Communities in more than 40 locations across the UK will be eligible for the discounts, as the government recognises their role in hosting grid infrastructure that will help deliver cheaper and cleaner energy across the country.
Households living within 500 metres of eligible projects are expected to receive £2,500 off their electricity bills over a 10-year period.
The scheme forms part of wider efforts to upgrade the UK's electricity network, as much of it was built in the 1960s. The upgrades are intended to connect new sources of electricity generation, strengthen energy security and make energy more affordable for households.
The first phase of the programme covers 43 transmission projects, with further schemes expected to be added as the programme progresses. The government has estimated that hundreds of thousands of homes could benefit over the next decade.
The bill discounts will also build on wider Community Funds guidance, which is expected to direct millions of pounds into communities hosting grid infrastructure.
Energy Minister Michael Shanks said: "It's vital we build again as a country and we are determined those communities which host pylons should benefit, which is why we're bringing down the energy bills of those hosting this vital national infrastructure."
The announcement was made on 12 August 2026 as part of the government's plans to modernise the electricity grid and support the UK's transition to a cleaner energy system.