Households living near electricity pylons could receive up to £1,000 a year off their energy bills under new proposals.
Chancellor Jeremy Hunt is expected to unveil the plans during the Autumn Statement on Wednesday.
The plans hope to encourage people to support upgrades in their area, which are required for new electric vehicle charging points.
Hunt and Rishi Sunak are said to be finalising the content of the statement.
The plans hope to encourage people to support upgrades in their area, which are required for new electric vehicle charging points
A spokesman said: "By speeding up the planning system - including the rollout of electric vehicle charge-points - we will be tackling one of the most common issues raised by businesses who are keen to invest in the UK."
The department refused to disclose who would be paying for the discounts, or offer any details on how close houses would have to be to qualify for the maximum discount.
The Treasury are thought to be considering announcing some tax cuts, and changes to income tax, national insurance, inheritance tax and business taxes are all being discussed.
The Government has vowed to reach net zero by 2050 by investing in clean energy solutions and green infrastructure.
Matt Copeland, head of policy at the National Energy Action campaign to eradicate fuel poverty, said: "It's only right that those affected by pylons are compensated.
"But this is not a substitute for the UK government supporting vulnerable people with their sky-high energy bills."
Nick Winser, the former chief executive of the National Grid added that a solution to streamline the planning process is required.
His report said people living near newly-built transmission pylons should receive lump sum payments.
Chancellor Jeremy Hunt PA
He said that the cost of compensation would be lower than building cables underground and cheaper than turning to offshore cables.
The three companies which maintain the transmission grid in Britain - National Grid in England and Wales, and Scottish Power and SSE in Scotland - do not currently offer any payments to households.
The Republic of Ireland, people in rural areas living within 200m of a new overhead line or transmission station qualify for payments of between €2,000 and €30,000 from EirGrid, the state-owned operator