Ofgem action on energy suppliers powers Northumberland Warm Hub
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Community leaders last week (Wednesday 28 June) met in Northumberland to see first-hand the positive difference that energy regulator Ofgem’s enforcement action makes to people’s lives.
Akshay Kaul, Director General of Infrastructure for Ofgem, joined 150 locals and volunteers at the Warm Hubs centre in the coastal village of Seahouses – just one of almost 500 community projects supported by Ofgem’s voluntary Redress Fund.
The Fund, operated by Energy Saving Trust on behalf of Ofgem, receives voluntary cash contributions from UK energy companies when the regulator finds that they have breached their licence conditions, or let down their customers. This is done through Ofgem’s thorough investigative work.
In the past six weeks alone, Ofgem has announced major compliance and enforcement actions against four energy suppliers that delivered almost £27 million for consumers, with almost £14 million of that going to the voluntary Redress Fund.
This money has helped to drive the development of vital community resource the Seahouses Warm Hub, established by the Community Action Northumberland charity, and a lifeline service last winter at the height of the energy crisis.
Akshay Kaul, Director General of Infrastructure for Ofgem, said:
“This is Ofgem’s enforcement powers resulting in benefits for consumers. Projects like Seahouses Warm Hub shows how our enforcement action directly helps energy customers. Through the hard work of our compliance and enforcement teams we make suppliers pay when they cross the line or let customers down. So, it’s right that when they do, it’s consumers who directly benefit via the support of the Redress Fund.
“I extend a huge thank you to Community Action Northumberland and the incredible volunteers who dedicate their time to helping others through one of the toughest times in our history for energy bills.”
Graham Ayling, Senior Project Manager, Energy Redress Scheme said:
“It’s great to see the work of Community Action Northumberland first hand. The kind of support they provide is a lifeline for people struggling through the cost of living crisis. The positive impact their work is having shows how charities and community groups can play a crucial role in helping those most at risk to take control of their energy bills and stay warm next winter.”
Christine Nicholls of Community Action Northumberland (CAN) said: “We were thrilled to welcome Ofgem and Energy Saving Trust to our Warm Hub celebration at Seahouses. Without the support of Redress and Vulnerability and Carbon Monoxide Allowance (VCMA) funding we would not have been able to support the huge number of rural households through the recent energy crisis. We are very proud of our Warm Hub scheme. VCMA funding via Northern Gas Networks has also enabled CAN to develop a free Warm Hubs toolkit which can be accessed by eligible organisations across the country.”
Created as a response to tackling fuel poverty, Warm Hubs offer a place where people can be assured of finding a safe, warm and friendly environment in which to enjoy refreshments, social activity, information, advice, access to services and the company of other people.
Energy saving advice and guidance on home insulation is also provided by onsite Community Energy Agents to help people take positive action in their own homes to cut bills.
These Warm Hubs became an integral part of communities across Northumberland during Storm Arwen in November 2021, when widespread damage to the network left 4000 homes without power for more than a week.
With emergency generators set up at the Warm Hubs, people had a place where they could come for a hot meal and a warm shower.
In the five years since Energy Saving Trust was commissioned, more than £82 million has been committed to support community groups and charities that help people with energy-related problems, or to assist innovative decarbonising projects that could help on the drive towards net zero.
Since 2018, the voluntary Redress Fund has supported 492 projects and benefited an estimated 371,000 households.
Notes to editors
In the past six weeks, Ofgem has announced major compliance and enforcement actions against four suppliers that delivered almost £27 million for consumers, with almost £14 million of that going to the voluntary Redress Fund. All activity here: Compliance and enforcement | Ofgem
The Energy Redress Fund is run on behalf of Ofgem by Energy Saving Trust.
Since 2018 the amount of redress funding committed is £82,396,269.59
The funding has supported 492 different projects by charities and community groups. Projects usually run for 1-2 years.
In total, Energy Redress funded projects have so far supported more than 371,000 households.
Community Action Northumberland (CAN) has a long-standing commitment to reducing fuel poverty and increasing household energy efficiency in the rural communities of Northumberland.
The organisation was initially awarded £147,995.00 in June 2021 from the Main Fund of Energy Redress for their project, Remote Northumberland Energy Advice.
Their award-winning Warm Hubs programme has been highlighted as good practice by both Ofgem and the Prince’s Countryside Fund (“Village Survival Guide,” 2019).
Warm Hubs provides a network of warm, energy-efficient community venues acting as focal points for energy support, and advice through a small network of volunteer ‘Community Energy Agents’. The project is attended by around 25,000 people each year.
They received a second grant for their project worth £159.365 from the second round of the Carbon Emissions Reduction Fund, which started on 1 March 2023 and will end February 2025, ‘Domestic carbon reduction in off-gas Northumberland’.