Energy bill update as thousands could get £250 discount

Thousands of households living near new pylons could receive up to £2,500 in savings on their as part of a new Government initiative. Under the proposed scheme, those residing within 500 meters of new or upgraded power infrastructure could see their bills cut by almost 40%, with the savings equivalent to £250 a year over the next decade.

The move is a key part of Labour’s push to accelerate projects while reducing public opposition. Energy Secretary said: “The only way to make Britain energy secure and bring down bills for good is to get Britain off dependence on fossil fuel markets and replace it with clean, homegrown power that we control.

“To do this, we need to get Britain building right now. And as part of that, we are delivering on our landmark commitment to ensure that people who live near infrastructure meaningfully benefit. This will benefit the whole country by ensuring we build the clean power system we need.”

The new discount scheme, introduced in the Planning and Infrastructure Bill, will apply to new above-ground transmission cables and substations.

The legislation will also allow the scheme to expand to onshore wind farms and other renewable energy projects.

In addition to household cost reductions, separate guidance will set out how developers should ensure communities hosting transmission infrastructure can benefit by funding projects like sports clubs, educational programmes, or leisure facilities.

This guidance means communities could get £200,000 worth of funding per km of overhead electricity cable in their area and £530,000 per substation.

The Government hopes these incentives will address local resistance to such developments, which are crucial for achieving clean power by 2030.

Labour says building new transmission infrastructure is “critical to unleashing growth” with £40 billion a year of mainly private investment, job creation, and protection from volatile fossil fuel markets.

, Deputy Prime Minister, said: “It’s no longer a question of whether we build the new infrastructure we need, but a question of how. This legislation will slash energy bills for local people living near new projects, so they benefit as we drive forward in our mission to achieve a more prosperous and energy-secure future.”

She also stressed the need for broader planning reforms to reduce delays in project approval processes.

The Government’s new scheme comes amid public surveys suggesting that many people would be willing to live near energy infrastructure if offered financial incentives. A poll found that 64% of respondents would accept living near pylons and power structures if their bills were reduced by up to £300 annually. However, 14% of those who participated in Boston Consulting Group’s survey said they would not support it, regardless of savings.

John Pettigrew, the CEO of the National Grid, emphasised the importance of communities receiving lasting, tangible benefits for hosting power lines and equipment.

He said: “It is right that communities see enduring, tangible benefits for hosting transmission infrastructure on behalf of the country. We are pleased to see this guidance issued today and look forward to continuing to work in partnership with communities to deliver long-lasting, meaningful benefits alongside critical infrastructure”.