Energy regulator Ofgem has launched the latest round of funding through its Energy Redress Scheme, which collects voluntary payments from firms that have breached its rules.

This is the 11th round of funding through the scheme and includes £40m worth of grants to charities and community energy groups on net zero projects and to mitigate the impact of climate change on energy consumption.

Projects that support vulnerable people will be prioritised.

Five funding streams are being made available in this latest funding round, including a carbon emissions reduction fund, an innovation fund and for small and large grants.

Since its launch seven years ago the scheme has funded almost 650 projects in England, Wales and Scotland. This includes charities offering energy saving advice to vulnerable people, research into energy saving technology and helping households access locally generated energy.

“We know energy affordability remains a challenge for many households,” said the regulator’s director or market oversight and enforcement.

“As the regulator, we use all the powers at our disposal to protect consumers. Our robust compliance and enforcement work provides justice to customers who’ve been treated badly while generating redress funding for vulnerable customers struggling with their energy bills.

“With another £40million up for grabs for supporting vulnerable customers, innovative projects and paving the way for net zero, we strongly encourage organisations to apply.”

Graham Ayling, senior project manager at the Energy Saving Trust, which manages the allocation of grants, added: “With annual energy bills predicted to rise from April, we’re pleased to offer this funding to support voluntary sector organisations in delivering their vital work, helping households to manage their bills and stay warm.

“This funding will also enable innovation, carbon reduction and the development of citizen-owned renewable energy projects that benefit households in or at risk of fuel poverty.”

The deadline for applications is 5pm, 20 March.

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