Households living within 500 metres of new electricity transmission infrastructure will receive £250 off their annual energy bills, under a scheme confirmed by Prime Minister Andy Burnham. The discount is part of a wider government push to deliver more than 40 grid upgrade projects across the UK, described as one of the biggest such drives since the 1960s.
Scheme details and government promise
The government has promised that hundreds of thousands of homes will benefit from the annual discount. The payments are designed to recognise communities hosting new grid infrastructure, which the government says will help deliver a cleaner and more secure energy system.
Neil Lawrence, Ofgem's executive director for delivery and schemes, said: “Communities that host new electricity transmission infrastructure are playing a vital role in delivering the cleaner, more secure energy system Britain needs.”
Ofgem's role in delivering payments
Ofgem will act as the scheme administrator, ensuring payments are delivered effectively, fairly and transparently to eligible customers. Lawrence added: “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.”
Political reaction and criticism
Richard Tice, deputy leader of Reform, criticised the scheme, calling it a “£20-a-month bribe” for families whose homes will be permanently devalued by pylons. He said: “This announcement is simply a £20-a-month bribe for families whose homes will be permanently devalued by tens of thousands because of towering eyesore pylons.”
“It insults the intelligence of every British household, especially when new cables should be placed underground where possible instead of scarring our landscape. These cables exist solely to prop up the failed net zero agenda which is locking tens of billions of pounds onto energy bills. Scrap net zero and the need for most of these new transmission cables vanishes.”
Industry support and wider implications
Octopus Energy welcomed the move, saying: “This is a welcome step in the right direction, recognising that people who contribute to the energy system can pay less.” The company also suggested extending the approach to other areas, such as offering cheaper power in windy regions, rather than wasting billions on turning off wind farms.
The scheme is set to apply to households within 500 metres of new grid infrastructure, with payments delivered annually. The government's grid upgrade programme is expected to continue, with the discount scheme aiming to provide direct benefits to affected communities.
