The Chancellor is expected to announce the plan in the autumn statement in an effort to speed up infrastructure building. This includes offering discounts of up to £1,000 off energy bills over a 10-year period to households near new pylons and electricity substations. The plan is expected to be announced by Chancellor Jeremy Hunt, and will be offered to those living closest to new pylons and electricity substations. Details about requirements and funding for the discounts are uncertain at this time.
The government is also expected to reveal plans to cut the time needed to approve and build transmission infrastructure by half, from 14 to 7 years. This includes a new premium planning service across England to ensure faster pre-application services for major applications. Another priority is to designate low carbon energy infrastructure as a critical national priority and to prioritize the rollout of Electric Vehicle (EV) charge points.
A Treasury source emphasized the benefits of expanding the grid, saying it will unlock global investment for Britain and bring improvements for people across the country, contributing to energy security and reduced costs.
However, Electricity Networks Commissioner Nick Winser submitted recommendations in June which included payment for residents near infrastructure and better visual design. He noted that the infrastructure needs to have enough capacity to transmit new wind and nuclear power to avoid it being “wasted.” As part of the UK government’s drive to achieve net zero by 2050, it is committed to replacing all fossil fuel-generated electricity with “home-grown, green technologies” by 2035.
Mr. Winser advised that the National Grid will need around four times as much new transmission network in the next seven years as was built since 1990. If the grid isn’t upgraded at the same pace as home-grown energy, not only the power will be “standing idle,” but customers will also face “very high” congestion costs. It was also noted that even with optimal reinforcement of the grid, annual constraint costs could rise significantly in the next few years.