The UK Government has committed to giving households near new or upgraded pylons savings of up to £250 a year for 10 years as part of its Plan for Change.
Under the upcoming Planning and Infrastructure Bill, communities within 500 metres of new electricity transmission infrastructure will receive electricity bill discounts of up to £2,500 over a decade.
Deputy Prime Minister Angela Rayner said: “We owe it to the people of this country to get Britain building again.
“It is no longer a question of whether we build the new infrastructure we need but a question of how and this must be done in lockstep with local communities.
“This government’s Planning and Infrastructure Bill will slash energy bills for local people living near new projects, so they benefit as we drive forward in our mission to achieve a more prosperous and energy secure future for the next generation.”
Rayner added: “This is delivering on our Plan for Change to accelerate growth in every region across the country, raising living standards and putting more money back into the pockets of working people and families.”
The community benefits are expected to encourage the development of necessary grid infrastructure, facilitating a transition to clean energy and reducing reliance on fossil fuels.
Households hosting infrastructure will receive substantial benefits, alongside funded projects like sports clubs and educational programmes.
Energy Secretary Ed Miliband said: “The only way to make Britain energy secure and bring down bills for good is to get Britain off dependence on fossil fuel markets and replace it with clean, homegrown power that we control.
“To do this, we need to get Britain building right now. And as part of that, we are delivering on our landmark commitment to ensure that people who live near infrastructure meaningfully benefit.
“This will benefit the whole country by ensuring we build the clean power system we need.”
Communities could receive £200,000 worth of funding per kilometre of overhead cable and £530,000 per substation.
This initiative aims to reduce opposition to critical projects and accelerate clean energy infrastructure development across the UK.
REACTION:
John Pettigrew, CEO of National Grid:
“It is right that communities see enduring, tangible benefits for hosting transmission infrastructure on behalf of the country.
“We are pleased to see this guidance issued today and look forward to continuing to work in partnership with communities to deliver long-lasting, meaningful benefits alongside critical infrastructure.”
James Robottom, head of policy at Renewable UK:
“We welcome the government’s latest steps to help get Britain building the infrastructure it so desperately needs.
“It’s right that local communities should benefit from hosting new and upgraded pylons, so this guarantee that they will have significantly lower electricity bills is a positive step forward.
“We recognise the need to bring communities with us as we build the clean energy system of the future by ensuring that they have a tangible stake in it.
“This will help to enable the roll-out of much-needed new grid infrastructure at a faster pace, so that we can make the most of the vast amounts of clean power we’re producing, by transporting it more efficiently from where it’s generated to where it’s needed in homes and businesses all over the country.
“Our switch to an energy system dominated by renewables will also strengthen the UK’s energy security by reducing our exposure to volatile international gas markets which caused the recent spike in energy bills, so it’s a win-win all round.”
Dhara Vyas, chief executive at Energy UK:
“Much of the country’s energy infrastructure was built several decades ago and designed for a system very different from the one we have today – and the one we will have in future.
“Expanding and upgrading how we transport energy to homes and businesses across the country is long overdue and urgently needed if we are not to choke economic growth with extra costs to customers and delays to new projects and developments that result from outdated infrastructure.
“Ensuring we get the maximum benefit from our own sources of clean energy will benefit everyone in the country through more stable and affordable bills and increased energy security.
“However it’s also right to recognise those areas and customers that will be particular affected by developments and to work closely with them so that they and their wider communities are rewarded for helping support a national endeavour.”
Claire Mack, chief executive at Scottish Renewables:
“As our energy transition gathers pace it is important to ensure lasting benefits are secured for the country.
“Delivering home-grown renewable energy at scale will strengthen our economy and energy security, protecting households and creating high-value jobs.
“Scotland’s renewable energy industry is proud of our positive record to date on transformational community benefit funds and we want to ensure they continue to deliver for local communities.
“In that effort, we welcome these bold new proposals which will offer a tangible benefit to those living near vital new transmission infrastructure.”
