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Ofgem announcement

Announcement on Ofgem appointing the Energy Saving Trust to manage allocation of voluntary redress payments to charitable organisations

Ofgem announcement Thursday, 24 August, 2017

Ofgem has appointed the Energy Saving Trust to distribute payments to charities from energy companies who have breached rules. 

Under Ofgem’s redress process, energy companies who break the rules can agree to make voluntary payments to help energy consumers through charities, trusts and third party organisations. These payments are made in addition to direct compensation to affected customers, and are, in lieu of, or in addition, to a financial penalty. Energy companies may also offer to make such payments for poor service, without Ofgem finding them to be in breach of the rules. 

The funds can pay for anything from making a home more energy efficient, to providing advice that helps struggling consumers keep on top of their bills. 

Ofgem has chosen the Energy Saving Trust to manage how these funds are distributed in future, following an open procurement process.

Philip Sellwood, Chief Executive, Energy Saving Trust, said:

"We are delighted to have been selected by Ofgem to manage the redress scheme. As an independent and impartial organisation we are committed to making sure the scheme delivers maximum benefits to those negatively impacted by energy company breaches, including the most vulnerable in society." Philip Sellwood, Chief Executive, Energy Saving Trust

Energy Saving Trust will be issuing calls for applications once funding is available. Calls will be to charitable organisations whose activities can compensate for the original issue for which fines are levied or local authorities working directly with such charities.

More details will be announced in due course.

Charitable organisations or local authorities can lodge initial interest by emailing redress@est.org.uk.