Eon blames RMR as it pulls over 60s tariff

Eon has blamed Ofgem’s Retail Market Review (RMR) as it is pulling its Staywarm tariff for the over 60s.

The energy supplier has announced that from 7 October it will no longer be offering customers the tariff “to comply with Ofgem’s proposed new rules”.

In a statement, Eon said: “We are writing to all customers as their contracts come to an end and where possible are contacting customers by phone, with the aim of speaking to each customer to help ensure they switch to our best product for their needs.”

Customers who come to the end of their existing StayWarm tariff from 7 October onwards will be renewed onto the supplier’s standard tariffs unless they chose otherwise.

Eon added: “We continue to offer our Age UK Fixed 1 Year tariff exclusively for the over 60’s which protects customers from price increases for 12 months and is currently 3 per cent cheaper than our standard Eon Energy Plan for customers paying by Direct Debit.”

The RMR reforms, which come into force at the end of this year, will limit the suppliers to four core energy tariffs per fuel, per payment, and per meter type.

Age UK has raised concerns about the move, saying that it is important that elderly consumers do not lose out because of the move.

Caroline Abrahams, charity director at Age UK 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.

“It’s important that older people are proactive in contacting their energy provider to ensure they are on the best deal.

“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.”

A spokesman for Ofgem said : “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 would have been allowed to keep social tariffs (which for example offer discounts to customers who have difficulty paying bills) under our rules.

“Once our rules are in place suppliers will have to make sure that any customers affected by their decisions to close tariffs are given details of the cheapest offer their supplier has.”