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News 11 October 2022

Ofgem Energy Redress Scheme awards over £12 million in funding to projects

The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has awarded £12.7 million in grants to 35 organisations across England, Scotland and Wales in its latest funding round.

These grants are for projects that are helping vulnerable households at risk from cold homes and high energy bills to reduce their energy costs, and projects that are developing carbon emission reduction initiatives. 

The funding comes from Ofgem’s enforcement and compliance scheme. The scheme collects voluntary payments from companies that may have breached Ofgem administered rules.

Ofgem reappointed Energy Saving Trust in March 2022 to continue the management and allocation of grants for the scheme, which started in 2018.

The successful organisations will receive grants ranging from £36,000 to more than £1.3 million to deliver projects lasting up to two years. These include: 

  • Act on Energy, which will receive a grant from the main project funding stream. Their project, ‘Warmer Homes Midlands – Phase 2’ will build on two years of successful delivery that has already supported more than 10,000 vulnerable households with their independent service 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 stream. Their project, ‘Warmer Torfaen’ will support vulnerable clients to improve energy efficiency in their homes and source practical solutions to help households keep their homes warm and provide emergency assistance, before signposting for further support.
  • Midsteeple Quarter, which will receive a grant from the innovation funding stream to fund their project ‘Midsteeple Quarter Hybrid Heating Network’. This will allow for development of an aquifer-fed water source heating system for wider implementation in neighbouring Midsteeple Quarter buildings and other town centre properties operated by the local community. 

Graham Ayling, senior project manager for the Energy Redress Scheme 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, Ofgem, deputy director, enforcement and emerging issues, 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 £12.7m 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. The Energy Redress Scheme, funded by Ofgem’s enforcement and compliance activities, 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.

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

Further information on the scheme and the application process can be found at:  

Last updated: 11 October 2022