The Department for Energy and Climate Change (DECC) has announced that the Carbon Trust and the Energy Saving Trust (EST) will no longer receive government funding

DECC’s annual Delivery Review published last week announced the ending of core funding to both the Carbon Trust and the Energy Saving Trust.

The two government-backed bodies will no longer receive financial support from next April. The DECC report says the two will instead have to compete for funding.

“Following the end of core grant funding for the Energy Saving Trust and Carbon Trust from 2012 to 2013, DECC expects both organisations to compete for those services we put out to tender, and to continue to develop other commercial opportunities,” a statement said.

The Office of Gas and Electricity Markets (Ofgem) has escaped action from the review.

The DECC were reportedly considering removing some of the regulator’s powers and possibly handing them over to other bodies such as the Competition Commission.

Ofgem has come under harsh criticism from energy suppliers who claim that Ofgem’s rules and requirements for the energy industry are directing energy strategy, not just enforcing government policy.

The DECC mostly concurred with Ofgem’s suggestions for the industry published in 2010 but said more clarity was needed on the role of the regulator.