Households closest to new electricity pylons and substations could get up to £10,000 off their bills over a decade, under plans announced by Jeremy Hunt.
The Chancellor will detail the bid to reduce project delays due to planning objections in his Autumn Statement on Wednesday.
The move will come alongside plans to halve the time it takes to deliver new electricity networks in seven years and prioritize the development of electric vehicle charging points.
Officials have argued that the reforms are part of plans to boost economic growth and help the UK hit net zero after Prime Minister Rishi Sunak faced criticism for weakening climate plans.
A new ‘premium' planning service across England will aim to speed up pre-application services for large applications in return for a fee and refunds when they are not met.
Matt Copeland, head of policy at National Energy Action's campaign to end fuel poverty, said: “It is right that those affected by pylons should be compensated.
“But this is no substitute for the UK Government's support for vulnerable people with excessively high energy bills.
“Millions of households will be cold at home this winter if no further support is announced in the Autumn Statement this week.”
The Treasury declined to say who would pay for the discount on the bills.
Labour's shadow general secretary to the Treasury Darren Jones said: “After 13 years of Tory economic failure, this Conservative Government has run out of ideas and is now looking to Labor for solutions.”
Lib Dem Treasury spokeswoman Sarah Olney said: “This plan will create a postcode lottery system leaving millions of families facing even higher energy bills while others benefit.”
A Treasury source with knowledge of the plans said the expansion of the electricity grid would “unlock global investment for Britain and bring improvements for people across the country, with energy security that will reduce energy costs”.
“And by speeding up the planning system – including the provision of EV charging points – we will address one of the most common issues raised by businesses looking to invest in the UK,” they added.
The plan to bolster the electric vehicle industry with charging points comes after Hunt revealed he has spoken to Elon Musk about acquiring a Tesla factory in the UK.
Meanwhile, shadow chancellor Rachel Reeves will on Sunday unveil Labour's “best plan” to cut household bills by up to £3,000 a year.
For more than a decade, Labor has pledged to cut bills by insulating homes, creating cheaper energy, cracking down on unfair insurance practices and boosting housebuilding.
Ms Reeves said: “The economy is not working for workers. After 13 years of financial failure, families are worse off, with higher taxes, higher mortgage payments and prices still rising in stores.
“Under the leadership of Keir Starmer, Labor has changed and is now the party of fiscal responsibility.
“A Labor government's priority would be to grow our economy so we can boost wages, lower bills and make things better for workers in all parts of the country.”