Thousands of households will receive a £250 annual discount on their energy bills, it has been confirmed.

The Government has announced plans to reduce the costs paid by those living in homes close to new, upgraded electricity pylons and substations.

The Department for Energy Security and Net Zero (Desnz) says replacing and upgrading the UK’s old infrastructure is necessary in order to improve the country’s energy security.

Brits who live within 500 metres of new pylons will be eligible for the discounts, which will last for 10 years.

In total, 43 areas in the UK have been selected as being eligible for the scheme. The full list of locations can be found below.

More than 100,0000 households are set to benefit from cheaper energy bills. However, this could rise to as many as 160,000 homes as new infrastructure projects are launched.

The discount will be funded by adding an average extra 80p per year to the bills paid by other customers across the country.

Most of those entitled to the cheaper rates will get the discount automatically added to their electricity bill every six months through their energy supplier.

All those set to gain from the proposals will be informed by their energy supplier or by the regulator – Ofgem – within the first half of 2027.

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.”

The new projects will also help to ensure there is more capacity within the grid to make use of renewable energy.

Desnz says the UK’s energy system was designed for when Britain’s power was served almost solely from coal and gas-fired power stations.

At the moment, a lack of capacity for energy generated from renewable sources such as wind farms means some suppliers are paid to switch off their renewable sources in order to not overload the grid.

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.”

He added the discounts would be “delivered effectively, fairly and transparently to eligible customers”.

However, critics of the Government’s scheme say the energy discounts do not make up for the negative impact of living near the new infrastructure projects.

Kate Matthews from the Save Our Mearns campaign group in Scotland described the payment plans as an insult.

Save Our Mearns is fighting plans to upgrade pylons in north-east Scotland, with new structures proposed to be as tall as 75m.

The standard height of most pylons is currently between 26m and 46m.

Matthews 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.”

Full list of areas eligible for energy bills discount

England

• Bramford to Twinstead – East Anglia
• Norwich to Tilbury – East Anglia, and East of England
• Eastern Green Link 3 – converter station – East of England
• Eastern Green Link 4 – converter station – East of England
• Sea Link – converter station – East Anglia
• Grimsby to Walpole – Yorkshire and the Humber, and East of England
• North Humber to High Marnham – Midlands
• Brinsworth to High Marnham – Yorkshire and the Humber, and the Midlands
• Chesterfield to Willington – Midlands
• North London Reinforcement – London/ South of England

Scotland

• Banniskirk Hub 400 kV substation and HVDC converter station – North Scotland
• Cambushinnie 400 kV substation – North, and central Scotland
• Fort Augustus Substation 400 kV Upgrade – North Scotland
• Spittal – Loch Buidhe – Beauly 400 kV overhead line – North and North West Scotland
• Beauly – Peterhead 400 kV overhead line – North, and North East Scotland
• Carnaig 400 kV substation – North Scotland
• Hurlie 400 kV Substation – North East Scotland
• Kintore – Tealing 400 kV overhead line – North East Scotland
• New Fanellan 400 kV substation and Converter Station – North Scotland
• Creag Dhubh – Dalmally 275 kV overhead line – West Scotland
• Edinbane substation – West Scotland
• Broadford substation – West Scotland
• Skye 132 kV overhead line reinforcement – West Scotland
• Netherton Hub – North East Scotland
• Tealing – Westfield 400 kV overhead line – Central, and East Scotland
• Bingally 400 kV Substation – North Scotland
• Greens (New Deer 2) 400 kV substation – North East Scotland
• Lewis Hub – West Scotland
• Emmock 400 kV Substation – North East Scotland
• Crarae 275 kV Substation – West Scotland
• Coalburn Substation – Central Scotland
• Mark Hill Substation– South West Scotland
• Stranoch OHL and Substation – South West Scotland
• Chirmorie – South West Scotland
• Branxton Substation – South East Scotland
• Sanquhar Substation- South Scotland
• Denny to Wishaw 400 kV Reinforcement (DWNO) – Central Scotland, and South Scotland
• Eastern Subsea HVDC Link from Westfield to South Humber (TGDC) (EGL4) – East of Scotland
• Kincardine North – Tealing 400 kV Substation (TKUP) – East of Scotland
• Kincardine North 400 kV Substation (LWUP) – East of Scotland
• Kincardine North – Wishaw 400 kV Reinforcement (DWUP) – Central Scotland and East of Scotland
• Gala North – Harker Area 400 kV (CMN3 / CMN4) – Scottish Borders

Wales

• National Grid Electricity Transmission
• Pentir to Trawsfynydd – North Wales