Under UK Government guidance, community benefits apply to specific new transmission infrastructure and are designed to ensure communities directly benefit from hosting that infrastructure. Community benefits are tied to the start of construction; however, they sit separate to the planning process and project-specific engagement and are developed with communities as the project progresses through the relevant delivery stages.
At present, only communities near or significantly affected by consented transmission projects are eligible. As well as proximity, this may include visual impact or the impact from construction traffic. The SP Energy Networks website currently shows a limited set of areas eligible for funding – an increasing number will come forward as more projects secure planning consent. We will update stakeholders as soon as we start to prepare a fund for launch.
Once a project secures planning consent and has a confirmed construction date, the Community Benefits Team will start to consult with local stakeholders to agree which communities will be eligible – this normally takes place approximately 3–6 months prior to construction. We will then consult with residents in those eligible areas to understand their spending priorities for community benefit funding to ensure we support projects that matter most. It is at that stage residents may first hear from us – after which we will notify them the fund is open. Whilst we may write directly to households, in some highly populated areas we may place our emphasis on more indirect forms of communications so residents should keep an eye out on social media, local magazines and papers.
GEF was a £20 million fund launched by SPEN to support Scotland’s low-carbon transition. It supported over 30 projects including electrification of transport and heat, decarbonisation of community spaces and green skills development. Though now closed, it set a precedent for community-led decarbonisation.
NZF is an active fund (2022–2026) supporting vulnerable communities in Central and Southern Scotland to help them reach net zero sooner. It is closed for applications, but it previously offered phased support, including:
- Tailored community workshops
- Project planning and feasibility support
- Funding support
We are working with government and regulators to develop future funding mechanisms aligned with transmission upgrades. For eligible projects, our Community Benefits team will begin engagement once the project has been fully green-lit and has a set constructions date assigned.
We follow a community-led approach, meaning:
- Local priorities guide funding decisions.
- Communities are supported to participate meaningfully.
- Transparency and flexibility are built into the process.
We have used the stakeholder feedback to shape our Community Benefit Funding plans for RIIO-T3. Our community funding plans have been published as part of our RIIO-T3 Business Plan. In the Environmental Annex, we have explained in more detail how that feedback informed our plans.
Our Community Benefit Funding will only offer funding for wider, shared community benefits. We will fund community-led initiatives which aim to deliver lasting social, environmental and economic benefits for the local communities.
We are expecting the UK Government’s Department for Energy Security and Net Zero to announce their plans for direct benefits like electricity bill discounts separately. The scheme design is still under development.
More information on the bill discount scheme is available on the government's website.
The latest updates can be found on the SP Energy Networks Community Funding webpage: Community Benefits Funding
As projects come forward for funding, we will continue to upload individual fund pages to our main web page.