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

OFGEM·news·LOW·18 May 2026·source document

Summary

Ofgem has been appointed administrator of the government's Bill Discount Scheme, which gives households living near new electricity transmission infrastructure up to £250 per year off their bills. DESNZ aims to lay regulations in Summer 2026, with first payments in early 2027. Ofgem will consult on delivery mechanics (eligibility, compliance) for six weeks from July 2026.

Why it matters

A redistributive transfer to placate communities near pylons, funded ultimately through bills. It does nothing to address why transmission build is slow (planning, consenting, queue management) and adds a new administrative layer with eligibility rules to police. Buying acquiescence is cheaper than reforming consent, but the £250 ceiling is small relative to the value of unblocking the network.

Key facts

  • Up to £250 per year discount for eligible households
  • Ofgem appointed as scheme administrator
  • DESNZ aims to lay regulations Summer 2026
  • First payments due early 2027
  • Ofgem Administration Consultation to be published by July 2026, running six weeks
  • Government response to Bill Discount Scheme consultation published March 2026

Timeline

Decision expected2026-Q3
Effective date1 Jan 2027

Areas affected

transmissionnetwork chargesplanningretail market

Related programmes

Clean Power 2030Net Zero
Memo

Ofgem to administer government’s Bill Discount Scheme to recognise communities hosting new electricity infrastructure | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Ofgem to administer government’s Bill Discount Scheme to recognise communities hosting new electricity infrastructure Publication type: News Publication date: 18 May 2026 Topic: Consumer protection Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Update on the administrator of the government's Bill Discount Scheme. 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. Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close