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
The Energy Redress scheme aims to:
- Support energy consumers in vulnerable situations and;
- Deliver benefits to the types of consumers that were negatively impacted by the specific issues that triggered the redress payment.
In addition to this core priority, up to 15% of Energy Redress funds can support the development of:
Innovative products and services related to energy
Innovation projects must:
- Have a realistic prospect of delivering benefits to existing and/or future energy consumers.
- Help to reduce the environmental impact of energy use and be efficiently managed and provide good value for money.
Any additional priorities linked to a funding round will be made clear to applicants when the round opens.
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's been funded?
We have produced a map showing all the projects that have been funded by the Energy Redress Scheme to date. This can be accessed 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.