The move is designed to speed-up construction work on new energy infrastructure with twice as much new transmission network investment needed by 2030 as has been built in the past decade.
Under the plans those living near new pylons across Great Britain are set to receive up to £2,500 off their bills over 10 years.
Minister for Energy Consumers Miatta Fahnbulleh said: “As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake.
“That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits.
“We are on the side of those who want Britain to get back to what it does best: building for the future, driving innovation and putting communities first.”
Dhara Vyas, Chief Executive Officer of Energy UK, said: “Much of the country’s energy infrastructure was built several decades ago and designed for a system very different from the one we have today – or the one we need in the future. Expanding and upgrading the delivery of energy to homes and businesses is long overdue and urgently needed.
“Some areas and some customers will of course be particularly and physically affected by these efforts and the energy industry will continue to work with these communities to ensure that they can reap the benefits of these investments.
“The introduction of a new approach to community benefits is welcome and marks a significant step in turning the proposals in the Planning and Infrastructure Bill into reality, helping to address the cost-of-living crisis and ensuring local communities that host clean power infrastructure feel an immediate and tangible benefit.”
