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On 29 June Ofgem opened a consultation on the allocation of voluntary redress payments in the context of enforcement cases.

Voluntary redress payments are paid by companies investigated by Ofgem to suitable charities, trusts and organisations. Such payments are separate from (and can be in addition to) compensation payments made directly to consumers harmed by the companies’ wrongdoing. Voluntary redress payments are in lieu of, or in addition to, a financial penalty.

Ofgem want to make sure that these payments deliver maximum benefit for energy consumers.

In the past local authorities have been blocked from bidding for redress funding from previous fines. ALEO strongly believes that local authorities should be given the opportunity to bid for these funds, as they are best placed to assist the most vulnerable fuel poor customers. Please see ALEO's press release: Local Authorities Best Placed to Help Fuel Poor with Funding from Ofgem Fines for more on this.

Ofgem's closing date for responses is 24th August 2016.

For the full consultation document and to respond to Ofgem, visit:
https://www.ofgem.gov.uk/publications-a ... ment-cases

ALEO submitted its response to the Ofgem Consultation - Allocation of voluntary redress payments in enforcement cases on 23 August 2016.

ALEO's full response is available to download below.

Many thanks to everyone who sent in comments.

Ofgem has now published its decision on this consultation, stating that it intends to procure an independent third party organisation to manage and allocate these funds. Ofgem intends to make an announcement on the result of this process in summer 2017.

Ofgem's response document also says that:
"Several responses were from local authorities. They expressed the view that they should be
allowed to apply for funding as they are well placed and experienced in delivering energy
schemes that benefit consumers in vulnerable circumstances. We’ll consider this when we
design the future redress allocation process."

For Ofgem's full response, see:
https://www.ofgem.gov.uk/publications-a ... ment-cases