Dual fuel Switching: pros, cons & common pitfalls

Navigating a Shifting Energy Market

With a sharp increase in dual fuel switching rates, the GB energy market is more active than it has been in years. While falling average bills offer some relief, prices are forecast to remain high. This guide provides the clarity needed to decide if a dual fuel switch is the right financial move for your household, breaking down the opportunities and risks in a complex landscape.

Who This Guide Is For

This article is for any UK household seeking to understand their energy options better. Whether you are looking to reduce your monthly outgoings, find a supplier with better service, or simply make sense of the recent changes in the energy market, this information will help you make a more informed and confident decision.

Understanding Key Energy Terminology

A firm grasp of the basics is essential before comparing deals. A dual fuel tariff is a single contract for both your gas and electricity from one supplier. This contrasts with single fuel tariffs, where you have separate suppliers for each.

The market is regulated by Ofgem, which sets a price cap that limits what suppliers can charge for their default tariffs. As of April 2025, the cap for an average dual fuel household paying by direct debit rose to £1,849, reflecting volatile wholesale costs. While forecasts suggest prices will stay above pre-2021 levels through 2025, understanding the cap provides a benchmark for evaluating fixed-rate deals.

Key Terms

• Tariff: The plan that determines the price you pay for energy. It can be fixed (price per unit is set for a term) or variable (price per unit can change).
• Unit Rate: The price you pay per unit of energy (kWh) consumed.
• Standing Charge: A fixed daily fee that covers the cost of supplying energy to your home, regardless of consumption.
• Exit Fee: A penalty some suppliers charge if you leave a fixed-term contract early.

Assessing Your Supplier Choices

The domestic energy market is dominated by six large suppliers, which collectively hold about 91% of the market. However, newer entrants like Octopus are rapidly expanding their customer base, often by competing on price and customer service. Indeed, complaint volumes across the sector are at their lowest since 2022, suggesting a renewed focus on customer experience.

When choosing a supplier, it is wise to consider more than just the headline price. Stability is a key factor.

While smaller firms can offer attractive tariffs, some are more vulnerable to market shocks, which could potentially impact service continuity. Evaluating a supplier’s track record for customer satisfaction alongside its financial stability is a prudent step.

The Financial Implications of Switching

Switching your dual fuel provider can lead to significant savings, but it is not without financial risks. Average annual dual fuel bills fell by 17% year-on-year to £1,854 in 2024/25, thanks to lower wholesale prices and reduced consumption. This environment creates opportunities for savvy consumers to lock in better rates.

However, pitfalls exist. With a growing number of tariffs on the market, the terms can be complex. Be vigilant for:

• Exit fees: These can negate the savings from switching if you are locked into a fixed deal.
• Variable rates: An attractive introductory rate may quickly increase, leaving you paying more than expected.
• Misleading savings claims: The advertised savings may not fully materialise once all charges are factored in.

A careful reading of the contract’s terms and conditions is non-negotiable.

Determining Your Eligibility to Switch

Most households are free to switch suppliers, but certain circumstances can create barriers. The most significant is existing debt. Energy debt and arrears reached a record £3.85 billion in late 2024, highlighting the affordability challenges many face.

If you have been in debt to your current supplier for less than 28 days, you are still able to switch, and the debt will be added to your final bill. However, if you have owed money for longer than 28 days, you may need to repay it before you can move to a new provider. Customers with prepayment meters can typically switch with up to £500 of debt per fuel, which is transferred to the new supplier’s meter under the ‘Debt Assignment Protocol’.

A Step-by-Step Guide to Switching

Switching is a straightforward process managed by the new supplier.

1. Gather your details: Find a recent bill with your current tariff name and annual energy consumption.
2. Compare the market: Use an accredited price comparison service to see available tariffs.
3. Analyse your options: Evaluate dual fuel, single fuel, fixed, and variable rate deals.
4. Choose your new tariff: Select the deal that best fits your needs and budget.
5. Complete the application: Provide your address, bank details, and confirm the switch.
6. The switch completes: Your new supplier will handle the entire process, which typically takes around five working days.
7. Submit a final meter reading: Provide this to your old supplier to ensure your final bill is accurate.

Weighing the Benefits and Drawbacks

Is a dual fuel tariff right for you? Consider the following points before making a decision.

Key Pitfalls to Avoid

With switching rates surging by over 50% in summer 2025, it is crucial to avoid common errors.

First, do not assume a dual fuel package is automatically the cheapest option. Always compare the cost against the best available single fuel tariffs. Second, scrutinise the tariff details. A low unit rate could be offset by a high standing charge or a hefty exit fee. Finally, consider your actual usage. With domestic energy consumption falling to record lows in the warm second quarter of 2025, a tariff that suited your needs last year may not be optimal now. Base your comparison on your most recent consumption figures.

Exploring Alternative Options

If a dual fuel switch doesn’t seem right, you have other options for managing your energy costs.

• Switching one fuel: You can move just your gas or electricity to a new supplier if you find a more competitive single-fuel tariff.
• Negotiating with your current supplier: Contact your existing provider to see if they can move you to a better tariff. They may offer a competitive deal to retain you as a customer.
• Choosing a green tariff: Many suppliers now offer tariffs that supply 100% renewable electricity or carbon-offset gas. While sometimes slightly more expensive, they are a good choice for environmentally conscious consumers.

Frequently Asked Questions

Is dual fuel always cheaper?

No. While suppliers often offer discounts for bundling gas and electricity, it is not a given that this will be the most cost-effective option. It is essential to compare the combined cost against the best separate deals for each fuel.

How long does a switch take?

Switching is now much faster. It typically takes around five working days, and your new supplier manages the entire process. Your energy supply will not be interrupted.

Can I switch if I am in debt to my supplier?

It depends. If your debt is less than 28 days old, you can switch. If it is older, you will likely need to clear it first. Different rules apply for prepayment meters under the Debt Assignment Protocol.

What is the Ofgem price cap?

The Ofgem price cap is a limit on the unit rate and standing charge that suppliers can bill customers on a standard variable tariff. It provides a safety net but is not necessarily the cheapest deal available.

Why are so many people switching now?

The increase in switching is driven by a greater number of tariffs becoming available after a period of market stagnation, combined with heightened consumer awareness of potential savings.

Your Next Move in the Energy Market

The most effective strategy for managing energy costs is to remain proactive. Start by reviewing your latest energy bill to understand your current tariff and consumption levels. Use this information with a trusted, independent comparison tool to explore the deals currently available. By comparing both dual and single fuel options, you can make a decision based on hard numbers and secure a contract that offers genuine value for your household.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Energy prices and tariffs are subject to change. Please use an Ofgem-accredited price comparison service and check the specific terms and conditions of any new tariff before switching.