The first locations where households living close to new upgraded electricity pylons and substations will receive a £250 year discount on their bills have been revealed.

Customers living within 1600ft (500m) of 43 transmission projects across Britain will be eligible for the payments for up to 10 years under the bill discount scheme, sometimes dubbed "pounds for pylons".

UK ministers say replacing and upgrading decades-old infrastructure is vital for distributing renewable power and improving energy security.

Critics, however, argue the discounts are meagre compensation for the impact on their homes, neighbourhoods, and the environment.

About two-thirds of the projects are in Scotland, to support the fast-growing wind energy sector.

But major upgrades are also planned across Britain, including areas north of London, as well as East Anglia, the Midlands, and North Wales.

UK Energy Minister Michael Shanks said upgrading the grid is "a vital part of how we deliver secure, homegrown energy and unlock economic growth across the country."

He added: "It is a moment of national renewal – upgrading what was built largely in the 1960s for the modern age and is our route to bringing down electricity bills for households across the country.

"It's vital we build again as a country and we are determined those communities which host pylons should benefit, which is why we're bringing down the energy bills of those hosting this vital national infrastructure."

The Department for Energy Security and Net Zero says Britain's electricity grid was largely designed for an era when power came from coal and gas-fired power stations, and now needs major upgrades to cope with growing amounts of renewable energy.

Ministers say the lack of capacity means some wind farms are sometimes paid to switch off because there is not enough network infrastructure available to carry the electricity to homes and businesses that need it.

Approximately 80p a year will be added to all energy bills to fund the discount scheme.

Most households that qualify will receive the discount automatically on their electricity bill every six months although some, such as those on commercial meters, may need to apply.

The first payments will start early next year, when eligible customers will receive more information from their supplier or the energy regulator Ofgem.

An assessment earlier this year estimated that between 120,000 and 160,000 households could eventually receive the discounts as more projects are rolled out.

Rural campaign groups argue it is impossible to put a price on the loss of landscapes, and some residents living close to proposed projects say the money being offered is an insult.

Kate Matthews of the Save Our Mearns campaign group, fighting plans for upgraded pylons in north-east Scotland including the Kintore to Tealing project, said the discount scheme was an insult.

She said: "£2,500 off electricity bills over 10 years is a slap in the face for residents facing ruined businesses and unsellable homes.

"This government is either massively out of touch or is showing their contempt for affected residents and energy consumers."

Matthews said the plans had already caused "mental anguish" for residents who now faced a decade of development that would lead to noise, road closures, and heavy traffic.

"Then a lifetime of pylons impacting on their environment, agriculture, tourism, property values, physical and visual amenity to name a few," she added.

The size of the pylons will vary depending on location and purpose, but in north east Scotland some the proposed latticed structures are about 187ft (57m) tall.

They would be similar in appearance to the already upgraded line running from Beauly to Denny where the pylons range from 138ft (42m) to 213ft (65m).

Many of projects involve a mix of underground and pylon supported cables, as well as sub-stations, converter stations, and equipment used in electricity transmission.

Campaigners have called for greater sections of the network to be "undergrounded".

But National Grid and transmission companies argue this would be significantly more expensive and make it harder to carry out repairs.