If you're a charity and want to find out more about the application process, our guide will provide the information you need.
All you need to know about the Energy Industry Voluntary Redress Scheme, known as the Energy Redress Scheme
Energy Saving Trust (EST) has been appointed by Ofgem to distribute payments from energy companies who may have breached rules. Registered charities can apply for funds to deliver energy related projects that meet the scheme priorities and benefit people in England Scotland and Wales.
Energy Saving Trust will be administering the scheme until 2022.
Core priority: Supporting energy consumers in vulnerable situations
This core priority aims to help people who are most at risk from cold homes and high energy bills.
Occasionally there may be additional priorities linked to a funding round e.g., a specific geographical focus or type of energy consumer. Any additional priorities will be made clear to applicants when the round opens.
Up to 15% of Energy Redress funds can support the development of innovative products and services related to energy that have a realistic prospect of delivering benefits to existing and/or future energy consumers and that help to reduce the environmental impact of energy use.
Projects seeking support through the Innovation Funding Stream should involve:
- testing or trialling the roll-out of products or services that are ready to implement but not yet accessible to energy consumers or certain groups of energy consumers
- conducting research or analysis into the development of products or services not yet accessible to energy consumers or certain groups of energy consumers
New for 2021: Carbon Emissions Reduction Fund (CERF)
Up to 15% of Energy Redress funds can also be used to support energy-related activities aimed at reducing carbon dioxide emissions from energy use. These projects must focus on energy generation, distribution or energy use.
Projects seeking support through this funding stream must demonstrate
- measurable and lasting reductions in the carbon intensity of energy end use and accelerate the transition to Net Zero CO2
- have a realistic prospect of delivering broadly replicable benefits to existing and/or future energy consumers
All projects funded through the Energy Redress Scheme must be efficiently managed and provide good value for money for the outcomes they will achieve.
Charities interested in applying to the scheme must read our latest guidance document, to ensure that their project meets the priorities of the scheme and that they provide all the necessary information in the application form.
Most of the projects funded through the scheme so far are delivering home energy advice and support to households in vulnerable situations. The Energy Redress Scheme is not presently designed to support energy saving improvements or energy generation technology in individual community buildings and facilities.
About the fund
The amount of funding available through the scheme varies depending on what payments have been made by energy companies and is reviewed on a quarterly basis. Eligible charities that have registered interest in the scheme will be notified when funds become available.
The minimum grant that can be requested is £20,000 and the maximum grant amount varies depending on the size of the fund available.
The scheme can only fund projects lasting up to two years, can fund up to 100 per cent of the project cost and can cover revenue and capital measures.
Charities must first register with the scheme so that EST can undertake a due diligence process on them. This confirms their charitable status, internal governance processes and financial health. Not all organisations that register with us will be eligible to apply.
Applications are made through an online system and closing dates for applications are determined each quarter. Successful projects will be selected by an independent panel of experts.
Who is eligible to apply?
The Energy Redress Scheme is only open to registered charities in England, Scotland and Wales, and Housing Associations that are exempted charities.
Other organisations can be involved in delivering Energy Redress funded projects, but the projects must be led by a charity who must submit the application and be responsible for the funding and project delivery.
Who is not eligible to apply?
If you are not a registered charity, you are not eligible to apply for funding under the Energy Redress Scheme.
Charities will not be able to apply for funding through this scheme if they or their delivery partners have close links to energy companies in England, Scotland and Wales regulated by Ofgem. Examples include suppliers of electricity or gas, electricity or gas network operators and larger energy generators.
Who has been funded?
We have funded over 100 projects across Great Britain. You can find out more about these projects here.
Where the funding comes from
Under Ofgem's redress process, energy companies who are found to have breached a license condition or were part of an investigation or compliance case, can make voluntary payments alongside or instead of fines and compensation to address any harm caused to consumers. Energy Saving Trust has been appointed by Ofgem to distribute these funds, through the Energy Redress Scheme.