Full details of 'pounds for pylons' scheme as households to get £250 a year off energy bills

Full details of 'pounds for pylons' scheme as households to get £250 a year off energy bills The Department for Energy and Net Zero (DESNZ) has unveiled the first wave of 43 projects that will be eligible for the payments for up to 10 years The first areas where households will be eligible for up to £2,500 off their energy bills have been revealed. People living close to new upgraded electricity pylons and substations will be eligible for the discount under a new scheme, which has been dubbed "pounds for pylons". However, critics said the money does not go far enough to compensate any impact on homes and the environment. The Department for Energy and Net Zero (DESNZ) has unveiled the first wave of 43 projects that will be eligible for the payments for up to 10 years. But how exactly will it work? We explain what you need to know. Who will be eligible? Those living within 500 metres of the new or upgraded overhead transmission lines and other eligible infrastructure are expected to be eligible for the discounts. They will start to receive money off their bills at the start of next year, with the discount worth £250 a year. DESNZ said each household could ultimately get £2,500 off their electricity bills over 10 years through the discounts. Most people will receive the discount automatically every six months through their energy supplier, though some people may need to apply, such as those on commercial meters. Your energy supplier or Ofgem will get in touch with further information in the first half of 2027. Only overground transmission projects – including substations, convertors, switching stations, sealing-end compounds and onshore converter stations for subsea power lines – will be eligible if construction started on or after March 10 2025. Those being delivered by National Grid Electricity Transmission, SP Energy Networks, and SSEN Transmission are set to be eligible. Which areas are included? The bulk of the projects are in Scotland, but upgrades are also planned in parts of England, including London, Essex, Suffolk and Norfolk, as well as North Wales. Some places will see new pylons, lines and cables, while others will get upgrades to existing overhead lines. Some areas will also see new substations built, or upgrades to existing substation. You can find a list of confirmed projects and locations below: - North London Reinforcement (upgrading overhead lines between Waltham Cross and Tottenham) - Bramford to Twinstead Tee (new lines and cables between Suffolk and Essex) - Norwich to Tilbury (new pylons and cables between Suffolk and Essex) - Grimsby to Walpole (overhead line between Lincolnshire and Norfolk) - North Humber to High Marnham (new lines between East Yorkshire and Nottinghamshire) - Chesterfield to Willington (overhead lines and substations across Derbyshire) - Brinsworth to High Marnham (upgrades to existing overhead lines across Derbyshire) - Pentir to Trawsfynydd (new cables and upgrades in north‑west Wales) - Eastern Green Link 3 (converter station in Walpole area of Norfolk) - Eastern Green Link 4 (converter station in Walpole area of Norfolk) - Sea Link (converter station in East Anglia) - Banniskirk Hub (new substation in Spittal area of the Highlands) - Cambushinnie (new substation near Braco in Perthshire) - Fort Augustus substation (upgrades to existing substation at Auchterawe - Spittal - Loch Buidhe - Beauly (reinforcing overhead line across Highlands) - Beauly - Peterhead (new overhead power line) - Carnaig substation (new substation near Loch Buidhe in Sutherland) - Hurlie substation (new substation at Fetteresso Forest in Aberdeenshire) - Kintore – Tealing (new lines between Kintore in Aberdeenshire and Tealing in Angus - Fanellan substation and converter station (new electricity infrastructure at Fanellan, near Beauly) - Creag Dhubh – Dalmally (upgrades to transmission network in Argyll region) - Edinbane substation (upgrade to a substation on the Isle of Skye) - Broadford substation (upgrade to a substation on the Isle of Skye) - Skye overhead line (reinforcing line between Ardmore on the Isle of Skye and Fort Augustus) - Netherton Hub (new substation and converter station hub in Aberdeenshire) - Tealing - Westfield (improvements to the line between Tealing in Angus and Westfield in Fife) - Bingally substation (new substation in the Highlands) - Greens (New Deer 2) substation (new facility being built near the existing New Deer substation in Aberdeenshire) - Lewis Hub (new substation and converter station in the Western Isles) - Emmock substation (new substation in Angus) - Crarae substation (new substation north west of Minard in Argyll) - Coalburn substation (new substation in South Lanarkshire) - Mark Hill substation (upgrade to the Mark Hill facility in South Ayrshire) - Stranoch lines and substation (new lines and substation across Dumfries & Galloway and South Ayrshire) - Chirmorie (connection project to a wind farm in South Ayshire) - Branxton substation (new substation in East Lothian) - Sanquhar substation (new substation in Dumfries and Galloway) - Denny to Wishaw (new overhead lines across central Scotland) - Westfield to South Humber (underground and undersea cable between Lincolnshire and Fife) - Kincardine North – Tealing (upgrade project between Tealing, near Dundee, and Kincardine, in Fife) - Kincardine North substation (upgrade to existing Fife substation) - Kincardine North – Wishaw (reinforcement of lines between Fife and Lanarkshire) - Gala North – Harker Area (new long-distance power line linking England and Scotland) More projects are set to be announced and an impact assessment earlier this year found that more than 100,000 households could eventually be included in the scheme. What has the Government said? Energy Minister Michael Shanks said: “Upgrading Britain’s electricity grid is a vital part of how we deliver secure, homegrown energy and unlock economic growth across the country. “It is a moment of national renewal – upgrading what was built largely in the 1960s for the modern age and is our route to bringing down electricity bills for households across the country. “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.” Neil Lawrence, Ofgem executive director for delivery and schemes, said: “Communities that host new electricity transmission infrastructure are playing a vital role in delivering the cleaner, more secure energy system Britain needs. “The bill discount scheme will help ensure eligible households living near these projects see a direct benefit through discounts on their energy bills. “As the scheme administrator, Ofgem’s role is to make sure payments are delivered effectively, fairly and transparently to eligible customers.” What do critics say? Kate Matthews of the Save Our Mearns campaign group, told the BBC that the plans had already caused "mental anguish" for local residents and argued it would negatively affect house prices and the environment. She said: "£2,500 off electricity bills over 10 years is a slap in the face for residents facing ruined businesses and unsellable homes. This Government is either massively out of touch or is showing their contempt for affected residents and energy consumers."