Households in the Trawsfynydd area of Gwynedd are among those set to benefit from a new UK-wide scheme offering up to £250 a year off energy bills for people living close to major electricity network upgrades.

The UK Government has announced the first locations eligible for its new Bill Discount Scheme, which is designed to give communities a direct financial benefit from hosting nationally important electricity infrastructure.

Households within 500 metres of eligible new or significantly upgraded transmission infrastructure can receive up to £250 a year for up to ten years – potentially worth £2,500 per household.

The Pentir to Trawsfynydd project in North Wales is included in the first group of projects covered by the scheme, bringing the initiative directly to communities in Gwynedd.

The background to the scheme is a major transformation in the way electricity is generated and distributed across Britain.

Much of the UK's high-voltage electricity network was built decades ago, at a time when power generation was concentrated around large fossil-fuel power stations.

The rapid expansion of wind, solar and other low-carbon generation means the network now needs to carry electricity from areas where it is generated to the towns and cities where it is needed.

The UK Government says upgrading the grid is essential to improving energy security, supporting economic growth and allowing more home-grown renewable electricity to connect to the network.

The programme has also been driven by the costs associated with an overloaded electricity grid. When there isn't enough capacity to move electricity to where it is needed, renewable generators can be paid to reduce or stop production while other generators are brought online.

The Pentir to Trawsfynydd project is a major upgrade of the existing high-voltage network across north-west Wales.

National Grid says the work is needed to reinforce and refurbish parts of the existing system and allow more clean energy to be transported to homes and businesses.

The project includes work at Pentir and Trawsfynydd substations, replacement of underground cables beneath the Glaslyn Estuary and the construction of a new substation south of Bryncir. There will also be associated cabling and electricity infrastructure.

National Grid submitted planning applications for the work to Cyngor Gwynedd and Eryri National Park Authority. Construction is planned as part of a programme running towards 2030.

Importantly for communities around Trawsfynydd, the project isn't simply about putting up a new line of pylons. A significant part of the proposed work involves upgrading existing infrastructure and installing or replacing underground cables.

The project is part of National Grid's wider Great Grid Upgrade, described as the largest overhaul of the electricity transmission network in generations.

The scheme is aimed specifically at households closest to the qualifying electricity infrastructure.

The Government says eligible households will receive up to £250 per year for up to ten years, with the first payments expected from 2027. Ofgem has been appointed to administer the scheme and is responsible for ensuring eligible households receive the payments.

It is important to note that being somewhere within the wider Trawsfynydd or Pentir-to-Trawsfynydd project area does not automatically mean every household will receive the money.

Eligibility is based on proximity to the qualifying new or significantly upgraded transmission infrastructure, with the scheme focused on homes within 500 metres.

The Government has also been developing wider community benefit funding, meaning the financial benefits aren't intended to be limited solely to individual households.

Trawsfynydd is one location within a much larger programme covering electricity transmission projects across Britain.

The Government says the first phase includes 43 projects, with households living close to qualifying infrastructure able to receive the annual discount.

A large proportion of the projects are in Scotland, where significant investment is required to connect the country's rapidly expanding renewable energy generation. There are also projects across England and Wales.

The Government's argument is that communities hosting new infrastructure should share in the benefits of the transition to a cleaner electricity system – particularly when projects can have a visible impact on the local landscape.

The bill discount scheme was therefore created as part of a wider package of measures intended to encourage communities to support the major expansion of the electricity grid.

Ofgem says the scheme recognises the contribution made by communities hosting nationally important infrastructure while helping the UK connect more low-carbon generation to the grid.

For Trawsfynydd, it means that a major electricity network project already planned for the area could now bring a direct financial benefit to some of the households living closest to the infrastructure.

And with further investment in low-carbon energy planned around north-west Wales, the upgrade of the network is likely to remain an important issue for Gwynedd for years to come.