Ofgem appoints Energy Saving Trust to distribute payments from rule-breaking energy companies to charities
Ofgem has appointed the Energy Saving Trust (EST) to manage allocation of voluntary redress payments to charitable organisations by rule breaking energy companies.
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 of a 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. This follows our decision last year to hand management of redress allocation to charitable organisations to an expert independent third party organisation.
The Energy Saving Trust will identify potential charitable recipients and allocate funds, which could include schemes to help fuel poor, indebted and vulnerable customers, as well as develop innovation in the sector. It will also be responsible for monitoring and evaluating the performance of the funds to ensure that they deliver value for consumers.
Notes to editors
- When companies breach the rules, Ofgem’s first priority is for energy companies to compensate directly affected consumers. Where this is not possible, for example if consumers have since moved house and can’t be traced, Ofgem’s voluntary redress process enables companies to make voluntary payments to help energy consumers through charities, trusts and third party organisations instead. Read more about our redress process.
- Over the past five years £191 million was given to charities. This was in addition to compensation that companies paid back to directly affected customers during this period.
- Further information on the new redress process and Energy Saving Trust appointment.
Further information for media
Ruth Somerville: 0207 901 7460
Media out of hours mobile: 07766 511470
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
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