Charities that support energy customers in England, Scotland and Wales can apply for the second round of funding through the Energy Redress Scheme.
Local authorities and other organisations, including co-ops or community benefit societies, can play a role in projects funded by the scheme. However, only their registered charitable partners can submit applications and be responsible for the funding and project delivery.
The funding is allocated by the Energy Saving Trust, an independent organisation appointed by Ofgem to distribute payments from energy companies who may have breached rules. Under the process, these companies can agree to make voluntary payments to help energy consumers through charities, trusts and third-party organisations.
The scheme can finance projects lasting up to two years. It can fund 100% of the project cost and can cover revenue and capital measures.
Projects funded can vary from making a home more energy efficient, to providing advice that helps struggling consumers keep on top of their bills.
To qualify, charitable organisations have to demonstrate they are of good financial standing, and demonstrate the delivery of effective projects for the benefit of householders.
A total of £2.5m will be available through the scheme. Charities will be able to apply for funding between £20,000 and £2m or the total value of the current fund.