Published in La Tribune, 15, may 2024
On March 20, 2024, Ofgem, the UK's energy regulator, announced that £4.3 million in financial assistance from penalties for non-compliance with market rules would be distributed to 22 organizations fighting energy poverty and climate disruption. A good public relations operation, but highly questionable in terms of collective effectiveness.
The UK Voluntary Repair Scheme
Since 2018, Ofgem has been organizing a Redress Scheme designed to redistribute fines levied on energy companies that fail to comply with the terms of their operating license. Under this procedure, offending companies can make payments to a Fund in lieu of (or in addition to) a financial penalty. Beneficiaries of the Fund are vulnerable energy consumers and developers of products and services designed to reduce the environmental impact of energy production.
License violations are varied. They range from overcharging customers, to the inability to repair a power cut caused by a lightning strike, to sending incorrect consumption statements, and to unacceptable call waiting times. Payments to the Fund run into millions of pounds.
The beneficiaries of the aid granted are also very varied. Examples include Macmillan Cancer Support for programs to tackle fuel poverty following cancer, Warm and Well for supporting 8,200 vulnerable households with energy advice, and the Research Institute for Disabled Consumers for research into how disabled consumers can have better access to sustainable energy. Since the creation of the Repair Fund, over 500 projects have benefited from £102 million in funding...
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Photo : Towfiqu barbhuiya on Unsplash
