Ofgem’s Voluntary Redress Scheme to be extended to community energy groups

The scheme distributes payments from energy companies – that may have breached rules – to registered charities to support energy-related projects that benefit consumers

The Big Zero report

Ofgem has announced plans to widen the eligibility of the Energy Industry Voluntary Redress Scheme to include community energy groups.

The Voluntary Redress Scheme, managed by the Energy Saving Trust until 2022, distributes payments from energy companies – that may have breached rules – to registered charities to support energy-related projects that benefit consumers in England, Scotland and Wales.

They aim to help people who are most at risk from cold homes and high energy bills.

The Scheme’s funding is split between the Main Fund (70%), Innovation Fund (15%) and Decarbonisation Fund (15%).

Under Ofgem’s latest plans, Community Interest Groups, Co-operative Societies and Community Benefit Societies will therefore be able to submit applications for funding from the Innovation and Decarbonisation Funds.

The announcement follows a consultation launched earlier this year, which sought views from stakeholders on the processes in place for the Voluntary Redress Scheme.

The regulator said: “We anticipate this change will come into effect when the contract for the management and allocation of redress funds is renewed in February 2022. The process of procuring a company to manage redress funds will consider the proposal further.”

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