Households in the UK will see an 80p increase in their annual energy bills to support a scheme providing discounts for those living near new or upgraded electricity pylons.
The initiative, announced by Energy Secretary Ed Miliband, will grant affected residents up to £2,500 over ten years, aiming to ease local opposition to new energy infrastructure.
The government argues that expanding the electricity grid is critical for the transition to clean energy, with the discounts recognising the role played by those hosting pylons.
However, critics, including rural campaign groups, warn that financial compensation cannot offset the impact on landscapes.
Energy Bill Increase to Fund Grid Expansion
The UK government has confirmed that energy bills will rise by 80p per year to finance discounts for households within 500 metres of new or upgraded electricity pylons. The measure, set to take effect in 2026, aims to incentivise communities to support crucial transmission projects required for clean energy distribution.
According to Ed Miliband, the country’s lack of sufficient grid infrastructure has led to offshore wind farms being switched off, reducing the efficiency of renewable energy production.
The initiative is part of the Planning and Infrastructure Bill, which seeks to accelerate the approval process for major energy projects. According to government estimates, both the bill discounts and related community funds could cost households an additional £1–2 per year over the next decade.
While the renewable energy sector has welcomed the move, describing it as a necessary step to modernise the grid, critics have raised concerns about the fairness of distributing costs to all energy consumers.
According to RenewableUK’s head of policy, James Robottom, the policy will enable faster grid expansion, allowing the UK to fully utilise its clean energy potential.
Community Benefits and Concerns Over Landscape Impact
In addition to direct bill discounts, the government is introducing community benefit schemes to compensate areas affected by new transmission infrastructure. Developers will be required to invest in local projects, including sports facilities, education programmes, and leisure centres.
According to official figures, affected communities could receive £200,000 per kilometre of overhead cable and £530,000 per substation.
While the government insists the plan fairly rewards local communities, campaigners argue it fails to address concerns over the visual and environmental impact of pylons.
According to Jackie Copley, campaign lead at countryside charity CPRE, compensating individuals raises issues of fairness and legal challenges, as the loss of rural landscapes cannot simply be valued in monetary terms.
Public opinion on such initiatives appears divided. A 2024 government survey found that 78% of respondents would be more accepting of new energy infrastructure if they received bill discounts.
However, opposition remains strong in regions like Norfolk and Suffolk, where campaigners continue to push for alternatives, such as underground power lines.
