The Energy Saving Trust (EST) has been appointed to manage the allocation of redress payments made by energy companies for breaching rules.

Under Ofgem’s redress process, energy firms that break rules can make voluntary payments to help consumers through charities, trusts and third party organisations.

The payments are made in addition to direct compensation given to affected customers and could be in addition to a financial penalty.

The EST will be in charge of managing how the funds are distributed in the future, following an open procurement process.

Ofgem said: “The Energy Saving Trust will identify potential charitable recipients and allocate funds, which could include schemes to help fuel poor, indebted and vulnerable customers, as well as develop innovation in the sector. It will also be responsible for monitoring and evaluating the performance of the funds to ensure that they deliver value for consumers.”

Over the last five years, around £191 million was given to charities, in addition to compensation paid back to affected customers.

The regulator recently threatened to fine network operators over poor customer service.