The competition has three strands 1) £25m to keep householders warm this winter 2) £10m to kick start Green Deal projects 3) £5m to set up collective switching schemes.
Local auttorities can apply for money under all strands and will be judged on criteria including value for money, impact on fuel poverty and potential to generate further investment. The closing date is 30 November 2012.
Energy secretary Ed Davey said: “With prices rising and temperatures falling, we want to make sure we are doing all we can to help vulnerable houeholders keep warm this winter.
“This funding will put local councils at the heart of the action to get energy bills down, for instance helping low income householders upgrade old inefficient heating systems and insulate draughty homes.
“As well as helping even more councils showcase the benefits of energy efficiency, this funding will support the launch of initiatives to enable local residents to save money clubbing together the get a better energy deal.”