Ofgem to administer government’s Bill Discount Scheme to recognise communities hosting new electricity infrastructure

Ofgem has been appointed as the Bill Discount Scheme administrator. The Department for Energy Security and Net Zero (DESNZ) aims to lay regulations to implement the scheme in Summer 2026, with first payments due to households in early 2027. Ofgem’s role is to ensure the Bill Discount Scheme payments reach eligible households within the scheme timescales.

The scheme is designed to acknowledge and support households living near new electricity transmission infrastructure, ensuring they benefit directly from hosting nationally important assets, by giving them discounts off their energy bills of up to £250 per year.

An Ofgem Administration Consultation on the delivery of the scheme will be published by July and will run for six weeks. The consultation will seek views on key aspects of Ofgem’s planned administration including identifying eligibility of households and setting up delivery mechanisms and compliance arrangements to ensure it is delivered effectively, fairly and transparently.

The Bill Discount Scheme is part of the government’s ambition to make Great Britain (England, Scotland and Wales) a clean energy superpower, with twin objectives of delivering clean power by 2030 and accelerating progress towards net zero. These commitments are central to boosting energy independence, protecting consumers, and supporting jobs and growth across the UK. As part of DESNZ’s wider community benefit package, which includes community funds, the Bill Discount Scheme will ensure that communities hosting new clean electricity transmission infrastructure directly benefit.

A critical part of delivering this ambition is ensuring the electricity transmission network, which transports electricity from where it is generated to where it is needed, is fit for the future. To meet rising demand for clean power and reduce constraints in the existing system, the UK must significantly expand the scale of its transmission network at pace.

Commenting on the announcement Executive Director for Delivery and Schemes, Neil Lawrence, said:

“The government’s Bill Discount Scheme is an important step towards the UK’s ambition to deliver clean power by 2030 and make faster progress towards net zero. The electricity transmission network needs to expand rapidly to keep up with demand and reduce constraints in existing infrastructure.

“The Bill Discount Scheme, with Ofgem as administrator, will ensure consumers living near new infrastructure see tangible benefits through discounts on their energy bills. Communities that host network infrastructure play a critical role in delivering cheaper, cleaner and more secure energy, and this scheme will help strengthen our engagement with them.

“We look forward to working closely with electricity suppliers, transmission owners and DESNZ to ensure the Bill Discount Scheme is ready for a successful launch.”

The government response to the Bill Discount Scheme consultation was announced in March 2026.