Ofgem has announced that it won’t be taking any action on E.ON after they allegedly paid charity Age UK £6million to push it’s more expensive tariff to the elderly.
It was previously claimed that Age UK was paid £41 for every person that was signed up to the tariff which cost people £245 more than the most competitive deal.
Ofgem has concluded there is “no case to open an investigation” after looking into the marketing of the energy tariffs.
The Charity Commission also looked into the practices of Age UK in relation to the allegations.
Its report adds the nature of commercial partnerships across the range of services and the fee or commission received by the charity was not made clear to customers. It has been recommended to clearly identify any fee received by the charity on all its branded products.
The report also states the charity “made clear with regards the E.ON tariff that its motives were purely income generation”
E.On confirmed there was a commercial relationship between the two organisations but claimed its tariffs were competitively priced. The deal was suspended in February following the allegations.
Age UK added it welcomes the report.
A spokesperson said: “We are especially pleased that, with respect to the Age UK energy tariff, Ofgem has found no breach of the regulations and the Commission has addressed the misconceptions about pricing and has acknowledged that the tariff had regard to the particular needs of older people.
?“’We accept we can never be too transparent and our trading arm needs a sharper demarcation from the Age UK charity. We want every customer of our trading arm to know who they have bought from, that any surplus is then gifted to our charity and how this then benefits older people in need. We will be making some changes so this is always crystal clear.”