Ofgem Energy Redress Scheme announces largest funding round to date with £35 million available to charities and community energy groups

The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) opened for applications on Tuesday 1 October 2024, with its largest funding round since the scheme was established.   

A total of £35 million is available as grants to charities and community energy groups across England, Scotland and Wales who focus on supporting those most in need in their communities with managing energy use and bills.  Organisations who work on the development of innovative products and services related to domestic energy use and projects focused on reducing carbon emissions will be considered. 

Since 2018, the Energy Redress Scheme has funded more than 583 projects across England, Scotland and Wales with £119 million funded. 

A previous grantee, community energy group, Energise Barnsley, was awarded funding from the Energy Redress Scheme to work with partners to install new technology in social housing properties, many occupied by older residents. Solar panels have been installed on more than 300 council-owned homes and battery systems in 75 of these properties, helping to reduce fuel costs for residents by up to 50%. Their work has recently been recognised by the Ashden Awards, winning the People’s Energy category. The Ashden Awards focus on impact, supporting climate innovators to build a fair and sustainable future.

Andy Heald, director for Energise Barnsley, said: “The team are energy specialists which helped a lot when shaping and delivering our Redress Innovation grant. In addition to the benefits for our elderly tenants, of electricity bill savings and energy behaviour change, we’d happily work together again to deliver more impact for our residents in Barnsley.”

Graham Ayling, senior project manager at Energy Saving Trust, said: “As we approach winter, we hope this latest round of funding will help organisations to support people in their communities who are most at risk from cold homes and high energy bills. This funding will also aid projects that are developing approaches to help the UK transition to net zero, in a way that ensures the transition is accessible to all. 

We’ve seen the positive impact this funding can have and invite voluntary sector organisations to apply.”

Fiona Parker, deputy legal director at Ofgem, said: “When supplier standards aren't up to scratch, we take action to prevent repeats and protect consumers.

Since 2020, we've recovered more than £400million through our robust compliance and enforcement work. Those funds go towards helping charities and community groups support vulnerable people with their energy bills and backing the development of innovative products and services fast tracking our journey to net zero.

This latest round of funding is another opportunity to get millions of pounds to the communities that need it the most, so I would encourage organisations to apply.”

The deadline for applications to this funding round is 5pm on 22 October 2024, via the Energy Redress website. Organisations that haven’t yet registered with the scheme must do so 10 working days before the relevant fund closes to allow time for eligibility checks to take place.

About the Energy Redress Scheme 

Ofgem collects voluntary payments from companies that may have breached Ofgem administered rules. Energy Saving Trust manages the allocation of payments for the scheme, which has been in place for six years.   

The scheme prioritises support for vulnerable energy consumers, the development of innovative products or services and the empowerment of consumers to reduce their carbon emissions.

The funding streams available are: 

• The Main Fund, containing £27 million – aimed at projects seeking grants between £50,000 and £2 million that will support households in vulnerable situations.   
• The Small Project Fund, containing £1,000,000 – aimed at projects seeking grants between £20,000 and £49,999 that will support households in vulnerable situations.   
• The Innovation Fund, containing £6 million – aimed at projects that will develop innovative products or services to benefit households. Applicants can apply for grants between £20,000 and £1 million.   
• The Carbon Emissions Reduction Fund, containing £1 million – aimed at projects that will reduce UK carbon emissions and empower households to reduce their carbon footprint. Applicants can apply for grants between £20,000 and £500,000.