Households across Great Britain located near new or upgraded electricity pylons are set to receive money off their energy bills, as part of the government’s landmark push to deliver clean, homegrown power by 2030.
Under new proposals outlined in the upcoming Planning and Infrastructure Bill, residents living within 500 metres of new or upgraded transmission infrastructure could see their electricity bills cut by up to £2,500 over ten years — a move designed to reward communities for supporting the nation’s shift away from fossil fuels.
The discounts, which could deliver hundreds of pounds directly to rural households, come alongside broader plans to enhance local infrastructure and amenities through developer-funded community projects.
Communities to Be Rewarded for Supporting National Infrastructure
In addition to bill discounts, new government guidance will ensure that developers contribute to community benefit schemes, supporting projects such as local sports clubs, leisure centres, and educational programmes. The initiative reflects a growing consensus that those hosting critical infrastructure should share in the benefits of national progress.
A government spokesperson said:
“Communities playing a vital role in delivering energy security for Britain deserve to see tangible benefits — not just in cleaner power, but in their day-to-day lives.”
A Push to Accelerate Clean Infrastructure Development
With Britain’s clean energy transition gathering pace, officials say twice as much new transmission infrastructure will be required by 2030 compared to the previous decade. The government hopes that offering local incentives will reduce opposition, shorten planning delays, and accelerate progress on key projects like:
- Norwich to Tilbury transmission route
- Grimsby to Walpole link
- Sealink connection between Suffolk and Kent
Deputy Prime Minister Angela Rayner commented:
“This is about delivering growth, lowering bills, and ensuring communities aren’t left behind as we build the infrastructure our country urgently needs.”
Boosting Energy Security and Ending Fossil Fuel Dependence
Energy Secretary Ed Miliband said the initiative marks a critical step in securing Britain’s energy future:
“The only way to bring down bills for good is to replace expensive fossil fuels with clean, British power. We’re delivering on our promise to ensure communities benefit directly from this transformation.”
Industry leaders have backed the proposals. National Grid CEO John Pettigrew praised the initiative as a way to provide “enduring, tangible benefits,” while RenewableUK’s Head of Policy, James Robottom, said the changes would “help win local support and speed up grid development.”
New Community Fund Guidance
Communities hosting new infrastructure could also receive £200,000 per kilometre of new overhead cables and £530,000 per new substation. For example, a transmission project between Tealing and Aberdeenshire could bring in over £23 million in community funding.
Developers will work closely with eligible communities to decide how these funds are spent, ensuring a fair and consistent approach nationwide.
Redesigning the Grid for the Future
The current UK electricity grid, largely built in the 1930s to serve coal-fired stations, is no longer fit for a renewable future. Upgrades are essential to avoid constraint costs, which occur when wind farms are paid to stop generating due to lack of capacity on the grid — costs which ultimately fall on taxpayers.
With this overhaul, cleaner, cheaper power will reach homes more efficiently, cutting energy bills across the board.
Industry Welcomes Change
Energy UK Chief Executive Dhara Vyas said:
“Expanding and upgrading our energy infrastructure is urgently needed. This is a crucial step in making energy bills more affordable and the system more resilient. But it’s also right that those most affected by infrastructure development see fair and direct benefits.”
The Planning and Infrastructure Bill, expected to be introduced to Parliament in the coming weeks, is set to include further measures to remove development barriers and accelerate the rollout of clean energy.
