2025-014 - Administration of the Ofgem Energy Industry Voluntary Redress Fund

Ofgem seeks to appoint a Service Provider with expertise in allocating funds to various projects within primarily charitable/non-profit organisations, and who has a deep understanding of the needs of energy consumers across Great Britain. The Service Provider will manage voluntary redress payments made to the Energy Redress Scheme and will ensure that these funds deliver the greatest positive impacts for energy consumers. This requires efficient financial management and expert assessment of funding applications.

The Service Provider must achieve the following outcomes:

Efficient financial management of voluntary redress monies, including receiving funds from energy companies, ring-fencing them as appropriate, and awarding grants to suitable Redress Recipients.

An adaptable and flexible approach to managing redress monies so as to ensure effective response to fluctuations in the amount of funds available, and possible changes to Ofgem's guidance on the allocation of redress funds. It is important to note that Ofgem reserve the right to amend this guidance, for instance to increase the numbers of organisations eligible to apply for funding. In the event of any changes, Ofgem will work closely with the Service Provider to ensure their smooth implementation before they take effect.

Identifying and assessing potential redress recipients to maintain and build on the existing portfolio of reputable recipients with strong financial track records and projects that benefit energy consumers across Great Britain.

The successful management of the process by which funds are awarded and paid to grantees, including application and assessment processes

Effective management of the award of funds to worthwhile projects, including awards to fuel voucher projects with a minimum award of £1 million per project.

System Integration: the successful Service Provider must deliver either:

a successful integration of existing systems supporting online applications, the database of eligible applicants, and the Energy Redress website; or

a new, fit-for-purpose system that provides these services and is fully operational at the commencement of the contract.

Using knowledge of the British energy sector and consumer needs (including vulnerable and future consumers) to allocate funding that delivers value for money and benefits in line with Ofgem's Guidance (which may change from time to time) on voluntary redress funds.

Monitoring project delivery and providing regular updates to Ofgem.

Evaluating the effectiveness of allocation awards.

Providing monthly financial reports and other regular reports to Ofgem (quarterly and annual) on the impact of projects on energy consumers, ensuring funds deliver value for money and long-term benefits and assisting with enquiries related to all aspects of the operation of the fund, as and when they arise.

Ensuring that there is transparency and accountability by maintaining a publicly available website dedicated to the energy redress fund, which will provide detail on funding rounds, the application process, all projects that have been awarded funds, and the annual evaluation reports.

Maintain an ethos of continuous improvement that ensures the ongoing evaluation of scheme performance against objectives, review of processes and procedures and how they can be improved to support the objective of increasing the impact of the fund.