The government has confirmed the first wave of new pylons and grid infrastructure projects that will make households eligible for cheaper electricity bills under a new discount scheme. Households living within 500 metres of the new or upgraded overhead transmission lines could receive up to £2,500 off their electricity bills over 10 years.
Energy Secretary Andy Burnham's Labour government announced 43 projects under the Department for Energy Security and Net Zero (DESNZ) that are expected to be in scope of its “bills discount scheme” on Wednesday. The scheme will see those living within 500 metres of eligible infrastructure start to receive money off their bills in the first half of next year.
First Projects Announced
Among the first set of projects announced are transmission infrastructure from North Humber to High Marnham in the Midlands and from Pentir to Trawsfynydd in north Wales, as well as the Coalburn, Mark Hill, Branxton and Sanquhar substations across Scotland.
Most households that qualify for the scheme will receive the discount automatically on their electricity bill every six months via their energy supplier, officials said, although some may need to apply, such as those on commercial meters.
Broader Energy Policy Context
Ministers recently announced a VAT cut on electricity bills, but Burnham is also facing a dilemma over whether to back new oil and gas drilling in the North Sea. Drilling at Jackdaw, one of the biggest gasfields remaining in the North Sea, would only create 27 direct full-time jobs, according to an environmental impact assessment filed publicly by its owner, Adura, a joint venture between Shell and Norway’s Equinor.
Adura said: “Jackdaw and Rosebank will be among the lowest emissions developments in the UK continental shelf [UKCS], itself one of the most highly regulated and lowest emissions oil and gas basins anywhere in the world. Across Adura’s portfolio of new developments – including Rosebank and Jackdaw – average production emissions intensity could be as much as half the UKCS average and around eight times lower than emissions intensity associated with imported liquefied natural gas.”
Climate Concerns Raised
Tessa Khan, the executive director of Uplift, a campaign group, said the assessment underestimated the impact on the climate crisis from the greenhouse gas emissions resulting from the field. Rosebank would create carbon dioxide equivalent to 70% of the UK’s annual emissions, which was “undeniably significant”. She added that it would not meaningfully boost UK energy supplies, saying: “It’s overwhelmingly oil for export.”
The discount scheme is part of the government's broader efforts to address the cost of living while managing the transition to cleaner energy infrastructure. The first wave of projects marks a significant step in delivering financial relief to communities hosting new grid infrastructure.
