The Ofgem’s energy redress scheme has opened the first funding round of £27 million.
The grants aim to support charities and community energy groups that help vulnerable customers amid high energy bills.
Projects designed to cut households’ emissions and decarbonise energy consumption will also benefit from the funding.
Ofgem’s enforcement and compliance units collect voluntary payments from energy suppliers that may have breached market rules.
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.
Graham Ayling, Senior Project Manager for the Energy Redress Scheme, 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.”