Age UK suspends controversial branded energy deal with E.On
E.On and Age UK have temporarily suspended offering a branded 2 year fixed energy tariff to new and renewing customers. The suspension was prompted by “continued speculation regarding the partnership”.
Age UK was heavily criticised for allegedly pushing expensive tariffs to the elderly in exchange for receiving £6 million a year from E.On.
The Sun newspaper revealed that Age UK recommended a rate which cost pensioners, on average, £245 more than they would pay on E.On’s cheapest deal.
In addition, Age UK allegedly received approximately £41 from E.On for every new sign up.
Details of payments made by E.On to the charity was found within Age UK’s annual accounts.
Age UK said in a statement: “The current tariff expires at midnight Wednesday 10 February and our partner E.ON has informed us that they cannot continue with the current 2 year fixed promotional tariff. This would mean we could no longer offer a market leading 2 year fixed tariff.”
Ian Foy, managing director of Age UK Trading, said: “We always aim to give our customers outstanding value for money. This decision… will give us the opportunity to review the current situation.”
A statement by E.On said: “This decision has been reached on a mutual basis and both organisations retain confidence in the tariff offered to customers.
“However, due to continued speculation regarding the partnership, both organisations feel it is right to pause and reflect on the best way for both parties to achieve their shared goal of helping customers.”