Energy bills cut for communities helping electrify Britain

The government is teaming up with local communities to get Britain building – driving growth and delivering clean energy as part of the Plan for Change.   

Electricity bills to be cut for thousands living near new pylons, as the government moves forward with plans to get Britain building and put communities at the heart of a cleaner, more affordable, homegrown energy system.   

Those living near new pylons across Great Britain are set to receive up to £2,500 off their bills over 10 years, as the government tomorrow (8 August) launches a consultation on proposals included in the Planning and Infrastructure Bill. The plans could see eligible households save up to £250 off their electricity bill a year, receiving a £125 discount every 6 months.   

This delivers on the government’s commitment to get Britain building again, under its Plan for Change, while ensuring those supporting Britain’s clean energy mission receive direct, meaningful benefits.    

Around twice as much new transmission network infrastructure will be needed by 2030 as has been built in the past decade, with the government’s new planning reforms – announced earlier this year – aiming to remove barriers and back the builders.   

Rural communities across Great Britain could benefit most of all from the bill discounts as government speeds up vital upgrades to the nation’s outdated electricity network. Building a clean, homegrown, affordable energy system that Britain controls will protect billpayers from global fossil fuel price spikes and unlock economic growth and investment.    

Minister for Energy Consumers Miatta Fahnbulleh said 

As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake.  

That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits.  

We are on the side of those who want Britain to get back to what it does best building for the future, driving innovation and putting communities first.

This comes alongside confirmation millions of households will be supported to take control of their energy usage and bring down their bills under new plans to transform the consumer smart meter experience.     

Tough new obligations will be placed on energy suppliers to improve every stage of the smart meter process, under plans being put forward tomorrow. The reforms, set to be introduced next year, include new and improved compensation for long installation and repair wait times.   

The proposals set out by Ofgem include requirements to cut waiting times for installation appointments and fix meters that have stopped working in smart mode within 90 days – or provide consumers with automatic compensation.    

A new guide to smart metering will support families to gain a better understanding of their rights, by clearly setting out in one place everything households can expect from suppliers when they get a smart meter. This will be developed into a new Consumer Charter for smart metering in due course.      

This is in addition to connectivity improvements across Scotland and the north of England, including the roll out of 4G cellular communication services, which will enable millions of households to feel the benefits of getting a smart meter installed.     

Charlotte Friel, Director of Retail Pricing and Systems at Ofgem, said  

Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending.  

But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change.

We’re working closely with suppliers to drive improvement, and have seen more than 600,000 faulty smart meters reconnected since last July after we opened compliance engagement. This is only the beginning – with automatic compensation, faster fixes, and improved installation standards well on the way, getting a smart meter will be quicker and easier than ever. 

These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong.

The measures set out will help households across the country enjoy lower bills through better management of their energy usage and access to more flexible tariffs, ensuring consumers are put first as suppliers work to install smart meters in all remaining homes by the end of 2030.     

This marks an important step towards repairing the energy retail market, building on the government’s plans set out earlier this year to make sure that energy consumers can access redress more fairly, quickly and easily when things go wrong.       

The consultation, launching tomorrow, on direct and meaningful benefits for communities who live close to new transmission infrastructure also marks a key step in delivering on the government’s clean energy mission.   

A recent study found that 77 per cent said that new electricity network infrastructure in Great Britain would be acceptable, but acceptability dropped to 61 per cent for infrastructure in respondents’ local area. The government is putting consumers at the heart of plans to rewire Britain’s outdated transmission network – ensuring those living near these works see money off their bills in return.      

Stakeholder reaction

Dhara Vyas, Chief Executive Officer of Energy UK, said

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 – or the one we need in the future. Expanding and upgrading the delivery of energy to homes and businesses is long overdue and urgently needed.

Clean power will drive economic growth across the UK, and ensuring we get the maximum benefit from our own sources of clean energy is the best way to deliver stable, affordable bills and to increase Great Britain’s energy security.

Some areas and some customers will of course be particularly and physically affected by these efforts and the energy industry will continue to work with these communities to ensure that they can reap the benefits of these investments.

The introduction of a new approach to community benefits is welcome and marks a significant step in turning the proposals in the Planning and Infrastructure Bill into reality, helping to address the cost-of-living crisis and ensuring local communities that host clean power infrastructure feel an immediate and tangible benefit.

New networks are vital to a clean power system, helping to deliver a cost-effective, secure, and economically sustainable system for the future.

Dan Brooke, Chief Executive of Smart Energy GB, said

Progress has been made in improving the smart meter customer experience, with 9 in 10 smart meters now operating in smart mode and the latest data from Citizens Advice and Ofgem showing that people’s satisfaction with smart meters has increased over the last 18 months. The latest data also shows that the vast majority of people are happy with their smart meter.

It’s important that people have a positive experience of smart meters, whether they’re already an owner or looking to get one installed. The range of technical reforms outlined by government today – including expanding 4G services and allowing people to securely connect to the smart meter network using their broadband – will improve smart meter performance and mean more homes can have one installed.

These technical improvements, along with the government’s new guide to smart metering, will provide reassurance to households and allow an even greater number to enjoy the benefits that smart meters bring, including more control over energy use and access to flexible tariffs that can help save money.

Chris Lovatt, Chief Executive Officer of Data Communications Company, said   

Working closely with our customers and the Department for Energy, Security and Net Zero we are proud to have designed and delivered the next generation of communication hubs, leveraging 4G technology and available nationwide. Early installations show a step change in performance and offer significant per meter saving compared to legacy technology. 

We are committed to playing our part, upgrading our connectivity services and operational support to deliver the best and most cost-effective smart metering experience for our customers.

Notes to editors    

Bill discounts and community funds for transmission infrastructure projects   

• Under proposals set out in the government’s Planning and Infrastructure Bill earlier this year, households within 500 metres of new or upgraded electricity transmission infrastructure could receive a discount of up to £250 via their electricity bill every year for 10 years.
• The discounts, which would be assigned to the home and apply to the occupant, could be provided every six months and continue for up to 10 years, adding up to £2500.* Ensuring communities see real benefits from new infrastructure plans can help to reduce opposition and planning delays, unleashing thousands of new skilled job opportunities and local growth while securing Britain’s clean energy system.
• The consultation on Scheme Design for Bill Discount Scheme for New Network Transmission Infrastructure will open tomorrow and will run for 7 weeks.
• The government will tomorrow also confirm it will expand the scope of guidance on how communities should be recognised for hosting transmission infrastructure, by funding projects like sports clubs, educational programmes and leisure facilities. Guidance will include capacity upgrades for existing projects, where poles are replaced with steel lattice pylons, and that are screened for having an Environmental Impact Assessment. This will see immediate benefits for the Isle of Skye community, who will be eligible for millions in funding for local facilities as part of a transmission upgrade project on the Island – with more areas able to benefit from similar projects across Scotland in the future.
• The community funds guidance was published earlier this year and will be updated by the end of 2025.

Smart metering reforms

• The government will tomorrow publish    
• Smart meters Your rights and expectations, a new guide to smart metering.
• A call for evidence seeking views on options for improving consumer access to smart meter installations in all areas of Great Britain and opportunities to enhance the consumer journey through integration with other low carbon technologies
• The consultation on post-2025 supplier obligations, setting the clear ambition for the successful completion of the rollout and putting customers first through driving improved rates of meter operation
• The energy regulator Ofgem will also consult on proposals to require suppliers to compensate consumers for a range of issues related to smart metering.  These include cases where installation appointments are not offered within six weeks of a request, where an installation fails due to suppliers’ actions, and where customers do not get a response within 5 days of reporting an issue with their smart meter.