'No case to open inquiry' over E.ON-Age UK partnership

Ofgem has decided there is "no case to open an investigation" into a controversial partnership between the energy supplier E.ON and the charity Age UK.

Age UK was criticised for exploiting its position as a trusted charity after it was claimed E.ON paid it £6 million a year in return for the charity pushing expensive tariffs on to the elderly.

The energy watchdog said in a statement: "Ofgem has looked into E.ON's marketing of its tariffs with Age UK and concluded that there is no case to open an investigation.

"We have written to all suppliers reminding them that relationships with charities and other trusted organisations require appropriate oversight."

However, a report released today by the Charity Commission found that it was not clear that Age UK "sufficiently considered the risks of targeting beneficiaries with a commercial product in an area where the charity also campaigns on behalf of its beneficiaries".

The commission found that the nature of the commercial partnerships, and the fee or commission received by the charity, was not made clear to customers.

It recommended that Age UK "clearly identifies any commission or fee received by the charity on all Age UK branded products".

Charity Commission chief operating officer David Holdsworth said: "Participation in the energy market poses significant risks and Age UK should consider whether continued involvement is in the charity's best interests.

"Although the charity had oversight mechanisms, the commission found these were insufficient and needed to be kept under more regular review. Any fee or commission that the charity receives through these arrangements must be clear and transparent.

"The commission is pleased that the charity has already taken some steps to address our concerns and we have made a number of further recommendations.

"The support offered by Age UK is invaluable to many."