Energy Redress Scheme awards £12.7m to charities

Ofgem’s Energy Redress Scheme has awarded £12.7 million to 36 organisations supporting vulnerable households and conducting carbon emissions reduction initiatives.

Now in its fourth year, the scheme collects and distributes voluntary redress payments made by energy companies that have been found to have breached the regulator’s rules.

The latest organisations to be allocated funding have been awarded grants ranging from £36,000 to more than £1.3 million to deliver projects lasting up to two years. They include:

• Act on Energy, which will receive a grant from the main project funding scheme for phase two of its Warmer Homes Midlands initiative. The scheme has already supported more than 10,000 vulnerable homes across the seven urban local authorities of the West Midlands Combined Authority.
• Citizens Advice Torfaen, which will receive a grant from the small project funding scheme for its Warmer Torfaen scheme that will help vulnerable households to improve the energy efficiency of their homes.
• Midsteeple Quarter, which will receive a grant from the innovation funding stream for its Midsteeple Quarter hybrid heat network – an aquifer-fed water-source heat network that will serve Midsteeple Quarter buildings and other town centre properties operated by the local community.

The Energy Saving Trust was reappointed by Ofgem in May to administer the Energy Redress Scheme.

Graham Ayling, senior project manager for the Energy Redress Scheme at the Energy Saving Trust, said: “With households facing exceptional rises in energy costs, this round of funding will enable national and regional charities and community groups who have a key role on the frontline to support those most at risk from high energy prices.

“At the same time, reducing energy use in our homes is a significant part of ensuring a fair transition towards net zero carbon emissions.  These funds will help organisations to scale up their vital work to meet the challenges of these unprecedented times.”

Charles Hargreaves, deputy director for enforcement and emerging issues at Ofgem, said: “We know that this winter is a difficult time for many, as high global gas prices continue to affect consumers.

“We are pleased that a further £12.7 million from our Energy Redress Scheme has been awarded to organisations that will provide help to people in vulnerable situations, as well as supporting innovation and reductions in emissions.”