Age UK facing inquiry over ‘rip-off energy deals for OAPs’
THE energy watchdog is investigating claims that Age UK steered the elderly to take up expensive gas and electricity deals in return for millions in commission.
The allegations relate to a partnership between the charity and energy giant E.ON.
Age UK received commission for every customer who switched to an E.ON deal on its recommendation. But the organisation faces claims that the E.ON tariffs were not the cheapest available, resulting in people paying £200 a year more than they needed to.
MPs say if the claims are true, the charity and the energy firm should refund the estimated 152,000 pensioners involved. The Sun newspaper said Age UK received £41 commission for every customer who switched but the charity says the figure was only £10. It said it had received £6 million in total from E.ON.
Age UK has vehemently denied the allegations and insists the E.ON deals were the cheapest of their kind when they were launched. It said customers could have moved to cheaper deals that were subsequently launched by energy firms without any financial penalty.
Energy Secretary Amber Rudd ordered an inquiry by industry regulator Ofgem. She said: ‘People expect a fair deal when it comes to their energy bills, not a rough deal. I take very seriously this allegation that Britain’s pensioners are being misled, so immediately contacted
‘People expect a fair deal’
Ofgem who will investigate this urgently and report back to me.’
Tory MP Dr Dan Poulter, a member of the Commons energy select committee, said his research suggested the claims were true. He added: ‘You have got to trust a charity that is purporting to support the best deal and get the best deal for vulnerable older people. That is something that I believe E.ON has exploited. Perhaps the charity is not that commercially savvy.
‘It has not necessarily got the best deal for its customers and I think there is a moral obligation for the charity and on E.ON to recompense some of the most vulnerable energy consumers.’
Beth Porter, 73, from Frant, East Sussex, said she regretted taking out a two-year fixed deal with E.ON.
‘I fell for this so-called good deal,’ she told the BBC. ‘As a pensioner of fixed income, I really cannot afford to receive notice of my latest dual fuel bill and find it was double what I’ve usually been paying.’
Age UK said: ‘We strongly reject the allegations and interpretation of figures. The Age UK fixed twoyear tariff offers a good deal and was the market-leading two-year tariff when launched in January.
‘The Age UK fixed two-year tariff is over £100 cheaper than the E.ON standard variable tariff and is cheaper than other variable tariffs. The past two years have seen much volatility in the energy market and with E.ON’s support we have managed to maintain our level of charitable work. This reflects the strength of the 14-year relationship.’
German- owned E.ON said: ‘ We always work to make sure our tariffs, for all customers, are competitively priced. Crucially, any of our customers can switch to any of these products at any time, based on the suitability of their meter, without any charge being applied.’