18. Lewis Hub – western Scotland
19. Emmock 400kV substation – north-east Scotland
20. Crarae 275kV substation – western Scotland

SP Energy Networks projects

1. Coalburn Substation – central Scotland
2. Mark Hill Substation – south-west Scotland
3. Stranoch overhead line and substation – south-west Scotland
4. Chirmorie – south-west Scotland
5. Branxton Substation – south-east Scotland
6. Sanquhar Substation – southern Scotland
7. Denny to Wishaw 400kV reinforcement – central and southern Scotland
8. Eastern Subsea HVDC Link from Westfield to South Humber – eastern Scotland
9. Kincardine North–Tealing 400kV substation – eastern Scotland
10. Kincardine North 400kV substation – eastern Scotland
11. Kincardine North–Wishaw 400kV reinforcement – central and eastern Scotland
12. Gala North–Harker Area 400kV – Scottish Borders

Expected eligible project in Wales

1. Pentir to Trawsfynydd – North Wales

The list is an initial wave and the Government says further projects will be announced as the scheme develops.

Why is the Government paying households?

Ministers argue that communities hosting nationally important infrastructure should receive a direct benefit. Much of Britain’s transmission network was built during the 1960s and requires substantial expansion to connect new electricity generation and move power around the country.

Energy Minister Michael Shanks said upgrading the grid was necessary for secure domestic energy and economic growth, while households living alongside the infrastructure deserved lower bills in return.

‘It’s vital we build again as a country and we are determined those communities which host pylons should benefit.’

The policy is also intended to reduce local opposition to new transmission lines. However, the Government says the availability of discounts will not influence planning decisions, which must continue through the ordinary process.

Separate community funds

The household discounts are separate from community-benefit funding available for areas hosting transmission projects.

Government guidance provides an indicative £200,000 of community funding for each kilometre of new overhead line and £530,000 for eligible substations, converter stations or switching stations.

For example, communities near the Bramford to Twinstead project are expected to share more than £4 million for local projects. Areas around the Chirmorie overhead-line project in Scotland could receive approximately £2.4 million.

How many households could benefit?

A government impact assessment estimates that between 120,000 and 160,000 households could become eligible between the scheme’s launch and 2044. The final number will depend upon which projects secure approval, their eventual routes and the number of properties within 500 metres.

The immediate list does not provide individual streets or postcodes. Residents near one of the named projects should wait for direct communication from their supplier or Ofgem rather than applying now or sharing personal information with unsolicited callers.

Sources

1. Department for Energy Security and Net Zero: Bill Discount Scheme announcement
2. Government list of 43 expected eligible projects
3. Government guidance on community benefits for transmission infrastructure