Ofgem opens £27m funding for charities and community groups to combat rising energy bills

10/05/2022 16:56

Ofgem has made £27m available for charities and community energy groups to access funding for initiatives that support households at risk from high energy bills.

The Ofgem Energy Industry Voluntary Redress Scheme opened on 5 May, with the first round of funding sitting at £27m. The Scheme provides grants to charities and community energy groups to help combat the rising energy costs that have left some households having to choose between basic necessities such as warmth or food.

The funding is sourced from Ofgem’s enforcement and compliance regime that collects payments for rule breaches. The Energy Saving Trust was reappointed by Ofgem in March 2022 to continue the management and allocation of payments for phase two of the scheme, which started in 2018.

Charities and community energy trusts have one month to apply for a share of the £27m funding for projects that improve energy efficiency and reduce emissions.

The Energy Redress Scheme’s senior project manager Graham Ayling 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 be 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.”

Ofgem’s main fund contains £18m for projects seeking grants between £50,000 and £2 million that will support households in vulnerable situations. Charities can also access a “small project” fund totalling £1m for initiatives seeking grants between £20,000 to £49,999.

A £4m innovation fund can also be accessed alongside a £4m carbon emissions reduction fund for projects that help households reduce emissions through energy efficiency upgrades.

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