Energy firms paid out £152 million to vulnerable customers over past six years
Energy firms have paid out £152 million to vulnerable customers over the past six years after failing to meet the conditions of their licences, industry regulator Ofgem has said.
Fuel vouchers and advice on how to save energy have been funded by £150 million in payments and fines paid by firms for misdemeanours such as incorrect billing, poor customer service and abuse of wholesale energy markets.
The Energy Redress Scheme has been funded by money paid to Ofgem by energy companies which have breached regulations since 2018.
Ofgem said the funds, that are then paid out as grants, have helped 647 projects which support vulnerable consumers, provide energy advice, and back the development of net zero policies.
Ovo Energy recently paid £2 million to the scheme for failings in how the supplier handled customer complaints.
A separate investigation last year into Beatrice Offshore Windfarm Limited resulted in the firm paying £33.14 million for breaching energy market rules.
Ofgem said more than £55 million had been allocated to fuel voucher projects, providing help to vulnerable customers at risk of disconnection from their energy supply.
Cathryn Scott, director for market oversight and enforcement at Ofgem, said: 'Protecting customers and ensuring they're treated fairly is at the heart of Ofgem's mission.
'That's why we make sure that when energy companies break the rules, they make amends by contributing to projects that make our energy system fairer and support those in need.
'£152 million is a huge sum of money and has helped thousands of people all over the country struggling with bills, as well as contributing to projects that help people decarbonise and learn more about their energy consumption.
'Ofgem's enforcement function is a powerful weapon in our regulatory arsenal, evidenced by the more than £92 million in compensation to customers, redress payments and fines successfully handed out in 2024 alone.
'The latest milestone of securing £150 million in redress payments for good causes could not have happened without the thorough investigative work of our compliance and enforcement teams or the Energy Saving Trust who ensure the money is targeted to reach those in need.'
The Citizens Advice Energyworks project in Brighton and Hove was recently awarded almost £528,000 by the scheme to help all city residents in fuel poverty with free and impartial energy advice.
At the end of last year, research showed that more than 16,000 households in Brighton and Hove were living in fuel poverty, Ofgem said.
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