Energy bill savings of £2,500 for homes near new pylons: Who can get it and how to claim

Thousands of households living near new or upgraded electricity pylons could get £2,500 off their energy bills over the next 10 years under a new Government scheme.

The Bill Discount Scheme will give eligible households living within 500 metres of certain new electricity transmission projects discount off their electricity.

The first 43 projects set to be covered by the scheme have been announced, with locations stretching from the Scottish Highlands to the south of England.

Payments are expected to begin from next year, with hundreds of thousands of households expected to benefit as the scheme is rolled out.

Here's how the £2,500 energy bill discount works, who could qualify and whether you need to apply...

Who can get the £2,500 energy bill discount?

Households living within 500 metres of eligible new or upgraded electricity transmission infrastructure - or in other words a pylon - could qualify for the Bill Discount Scheme.

The first wave covers 43 transmission projects across Britain.

And the Government expects hundreds of thousands of homes to benefit over the next decade as more projects are announced.

It comes as the government is rolling out the upgrades and construction to connect new sources of electricity generation for the country.

However, simply living near a pylon does not automatically mean you'll receive the discount.

Only projects where construction started on or after 10 March 2025 can qualify for the scheme.

And payments won't be made before construction has started.

Full list of where you can get the £2,500 energy bill discount

The first wave of the Bill Discount Scheme covers 43 electricity transmission projects across England, Scotland and Wales. If you live within 500 metres of an eligible project, you could qualify for the energy bill discount once the relevant project meets the scheme's eligibility requirements.

England: areas covered by the energy bill discount scheme

National Grid Electricity Transmission:

• Bramford to Twinstead – East Anglia

• Norwich to Tilbury – East Anglia, and East of England

• Eastern Green Link 3 - converter station – East of England

• Eastern Green Link 4 - converter station – East of England

• Sea Link - converter station – East Anglia

• Grimsby to Walpole – Yorkshire and the Humber, and East of England

• North Humber to High Marnham – Midlands

• Brinsworth to High Marnham – Yorkshire and the Humber, and the Midlands

• Chesterfield to Willington – Midlands

• North London Reinforcement – London/ South of England

Scotland: areas covered by the energy bill discount scheme

SSEN Transmission:

• Banniskirk Hub 400 kV substation and HVDC converter station – North Scotland

• Cambushinnie 400 kV substation – North, and central Scotland

• Fort Augustus Substation 400 kV Upgrade – North Scotland

• Spittal - Loch Buidhe - Beauly 400 kV overhead line – North and North West Scotland

• Beauly - Peterhead 400 kV overhead line – North, and North East Scotland

• Carnaig 400 kV substation – North Scotland

• Hurlie 400 kV Substation – North East Scotland

• Kintore - Tealing 400 kV overhead line – North East Scotland

• New Fanellan 400 kV substation and Converter Station – North Scotland

• Creag Dhubh – Dalmally 275 kV overhead line – West Scotland

• Edinbane substation – West Scotland

• Broadford substation – West Scotland

• Skye 132 kV overhead line reinforcement – West Scotland

• Netherton Hub – North East Scotland

• Tealing - Westfield 400 kV overhead line – Central, and East Scotland

• Bingally 400 kV Substation – North Scotland

• Greens (New Deer 2) 400 kV substation – North East Scotland

• Lewis Hub – West Scotland

• Emmock 400 kV Substation – North East Scotland

• Crarae 275 kV Substation – West Scotland

SP Energy Networks:

• Coalburn Substation – Central Scotland

• Mark Hill Substation– South West Scotland

• Stranoch OHL and Substation – South West Scotland

• Chirmorie – South West Scotland

• Branxton Substation – South East Scotland

• Sanquhar Substation- South Scotland

• Denny to Wishaw 400 kV Reinforcement (DWNO) – Central Scotland, and South Scotland

• Eastern Subsea HVDC Link from Westfield to South Humber (TGDC) (EGL4) – East of Scotland

• Kincardine North – Tealing 400 kV Substation (TKUP) – East of Scotland

• Kincardine North 400 kV Substation (LWUP) – East of Scotland

• Kincardine North – Wishaw 400 kV Reinforcement (DWUP) – Central Scotland and East of Scotland

• Gala North – Harker Area 400 kV (CMN4) – Scottish Borders

Wales: areas covered by the energy bill discount scheme

National Grid Electricity Transmission

• Pentir to Trawsfynydd – North Wales

How much can you save on your electricity bill?

Eligible households are expected to receive £2,500 in total over 10 years.

That's equivalent to an average of £250 a year, although the discount will be delivered through the scheme rather than as a £2,500 lump-sum payment.

Most eligible households will receive the discount directly on their electricity bill every six months.

This means the support could provide a regular reduction in energy costs for those who qualify.

When will the £2,500 energy bill discount start?

Payments are expected to start from 2027.

Households that qualify can expect to receive more information during the first half of next year.

Your electricity supplier or Ofgem will contact you directly if you are eligible.

The first projects covered by the scheme have been announced today, with further projects expected to be added as the programme is rolled out.

Why are households being given money off their energy bills?

The Bill Discount Scheme is designed to give communities that host new electricity infrastructure a direct financial benefit.

The Government is planning a major expansion of the electricity grid to connect new sources of power and improve energy security.

It says upgrading the network is also necessary to help deliver a cheaper electricity system in the future.

The scheme is intended to make sure that communities hosting the infrastructure see some direct benefit from the investment.

When will I find out if I qualify?

The Government says eligible households can expect to receive further information in the first half of 2027.

Your electricity supplier or Ofgem will contact you if you qualify.

Most households will then receive the discount automatically through their electricity bill.

If you have a commercial meter or another arrangement that means your discount isn't applied automatically, you may need to follow the application process provided by the scheme.