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  1. ITV Report

E.ON probed over £6 million payment to Age UK

Big Six energy company E.ON has paid millions of pounds to a charity in return for expensive tariffs to be pushed on elderly people, it has been claimed.

The Sun newspaper reports it found details of E.ON payments to Age UK in the charity's annual accounts - amounting to at least £6 million a year.

The Sun says it found details of E.ON payments of at least £6 million to Age UK in the charity's annual accounts. Credit: Chris Radburn / PA

Energy Secretary Amber Rudd said energy watchdog Ofgem has been asked to investigate.

The Sun claims about E.ON and Age UK:

  • Age UK had been recommending a special E.ON tariff which on average costs pensioners £245 more than E.ON's cheapest deal
  • Age UK received around £41 for each person who signed up to the tariff - amounting to at least £6 million a year
  • There are 152,000 customers on the deal - meaning a £37 million overspend by pensioners

It is claimed the charity had been recommending the special E.ON tariff in leaflets and booklets, stating it was "great value" and "helps save energy and money".

The Sun reports the tariff costs pensioners on average £245 more than they would pay on E.ON's cheapest deal.

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.

– Energy Secretary Amber Rudd

A spokeswoman for E.ON said: "Our current Age UK tariff was the cheapest product of its type in the UK when it was launched in January. Customers can switch between products at any time without incurring any costs.

"If a customer is on a fixed tariff and they opt in for a price alert, and if we issue a new tariff that is cheaper, we will automatically notify them of that.

"But in line with Ofgem's rules we can't switch people without their consent."

The Sun claims Age UK was recommending an E.ON tariff which on average costs pensioners £245 more than E.ON's cheapest deal Credit: John Stillwell / PA

Declining to comment on the "sensitive" nature of the amount paid to Age UK, E.ON did confirm there was a "commercial relationship" between it and the charity.

Age UK said it "strongly rejects the allegations and interpretation" of the figures. A spokesperson added that a typical commission to Age UK from E.ON is £10 a customer.

The Age UK Fixed 2 Year tariff offers a good deal and was the market leading 2 year tariff when launched in January. For example, the Age UK Fixed two Year tariff is over £100 cheaper than that E.ON Standard Variable tariff and is cheaper than other variable tariffs.

When customers contact us they are offered a choice of all four E.ON tariffs and many choose the one year tariff or variable option, however many prefer the reassurance of a fixed tariff for two years. We have no exit fees so customers can move anytime if they find a different deal. This means they can pick a tariff that best suits their needs. E.ON also offers a free Price Alerts system that lets customers know of potentially better deals as soon as they’re available.

– Age UK Spokesperson

In a statement, the Charity Commission said: “The Commission is aware of concerns raised in the media regarding Age UK’s partnership activities with E.ON. The Commission is in contact with both Age UK and Ofgem to determine what regulatory role the Commission might have and any action that might be necessary.”