UK households near new grid pylons to get discounts on their electricity bills

UK residents living close to new electricity pylons will get money off their energy bills as part of a new package of policies designed to fast-track the country’s transition to net-zero.

According to the new rules, included in the government’s upcoming Planning and Infrastructure Bill which enters parliament this week, households within 500 metres of new or upgraded electricity transmission infrastructure will get electricity bill discounts of up to GBP2,500 over ten years.

Government figures seen by Reuters show the average domestic energy bill in 2024 was GBP2,252, with electricity accounting for GBP1,143, and gas GBP1,109.

Alongside those direct discounts, new guidance will set out how developers should ensure that communities playing host to new transmission infrastructure benefit in other ways, including through funding projects like sports clubs, educational programmes, or leisure facilities.

The UK government hopes these new measures will butter up communities living near new energy infrastructure, helping to reduce time-costly complaints and aid in the connection of dozens of new renewables projects that are needed if the country is to meet its target of 100 per cent ‘clean power’ by 2030, with 95 per cent renewables and no more than 5 per cent from unabated gas.

To achieve this, the government says it will need to build twice as much transmission infrastructure as has been constructed in the past decade, all by 2030.

On this side of the globe, the Australian Energy Market Operator (AEMO) says Australia will need an estimated 10,000 kilometres of new transmission lines by 2050 to successfully decarbonise.

Research in Australia has shown that local communities are far more likely to buy in to new energy infrastructure projects if they feel that they have ownership over the project, or have been adequately consulted the whole way through.

Some governments are already implementing incentives, such as in Victoria, where the state government is offering landholders who host new transmission lines $200,000 per kilometre of transmission hosted, paid in annual instalments over 25 years – but incentives such as these benefit landholders rather than all local residents, and particularly not those who rent their properties.

The UK’s new Bill will also fast track the connection of dozens of clean energy projects to the UK’s electricity grid to meet those 2030 commitments.

The UK’s existing system for connecting renewables projects to grid power works on a ‘first come, first served’ basis, with projects handled in the order they enter the queue, irrespective of how advanced they are.

But the new ‘Planning and Infrastructure Bill’, which will be introduced to the UK Parliament this week, will adopt a ‘first ready, first connected’ approach the government says should cut the wait for new grid connections by up to seven years.

That’s important, considering ready-to-go projects, including solar and wind farms, currently face waits of up to ten years due to a clunky approvals process.

“This government’s Planning and Infrastructure Bill will slash energy bills for local people living near new projects, so they benefit as we drive forward in our mission to achieve a more prosperous and energy secure future for the next generation,” said Deputy Prime Minister and Housing Secretary Angela Rayner.

Josh Pettigrew, CEO of the National Grid, said that communities needed to benefit in some way from the upheaval of the energy transition in order to make that transition fair.

“It is right that communities see enduring, tangible benefits for hosting transmission infrastructure on behalf of the country,” Pettigrew said. “We are pleased to see this guidance issued today and look forward to continuing to work in partnership with communities to deliver long-lasting, meaningful benefits alongside critical infrastructure.”

James Robottom, Head of Policy at RenewableUK, welcomed the move.

“This will help to enable the roll-out of much-needed new grid infrastructure at a faster pace, so that we can make the most of the vast amounts of clean power we’re producing, by transporting it more efficiently from where it’s generated to where it’s needed in homes and businesses all over the country,” he said.

“Our switch to an energy system dominated by renewables will also strengthen the UK’s energy security by reducing our exposure to volatile international gas markets which caused the recent spike in energy bills, so it’s a win-win all round.”