Energy bills cut for communities helping electrify Britain

People living near pylons to get £2,500 off electricity bills over 10 years, as smart meter plans are unveiled to give consumers better rights and compensation.

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 (Friday 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Great Britain could benefit most of all from the bill discounts as government speeds up vital upgrades to the nation’s outdated electricity network.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% said that new electricity network infrastructure in Great Britain would be acceptable, but acceptability dropped to 61% 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.