Dual fuel Switching checklist: what to do before you apply/buy

A Strategic Approach to Your Energy Bills

Combining your gas and electricity supply into a single dual fuel tariff offers clear convenience. However, it is not a guaranteed route to the lowest possible price. The UK energy market is complex, with prices varying by region and supplier. A successful switch requires careful comparison, not just a desire for simplicity. Fortunately, the process itself is now highly streamlined. Thanks to the Energy Switch Guarantee, a change of supplier is typically completed within five working days, with no interruption to your service.

Who Should Use This Checklist

This guide is for any householder in Great Britain looking to gain control over their energy expenditure. Whether you are a homeowner, a tenant responsible for your own bills, or simply reviewing your annual budget, understanding the dual fuel landscape is essential. It provides the framework needed to assess whether a single tariff for both gas and electricity is the most financially prudent choice for your circumstances.

Understanding Key Energy Terminology

A clear grasp of the terminology used by energy suppliers is fundamental to making an informed decision.

Dual Fuel Tariff

This is a single contract with one supplier that covers both your gas and electricity. The primary benefit is receiving one consolidated bill and having a single point of contact for customer service.

Energy Switch Guarantee

This is a set of commitments made by most GB energy suppliers to ensure switching is simple, swift, and safe. It stipulates that a switch will take no longer than five working days, your new supplier handles all the details, and you have a 14-day cooling-off period to change your mind without penalty.

Ofgem Price Cap

This is a limit set by the energy regulator, Ofgem, on the rates a supplier can charge for their default tariffs. It is not a cap on your total bill, which still depends on your usage. Under the current price cap, an average dual fuel bill is approximately £1,755 per year, though this figure fluctuates with market conditions and varies by region.

Early Exit Fees

If you are on a fixed-term contract, your supplier may charge a fee if you switch to another provider before the contract ends. These fees are typically £30-£60 per fuel, so leaving a dual fuel contract could cost you double. Always check your current terms before proceeding.

Evaluating Your Tariff Options

When comparing deals, you will encounter several types of tariffs. Understanding the differences is crucial for finding the right fit for your household.

• Fixed vs. Variable Tariffs: A fixed tariff locks in your energy unit price for a set period (usually 12 or 24 months), protecting you from price rises but also meaning you will not benefit from price drops. A variable tariff’s price can go up or down, often in line with the Ofgem price cap.
• Renewable Energy Tariffs: Many suppliers now offer dual fuel tariffs backed by 100% renewable electricity from sources like wind and solar. These allow you to reduce your household’s carbon footprint while retaining the convenience of a single supplier.
• Single Fuel Tariffs: Do not assume a dual fuel deal is automatically the best value. It is always worth comparing the cost of getting your gas and electricity from separate suppliers. Sometimes, this can result in a greater overall saving, although it does mean managing two separate accounts.

Weighing the convenience of a single bill against the potential for greater savings by splitting your supply is a key part of the decision-making process.

The Financial Impact of Switching

The primary motivation for most people switching energy suppliers is to reduce their bills. While the average dual fuel bill currently stands at around £1,755 per year for a typical household, this figure masks significant regional and usage-based variations. Your own bill could range from £1,200 to over £2,500.

Switching can yield significant savings, but it is important to be aware of potential costs that can offset these gains. The most common is the early exit fee. If you are part-way through a fixed deal, a fee of £60 or more could negate your first few months of savings. It is often more cost-effective to wait until your contract’s renewal window opens, which is typically 49 days before it ends.

Remember that government-backed schemes, such as grants for insulation or more efficient boilers, can also help reduce your energy consumption and lower your bills over the long term. These are separate from your tariff but are a valuable part of an overall cost-reduction strategy.

The Switching Process: A Step-by-Step Guide

Thanks to industry-wide standards, switching your dual fuel supplier is a straightforward administrative process.

1. Gather Your Information: Locate a recent energy bill. It contains your current tariff name and, most importantly, your annual energy consumption in kilowatt-hours (kWh). This is essential for an accurate comparison.
2. Compare Tariffs Online: Use an accredited price comparison website to see what deals are available in your area. Input your postcode and usage data from your bill.
3. Choose Your New Tariff and Apply: Once you have selected the best deal, complete the application with the new supplier. They will handle the rest.
4. Confirm the Switch: Your new supplier will contact you to confirm the details and the switch-over date. The entire process should take no more than five working days.
5. Provide Meter Readings: You will be asked to provide meter readings on the day of the switch to ensure your final and opening bills are accurate.
6. Settle Your Old Account: Your previous supplier will send you a final bill. If your account is in credit, you are entitled to a full refund. You may need to contact them to request it.
7. Consider a Smart Meter: If you do not have one already, your new supplier will likely offer to install a smart meter at no extra cost. This helps you track your usage in real-time and identify further savings.

Dual Fuel: Weighing the Considerations

Before making a final decision, it is helpful to summarise the key arguments for and against a dual fuel tariff.

Critical Checks Before You Commit

To avoid unexpected costs or disappointment, run through this final checklist.

• Check for Exit Fees: Review your current contract terms to see if you will be charged for leaving early. If so, calculate whether the savings from switching are still worthwhile.
• Use Accurate Data: Do not guess your energy usage. Using the figures from a recent bill ensures the savings estimates you see on comparison sites are as realistic as possible.
• Monitor Your Final Bill: Once you have switched, keep an eye out for the final bill from your old supplier. Ensure the closing readings are correct and proactively chase any credit refund you are owed.

Exploring Alternatives to a Dual Fuel Tariff

The most significant alternative to a dual fuel tariff is to source your gas and electricity from two different suppliers. This approach, known as a single fuel or mixed-supplier model, requires more administrative effort but can unlock better prices.

Some suppliers specialise in either gas or electricity and may offer more competitive rates than those who provide both. By shopping around for each fuel independently, you can build a bespoke energy package that may be cheaper than an off-the-shelf dual fuel deal. The downside is the need to manage two accounts, two sets of bills, and potentially two different customer service teams. Ultimately, you must decide whether the potential savings justify this additional complexity.

Frequently Asked Questions

How long does a dual fuel switch take?

Under the Energy Switch Guarantee, the switch itself is completed in just five working days. You also have a 14-day cooling-off period from the moment you agree to the contract.

Is dual fuel always the cheapest option?

No. While it is often promoted as a way to save, it is essential to compare dual fuel deals against the cost of getting gas and electricity from separate suppliers. The cheapest option depends on your location and usage.

Will my energy supply be cut off during a switch?

No. There is no interruption to your gas or electricity supply. The switch is a seamless background process managed entirely by your new supplier.

What happens if I’m in credit with my old supplier?

After your final bill is issued, your old supplier must refund any credit on your account. It is good practice to contact them to ensure this is processed promptly.

Can I switch if I have a smart meter?

Yes. Smart meters are fully compatible with switching suppliers. In most cases, they will continue to work seamlessly with your new provider.

What are early exit fees?

These are charges applied by your current supplier if you leave a fixed-term contract before its end date. They can range from £30 to £60 per fuel, so it is a critical factor to check before you apply to switch.

Your Next Steps

To begin your journey towards a better energy deal, your first action should be to locate your most recent energy bill. With this in hand, you can use an Ofgem-accredited comparison tool to get an accurate, personalised view of the tariffs available to you. Compare dual fuel options against the best single fuel deals to determine the most effective way to reduce your household’s energy costs.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Energy prices and tariffs change frequently. You should always conduct your own research using up-to-date information from comparison sites and suppliers before making any decision.