Applications open for £11.5m round of Ofgem’s energy redress scheme

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The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has opened its thirteenth round of funding, making £11.5 million available to charities across England, Scotland and Wales.

Grants will be awarded to support initiatives that work towards a just transition and reduce the impact of the climate emergency associated with energy use.

Managed and delivered by Energy Saving Trust, the Energy Redress Scheme collects voluntary payments from companies that may have breached Ofgem-administered rules.

Cathryn Scott, Director of Enforcement and Emerging Issues at Ofgem, commented on the announcement: “High global gas prices are affecting everyone and we know that this will be a difficult winter for many.

“Up to £10 million for customers on pre-payment meters at risk of self-disconnection will help people in a vulnerable situation.

“The Energy Industry Voluntary Redress Scheme, funded by Ofgem’s enforcement and compliance activity, makes a real difference to those who need it most.”

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.

The scheme offers charities the opportunity to apply for funding to deliver energy-related projects through four different funding streams, to ensure projects of a similar nature and scale are assessed against each other.

£5.75 million is available in this round:

  • The Main Fund contains £3.5 million – aimed at projects seeking grants between £50,000 and £1 million that will support households in vulnerable situations.
  • The Small Project Fund contains £500,000 – aimed at projects seeking grants between £20,000 to £50,000 that will support households in vulnerable situations.
  • Innovation Fund contains £862,500 – aimed at projects that will develop innovative products or services to benefit households. Applicants can apply for grants between £50,000 to £650,000.
  • Carbon Emissions Reduction Fund contains £862,500 – aimed at projects that empower householders to reduce their carbon emissions and engage positively with the transition to net zero. The fund awards grants between £50,000 to £650,000.

On top of this, the Winter Energy Fund, which is dedicated to pre-payment meter customers at risk of self-disconnection, will provide up to £10 million which will be distributed through eligible charities this winter. £5.75 million of this comes from the funding announced today, with the remainder coming from the next funding round.

The deadline for applications is 5pm on Monday 15th November 2021.

Charities that are registered with the Energy Redress Scheme and have passed the due diligence process can apply to the open rounds.

Further information on the scheme and the application process can be found at the Energy Saving Trust website.