The StayWarm initiative, which has kept thousands of pensioners warm for the past 12 winters, is to be removed.
Those on the StayWarm plan will be rolled over to E.ON’s standard energy tariff, which could add an additional £180 per year to their bills.
The service provided fixed price gas and electricity for those aged 60 and over. The main difference between this plan and standard tariffs is that StayWarm bills are based on consumption over the previous 12 months. Bill size is fixed over a year, guaranteeing peace of mind and no unexpected rises.
Tariff axed to comply with Ofgem regulations
A statement on E.ON’s website reads: “We’re closing StayWarm to comply with Ofgem’s proposed new rules. So if your StayWarm plan ends after the 6th of October we’ll renew you onto E.ON EnergyPlan unless you call us.”
Ofgem’s proposals are aimed at simplifying the energy market and require energy suppliers to cut the number of plans on offer to just four per fuel. Although the plan was welcomed by Prime Minister David Cameron, industry analysts warned that it would lead to the removal of a number of niche plans.
Older people may ‘end up paying more unnecessarily’
Charity Director General at Age UK Caroline Abrahams, said: “While reducing the number of energy tariffs available should help simplify the energy market, we are concerned that many older people are unaware of the changes, how this will affect them and what action they need to take.
“If older people do not stay informed about the changes and take action, there is a danger that they will end up paying more unnecessarily.”