Ofgem Energy Redress Scheme opens for applications from charities and community groups

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The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has opened the second funding round of phase two of the scheme.

A total of £22 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 innovation and carbon emissions reduction across England, Scotland and Wales.

Graham Ayling, senior project manager for the Energy Redress Scheme, commented: “These funds come at a crucial time and will help charities in local communities to scale up activities to support those most at risk from unprecedented energy costs this winter.

“As a result, more people will have someone to turn to who can help them through this exceptionally difficult time.

“The funds will also help towards projects which will explore new ways to ensure that everyone benefits from the transition to a Net Zero future.”

Charities can apply for grants to deliver energy-related projects through four different funding streams.

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 £14.4 million – aimed at projects seeking grants between £50,000 and £2 million that will support households in vulnerable situations.
  • The Small Project Fund contains £1 million – aimed at projects seeking grants between £20,000 to £49,999 that will support households in vulnerable situations.
  • The Innovation Fund contains £3.3 million – aimed at projects that will develop innovative products or services to benefit households. Applicants can apply for grants between £50,000 to £1 million.
  • The Carbon Emissions Reduction Fund contains £3.3 million – 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 £1 million.

The deadline for applications is 5pm on Thursday 6 October 2022.

Nearly one thousand organisations are already registered with the Energy Redress Scheme and can apply to the open rounds.

Organisations that have not yet registered with the scheme must do so 10 working days before the closure of the relevant Fund to allow time for eligibility checks to take place.

Ofgem’s enforcement and compliance activity collects voluntary payments from companies that may have breached Ofgem administered rules. Energy Saving Trust has been managing the allocation of payments for the Scheme, which has been in place for four 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.

More information about the scheme and the application process is available on the Energy Saving Trust website.