Homes near pylons to get £250 off bills - is yours one of them?

Thousands of households living near new or upgraded pylons in more than 40 locations will be the first to get £250 a year off their electricity bills, with the first payments coming next year.

The first projects due to be included in the government's Bill Discount Scheme will be unveiled today.

From the Highlands to the south of England, communities in more than 40 locations are set to receive direct benefits for hosting vital infrastructure.

It includes new or significantly upgraded overhead transmission lines and eligible associated infrastructure, with households within 500 metres of the projects expected to get £2,500 off their electricity bills over 10 years.

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'A moment of national renewal'

Energy minister Michael Shanks said upgrading the UK's electricity grid was a "vital part of how we deliver secure, homegrown energy and unlock economic growth" across the country.

Most of the country's electricity grid was built in the 1960s, and Shanks said now was a "moment of national renewal" to upgrade for the modern age.

"[It] is our route to bringing down electricity bills for households across the country," he added.

"It's vital we build again as a country, and we are determined those communities which host pylons should benefit, which is why we're bringing down the energy bills of those hosting this vital national infrastructure."

'Greatest re-wiring of UK energy in decades'

SP Energy Network chief executive Nicola Connelly said communities were playing a role in "enabling and supporting the greatest re-wiring of the UK energy system in decades".

With those communities receiving money off their bills, she added "it is good to see them directly benefiting" from something that will "deliver lasting, sustainable improvements for years to come".

Scottish secretary Douglas Alexander praised Scotland for "playing a central role in the UK's energy transition".

He said the projects were "essential for energy security and lower bills" and urged households to check whether they qualify for a discount.

The move is part of reducing Britain's dependence on fossil fuel markets whose volatility has been highlighted by the Iran war.

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The 43 transmission projects announced today form the first wave, with further projects to follow as the scheme is rolled out. It is expected that hundreds of thousands of homes will benefit from the scheme in total over the next decade.

Neil Lawrence, Ofgem executive director for delivery and schemes, said the discount scheme "will help ensure eligible households living near these projects see a direct benefit".

"As the scheme administrator, Ofgem's role is to make sure payments are delivered effectively, fairly and transparently to eligible customers," he added.

"We look forward to working closely with government, electricity suppliers and transmission owners to ensure the scheme is ready to support households when payments begin."

Most eligible households will receive the discount automatically on their electricity bill every six months via their energy supplier, but some may need to apply - such as those on a commercial meter.

(c) Sky News 2026: Homes near pylons to get £250 off bills - is yours one of them?