Dual fuel Switching cost guide: typical prices & fees in the UK

Understanding the Cost of Your Energy Supply

With UK energy prices remaining high, understanding the components of your dual fuel bill is the first step towards managing household costs. The Ofgem energy price cap provides a safeguard, but switching tariffs can still yield significant savings. This guide explains the costs, fees, and processes involved, enabling you to make an informed decision about your gas and electricity supply.

Who This Guide Is For

This information is for UK households currently on a dual fuel tariff, particularly those on standard variable rates who are looking to understand their energy bills better. It provides clarity on whether switching suppliers or tariffs could lead to lower costs, helping you navigate the complexities of the current energy market.

Key Energy Market Terminology

To effectively compare deals, it is essential to understand the language used by energy suppliers.

• Dual Fuel Tariff: A single plan from one supplier covering both your gas and electricity. This simplifies billing and account management.
• Ofgem Price Cap: This is a limit set by the UK’s energy regulator, Ofgem, on the maximum amount suppliers can charge for each unit of energy and the standing charge on standard variable tariffs (SVTs). For October to December 2025, it is set at £1,755 per year for a typical household paying by Direct Debit.
• Unit Rate: The price you pay for each kilowatt-hour (kWh) of energy you use. From October 2025, average rates are 6.29p/kWh for gas and 26.35p/kWh for electricity.
• Standing Charge: A fixed daily cost to cover the supplier’s expenses for providing a connection to the network, regardless of your energy usage. From October 2025, this averages 34.03p per day for gas and 53.68p for electricity.

The Ofgem price cap limits the rates you are charged, but your final bill is determined by your actual energy consumption.

Your Tariff Options: Fixed vs. Variable Rates

Choosing the right tariff structure is crucial for managing your energy expenditure. The primary choice for most households is between a variable or a fixed-rate plan.

Standard Variable Tariffs (SVTs)

This is the default tariff you are placed on when a fixed deal ends. The prices fluctuate in line with wholesale energy costs but are protected by the Ofgem price cap. While offering flexibility with no exit fees, they are not always the most economical option.

Fixed-Rate Tariffs

These tariffs lock in your unit rates and standing charges for a set period, typically 12 or 24 months. This provides certainty and protects you from price rises. Currently, some fixed deals are available for around £1,550 per year, which is notably lower than the price cap. However, you may face exit fees if you leave the contract early.

Financial Implications of Switching

Switching your dual fuel provider involves weighing potential savings against possible costs. With energy prices forecast to stay elevated through 2025, securing a competitive fixed rate could be a prudent financial decision.

Potential Savings

By moving from a standard variable tariff at the price cap level (£1,755) to a competitive fixed deal (around £1,550), a typical household could save over £200 annually. However, these deals are not always available and depend on market conditions.

Exit Fees

Before switching, check if your current tariff has an exit fee. Most SVTs do not, but fixed-rate contracts often include a penalty of £30 to £60 per fuel for early termination. This cost must be factored into your decision to ensure the switch remains financially beneficial.

Eligibility for Switching Tariffs

Most households in Great Britain are free to switch their energy supplier. Your ability to access the best deals can, however, be influenced by a couple of factors.

First, energy prices vary by region due to differences in the cost of distributing energy through local networks. For this reason, it is vital to use your postcode when comparing tariffs to get an accurate quote for your specific area. While the price cap sets a national ceiling, your actual rates could be slightly higher or lower.

Second, some suppliers may perform a credit check before offering you a contract, especially for tariffs paid monthly by Direct Debit. Finally, if you are a tenant and your name is on the bill, you typically have the right to switch, but it is always wise to check your tenancy agreement first.

How to Switch Your Dual Fuel Supplier: A Step-by-Step Guide

Switching is a regulated process designed to be simple and seamless, with no interruption to your power supply.

1. Gather your details: Find a recent energy bill to confirm your current tariff and annual consumption.
2. Compare deals online: Use an accredited price comparison website with your postcode.
3. Check for exit fees: Review your current contract to see if any early termination fees apply.
4. Choose your new tariff: Select the best deal based on price, contract length, and supplier reviews.
5. Complete the application: Provide your details to the new supplier to start the switch.
6. Wait for the switch to complete: The process typically takes two to three weeks.
7. Provide a final meter reading: Give this to your old supplier to ensure your final bill is accurate.
8. Settle your final bill: Pay the final bill from your old provider and receive a welcome pack from the new one.

Key Considerations Before Switching

Making a change requires careful thought. Here are the main points to consider:

• Pros: Potential for significant cost savings, budget predictability with a fixed rate, and the convenience of a single bill for both fuels.
• Cons: You may incur exit fees from your current supplier, and if market prices fall, you could be locked into a higher rate on a fixed deal.

Ultimately, the decision rests on your appetite for risk versus your desire for price security.

Important Factors to Watch For

When comparing offers, look beyond the headline annual figure. Scrutinise the unit rates and standing charges, as a low unit rate can be offset by a high standing charge, especially for low-usage households. Be cautious of deals that seem significantly cheaper than all others, and check customer service reviews for any potential new supplier. Remember that the price cap is a limit on rates, not on your total bill- if you use more energy, you will pay more.

Alternatives to a Dual Fuel Switch

If switching your dual fuel tariff isn’t the right option, there are other avenues to explore for managing energy costs. You could consider switching only your gas or electricity supplier if a better single-fuel deal is available. The most effective long-term strategy is to reduce your overall energy consumption through efficiency measures, such as improving insulation or upgrading to more efficient appliances. This will lower your bills regardless of your tariff. It is also worth investigating government support schemes that may be available.

Frequently Asked Questions

What is the current dual fuel price cap?

For 1 October to 31 December 2025, the Ofgem price cap is set at £1,755 per year for a typical household paying by Direct Debit. This figure is a cap on rates, not a cap on your total bill.

Will I be charged an exit fee to switch supplier?

If you are on a standard variable tariff, it is unlikely. However, if you are on a fixed-term contract, leaving early may incur an exit fee, typically between £30 and £60 per fuel. Always check your contract terms.

How long does it take to switch energy suppliers?

The switching process is usually completed within two to three weeks. The process is managed between your old and new suppliers.

Is a fixed tariff always the cheapest option?

Not always. While some fixed deals are currently cheaper than the price cap, their value depends on future market movements. A fixed tariff’s primary benefit is providing certainty over your energy rates for the duration of the contract.

Will my energy supply be interrupted during a switch?

No. The switch is a seamless administrative process. The same pipes and wires are used, so there will be no interruption to your gas or electricity supply.

What is my energy bill actually paying for?

Your bill is broken down into several parts. For the Oct-Dec 2025 period, Ofgem’s figures show a typical bill consists of wholesale energy costs (£719), network costs (£391), supplier operating costs (£296), and policy costs like government social schemes (£215), plus VAT.

Your Next Steps

To take control of your energy costs, begin by using a recent bill to identify your annual energy usage in kWh. With this information, visit an Ofgem-accredited price comparison service to get personalised quotes based on your postcode and consumption. If you identify a suitable tariff that offers clear savings after accounting for any potential exit fees, you can begin the switching process with confidence.

All figures are based on Ofgem’s data for the price cap period of 1 October to 31 December 2025 for a typical dual fuel customer paying by Direct Debit. Prices are subject to change and regional variation. This information is for guidance only and does not constitute financial advice.