Has Age charity been promoting E.On deals for cash?
Here's a worrying accusation - the charity Age UK may have been promoting unfavourable energy deals in exchange for money from E.On. The watchdog, Ofgem, are looking into the claim, after an investigation by The Sun.
The paper claimed that the energy deals that were being offered by Age UK with supplier E.On could well have been more expensive than necessary, with cheaper deals available. The Sun continued that, in return, Age UK pocketed around £6m from the energy company.
Given that Age UK are there to serve pensioners, who are often vulnerable when it comes to things like this, this is serious indeed. If it is true that the charity have been doing pensioners out of money, and messing with anything that might affect the warmth of their home, there's going to be hell to pay.
It is worth pointing out that Age UK have rejected these claims, while E.On have simply said that their tariffs are as competitive as anyone else's. Okay? Will that suffice, watching lawyers?
Now, back to The Sun's report - they have said that Age UK recommended a special rate from E.On, which typically costs pensioners £1,049 for the year, which is £245 more than the cheapest rate which you could've been offered in 2015. The paper also said that the charity got around £41 from the energy firm, for every person signed-up, which totalled somewhere in the region of £6m.
A spokesperson for Age UK said: "We strongly reject the allegations and interpretation of figures in this article. 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."
E.On said: "We always work to make sure our tariffs, for all customers, are competitively priced and that is further evidenced by the fact that 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."
Ofgem are going to look into this and, if there's any foul play, expect some huge fines to be handed out.