Ofgem to investigate rip-off Age UK energy tariff from E.ON
Charity accused of cashing in from promoting uncompetitive energy deals.
Ofgem is to investigate claims that Age UK has been ripping off customers by promoting an expensive energy tariff from E.ON in exchange for cash.
Claims have been made that Age UK recommended a special rate from E.ON which would cost pensioners around £1,049 on average for 12 months. That works out at a whopping £245 more than its cheapest rate in 2015.
Age UK has allegedly received £6 million from E.ON, a substantial £41 from every household who signed up. The Sun said it found details of E.ON payments to the charity contained within Age UK’s annual accounts.
At the moment there are around 152,000 customers on the deal.
Changing prices
E.ON said that there has been a commercial relationship between itself and Age UK for 14 years.
A spokesman for the energy firm said that the current Age UK tariff was the cheapest two-year fixed rate deal offered at the time, as was its one-year fixed rate deal.
Meanwhile Age UK defended itself, saying: "Energy prices change all the time and we have always advised older people to look out for new good deals and we will continue to do so."
Switch your energy deal now!
Whether you’re a pensioner or not, you need to review your energy tariff regularly, preferably once every six months.
If your fixed rate deal is coming to an end or you’re on a standard rate tariff, now is a good time to switch. Start your search with the loveMONEY energy centre or check out The cheapest gas and electricity tariffs.
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As they say, 'those who lie with dogs wake up with fleas.'
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To spighills@btopenworld.com, Why would you simply take the word of Age UK, or any other company for that matter, that their tariff is the cheapest? In the internet age it's a simple matter to carry out your own comparisons to find the cheapest tariffs. Since turning fifty nine years ago I've found that Age UK and similar companies such as Saga NEVER offer the cheapest market rate for anything, be it energy, insurance or anything else. You can always find more competitive deals using comparison sites.
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A couple of years ago I was telephoned by Age UK asking if they could quote for my energy. The operator said that they could guarantee to beat my current deal as the rates offered by Eon - their recommended supplier - were preferential for older people like me. I supplied all the details of consumption, my current tariff etc., They said my direct debit payment could come down substantially on their recommended tariff. I agreed but had difficulty in getting written confirmation of the deal from them. Within 8 months, they notified that I had a debit balance on the account of £700 and that I would have to put up the direct debit. Despite their promise, they had got me into £700 debt. It turns out that everything they said was a lie. I complained but was brushed off - they said I had given them the wrong information initially ! I switched back to my original Supplier and had to borrow to pay off the debt EOn had got me into. This is an absolute scam - a rip off to get older people to commit to Eon purely for the benefit of Age UK's commission.
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04 February 2016