£20m funding round now open for charities and community energy groups through the Ofgem Energy Redress Scheme

The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) opens to applications today, 30 January 2024, for its seventh funding round.   

Charities and community energy groups, including community interest companies, co-operative societies and community benefit societies, can now apply for a grant through one of four funding streams, with a total of £20 million available.   

Projects will be considered if they support households most at risk from cold homes and high energy bills, develop innovative products and services related to domestic energy use, or address carbon emissions reduction, across England, Scotland and Wales.   

Graham Ayling, senior project manager for the Energy Redress Scheme at Energy Saving Trust, said: “With energy prices remaining high, we encourage community and charity groups that work with struggling or vulnerable people in their areas to apply for funding through the Main or Small Project Fund.

“We’ve seen the positive work that such local groups do in helping those most in need, with projects ranging from energy advice supporting vulnerable people, to research aimed at making sure the needs of elderly and disabled people are met by new energy technologies.

“This funding will also aid projects which address the climate emergency, helping to deliver net zero in ways that leave no one behind and help everyone to share in the benefits”.

Cathryn Scott, Director for Enforcement and Emerging Issues at Ofgem, added:  

“Protecting customers is at the heart of Ofgem’s mission, so when we make energy companies pay for falling short of the standards we set, it’s only right that customers should be the ones who benefit. 

“Since the Redress Fund was established, more than £100 million has gone to projects helping households who might be struggling with energy bills. This latest round of funding is another opportunity to get funds to communities that need it the most so I would encourage organisations to apply.”

Since 2018, the Energy Redress Scheme has funded more than 535 projects across England, Scotland and Wales and awarded over £100 million in funding.

The deadline for applications to this funding round is 5pm on 20 February 2024, via the Energy Redress website. Before applying, organisations need to pre-register by visiting the Energy Redress registration page. 

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 five 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 £13.25 million – aimed at projects seeking grants between £50,000 and £2 million that will support households in vulnerable situations.   
• The Small Project Fund, containing £750,000 – aimed at projects seeking grants between £20,000 and £49,999 that will support households in vulnerable situations.   
• The Innovation Fund, containing £3 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 £3 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 £1 million.

Since 2018, the Energy Redress Scheme has funded more than 535 projects across England, Scotland and Wales and awarded over £100 million in funding. 

The projects have included:   

• Impartial energy advice services supporting vulnerable people.   
• Digital media to engage hard-to-reach audiences with energy issues and the support that is available to them.   
• Research projects aimed at making sure that the needs of elderly people and disabled people are met by new energy technologies.   
• Boosting the uptake of whole-house retrofits.   
• Trialing new business models or interventions to allow households to use more locally generated energy.