National Grid has today launched a £50 million support fund to help alleviate financial distress caused by rising energy costs. Over the next two winters, the fund will make significant donations to organisations working on the front line of the energy crisis.
The fund will be targeted at charities who provide immediate, emergency financial relief to households using pre-payment energy meters; charities who fund energy efficiency measures to lower bills over the long-term; and charities providing advisory services for households who need help with energy bills, payments and debt.
Money from the fund will be used by beneficiary organisations to support people struggling with energy costs by increasing the number of support staff giving advice on phonelines, providing fuel vouchers and improving the energy efficiency of homes at no cost to householders, for example.
As part of today’s announcement, National Grid has pledged to donate £10 million to the Fuel Bank Foundation, which provides emergency financial support and advice to households with a prepayment meter that are in fuel crisis and at risk of living without heat, light and power; £10 million to Citizens Advice, which delivers advice across a range of issues including managing energy bills; £10 million to Affordable Warmth Solutions, which provides new, free home insulation and other energy efficiency measures to households who don’t qualify for government programmes; £1.5 million to National Energy Action to work with communities to ensure people can be warm at home; and £1 million to National Energy Foundation which works to help improve the energy efficiency of homes, offers advice and guidance on lowering energy bills and delivers practical solutions to make homes warmer.
Earlier this month, National Grid Electricity Distribution launched a £2.5 million fund, which is open to grant applications from organisations working to help people in fuel poverty across the Midlands, the South West and Wales.
The remaining £15 million will be distributed to organisations identified by National Grid as providing direct help and support to those who need it most.
The fund builds on financial support National Grid has already provided to charitable organisations over the course of the year, and follows an agreement with Ofgem earlier this year for the early return of £200 million of interconnector revenue to help consumers.
John Pettigrew, Chief Executive of National Grid, said: “We’re under no illusions that this winter will be financially very, very hard for many people and we’re determined to play our part to help ease the financial burden that households will face. Over the next 18 months, we’ll be working to ensure that help is reaching those who need it most.”
Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “Our frontline services are inundated with people struggling to afford their energy bills. In the face of this escalating crisis, it’s more important than ever that people can turn to us for advice on managing costs and keeping out the cold. This hugely welcome funding from National Grid will go towards helping us meet rising demand and supporting people through the difficult period ahead.”
