Energy bills could be slashed by £250 a year for households under new Labour pylon policy

Under the new policy, households within 500 metres of new or upgraded electricity transmission infrastructure will receive the bill discounts.

Rural communities will see hundreds of pounds in their pockets for hosting this vital infrastructure, with a potential energy bill saving of £2,500 over the next decade.

The Government's position is that communities directly supporting this nationally critical mission should rightfully benefit.

Do you have a money story you’d like to share? Get in touch by emailing [email protected].

Households living near pylons could get hundreds of pounds of their energy bills

GETTY

Alongside bill discounts, developers will ensure communities hosting transmission infrastructure benefit through funding for local projects.

New guidance sets out that communities could receive £200,000 worth of funding per km of overhead electricity cable in their area, and £530,000 per substation.

For example, SSEN Transmission's planned power line between Tealing and Aberdeenshire could see local communities benefitting from funding worth over £23million.

Developers will closely consult with eligible communities on how best to spend these funds. Around twice as much new transmission network infrastructure will be needed by 2030 as has been built in the past decade.

According to the Government, this infrastructure is critical to unleashing growth with £40billion a year of mainly private investment and creating jobs across the country.

On the energy overhaul, Deputy Prime Minister and Housing Secretary 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."

Ed Miliband is making drastic changes to UK energy policy

Getty Images

John Pettigrew, the CEO of the National Grid, added: "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, RenewableUK's head of Policy, shared: "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."