Projects that support vulnerable energy consumers or have innovative ideas that will benefit energy customers will be able to apply for a share of £10m from next week.
The Energy Saving Trust will open the next round of funding for the Ofgem Energy Redress Scheme on Monday, and interested charities are being encouraged to register in advance.
The trust distributes payments to charities from energy companies that have breached rules.
The funding is divided into three pots to ensure that projects of the same size and scale are compared against each other.
The Main Fund totals £7.5m and will give out grants of between £50,000 and £2m, while the Small Grants Fund contains £1m and is aimed at projects looking for grants of between £20,000 and £49,999. Both of these funds will award grants for projects that help energy consumers who are in vulnerable situations.
A third fund, containing £1.5m and looking to give out grants of between £50,000 and £750,000, is designed to support the development of innovative products or services to provide benefits to energy consumers.
Mike Thornton, group director of operations at the Energy Saving Trust, said: "We are very pleased to be able to distribute a substantial pot of funds to provide benefits to energy consumers through this round of the Energy Redress Scheme.
"Supporting a diverse variety of charities in their work to reduce fuel poverty and improve energy efficiency is even more important at a time when energy issues are a key focus for everyone."
Interested charities can register in advance by visiting the scheme’s website, and the funding round will close on Friday 18 October.
The Energy Redress Scheme has funded 34 projects since it was launched last summer, awarding more than £3.1m in funding to charities across England, Scotland and Wales.