What Is the Energy Redress Scheme?
The energy redress scheme is the pot Ofgem builds from fines and penalties paid by energy companies that break its rules, then hands out as grants to charities and community groups helping people with their bills. On 6 August 2026 (checked August 2026), Ofgem confirmed a record £250 million had gone through the scheme since it started in 2018, supporting more than one million customers.
It isn’t a new benefit you apply for directly, and it definitely isn’t free money from Ofgem itself. Think of it as bad supplier behaviour getting turned into fuel vouchers, energy advice and community projects instead of disappearing into a fine nobody ever sees the benefit of.
The scheme has been running quietly since 2018, growing a little each year as more cases are settled. £250 million is the largest total it has reached in that time, which says as much about the scale of some of this year’s penalties as it does about the scheme itself.
Where Does the Redress Money Actually Come From?
From energy companies that Ofgem finds have broken its rules. When a supplier or network company is investigated and found at fault, it can end up paying into the energy redress scheme as part of the settlement, rather than the money simply vanishing into general Treasury funds.
Two recent cases show how this works in practice. British Gas paid £20 million into the fund following an Ofgem investigation into prepayment meters installed in customers’ homes without proper consent. National Grid Electricity Transmission paid a further £20 million after failing to properly monitor, maintain and repair some substation assets. Both cases are named here as a matter of public record, not as a swipe at either company. Enforcement outcomes like these are published by Ofgem itself, so anyone can check the details rather than take a headline’s word for it.
What Has the Energy Redress Scheme Actually Paid For?
Key takeaways
- £250 million distributed since 2018, a record total confirmed by Ofgem on 6 August 2026.
- More than £60 million of that has gone specifically on fuel vouchers.
- 887 separate projects have been funded, supporting over one million customers.
- Some funding has also backed community owned renewable energy projects that use their profits to help people stay warm in winter.
Beyond fuel vouchers, the fund has paid for energy saving advice services and 887 individual projects run by charities and community groups since the scheme’s 2018 launch. It has also part funded community renewable energy schemes, some of which reinvest their own profits into helping struggling households through winter.
These community energy projects tend to be small scale, a solar array on a school roof or a shared wind turbine backing a village hall, rather than anything on the scale of a big utility company’s generation fleet. The redress element usually tops up the running costs or lets the project set aside a bigger chunk of its own profits for local hardship support, rather than funding the build from scratch.
Can You Actually Get Help From the Energy Redress Scheme?
Indirectly, yes, though not by filling in a form addressed to Ofgem. The money is granted to charities and community organisations, who then decide how to spend it locally, whether that’s fuel vouchers, debt advice, or energy efficiency support. If you’re struggling, the practical route in is through your local Citizens Advice, a charity in your area, or your own supplier’s hardship fund, rather than trying to apply to the scheme directly.
Our guide to energy hardship grants covers the main routes for getting help if you’re behind on bills, and if a supplier has treated you unfairly in the first place, our guide to the energy ombudsman complaint process explains how to raise it formally, free of charge.
Why This Matters Even If You Never Claim a Penny
The energy redress scheme is a useful reminder that supplier penalties aren’t just symbolic. When a company gets it wrong badly enough for Ofgem to step in, the money that results is meant to end up back with consumers in some form, even if it isn’t you specifically who benefits. It’s one small piece of evidence that switching to a well run supplier, and complaining properly when one lets you down, actually changes something further down the line.
None of this changes what you pay today. If your own bill feels too high, the energy redress scheme won’t fix that directly. Comparing what’s currently available usually will.
It’s also worth knowing the money isn’t handed out randomly. Ofgem publishes funding rounds through partners like the Energy Saving Trust, who assess applications from charities and community groups against set criteria, then award grants in phases rather than as one lump sum. Recent rounds have released tens of millions of pounds at a time, on top of the record total confirmed in August.
Frequently asked questions about the energy redress scheme
- What is the Ofgem energy redress scheme?
- A fund built from fines and penalties paid by energy companies that break Ofgem’s rules, distributed as grants to charities and community groups supporting energy consumers.
- How much has the energy redress scheme paid out?
- A record £250 million since it launched in 2018, confirmed by Ofgem on 6 August 2026, supporting more than one million customers across 887 projects.
- Can I apply to the energy redress scheme directly?
- Not as an individual. Funding goes to charities and community organisations, who then decide how to support people locally, so the practical route in is through a local charity, Citizens Advice, or your supplier’s hardship fund.
- Which companies have paid into the fund recently?
- British Gas paid £20 million after an investigation into prepayment meters installed without consent, and National Grid Electricity Transmission paid £20 million over substation maintenance failures.
- Does the energy redress scheme reduce my bill?
- Not directly. It funds vouchers, advice and community projects rather than adjusting individual bills, so comparing tariffs is still the main way to cut what you pay.
