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Ofgem to investigate rip-off Age UK energy tariff from E.ON

Ofgem to investigate rip-off Age UK energy tariff from E.ON

Charity accused of cashing in from promoting uncompetitive energy deals.

Anna Jordan

Household money

Anna Jordan
Updated on 4 February 2016

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.

[SPOTLIGHT]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.

Compare gas and electricity deals now!

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