The charity Age UK and the energy supplier E.On have announced that their controversial energy tariff aimed at the elderly has been put on hold amid questions from the regulator Ofgem regarding its suitability.
£6m per year
It was claimed last week that the Charity was earning around £6m per year from recommending the energy tariff. The deal was recommended by the charity to pensioners, however it was claimed that other cheaper deals were available, causing older people to pay more than they needed to for their energy needs.
The tariff has now been withdrawn, however those already on the tariff can continue as normal.
Ian Foy from Age UK says that they always aim to offer their customers the best possible value for money and the decision to suspend this tariff will allow them to review this current situation. However he also blamed E.On for the suspension, pointing out that the supplier no longer offered the deal at the rate they wanted, therefore it was right to pause it.
In a statement, E.On have stated that the tariff was suspended as a mutual decision and will offer them the chance to reflect on their relationship with Age UK and what was the best way to move forward.
Meanwhile a petition has been started to call for those pensioners affected to be refunded.