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Autumn Statement 2023: Pounds for pylons confirmed

Autumn Statement 2023: Pounds for pylons confirmed
Emma Lunn
Written By:
Emma Lunn
Posted:
22/11/2023
Updated:
27/11/2023

Some households could get up to £10,000 off their energy bills in a scheme confirmed by Chancellor Jeremy Hunt in the Autumn Statement today.

The Government has set out an action plan to halve the time to build new grid infrastructure to seven years, in response to the review by the Electricity Network Commissioner, Nick Winser.

Key elements of this action plan include new proposals for community benefits with up to £1,000 a year off electricity bills.

Dubbed “pounds for pylons”, the scheme could be in place for 10 years – meaning some households could save up to £10,000.

The announcement was made alongside plans to drastically reduce the time to approve and build pylons, overhead cables and other transmission infrastructure – halving the time it takes to deliver new electricity networks from 14 to seven years.

A statement from HM Treasury said speeding up grid connections is expected to unlock more domestic green energy and could bring forward £90bn of global investment over the next decade.

The Treasury said these actions will support the Government’s efforts to electrify and decarbonise the economy and increase the UK’s energy security. Ministers estimated that, overall, these actions will help to lower electricity prices and are estimated to deliver a net saving of £15 to 25 on average per household per year up until 2035.

‘Enhancing a patchy record of sustainability’

Dominic Rowles, lead ESG Analyst at Hargreaves Lansdown, said: “While tax cuts took centre stage in Jeremy Hunt’s Autumn Statement, some efforts were made to enhance the Government’s patchy record on sustainability. They are a welcome response to a series of recent policy shifts that seemed to pose serious challenges to the Government’s 2050 net zero target.

“Among the top commitments were an initiative to introduce a cash sweetener of up to £10,000 over 10 years for those living closest to new energy generation and transmission infrastructure. It’s hoped this plan will speed up planning approvals for new infrastructure projects, which have been beset with delays and increased costs in recent years.”