Households near newly constructed pylons in north London and dozens of other locations across Britain will receive electricity bill discounts starting next year under a government scheme that Reform UK has denounced as a "bribe."

More than 40 locations — predominantly in Scotland — are set to benefit from biannual cash reductions on energy bills. Government figures indicate that residents living within 500 metres of new pylons could see savings of up to £2,500 over a 10-year period.

The concentration of projects in Scotland reflects the region's role as a major renewable energy producer, particularly in onshore and offshore wind, requiring new transmission capacity to carry power south to demand centres in England.

Reform UK's business spokesman Richard Tice dismissed the initiative as a "£20-a-month bribe," arguing that proximity to pylons would leave homes "permanently devalued."

"It insults the intelligence of every British household, especially when new cables should be placed underground where possible instead of scarring our landscape," Tice said. Underground cabling is technically feasible but typically costs several times more per kilometre than overhead lines, a factor that has long shaped infrastructure planning decisions across the UK.

Energy minister Michael Shanks defended the government's infrastructure push, describing plans to expand energy infrastructure as a "moment of national renewal" and emphasising the need to upgrade a national grid largely constructed in the 1960s. The modernisation effort comes amid mounting pressure to clear a backlog of renewable energy projects waiting for grid connection, with some developers previously facing connection dates stretching into the 2030s.

"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," Shanks stated.

The 43 transmission projects represent the initial wave, with additional projects expected to follow. The government anticipates distributing the first payments during the first half of 2027.

Pylon Buildout Tied to 'National Renewal'

Eligibility extends to households situated near energy grid projects where construction commenced on or after 10 March 2025. The scheme, overseen by energy regulator Ofgem, covers new overhead pylons along with related infrastructure including substations and converter stations.

Most qualifying households will automatically receive the discount every six months through their energy supplier, though certain customers — including those on commercial meters — may be required to submit an application.

The government expects to begin contacting qualifying households at the start of 2027. According to a government assessment, between 120,000 and 160,000 households could qualify for the discounts between the scheme's launch and 2044.

Among the projects included in the discount scheme is the North London Reinforcement, located near Waltham Cross and Tottenham.

Ofgem's Neil Lawrence stated the programme would ensure eligible households "see a direct benefit."

Source: City AM