£27 million available for charities and community groups to support vulnerable energy consumers and reduce carbon emissions

The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has today opened the first funding round in phase two of the scheme. A total of £27 million is available as grants to charities and community energy groups that support households most at risk from cold homes and high energy bills across England, Scotland and Wales. Projects should also focus on enabling a just transition to national net zero carbon emissions targets and reducing the impact of climate change associated with energy consumption.

Ofgem’s enforcement and compliance activity collects voluntary payments from companies that may have breached Ofgem administered rules. Energy Saving Trust were reappointed by Ofgem in March 2022 to continue the management and allocation of payments for phase two of the scheme, which started in 2018. 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.

Charities can apply for grants to deliver energy related projects through four different funding streams. As part of phase two, funding is now also open to community energy groups –  including community interest companies, co-operative societies and community benefit societies – who can apply to two of the funding streams: the Carbon Emissions Reduction Fund and Innovation Fund.

  • The Main Fund contains £18 million - aimed at projects seeking grants between £50,000 and £2 million that will support households in vulnerable situations.
  • The Small Project Fund contains £1 million – aimed at projects seeking grants between £20,000 to £49,999 that will support households in vulnerable situations.
  • The Innovation Fund contains £4 million – aimed at projects that will develop innovative products or services to benefit households. Applicants can apply for grants between £50,000 to £1 million.
  • The Carbon Emissions Reduction Fund contains £4 million – aimed at projects that empower householders to reduce their carbon emissions and engage positively with the transition to net zero. The fund awards grants between £50,000 to £1 million.

The deadline for applications is 5.00pm on Monday 6 June 2022.

Graham Ayling, senior project manager for the Energy Redress Scheme said:

“Rising energy prices and the climate crisis are two of the biggest issues facing people in the UK today. We know that there are hundreds of charities and community groups that are already working tirelessly to help energy consumers address these challenges, so the timing of this new funding couldn’t better. We look forward to funding projects that help those most in need through this difficult time as well as shaping a greener and fairer energy future.”

Organisations that are registered with the Energy Redress Scheme and have passed the due diligence process can apply to the open rounds. Organisations who have not yet registered with the scheme, must do so at least 10 working days before the application deadline to allow time for eligibility checks to take place. Further information on the scheme and the application process can be found at: energyredress.org.uk  

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