E.ON, Age UK to scrap energy tariff amid regulatory probe

LONDON (Reuters) - Utility E.ON and charity Age UK are scrapping an energy payment plan which is being examined by British regulators after a newspaper said it over-charged elderly customers. E.ON said on Tuesday the organisations - which deny the allegations - had agreed by mutual consent to stop offering the package to new and renewing E.ON customers. Britain's energy regulator said on Thursday it had started gathering information about E.ON's pricing practices in gaining new customers through the partnership with Age UK. That followed a report in the Sun newspaper which said German utility E.ON's UK subsidiary paid Age UK, which supports elderly people, 6 million pounds ($8.6 million) a year in a partnership that promoted higher-priced tariffs. "Both organisations retain confidence in the tariff offered to customers," E.ON said in a statement on Tuesday. "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," it added. E.ON said customers on existing Age UK Enterprises tariffs were unaffected by this move and could continue until their contract end date or move without penalty between E.ON tariffs at any point. ($1 = 0.6953 pounds) (Reporting by Nina Chestney; Editing by Mark Potter)