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News 22 April 2022

Energy Saving Trust and Ofgem launch phase two of the Energy Redress Scheme

Energy Saving Trust will continue to oversee the management and allocation of Energy Redress Scheme payments following a renewal of its contract by Ofgem.

Energy Saving Trust has managed the scheme since 2018 and the new contract runs until February 2024, with an option to extend for a further two years until 2026.

Ofgem’s enforcement and compliance activity collects voluntary payments from companies that may have breached Ofgem administered rules. The Energy Redress Scheme then distributes these funds to projects across Great Britain, which support customers at risk from high energy bills and help reduce carbon emissions.

Cathryn Scott, director of enforcement and emerging issues at Ofgem, said:

“We are pleased that Energy Saving Trust will continue to oversee the management and allocation of the Energy Industry Voluntary Redress Scheme. We know that energy price rises are extremely worrying for many customers. The Energy Industry Voluntary Redress Scheme, funded by Ofgem’s enforcement and compliance activity, makes a real difference to those who need it most.”

Since 2018, the Energy Redress Scheme has awarded over £40 million to fund over 300 projects across England, Scotland and Wales, directly supporting over 180,000 households.

Mike Thornton, chief executive of Energy Saving Trust, said: “As the price of energy continues to rise it is more important than ever that those hardest hit by cost increases are supported to reduce energy consumption and lower their bills. As such, we’re delighted that Ofgem has chosen Energy Saving Trust to continue managing the Energy Redress Scheme.

“As part of our mission to empower householders to make better energy choices, improve energy efficiency and reduce carbon emissions, we’re proud to play a role in ensuring that vital funds for projects to reduce fuel poverty reach the organisations best able to deliver them.”

 

Funding for community energy groups

Phase two of the scheme will open the funding to community energy groups, including community interest groups, co-operative societies and other community benefit societies, as well as the registered charities who could previously apply to the scheme.

This means that many more vulnerable households stand to collectively save energy and money through projects that advise better tariffs, discount applications, debt write-off, benefits applications, small energy saving interventions, bespoke energy saving advice and community carbon reduction initiatives.

Phase two of the scheme will open with at least £27 million available to organisations that are registered with the Energy Redress Scheme and have passed the due diligence process. Eligible organisations that have registered interest in the scheme will be notified when funds become available.

Further information on the scheme and the application process can be found on the Energy Redress Scheme website.

Last updated: 29 April 2022