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Age UK energy deals with E.On to be examined by regulators | |
(35 minutes later) | |
A claim that charity Age UK has been promoting unfavourable gas and electricity deals in return for cash is to be examined by two regulators. | |
The Sun newspaper said energy deals offered by Age UK with supplier E.On may have been much more expensive than the cheapest offers from the firm. | |
The energy regulator Ofgem and the Charities Commission are to examine the deals. | |
Age UK rejected the allegations, while E.On said its tariffs were competitive. | |
In return for selling its energy deals, the Sun alleged that Age UK had received about £6m from E.On. | |
'Generous' | 'Generous' |
The Sun claimed that Age UK recommended a special rate from E.On which would typically cost pensioners £1,049 for the year - £245 more than its cheapest rate in 2015. | The Sun claimed that Age UK recommended a special rate from E.On which would typically cost pensioners £1,049 for the year - £245 more than its cheapest rate in 2015. |
It also alleged that Age UK received about £41 from energy supplier E.On for every person signed up. | It also alleged that Age UK received about £41 from energy supplier E.On for every person signed up. |
Age UK's accounts indeed show that it received £6.3m in income from energy deals in the year to April 2015. | Age UK's accounts indeed show that it received £6.3m in income from energy deals in the year to April 2015. |
But the charity said the commission was typically only £10 per customer. | |
"We strongly reject the allegations and interpretation of figures," said a spokesperson for Age UK. | |
Switching option | Switching option |
The charity said its two year fixed tariff was the cheapest deal on offer when it launched in January. It said customers were free to choose the one-year option, but many preferred the reassurance of a two-year tariff. | |
E.On said the Sun had made a comparison between two different types of tariffs. | E.On said the Sun had made a comparison between two different types of tariffs. |
The Age UK two year tariff has no exit fees. According to E.On's website, this deal should currently cost an average user £948 a year. | |
E.On's one year fixed tariff, which has a £60 exit fee, should cost £772 - £176 cheaper. | E.On's one year fixed tariff, which has a £60 exit fee, should cost £772 - £176 cheaper. |
'Rough deal' | |
E.On said: "Our current Age UK tariff was the UK's cheapest product of its type in the UK when it was launched, a two-year fixed deal, and when we launched our current one-year fixed product, it was also the cheapest in the UK." | E.On said: "Our current Age UK tariff was the UK's cheapest product of its type in the UK when it was launched, a two-year fixed deal, and when we launched our current one-year fixed product, it was also the cheapest in the UK." |
It added its customers could switch tariffs at any time without any charge being applied, and they could sign up to be alerted to potentially better deals when they became available. | It added its customers could switch tariffs at any time without any charge being applied, and they could sign up to be alerted to potentially better deals when they became available. |
Energy Secretary Amber Rudd said: "People expect a fair deal when it comes to their energy bills, not a rough deal. | Energy Secretary Amber Rudd 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 Ofgem who will now investigate this urgently and report back to me." | "I take very seriously this allegation that Britain's pensioners are being misled, so immediately contacted Ofgem who will now investigate this urgently and report back to me." |
Ofgem said its rules required energy companies to treat consumers fairly when they were marketing and selling energy. | Ofgem said its rules required energy companies to treat consumers fairly when they were marketing and selling energy. |
Did you decide to get your energy supplied through E.On after reading advice from Age UK? | Did you decide to get your energy supplied through E.On after reading advice from Age UK? |
Are you a pensioner who has used the charity to get advice about your bills? Please email haveyoursay@bbc.co.uk with your experiences. | Are you a pensioner who has used the charity to get advice about your bills? Please email haveyoursay@bbc.co.uk with your experiences. |
Or use the form below | Or use the form below |