The invention provides a transcutaneous energy transfer device having an external primary coil and an implanted secondary coil inductively coupled to the primary coil, electronic components subcutaneously mounted within the secondary coil and a mechanism which reduces inductive heating of such components by the magnetic field of the secondary coil. For one embodiment of the invention, the mechanism for reducing inductive heating includes a cage formed of a high magnetic permeability material in which the electronic components are mounted, which cage guides the flux around the components to prevent heating thereof. For an alternative embodiment of the invention, a secondary coil has an outer winding and either a counter-wound inner winding or an inner winding in the magnetic field of the outer winding. For either arrangement of the inner coil, the inner coil generates a magnetic field substantially canceling the magnetic field of the outer coil in the area in which the electronic components are mounted.