Energy Saving Trust has announced it will continue to manage the Energy Industry Voluntary Redress Scheme payments following the renewal of its contract by Ofgem.

The scheme collects voluntary payments from energy suppliers that may have breached the energy regulator’s rules.

These funds are then allocated to projects designed to support customers hit by soaring energy bills.

The payments also subsidise projects built to reduce carbon dioxide emissions.

It is estimated that the Energy Redress Scheme has already awarded over £40 million to fund nearly 300 projects across England, Scotland and Wales – more than 180,000 households have also been supported.

Energy Saving Trust has managed the scheme since 2018 and the new contract will run until February 2024, with an option to extend for a further two years until 2026.

Mike Thornton, Chief Executive of Energy Saving Trust, said: “As part of our mission to empower householders to make better energy choices, improve energy efficiency and reduce carbon emissions, we’re proud to play a role in ensuring that vital funds for projects to reduce fuel poverty reach the organisations best able to deliver them.”