Households living close to new pylons and electricity substations could receive discounts on their energy bills of up to £1,000 a year, under Government plans.
Chancellor Jeremy Hunt is set to announce the scheme, dubbed “pounds for pylons” in the Autumn Statement on Wednesday. The scheme could be in place for 10 years – meaning some households could save up to £10,000.
The announcement is expected 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 reforms are part of wider plans to get the UK economy growing which the Government said are essential to the UK achieving its Net Zero and energy security goals.
New plans are expected to include a new premium planning service across England to guarantee faster pre-application services for major applications in exchange for a fee and refunds where this is not met – improving on the current patchwork approach of Planning Performance Agreements.
Plans are also expected to prioritise the rollout of electric vehicle chargepoints, including helping petrol station forecourts convert into electric vehicle charging hubs.
A mixed response
A HMT source said: “Expanding the grid will unlock global investment for Britain and bring improvements for people across the country, with energy security that will keep energy costs down. And by speeding up the planning system – including the rollout of EV chargepoints – we will be tackling one of the most common issues raised by businesses who are keen to invest in the UK. This Autumn Statement will show that it’s the UK Government who are taking the long-term decisions to deliver the changes we need.”
The plans haven’t gone down well with energy and poverty campaigners who say that energy bill help should not be based on geography.
Peter Smith, director of policy at National Energy Action, said: “If this is the sole offer this winter for household energy bill support, it is hugely disappointing. Bills are set to go up in January, at the coldest time of the year, when millions are already struggling with the cost of energy.”
Ed Miliband, shadow climate and net zero secretary, tweeted: “It is cold comfort to families struggling with higher energy bills that the Conservatives are only now, after over 13 years of failure, attempting to solve the problems of the grid. Every family is paying the price of the Tories failures to deliver clean power.
“The truth is that the Conservatives will never end the cost of living crisis – they persist with an onshore wind ban, which is costing families £180 every year, and their stunt of an energy bill will not cut a penny off bills, as the energy secretary admitted.
“Only Labour can bring down energy bills for good and make Britain energy independent. Our plan is to make the UK a clean energy superpower, by setting up GB Energy – a publicly owned homegrown clean power company for the British people.”
