E.On scraps Age UK tariff - many pensioners now face £78 bill increase

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E.On is set to shelf another tariff designed to offer discounted rates for pensioners, just months after it axed a similar scheme.

The 'Big Six' supplier is set to scrap its Age UK deal which offered cheap prices for those over 60, with many being forced onto a more expensive fixed rate tariff.

E.On previously closed its StayWarm scheme on October 7, the tariff was designed to offer those over 60 a fixed rate on their energy bills.

As a result of the Age UK deal being scrapped, thousands of pensioners could face bill increases of as much as £180. The energy firm once again pointed the finger at the government and Ofgem's move to narrow the number of tariffs available to customers from their energy suppliers down to four as the reason behind it ending the scheme.

E.On has notified its customers they will be renewed on to a standard fixed rate variable tariff at an average extra expense of £78 more a year.

An E.On spokeswoman said: "To make the market simpler and easier to compare we now offer four core tariffs as part of the new rules being introduced by Ofgem.

"We've written to customers on historic variable products to advise them that their tariff is no longer available and that we'll be moving them to our standard offering (as required).

"We hope to have 'best deal for you' conversations with these customers about whether there is a better or more suitable product for their needs and urge customers to get in touch.

"We will continue to offer Age UK fixed products exclusively for the over 60s."

An Ofgem spokesman lambasted E.On's reasoning for cancelling the Age UK deal however.

He said: "A key part of our reforms is a restriction on suppliers offering no more than four tariffs for gas and four for electricity.

"We have never told suppliers which tariffs they have to close to comply with this rule, as that is a decision for them.

"And in fact we have been clear with all suppliers that they are allowed to keep social tariffs (which for example offer discounts to customers who have difficulty paying bills) under our rules."

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