Age UK criticised by charity commission over E.On deal
Remember the charity, Age UK, doing an energy deal for pensioners, which was a bit dubious? Well, they've been chastised by the Charity Commission, for recommending an energy tariff that wasn't the best offer for those they were supposed to be looking after.
Age UK were accused of raking in £6m in profit from their deal with energy firm E.On, and in their report, the commission said that the charity had "insufficient" oversight mechanisms. Hardly the strongest of terms, but there you go.
The deal saw people being offered a deal, where customers would most likely pay an average of £1,049 per year, in a fixed two-year deal. That just happened to be £245 more expensive than the cheapest deal that was offered by E.On.
"Participation in the energy market poses significant risks, and Age UK should consider whether continued involvement is in the charity's best interests," said David Holdsworth, chief operating officer at the Charity Commission.
"Although the charity had oversight mechanisms, the commission found these were insufficient and needed to be kept under more regular review. Any fee or commission that the charity receives through these arrangements must be clear and transparent."
Ofgem, the energy regulator, don't think further investigations are need.
A spokesperson said: "Ofgem has looked into E.On's marketing of its tariffs with Age UK and concluded that there is no case to open an investigation."