Dual fuel Switching jargon buster: key terms explained

Understanding the Language of Energy Bills

Navigating the energy market can feel complex, but understanding key terms is the first step towards managing your household costs effectively. A dual fuel tariff, which combines your gas and electricity supply, is a popular choice for its simplicity. This guide breaks down the essential jargon to help you make informed decisions.

Who Should Read This Guide

This guide is for any UK householder who pays for their gas and electricity. Whether you are looking to switch suppliers, reduce your monthly outgoings, or simply understand what you are paying for, this breakdown will provide clarity and confidence in managing your energy bills.

Key Energy Terminology Explained

To compare energy deals effectively, you need to be familiar with a few core concepts that appear on every bill and tariff comparison.

Dual Fuel Tariff

This simply means you get both your gas and electricity from a single supplier. The primary benefits are receiving one consolidated bill and having a single point of contact for any queries, which streamlines account management.

Standing Charge

This is a fixed daily amount you pay for your energy supply, regardless of how much gas or electricity you use. It covers the costs of connecting your home to the network and maintaining the supply. Standing charges can vary significantly between suppliers, so it’s a crucial figure to check when comparing tariffs.

The Ofgem Price Cap

Set by the UK’s energy regulator, Ofgem, the price cap limits the maximum rate suppliers can charge for each unit of energy (kWh) and the standing charge on a standard variable tariff. It is reviewed quarterly to reflect changes in wholesale energy costs and aims to protect consumers from paying excessively high prices.

Energy Usage

Measured in kilowatt-hours (kWh), this is the amount of gas and electricity your household consumes. Your total bill is calculated by multiplying your usage by the unit rate, then adding the standing charge. Monitoring your usage can help you find ways to reduce consumption and lower your bills.

Choosing Your Tariff: Fixed vs. Variable Rates

One of the most important decisions you will make is choosing between a fixed or a variable tariff. Fixed rates offer predictability, while variable rates can offer savings if market prices fall.

Many suppliers also offer discounts for customers who choose to pay by Direct Debit, as it is the most efficient payment method for them to manage.

The Financial Impact on Your Household

The tariff you choose directly affects your monthly outgoings. A dual fuel tariff can offer savings through exclusive discounts or lower rates for bundling services, but this is not a guarantee.

The Ofgem price cap provides a safety net for those on variable tariffs. For example, the cap’s 2% increase in October 2025 translated to an average annual bill rising from £1,720 to £1,755. While fixed deals are not subject to the price cap, their rates are often set in relation to it. Always compare the total estimated annual cost- which includes unit rates and standing charges- to understand the true impact.

Remember, discounts and cashback offers are appealing, but the underlying unit rate and standing charge determine the long-term value of a deal.

Are You Eligible to Switch?

For most UK households, switching energy suppliers to a dual fuel tariff is straightforward. If you are the person responsible for paying the energy bills for your property, you are generally eligible to switch.

Key considerations include:

• Outstanding Debt: If you have been in debt to your current supplier for more than 28 days, you may need to repay it before you can switch.
• Contract Type: If you are on a fixed-term tariff, check if there are exit fees for leaving early. These fees can sometimes outweigh the savings from a new deal.
• Prepayment Meters: Customers with prepayment meters can also switch, though the range of available tariffs may differ.
• Renting: If you pay the energy supplier directly, you have the right to switch. If your landlord pays the bills and re-charges you, you will need to discuss it with them.

Most major UK suppliers offer dual fuel tariffs across the country, making them accessible to the vast majority of consumers.

How to Switch to a Dual Fuel Tariff

The process of switching is regulated to be simple and reliable, with your new supplier handling the entire transition.

1. Gather your recent energy bill and usage information.
2. Use an accredited online comparison tool to see available deals.
3. Enter your postcode and current energy consumption details.
4. Compare the estimated annual costs of different dual fuel tariffs.
5. Select the tariff and supplier that best suits your needs.
6. Provide your details to begin the switch on the new supplier’s site.
7. Your new supplier will contact your old one to manage the change.
8. The switch completes within 2-3 weeks with no interruption to your supply.

Weighing the Pros and Cons of Dual Fuel

Bundling your energy is convenient, but it’s wise to consider both the advantages and potential drawbacks.

Pros of Dual Fuel:

• Convenience: One bill, one supplier, and one renewal date simplifies account management.
• Discounts: Many suppliers offer incentives like lower rates or cashback for dual fuel customers.
• Simpler Switching: Comparing and switching is often easier when you are moving both fuels together.

Cons of Dual Fuel:

• Not Always Cheaper: Depending on market conditions, two separate single fuel deals from different suppliers can sometimes be more cost-effective.
• Complacency: The convenience can lead to customers not checking the market regularly for better deals.

Before You Commit to a Switch

Before finalising your decision, there are several important factors to review to ensure you are getting the best possible value.

• Check for Exit Fees: If you are on a fixed-rate deal, an early exit fee could negate any potential savings.
• Compare Standing Charges: A low unit rate can be offset by a high standing charge. Always look at the total projected cost.
• Read Customer Reviews: Check service and support ratings for any supplier you are considering. A cheap tariff is less appealing if the customer service is poor.
• Understand the Discount: Is a “discount” a temporary reduction, or is it reflected in a genuinely lower unit rate over the long term?

Exploring Alternatives to Dual Fuel

The main alternative to a dual fuel tariff is to source your energy from two different providers on single fuel tariffs. This means you would have one supplier for your gas and another for your electricity.

This approach requires more administration- two bills, two accounts to manage- but it can occasionally result in a lower overall cost. This is particularly true if a specialist electricity-only or gas-only supplier has a highly competitive offer that a larger dual fuel provider cannot match. It is always worth including single fuel options in your comparison to ensure you are not missing out on potential savings.

Frequently Asked Questions

What is a dual fuel tariff?

A dual fuel tariff is a contract with a single energy company for both your gas and electricity supply. This results in one combined bill and a single point of contact, simplifying your energy management. Most major UK suppliers offer this option.

Is a dual fuel tariff always the cheapest option?

Not necessarily. While suppliers often provide discounts for bundling services, market conditions can sometimes mean that sourcing your gas and electricity from two different suppliers on single fuel tariffs is more economical. It is essential to compare both options.

What is the Ofgem energy price cap?

The energy price cap is a limit set by the regulator, Ofgem, on the maximum price suppliers can charge for each unit of gas and electricity on a standard variable tariff. It also caps the standing charge. It is designed to protect consumers from unfair pricing.

How long does it take to switch energy suppliers?

Switching providers is typically completed within two to three weeks. Your new supplier will handle the entire process, and there will be no interruption to your gas or electricity supply.

What is the difference between a fixed and a variable tariff?

A fixed-rate tariff locks in your energy unit price for a set period (e.g., 1-2 years), offering protection from price increases. A variable tariff fluctuates with the market, meaning your bills could go up or down.

Will my energy be cut off when I switch?

No. The switching process is seamless and managed between your old and new suppliers. The physical pipes and wires supplying your home do not change, so your energy supply will not be interrupted.

Your Next Steps

To find the best energy deal for your household, start by using a trusted online comparison tool. Have a recent bill to hand so you can input your actual energy usage for the most accurate quotes. Compare dual fuel, single fuel, fixed, and variable tariffs to see the full picture. By taking a few minutes to compare, you could secure significant savings for the year ahead.

Disclaimer

The information provided is for general guidance and does not constitute financial advice. Energy prices and tariffs are subject to market fluctuations and regional variations. Always conduct your own research and compare deals based on your personal circumstances before switching.