On 12 August 2026, the Department for Energy Security and Net Zero published the first wave of projects expected to fall within the electricity bill discount scheme for new transmission infrastructure. The list covers 43 projects in more than 40 locations, from the Scottish Highlands to the south of England. Under the scheme, households living within 500 metres of eligible transmission infrastructure are expected to receive up to £2,500 off electricity bills over 10 years. The government said the first payments will begin in the first half of 2027.
The eligibility test is narrower than the initial announcement suggests. According to the government, properties only come into scope once a project has secured all required consents and main construction has started. Projects are eligible only where construction began on or after 10 March 2025. Secondary legislation under the Planning and Infrastructure Act will be needed before the scheme starts. The rules cover new onshore, overground transmission infrastructure built by Transmission Operators, together with associated assets such as substations, converter stations, switching stations, sealing-end compounds and the onshore elements of subsea links.
Payment arrangements are also set out. Most eligible households are expected to receive the discount automatically every six months through their electricity supplier. Some customers, including households supplied through commercial meters, may need to apply instead. Ofgem will administer the scheme. The regulator said suppliers or Ofgem will contact qualifying households in the first half of 2027, which means residents near listed projects should expect confirmation from the scheme administrator or their supplier before any reduction appears on a bill.
The numbers published with the policy indicate the likely scale, but not a final total. The March 2026 impact assessment estimated that between 120,000 and 160,000 households could receive bill discounts between launch and 2044. The final figure will depend on which projects secure consent, when construction starts and the precise location of qualifying properties. The government described the 43 schemes published on 12 August as the first wave rather than the finished list. Further projects are expected to be added as the programme moves forward, and ministers said total coverage could extend to hundreds of thousands of homes over the next decade.
Energy Minister Michael Shanks presented the policy as part of a wider modernisation of Britain’s transmission network, much of which was built in the 1960s. The Department for Energy Security and Net Zero argues that faster reinforcement is needed to connect new generation, improve energy security and reduce system costs over time. That policy case sits behind the decision to attach a direct household discount to new overhead line development. It is intended to give a defined local payment to communities hosting infrastructure that ministers say will deliver national benefit through a cheaper and more secure electricity system.
The household discount is separate from the community benefit funding already attached to transmission schemes. Government guidance issued in March 2025 set benchmark community payments of £200,000 per kilometre of overhead line and £530,000 for each substation, converter station or switching station. The examples published alongside the announcement show how that funding works in practice. Communities near National Grid’s Bramford to Twinstead reinforcement project are expected to share more than £4 million for local projects, while areas affected by SP Energy Networks’ Chirmorie overhead line project in Scotland would be eligible for about £2.4 million.
The government also used the announcement to restate its view that pylons remain the lowest-cost route for most grid expansion. A June 2026 study by engineering consultants Ramboll found that newer undergrounding methods are cheaper than traditional cut-and-cover construction, but still leave underground transmission at around 3.5 to 5 times the cost of overhead lines, depending on circuit capacity. Ofgem said its role as scheme administrator will be to make sure payments are delivered effectively, fairly and transparently. National Grid, SP Energy Networks and SSEN Transmission all said the policy gives households a clearer direct benefit from hosting new infrastructure. For residents, the practical position is that distance alone is not enough: eligibility will turn on project status, construction dates and the final scheme rules.