Dual fuel Switching: do you really need it?

Demystifying Dual Fuel: A Guide to Combined Energy Tariffs

Combining your gas and electricity with one supplier can simplify your bills and potentially unlock discounts. But is a dual fuel tariff always the most cost-effective choice for your household? This guide examines the realities behind the marketing, helping you weigh convenience against actual savings.

Who This Is For

This article is for any UK householder reviewing their energy costs. Whether you are considering switching suppliers for the first time or are reassessing an existing dual fuel plan, understanding the nuances is key to ensuring you are on the best possible tariff for your needs.

Key Concepts Explained

Navigating the energy market requires familiarity with a few key terms. Understanding these concepts is the first step toward making an informed decision.

• Dual Fuel Tariff: A plan where a single supplier provides both your gas and electricity. This results in one combined bill and a single point of contact for customer service.
• Ofgem Price Cap: Set by the energy regulator, Ofgem, this cap limits the maximum price suppliers can charge for each unit of gas and electricity on a standard variable tariff. It is reviewed quarterly.
• Exit Fees: A charge applied if you leave a fixed-term contract before its end date. These can be substantial and may cancel out the savings from switching early.
• Fixed vs. Variable Tariffs: This is a crucial choice that impacts your bill’s predictability.

Exploring Your Tariff Options

When you opt for a dual fuel plan, you are not limited to a single type of deal. Suppliers offer various tariffs designed to suit different priorities, from budget management to environmental impact.

Fixed vs. Variable Rates

The most fundamental choice is between a fixed or variable rate. A fixed-rate tariff provides stability, giving you peace of mind that your per-unit cost will not change for the contract term. Conversely, a standard variable tariff (SVT) offers flexibility as you can switch at any time without penalty, but your prices will fluctuate with the market, up to the limit of the Ofgem price cap.

Additional Supplier Incentives

Competition in the energy market means suppliers often add perks to attract dual fuel customers. These can include:

• Loyalty rewards points or discounts.
• Smart home technology, such as a smart thermostat.
• Green energy options that match your usage with renewable generation.

It is important to assess whether these incentives provide genuine value or if they are masking a higher underlying tariff rate.

Analysing the Costs and Savings

The primary motivation for many when considering a switch is financial. According to Ofgem’s price cap figures, a typical household on a dual fuel tariff paying by Direct Debit can expect an annual bill of around £1,755. While this figure is a useful benchmark, your actual bill will depend on your usage, location, and tariff.

Crucially, a dual fuel tariff is not automatically the cheapest option. It is essential to compare the market comprehensively, as sometimes two separate single-fuel tariffs from different suppliers can offer a lower combined cost.

Also, consider potential hidden costs. A cheap fixed-rate deal may come with high exit fees, which could negate your savings if you need to leave the contract early. Always read the contract terms carefully.

Eligibility and Associated Schemes

In Great Britain, virtually any household with both a gas and electricity supply can switch to a dual fuel tariff. The process is designed to be straightforward, with the new supplier handling the switch.

The Warm Home Discount

An important consideration is the Warm Home Discount scheme. This government initiative provides a one-off £150 payment to eligible low-income and vulnerable households to help with winter energy bills.

This scheme is funded by a small surcharge applied to all customers’ bills, typically adding around £19-£22 per year to the average bill. While all bill-payers contribute, the scheme provides vital support for those most in need. Eligibility criteria are specific, so it is worth checking if you qualify.

How to Switch to a Dual Fuel Tariff

Switching your energy supplier is easier than many people think. Your new supplier manages most of the process for you.

1. Gather your information: a recent energy bill with your annual consumption.
2. Use a price comparison website to compare dual fuel deals.
3. Select the tariff that best suits your needs and budget.
4. Complete the online application form with the new supplier.
5. The new supplier will contact your old supplier to begin the switch.
6. Provide meter readings when requested.
7. Your switch should complete within a few weeks with no supply interruption.
8. Receive your final bill from your old supplier and welcome pack from the new one.

Weighing the Pros and Cons

Is a dual fuel tariff the right decision? Weighing the advantages and disadvantages is key.

Essential Checks Before Committing

Before you sign up for a new dual fuel tariff, take the time to perform these essential checks:

• Compare the whole market: Do not just look at dual fuel deals. Compare them against the best single-fuel tariffs to ensure you are getting the best value.
• Read customer reviews: Check independent review sites to see what current customers say about a supplier’s billing accuracy, customer service, and switching process.
• Check the small print: Scrutinise the contract length and any exit fees. A 24-month contract may offer a good rate, but it is a long commitment if your circumstances change.

Are There Other Options Besides Dual Fuel?

The main alternative to a dual fuel tariff is to source your gas and electricity from separate suppliers. This approach, sometimes called a ‘mix-and-match’ strategy, can be advantageous.

You might find that a specialist electricity-only supplier offers a significantly cheaper rate than any dual fuel provider, while a different company has the best deal for gas. Although this means managing two separate accounts and bills, the potential savings can make the extra administration worthwhile for diligent consumers. This strategy gives you the flexibility to switch each fuel independently to chase the best deals.

Your Dual Fuel Questions Answered

Is a dual fuel tariff always cheaper? No. While suppliers often offer discounts, it is not a guarantee. It is always best to compare dual fuel prices against the cost of two separate single-fuel tariffs.

How much is the average dual fuel bill in the UK? As of the October 2025 Ofgem price cap, the average bill for a typical household paying by Direct Debit is approximately £1,755 per year. However, your actual bill depends on your usage.

What is an exit fee and should I avoid it? An exit fee is a charge for leaving a fixed-term contract early. If you value flexibility, a tariff without exit fees might be better, but if you find a cheap fixed deal you are happy to stick with, the exit fee may not be a concern.

How does the Ofgem price cap affect my dual fuel bill? The price cap limits the rate for standard variable tariffs. If you are on an SVT, your bill will move in line with the cap. Fixed-rate tariffs are not bound by the cap, but their pricing is influenced by the same wholesale market conditions that inform the cap.

Preparing to Make an Informed Choice

To determine if a dual fuel tariff is right for you, start by gathering the necessary information. Find a recent energy bill to understand your current tariff and annual usage. With this data in hand, use an accredited energy comparison service to explore all available options-both dual and single fuel. By comparing costs, contract terms, and supplier reviews, you will be well-equipped to make the most cost-effective decision for your home.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Energy prices and tariff details change frequently. You should always conduct your own thorough research and use an Ofgem-accredited price comparison tool before switching energy suppliers.