Are Dual Fuel Tariffs the Cheapest Option in 2025?

For many years, people in the UK have chosen dual fuel tariffs. UK homes like the ease of having the same energy supplier for both gas and electricity. You only have to handle one account and pay by one direct debit. If you need help, you have one point of contact for customer service. This way makes it easy to deal with things. But, from 2025, ofgem’s price cap means having this setup may not always save you more money.

Many energy companies now price single fuel deals (separate gas and electricity contracts) lower than combined dual fuel energy tariffs. As a result, UK homes could pay £18–£70 less per year by mixing suppliers — depending on region, usage, and the type of meter (smart, traditional, or prepayment).

What Is a Dual Fuel Tariff and How Does It Work?

A dual fuel tariff is when you get both your gas and electricity from the same energy supplier. With a dual fuel deal, you get one bill for both. You do not have to deal with two contracts or two separate bills. This makes it easy to see what you use and what you have to pay. A dual fuel tariff can also help you manage your money. You only deal with one company for your energy needs.

You pay with one monthly direct debit or get a bill each three months. They will look after your accounts for you. A deal like this may offer a small discount. But by 2025, this is not common. This is because energy prices and suppliers change a lot.

How Much Does a Dual Fuel Tariff Cost in 2025?

As per Ofgem’s price cap from October to December 2025, a home that uses dual fuel and is on a standard variable tariff will pay around £1,755 every year.

Single fuel deals and fixed rate tariffs can be cheaper. This may happen when energy companies working in smaller areas or regions offer special prices.

A typical dual fuel household uses about 2,700 kWh of electricity in one year. They also use around 11,500 kWh of gas each year. This is what most people use in a usual dual fuel home.

The standing charge and the unit rate depend on where you live. They can also change based on the type of meter you have. The way that you pay matters too. You can use direct debit to pay, or you could use prepayment.

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Why Dual Fuel Tariffs Can Be More Expensive

In 2025, there are four big reasons why a dual fuel plan can cost you more money than having two different contracts.

1. Shrinking Discounts
   Many energy suppliers that offer dual fuel deals have made the discounts smaller or just stopped them. A few years ago, people could save about £30 to £50 every year. Now, dual fuel deals do not really help you save much.
2. Exit Fees per Fuel
   When you have dual fuel, you have an exit fee for each fuel. It means gas and electricity each cost between £25 and £50 if you leave early. If you want to switch only one fuel, you still have to pay the two exit fees.
3. Regional Pricing Differences
   Suppliers might give good electricity tariffs or cheap gas prices in some places, but not for both types of fuel everywhere. If you stay with the same company, you may not get these local deals.
4. Convenience Premium
   You might pay more for dual fuel energy just to have one bill and one online account. This is easier and gives some peace of mind. But, it is not always the best option if you want to save money.

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How the Energy Price Cap Affects Dual Fuel Costs

The energy price cap is there to stop suppliers from charging too much for standard variable tariffs. It sets a highest price you can pay for each unit of gas or electricity. The rule also covers the daily standing charge. Because of this, you will not pay more than what the price cap says for a unit of gas or the daily standing charge.

It does not set a limit on the energy bill. The amount you pay will change depending on how much energy you use.

These rates apply to direct debit customers on standard variable tariffs between October and December 2025.

Households that use prepayment meters often pay extra for each unit of energy they use. They also get higher standing charges. Because of this, they do not get the good deals you find with dual fuel pricing.

Check your supplier’s unit rates in your online account

Fixed Rate vs Variable Tariffs: Which Is Better?

How much you pay depends on the type of plan you have. A fixed rate tariff means your price stays the same. A variable rate energy tariff lets the price change. The kind of plan you pick can make your total bill go up or down.

Fixed energy tariffs offer predictable bills — a good option for budgeting. However, variable tariffs can be cheaper when price cap predictions show falling costs.

Compare your fixed and variable options before locking into a long-term contract

When Separate Suppliers Offer Better Value

Homes in places such as Northern Scotland, East Midlands, and London can cut costs. This happens when people pick different suppliers for gas and electricity. A small company will often have better prices than the big ones. You can get low deals for only gas or only electricity from them.

Even if you save only £1 to £6 a month for each type of fuel, you will have between £18 and £70 more after one year.

Reasons why split contracts work:

• Smaller or local companies can offer better prices for one type of fuel.
• The amount you pay each day is very different based on where you live and the company you use.
• Some good prices are made just for new customers.
• Smart meters help you see your energy use and help you get the lowest price.

Find out how much you could save by comparing single fuel tariffs

Dual Fuel Tariffs and Smart Meter Benefits

Having a smart meter can help you get better energy deals. If you are looking at EV tariffs or time-of-use plans, a smart meter can help with that too. If you are a dual fuel customer with a smart meter, you can:

• Keep track of your gas and electricity bills as they come in.
• Share your regular meter readings by itself.
• Get better and more right prices from the energy suppliers.

Smart meters help you lower waste and get more right readings. But getting a smart meter does not mean dual fuel will always save you money. How much you save is about your energy usage and the unit of energy you choose. It is also linked to energy costs.

When Dual Fuel Still Makes Sense

Dual fuel tariffs can still be a good choice for some people. It may work well if you want to have both gas and electricity from the same company. This way, you can keep things simple and get one bill for both. Some customers like how it helps them save time. It can also make it easier, as you only need to talk to one team if you have a problem.

Using dual fuel can be helpful for many of us. Also, some companies may offer a discount when you go with both fuels in one plan. So, if you are looking for less hassle and maybe a lower price, dual fuel may be a good way to go.

• You want to talk to only one person when you need help. You also like to get just one bill for all your energy use.
• You feel that peace of mind matters more than saving every penny.
• You like simple bills, especially if your home uses energy as most homes do.
• You can get help through the warm home discount scheme or other government support. These only work if you have one energy company.

If you want things to be easy, going with a dual fuel plan can still be the best option for you. This may not always give you the lowest price, but there are some good reasons to choose it.

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How to Find the Best Energy Deal in 2025

Finding the best energy deal depends on the amount of energy you use in the home. Where you live and the meter you own also matter. To get a price that works for you, it’s important you check all your details.

• Use your latest meter readings or the data from your smart meter.
• Type in each fuel one by one into a price comparison tool to compare energy prices for gas and electricity. Do this separately for each fuel.
• Look at the length of the contract. Check exit fees, and read the rules for the tariff.
• Check both the daily standing charges and also the price for every unit you use.

The energy switch guarantee makes sure that you will not lose power when you change your supplier. It will keep the lights on while you go through the whole energy switch.

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FAQs About Dual Fuel Tariffs in 2025