Households located near significant energy infrastructure projects could receive discounts of up to £2,500 on their energy bills under Labour’s ambitious plans to enhance clean energy production and facilitate homebuilding. Specifically, up to £250 will be deducted annually over a decade for families residing within 500 meters of new or upgraded energy infrastructure. This initiative, announced on Monday, is expected to encompass those living close to onshore, above-ground transmission cables, substations, and other related facilities, as Labour strives to fulfill its commitment to achieving clean power by 2030.
Deputy Prime Minister and Housing Secretary Angela Rayner praised these proposals, which are part of Labour’s Planning and Infrastructure Bill, emphasizing their role in “revitalizing Britain’s construction sector” while ensuring close alignment with local communities. However, advocates have raised concerns that this scheme may create inequalities in government support, favoring households situated near energy projects in rural areas over those located further away.
Below, The i Paper outlines key projects that may qualify households for energy bill discounts under Labour’s new scheme.
Sea Link
Location: Suffolk to Kent
The Sea Link project aims to enhance the National Grid’s network by constructing new infrastructure that connects Suffolk to Kent. The proposals primarily involve an offshore cable link extending 140 kilometers, complemented by onshore infrastructure, including converter stations, substations, and overhead electricity lines. National Grid has stated that the Sea Link is crucial for achieving the Government’s clean power objectives, yet local activists in Suffolk are opposing the plans to establish converter stations on the outskirts of Saxmundham and a substation in nearby Friston. In November, around 200 campaigners gathered in Saxmundham to voice their dissent, including town councillor John Findlay, who expressed that the infrastructure is being placed “in the wrong location.” He noted, “There are a whole variety of views in town. Some believe we should oppose it vigorously, while others think it’s inevitable and we should seek as much mitigation as possible.”
National Grid plans to submit its application for development consent for the Sea Link project in early 2025.
Norwich to Tilbury
Locations: Norfolk, Suffolk, and Essex
The Norwich to Tilbury project aims to enhance the National Grid’s power network in East Anglia, linking existing substations at Norwich Main in Norfolk, Bramford in Suffolk, and Tilbury in Essex to facilitate electricity transmission from offshore wind farms. This project will involve approximately 184 kilometers of new infrastructure, predominantly consisting of overhead lines and pylons. During his inaugural speech at the Labour Party conference in September, Sir Keir Starmer acknowledged that the installation of overground pylons near residential areas would be one of the “trade-offs” necessary to decrease energy expenses. He remarked, “If we want cheaper electricity, we need new pylons above ground; otherwise, the burden on taxpayers will be excessive.”
Residents affected by the Norwich to Tilbury project have expressed their outrage, claiming they are “not being given a choice.” In July, Essex County Council released a statement opposing the project, arguing it would provide “very little… in terms of social value and community benefits.” Meanwhile, Dan Roper, chairman of Norfolk County Council’s scrutiny committee, labeled the plan as “absolutely unacceptable,” stating, “It brings no advantages to Norfolk, and alternative technologies remain unexplored.”
National Grid is currently conducting consultations on the project, which will continue until March 27.
Grimsby to Walpole
Locations: Lincolnshire to Norfolk
As part of its Grimsby to Walpole initiative, National Grid intends to construct a 140-kilometer electricity line connecting two new substations at Grimsby West in northeast Lincolnshire and the Walpole area in Norfolk. This project will necessitate the establishment of two additional connection substations near the Lincolnshire coast and another substation at Weston Marsh. Local campaigners have voiced concerns that the new lines and pylons will lead to an increase in solar and wind farms, resulting in “the complete industrialization” of coastal communities.
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The protest group No Pylons Lincolnshire wrote to Net Zero Secretary Ed Miliband, expressing their concerns over the “constant barrage of additional proposals for onshore facilities” since the announcement of the pylons project, including plans for 14 potential solar or wind farms along the route. In response to their letter, Miliband stated, “Expanding renewable energy and upgrading our electricity grid is essential for our country’s energy security. We must modernize our electricity networks to connect clean, home-grown electricity generation to households and businesses nationwide. This is vital for reducing our dependence on fossil fuel markets dominated by petrostates and dictators.”
He also emphasized, “The existing network was largely constructed in the mid-20th century, and we cannot afford to postpone upgrading it any longer.” Another initiative that may qualify households for energy bill discounts is the Brinsworth to High Marnham Uprating, which would require three new substations near Brinsworth in Rotherham, South Yorkshire, along with another near Chesterfield, Derbyshire, and a third near Normanton-on-Trent in Nottinghamshire.
‘We Need Some Reassurances’
Commenting on Labour’s new energy bill discount scheme, Simon Francis of the End Fuel Poverty Coalition cautioned that “zonal” energy schemes could exacerbate disparities in government support for households struggling with their bills across various regions. He stated, “We already observe significant differences in energy bills under the current system due to the network charges that different companies can impose on our bills. The combination of this new proposal with suggested zonal pricing could significantly amplify this discrimination. We urgently need reassurances from the Government on this matter.”
Dhara Vyas, chief executive of Energy UK, remarked, “Much of the country’s energy infrastructure was built decades ago and designed for a system that differs greatly from today and the future we envision. Expanding and upgrading the means by which we transport energy to homes and businesses across the nation is long overdue and critically necessary to prevent stifling economic growth with increased costs to customers and delays in new projects stemming from outdated infrastructure. Ensuring we maximize the benefits from our own clean energy sources will ultimately help stabilize and lower bills for everyone in the country while enhancing energy security.”
Richard Neudegg, director of regulation at Uswitch, stated, “Upgrading the UK’s grid infrastructure is essential for supporting more local, renewable energy. The promise of discounts on bills and funding for community projects could encourage more local residents to support hosting this essential new infrastructure in their vicinity. While a discount of up to £250 a year for ten years may seem attractive, it’s still not clear which specific communities will benefit in practice.”
National Grid chief executive John Pettigrew noted, “It is crucial that communities receive enduring, tangible benefits for accommodating transmission infrastructure on behalf of the nation. We are pleased to see this guidance issued today and look forward to continuing our partnership with communities to deliver long-lasting, meaningful advantages alongside critical infrastructure.”
