Plans to upgrade the UK's electricity grid as part of the Planning and Infrastructure bill have officially been announced. And, as well as benefiting all homeowners with an improved supply of energy, households located near the proposed schemes could also save up to £2,500 on their electricity bills across a 10-year period.
However, there are strict criteria regarding proximity, and many projects are still to receive final sign-off.
So where are the schemes being proposed and how will the bill reduction scheme work?
Projects are located across the breadth of the UK
A total of 43 projects have been included in the government announcement, which was revealed last year when it was confirmed that the scheme would partially be funded by an 80p increase on everyone's energy bills.
Ranging from locations in Scotland to the South of England, a full list of projects can be found here, although it is suggested that this is just the first phase of improvements, and more will be announced over time.
With much of the UK's National Grid structure built in the 1960s, the government claims the work is needed to meet demand, and potentially provide cheaper electricity for all in the long run.
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 to bring 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," he continued, "which is why we’re bringing down the energy bills of those hosting this vital national infrastructure."
It also follows plans recently announced to scrap mandatory planning consultations for energy infrastructure projects, demonstrating the government is trying to move forward with some of its net zero plans, although other energy related projects have been delayed.
How will the reduced bill scheme work?
To be eligible for lower electricity bills, the plans state that homeowners must live within 500 metres of a proposed project. You won't need to contact anyone if you believe you are eligible (other than potentially those home on commercial meters) as you should be contacted by Ofgem in the first half of next year if you qualify.
Bill reductions will then be automatically applied by your energy supplier every six months, with Ofgem retaining ultimate responsibility for administering the Bill Discount Scheme.
In terms of the projects that are covered under the scheme, according to government information, "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 (such as substations, convertors, switching stations and sealing-end compounds) and the onshore infrastructure of any subsea power lines (like converter stations)."
But, simply seeing a proposed project on the list doesn't mean discounts will immediately start next year. Until the projects have secured all the necessary consents, and main work has started, energy bills will remain the same.
Impact on local communities
If you live in an area where schemes are proposed, in addition to the cost savings, there are also plans in place for suppliers to reward local communities with further investment.
Network operators will be required to allocate Community Funds for their transmission projects, with £200,000 worth of funding per km of overhead electricity cable in an area, and £530,000 per substation, converter station or switching station.
That said, living or buying a house near pylons has always been a controversial topic, with many people opposed to them. But, with the grid already under strain, and Net Zero plans requiring the UK to have reduced reliance on fossil fuels, the government claims this is the most cost-effective way of moving forward.
