First 'pounds for pylons' energy bill discount sites revealed

An important development from the financial markets: First 'pounds for pylons' energy bill discount sites revealedImage source, PA MediaImage caption, Households living within 1600ft of upgraded pylons will be eligible for the discountByCalum WatsonBBC ScotlandPublished59 minutes agoThe first locations where households living close to new upgraded electricity pylons and substations will receive a £250 year discount on their bills have been revealed. Customers living within 1600ft (500m) of 43 transmission projects across Britain will be eligible for the payments for up to 10 years under the bill discount scheme, sometimes dubbed "pounds for pylons". UK ministers say replacing and upgrading decades-old infrastructure is vital for distributing renewable power and improving energy security.

Critics, however, argue the discounts are meagre compensation for the impact on their homes, neighbourhoods, and the environment. About two-thirds of the projects are in Scotland, to support the fast-growing wind energy sector. But major upgrades are also planned across Britain, including areas north of London, as well as East Anglia, the Midlands, and North Wales.

Economic Details

UK Energy Minister Michael Shanks said upgrading the grid is "a vital part of how we deliver secure, homegrown energy and unlock economic growth across the country. "He added: "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.

"The Department for Energy Security and Net Zero says Britain's electricity grid was largely designed for an era when power came from coal and gas-fired power stations, and now needs major upgrades to cope with growing amounts of renewable energy. Ministers say the lack of capacity means some wind farms are sometimes paid to switch off because there is not enough network infrastructure available to carry the electricity to homes and businesses that need it. Image source, SSEN TransmissionImage caption, The Beauly to Denny power line from the Highlands to central Scotland has already been upgraded and became operational in 2015Approximately 80p a year will be added to all energy bills to fund the discount scheme.

Most households that qualify will receive the discount automatically on their electricity bill every six months although some, such as those on commercial meters, may need to apply. The first payments will start early next year, when eligible customers will receive more information from their supplier or the energy regulator Ofgem. An assessment earlier this year estimated that between 120,000 and 160,000 households could eventually receive the discounts as more projects are rolled out.

Financial markets are tracking the development closely as investors assess the likely impact.