Ofgem welcomes first Bill Discount Scheme projects

The first infrastructure projects that will see local households get up to £250 off their energy bills have been welcomed by Ofgem.

The first wave of projects will be across England, Scotland and Wales.

The scheme is designed to support communities hosting new electricity transmission infrastructure, such as pylons. It ensures they benefit directly from hosting nationally important assets through energy bill discounts of up to £250 per year for up to 10 years.

Ofgem will administer the new Bill Discount Scheme on behalf of the Department for Energy Security and Net Zero (DESNZ), ensuring payments reach eligible households within the scheme's timescales.

DESNZ aims to lay regulations to implement the scheme before the end of 2026, with the first payments due to households in early 2027.

Neil Lawrence, Ofgem’s Executive Director for Delivery and Schemes, said:

“Delivering a cleaner, more secure energy system will require significant investment in the UK’s electricity network. The Government’s new Bill Discount Scheme will help support that. 

“As the country works towards its clean power and net zero ambitions, new transmission infrastructure will be essential to connect renewable generation, meet increasing demand and improve network resilience.

“The Bill Discount Scheme recognises the important contribution made by communities that host this infrastructure. As Scheme Administrator, Ofgem will oversee the delivery of energy bill discounts to eligible households living near new transmission developments, ensuring that local communities share in the benefits of the transition to a low-carbon energy future. 

“We encourage interested parties to engage with Ofgem’s consultation on the administration of the scheme in the coming weeks.”

The Ofgem administration consultation on the delivery of the scheme is open, closing on 8 September 2026. The consultation will seek views on key aspects of Ofgem’s proposed administration, including household eligibility, delivery mechanisms and compliance arrangements, to ensure the scheme is delivered effectively, fairly and transparently.

We encourage interested parties to share their views on the administration of the scheme through Ofgem’s consultation.

Consumers do not need to take any action at this stage. Eligible households will be contacted with further information.