£4.8 million to be distributed to organisations to support energy projects through Ofgem Energy Redress Scheme

Funds gathered through the latest round of the Ofgem Redress Scheme are being distributed to organisations across Great Britain to provide energy advice, support decarbonisation projects and develop innovative energy-focused services and products.

The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) is today announcing how the latest round of funding is being awarded. More than £4.8 million in grants is being distributed to 27 organisations across England, Scotland and Wales. In this funding round, 19 awards  totaling  £3.5 million have been awarded to projects focused on supporting vulnerable people with managing their energy bills and keeping their homes warm through dedicated energy advice officers.

One successful application made to the Small Projects Fund was from Darlington Association on Disability, which is receiving £49,931 for its programme, Accessible Energy Support. The programme will help those most at risk from fuel poverty with holistic energy advice and support.

Lauren Robinson, chief executive at Darlington Association on Disability said:

“Darlington Association on Disability are delighted to receive a grant from the Energy Redress scheme. The grant will enable us to provide much needed support for disabled people and carers living in Tees Valley who are being hard hit by the cost of living crisis. Disabled people, who need support to get information and advice, will be able to benefit by taking energy-saving measures to save money and reduce energy use.”

Through funding from the Innovation Fund, receiving £199,600, co-operative Sharenergy, which helps communities to set up and own renewable energy societies, will work to establish heat networks with local communities to decarbonise heat and reduce consumer heating costs.  

Jon Hallé, chief executive officer at Sharenergy said:

"Heat networks are widely seen as an absolutely crucial tool in the race to net zero, but despite their widespread use in other countries, they are still a relative rarity in the UK. We see community ownership as a key enabling factor in their development.

“Sharenergy has been working with communities for over ten years so we know the power they have to make seemingly impossible things happen. This funding will allow us to develop the seeds from which communities can grow their own heat networks, in areas across the country.

“Building on our unique expertise in community energy, it will enable us to take the time to work with experts and community groups to co-design a business model that we hope will be a gamechanger."

Over five years, the Energy Redress Scheme has distributed a total of £85.5 million in funding to support 491 projects in England, Scotland and Wales. The funding is collected through Ofgem’s enforcement and compliance activity, where companies that have breached energy rules agree to make a voluntary payment into the Energy Redress Scheme.

The funding rounds include the Main and Small fund, which are aimed at projects supporting households in vulnerable situations. The Carbon Emission Reduction Fund (CERF) supports energy-related activities that will see a reduction in carbon dioxide emissions from energy use. Finally, the Innovative Fund supports the development of pioneering products and services related to energy.

Graham Ayling, senior project manager for the Energy Redress Scheme, said, “We’re pleased to announce £4.8 million of support to voluntary sector organisations. These funds will help them to support those most at risk in their communities as the colder weather approaches and energy prices remain high.  It will also fund important projects that demonstrate new approaches to help the UK reach net zero, in ways that are affordable and accessible for everyone and empower more people to share the benefits of this transition.”

Russell Ogilvie, head of enforcement at Ofgem, said: “Ofgem holds the energy industry to account through its robust compliance and enforcement work. We’re proud to work with the Energy Saving Trust in the delivery of the Energy Industry Voluntary Redress Scheme. Through the scheme, communities across Great Britain, including consumers living in vulnerable circumstances, benefit directly when energy companies pay for letting them down.”

Read more about all of the funded projects here.