Why some over-60s face energy bill shock

E.ON has taken a hammering this week after announcing it planned to scrap a special energy tariff specifically designed for the over-60s. However, there are plenty of ways older people can save money on their bills.

The energy bills that older people face is a real cause for concern. Analysis by Saga at the start of this year found that pensioner energy bills doubled between 2005 and 2012.

Part of the problem is that older people tend to be at home more often, so have the heating on for longer. As a result it’s very easy to build up significant fuel bills.

E.ON's changes

E.ON's StayWarm tariff offers a fixed price based on your energy use over the preceding year. But as of next week older people on the tariff will be moved over to E.ON’s standard tariff, a move that could cost them the best part of £200 a year more.

E.ON has defended the move, saying that it has been forced to dump the tariff as a result of new proposals from the energy regulator Ofgem, which means it is only allowed to offer four tariffs per fuel. Ofgem has said that it didn't tell any suppliers which tariffs they had to keep.

It’s all got a bit unseemly and has distracted from the main point: how can older people keep their energy bills as low as possible?

Help with paying bills

It's important to make sure you're receiving all the State help you're entitled to.

For example, there’s the Winter Fuel Payment, which pays out between £100 and £300 if you were born on or before 5th January 1952. The payments are made between November and December. You should get the payment automatically if you receive the State Pension or another social security benefit that isn’t Housing Benefit, Council Tax Reduction or Child Benefit.

If it isn’t paid automatically, you will need to make a claim. For full details check out this section of the GOV.uk website.

There’s also the Cold Weather Payment. This is available to people on certain benefits and is paid out when your local temperature is either recorded as, or forecast to be, at an average of zero degrees Celsius or below for seven straight days.

You’ll get a payment of £25 for each seven-day period running from 1st November to 31st March. As with the Winter Fuel Payment, you should be paid the Cold Weather Payment automatically.

Finally there’s the Warm Home Discount scheme, which is available to:

• People over 75 who are getting the Guarantee Credit element of Pension Credit (even if you get Savings Credit)

• People under 75 who are only getting the Guarantee Credit element of Pension Credit (but not if you get Savings Credit too)

If that applies to you, you could get a £135 discount on your electricity bill. This discount is available even to people on pre-pay or pay-as-you-go meters.

Finally, there’s the Surviving Winter campaign, which has run for the past two years. This campaign focuses on encouraging more well-off older people to donate their Winter Fuel Payment to their struggling counterparts. If it’s relaunched for this year – and I can’t see why it wouldn’t be – expect to hear more about it from next month.

[You don't need Ed Miliband to fix your energy bills]

Time to fix?

Fixing your energy tariff is a popular move at the moment, no matter your age, with the expectation that all of the 'big six' suppliers are set to announce significant price rises in the coming weeks, though green provider Ecotricity has pledged not to raise electricity prices at all for the rest of the year.

As a result, the idea that you can get a little consistency with your fuel bill is tempting. Just bear in mind that you will have a pay a premium for that certainty, just as you do with fixed rate mortgages.

If you fancy fixing your tariff, these are the best of the bunch at the moment

Supplier	Tariff	Average Cost	Saving vs non switcher's typical bill*	Fixed until	Cancellation Penalties
M&S Energy	Fix & Save	£1,139	£281	30th September 2014	£50 if switch before end of fix
first:utility	iSave Fixed v9 April 2015	£1,170	£250	30th April 2015	£30 per fuel until end of fix
npower	Online Price Fix October 2014	£1,181	£239	31st October 2014	None
ScottishPower	Online Fixed Price Energy November 2014	£1,195	£219	31st October 2014	No cancellation charges
EDF	Blue+ Price Promise December 2014	£1,209	£211	31st December 2014	None
E.ON	Fixed 1 Year v4	£1,222	£198	12 months	£10 cancellation fee applies if leaving before the end of the fix
Ovo	New Energy Fixed	£1,226	£194	12 months	£30 per fuel until end of fix
British Gas	Fixed Price October 2014	£1,245	£175	31st October 2014	£30 per fuel until end of fix
first:utility	iSave Fixed v10 January 2016	£1,274	£146	31st January 2016	£30 per fuel until end of fix
SSE	2 Yr Capped Price Plan 2	£1,274	£146	24 months	£50 before fixed end date
ScottishPower	Fixed Price Energy February 2016 Online	£1,291	£129	31st January 2016	£25 per fuel before fixed end date
npower	Fix December 2015	£1,305	£115	31st December 2015	An early exit fee of £50 per fuel may apply if you change supplier or tariff before 12th November 2015
npower	Price Protector March 2017	£1,341	£79	31st March 2017	None
EDF	Price Freeeeze November 2016	£1,349	£71	30th November 2016	None
ScottishPower	Help Beat Cancer Fixed Price Energy January 2017	£1,350	£70	31st December 2016	£10 donation to Cancer Research UK on joining the product. A further £10 donation will be made to Cancer Research UK per annum, until the end of the product term. £25 per fuel cancellation fee applies if switching prior to the end of the fixed period

[See if you can switch and save on your gas and electricity bills]