Scope
Reference
2025-014
Description
In some circumstances, Ofgem's enforcement and compliance work results in a regulated entity making a voluntary payment into the Voluntary Redress Fund. The purpose of the fund is to ensure that the monies paid by those subject to our compliance and enforcement activity are used to help vulnerable consumers.
The fund is managed by a third-party service provider. This ensures that decisions relating to the award of funds to particular projects are made by an expert independently from Ofgem and those entities that we regulate. The service provider must adhere to the to the provisions of the contract and the Authority Guidance on the Allocation of the Redress Fund for the time being - the link to which is provided in an attachment to this notice. This guidance may be updated from time to time at Ofgem's discretion'
We intend to continue with the existing approach and to once again procure an experienced service provider with knowledge of the British energy sector and the needs of energy consumers to administer the Voluntary Redress Fund on our behalf upon the expiry of the current contract in May 2026. The main tasks will likely include:
* Maintaining a database of possible and actual redress recipients, undertaking regular diligence checks.
* Administering and allocating funds to projects (in compliance with the Authority Guidance on the Allocation of the Redress Fund) that benefit energy consumers via a fair and transparent process.
* Preparing and entering into binding agreements with redress recipients that contain proportionate governance, deliverables, milestones and a monitoring framework.
* Publicising the fund and the availability of redress funds, making known to the general public key information regarding the impact and performance of the fund.
* Pursuing an ethos of continuous improvement; providing insight as to how efficiencies can be made to improve the administration and impact of the fund.
* Taking appropriate action to, where possible, prevent breaches of binding agreements with redress recipients, or enforce the terms of such agreements.
* Provide effective and robust financial management of redress funds.
* Ensuring that appropriate governance arrangements are in place to ensure that all projects awarded funds are appropriately monitored.
Contract dates (estimated)
- 6 May 2026 to 5 May 2028
- Possible extension to 5 May 2030
- 4 years
Main procurement category
Services
CPV classifications
- 76200000 - Professional services for the oil industry
- 66000000 - Financial and insurance services
- 76100000 - Professional services for the gas industry
- 79400000 - Business and management consultancy and related services
- 79900000 - Miscellaneous business and business-related services
Contract locations
- UK - United Kingdom
Engagement
Engagement deadline
30 June 2025
Engagement process description
The purpose of this notice is to give encourage potential suppliers advance information and to encourage participation to participate in the procurement process for this contract.
To further encourage potential suppliers, on Thursday 12th June 2025 there will be the opportunity to speak to Ofgem if you have questions pursuant to this notice. If this date does not suit, alternative times can be provided on Thursday 19th, Tuesday 24th and Wednesday 25th June.
These sessions will be individual sessions per supplier and will be allocated on a first come, first serviced basis. The sessions will be for approximately 45 minutes each.
Invites to these sessions will be issued from w/c 26th May.
Please contact procurement2@ofgem.gov.uk to arrange a time slot.
Participation
Particular suitability
- Small and medium-sized enterprises (SME)
- Voluntary, community and social enterprises (VCSE)
Submission
Publication date of tender notice (estimated)
23 July 2025
Contracting authority
Ofgem
- Public Procurement Organisation Number: PWXD-5991-LZZP
10 South Colonnade
London
E14 4PU
United Kingdom
Region: UKI42 - Tower Hamlets
Organisation type: Public authority - sub-central government