Electricity Bill Discount Scheme: who could get £250 a year near new pylons

The Government has named the first 43 transmission projects expected to qualify for the Electricity Bill Discount Scheme. The projects cover locations in England, Scotland and Wales, with more expected to be added as the scheme develops.

This is a location-based Government scheme. It is not an Octopus tariff, referral reward or discount that you can unlock by switching supplier. If your home qualifies, the credit should follow the eligible electricity account.

How much is the discount?

The planned discount is £250 a year for 10 years, giving a total of £2,500 if a household remains eligible throughout the full period. Government guidance says most eligible households will receive the money through their electricity supplier every six months.

The first payments are expected in the first half of 2027. They will not start for a project until it has the necessary consents and its main construction work has begun.

Who is expected to qualify?

The current design has three main tests:

• Your household must be within 500 metres of eligible infrastructure.
• The project must involve new or significantly upgraded onshore, overground electricity transmission infrastructure.
• Main construction must have started on or after 10 March 2025.

Eligible infrastructure can include overhead lines and pylons, as well as associated substations, converter stations, switching stations and sealing-end compounds. The onshore infrastructure for a subsea power line can also be in scope.

The Government's published list is an early indication, not a final household-level eligibility checker. Exact qualifying properties will be confirmed as projects secure consent, final routes are known and construction starts.

Does your supplier matter?

No. This is not a supplier-specific deal. The Government and Ofgem expect the discount to be delivered through the household's electricity supplier, whether that is Octopus or another supplier.

Switching supplier should not remove an otherwise valid location-based entitlement, although the detailed administration rules are still being finalised. If you move home, eligibility is expected to remain with the qualifying property rather than follow you to a new address.

Will you need to apply?

Most households should not need to apply. The Government says eligible homes will usually be identified and contacted, with the credit applied automatically by their electricity supplier.

Some less typical arrangements may need a manual route, including homes where electricity is supplied through a commercial meter or an intermediary. Ofgem is consulting on household eligibility, delivery and compliance until 8 September 2026, so the final process for unusual account setups may change.

What to do now

1. Check the Government's expected-project list for a project near your home.
2. Do not pay anyone to apply or reserve a discount. There is no household application process open now.
3. Keep the name and address on your electricity account accurate.
4. If you move or switch supplier before 2027, keep final and opening statements so the account handover is clear.
5. Wait for official contact from your supplier, Ofgem or the Government.

Being close to a proposed project does not yet prove that your home will qualify. The route may change, a project may not obtain consent or construction may not begin. Treat the published list as an indication until you receive a formal eligibility notice.

What the scheme does not change

• It does not make one energy tariff automatically cheaper than another.
• It does not alter smart-tariff, EV, heat-pump or solar eligibility.
• It does not remove standing charges or cap a household's total bill.
• It does not replace community funds that may be attached to transmission projects.
• It is not a reason to switch supplier before checking your whole-home tariff fit.

The bottom line

The Electricity Bill Discount Scheme could provide meaningful support to households closest to new transmission infrastructure, but eligibility depends on the final project and property location. Check the official project list, keep your electricity account details current and wait for formal contact rather than trying to apply early.

If you are comparing Octopus for separate reasons, use a live postcode quote and check tariff eligibility on its own merits. Do not count this Government discount as an Octopus benefit or use it to justify a tariff that does not suit your household.