Electricity pylons: energy bill discount for UK residents living near new pylons, but cost hikes to pay for it

• Households near new or upgraded pylons will get £250 off their energy bills annually for 10 years
• But to fund the scheme, millions of other customers will see small bill increases, estimated at 80p-£2 per year
• Ministers say the plan ‘recognises the service’ of those living near power infrastructure
• Hundreds of miles of new pylons are needed to meet the UK’s renewable energy targets

Thousands of people across the UK will see a discount to their energy bills under new government plans - though millions more will face price increases to pay for it.

Earlier this week it was reported that households near power infrastructure - within half a kilometre of new or upgraded systems such as pylons - would be entered into a discount scheme worth £250 per year for a decade.

The scheme is expected to be in place from 2026 and apply to new onshore, above-ground transmission cables and substations, as well as some major upgrades.

But it’s since been revealed that to cover these discounts, millions of people who don’t live near pylons will be footing the bill through higher energy costs.

How much are energy bills expected to increase?

Energy Secretary Ed Miliband announced that the cost of reducing energy bills for those living near pylons will be covered by an 80p increase in the average annual energy bill nationwide.

The government argues that these communities are providing a service to the country by hosting essential infrastructure, and the cost per household is relatively small.

Miliband told the BBC that the scheme’s costs were “more than offset” by the benefits of new infrastructure, and said the initiative is not about "buying people off" but about "recognising the service" they provide.

The bill discounts for homes near pylons will be funded by electricity suppliers, but those costs are expected to be passed on to other customers - some might argue that energy companies or the Government, rather than bill payers, should cover the expense.

Initial estimates suggest that combined bill discounts and community funds could add £1-2 per year to the average customer's bill over the next decade.

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Why are discounts being offered in the first place?

Pylons and power lines can be seen as unsightly, potentially lowering property values. High-voltage power lines can also produce a low humming sound and may interfere with radio or TV signals.

Similar discount proposals were considered under the previous Conservative government, and a 2024 government survey found that 78% of people would be more accepting of energy projects if offered bill discounts.

A government-commissioned report found that hundreds of miles of new pylons will be needed to meet clean energy targets.

But the proposals have faced strong opposition, particularly in rural areas like Norfolk and Suffolk, where campaigners argue they will damage the countryside.

Conversely, expanding the UK’s renewable energy grid benefits everyone in the long run, although for those already struggling with energy costs, even a small increase might feel unfair.

Are these plans a fair way to compensate those living near pylons, or should the costs be covered differently? Do you support the push for new energy infrastructure, or are you concerned about its impact? Share your thoughts in the comments.