£5 million available for charities and community groups through the Ofgem Energy Redress Scheme 

£5 million available for charities and community groups through the Ofgem Energy Redress Scheme 

The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) will open on 27 April 2023 for the fourth funding round of phase two of the scheme. 

A total of £5 million is available as grants to charities and community energy groups that support households most at risk from cold homes and high energy bills, or that work on the development of innovative products and services related to domestic energy use and carbon emissions reduction projects across England, Scotland and Wales. 

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 priorities of the scheme are to support energy consumers in vulnerable situations, develop innovative products or services and empower consumers to reduce their carbon emissions. 

Charities can apply for grants through four different funding streams, which will help them deliver energy related projects. Funding is also open to community energy groups – including community interest companies, co-operative societies and community benefit societies – who can apply to either the Carbon Emissions Reduction Fund or the Innovation Fund. 

• The Main Fund contains £3 million - aimed at projects seeking grants between £50,000 and £300,000 that will support households in vulnerable situations. 

• The Small Project Fund contains £500,000 – aimed at projects seeking grants between £20,000 to £49,999.99 that will support households in vulnerable situations. 

• The Innovation Fund contains £750,000 – aimed at projects that will develop innovative products or services to benefit households. Applicants can apply for grants between £20,000 to £200,000. 

• The Carbon Emissions Reduction Fund contains £750,000 – 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 to £200,000. 

There are 1,239 organisations already registered with the Energy Redress Scheme, and they can apply to the open rounds. To apply, organisations need to be pre-registered.  

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. 

The deadline for applications is 5pm on 25 May 2023. 

From February 2018 to March 2023, the Energy Redress Scheme has funded more than 470 projects across England, Scotland and Wales and awarded £81 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. 

• Trialling new business models or interventions to enable households to use more locally generated energy. 

Graham Ayling, senior project manager for the Energy Redress Scheme, said: 

“During this exceptionally difficult time, the new funding will help the crucial work of charities in local communities to support those most at risk of fuel poverty.  

“The funds will also support projects that are working towards a net zero future while making sure that no one is left behind in this transition.” 

Russell Ogilvie, head of enforcement for Ofgem, said: 

“Ofgem’s robust compliance and enforcement activity ensures that the energy industry is held to the highest standards. 

“The Energy Industry Voluntary Redress Scheme is our direct line to ensure that consumers are the ones who benefit when suppliers pay for letting them down. 

We are proud to work in partnership with Energy Saving Trust and find it immensely rewarding to see the results of our compliance and enforcement action in communities across Great Britain.” 

Further information on the scheme and the application process can be found at: energyredress.org.uk.