UK energy co-ops invited to apply for cash from Ofgem’s £3m redress fund

The scheme, funded by the regulator’s fines on licensed suppliers, includes support for carbon reduction projects and energy support for vulnerable households

Ofgem has opened a fifth round of its Energy Industry Voluntary Redress Scheme, which distributes payments from companies who may have breached rules to charities, community interest companies, co-ops and community benefit societies delivering energy-related projects,

Funded from the regulator’s fines on licensed suppliers, the scheme has a total of £3m on the table. Eligible projects include those supporting households vulnerable to high energy bills, carbon reduction projects in England, Scotland and Wales, or those centring on innovative products and services related to home energy.

Community energy groups can access one or more of four funding streams:

  • £1.8 million in the Main Fund, benefitting vulnerable households with grants of between £50,000 and £250,000
  • £300,000 in the Small Project Fund, dispensing grants between £20,000 to £50,000 supporting similarly afflicted families
  • The £450,000 Innovation Fund, a seed nursery for product or service innovations doing good for  households. Grants are between £20,000 to £200,000
  • The £450,000, the Carbon Emissions Reduction Fund, aimed at projects empowering homes to reduce their carbon footprint.  

To apply, organisations need to be pre-registered by visiting the Energy Redress registration page – and do so 10 working days before the relevant fund closes to allow time for eligibility checks.

In the five years to March, the scheme has provided £81m in grants to 470 projects, including whole-house retrofit, energy advice services, digital media to engage marginalised audiences, research into the energy needs of elderly people and disabled people, and the trial of new business models which enable households use more locally generated energy.

The Energy Saving Trust’s head of renewables Anthony Kyriakides said: “This latest round of funding will continue support for the positive and important work undertaken by charities in helping the most vulnerable households.

“The funding will also support charities delivery of projects focused on achieving a Net Zero future and helping to ensure a just transition for as many people as possible.”

Applications are open at the Energy Redress website until 22 August.