Age UK ditch E.On offer
Age UK have been coming in for some heavy criticism of late, mainly thanks to their deal with E.On. They were promoting energy deals for pensioners, that were actually more expensive than they needed to be.
Well, the charity has said that they are now suspending the deal, just a day after the Energy Secretary Amber Rudd asked for an official Ofgem probe into this agreement. Age UK have tie-ins with an insurance company too, which will need to be looked at.
The charity has been getting a commission of £41 for every person that signed up to this particular tariff, which is nice for them, but not so great for those who were basically being overcharged £245 on their energy bill. Age UK pocketed around £6m from this, it is thought.
Managing Director of Age UK, Ian Foy, perhaps needing a few lessons in damage limitation and trying to get good PR, told Sky that they'd "done absolutely wrong". Foy, talking on BBC Radio 4’s PM programme added: "We never claimed to be the cheapest. Prices change on a daily basis."
Age UK said this deal expired last night (Tuesday 9th February).
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."