Energylinx News

February 9, 2016

AGE UK and E.ON put a hold on Controversial Tariff

Age UK and E.ON have suspended a branded tariff following a public backlash from the deal.

Last week the tariff came under scrutiny, after The Sun newspaper claimed that Age UK had recommended a special tariff from E.ON costing pensioners £1,049 a year - a substantial £245 more than E.ON's cheapest tariff.

It said that AGE UK received about £41 from E.ON for every person it signed up to the deal, totalling £6.3m last year. Energy Regulator, OFGEM, and the Charity Commission have said that they are currently investigating E.ON Energy's and AGE UK's behaviour.

When the tariff launched, Age UK said it was the leading nationally available tariff of its kind. AGE UK are questioning the newspaper's interpretation of the figures, including a comparison between the cost of one-year and two-year fixed deals. However, due to "continued speculation" about the partnership the tariff will be suspended from Wednesday.

In a joint statement, E.ON and Age UK said:

"E.ON and Age UK Enterprises have announced that they are temporarily to stop offering an Age UK Enterprises branded tariff to new and renewing E.ON customers from Wednesday 10 February 2016.

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."

A member of the Energy and Climate Change Select Committee, Conservative MP Dan Poulter, has called for the two organisations to refund any pensioners that signed up to the tariff on Age UK's recommendation, to be reimbursed.

Poulter believes there is a "moral obligation" for E.ON Energy, which is one of the "Big Six" energy suppliers, and AGE UK, the UK's largest pensioner charity to compensate energy users because they appeared to have paid hundreds of pounds too much over the last year.

E.ON customers on existing Age UK Enterprises tariffs are unaffected by this move and can continue until their contract end date or move without penalty between E.ON tariffs at any point. The Age UK Enterprises tariff has no exit fees meaning customers can change supplier at any point without incurring any charge.

Posted on February 9, 2016 at 04:31 PM