Certain households will soon start receiving £250 a year off their energy bills as the government lays out plans to improve and upgrade Britain’s electricity network.
Those living near new pylons are set to benefit from the payments over 10 years, the Department for Energy Security and Net Zero (DESNZ) has confirmed. This will add up to £2,500 saved over the course of the scheme.
The discount will come in the form of a £125 rebate every six months for those living within 500 metres of a new or upgraded electricity transmission infrastructure.
It will be assigned to the home and apply to the occupant, so it cannot be transferred if people move to a non-eligible property.
The government says those living in rural communities will likely benefit most from the plan. The East of England and Scotland in particular are earmarked for the most developments in the coming years.
The plan is part of the government’s Planning and Infrastructure Bill, which launches a consultation on 8 August. It aims to increase the amount of network infrastructure in the UK, which experts say needs to double by 2030 to meet demand.
Minister for energy consumers Miatta Fahnbulleh said: “As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake.
“That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits.
“We are on the side of those who want Britain to get back to what it does best: building for the future, driving innovation and putting communities first.”
Speaking about the plan earlier this year, housing minister Alex Norris said that households making the “sacrifice of having some of the infrastructure in your community” should see that offset by getting some money back.
The scheme comes alongside confirmation of new plans for smart meters, which can help households save substantial amounts on their energy bills.
Energy suppliers will be set strict new obligations to improve the smart meter process under the plans. Enforced by Ofgem, they will see new requirements to cut waiting times for installation appointments and repairs, or for customers to be provided with automatic compensation.
Charlotte Friel, director of retail pricing and systems at Ofgem, said: “Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending.
“But we know many customers who want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change.
“These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong.”
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