Cheapest Dual Fuel Tariffs | Fixed vs Variable Tariffs

What Is a Dual Fuel Tariff, and Why It Matters?

A dual fuel tariff lets you get both your gas bill and your electricity bill from one energy supplier. This means you do not need separate gas and electricity suppliers. With dual fuel tariff, you have just one energy account. Your point of contact is the same if you ever need any help. Also, when people use a dual fuel tariff, they often pay one bill each month by direct debit.

A dual fuel energy deal usually means you get a dual fuel discount. With this, you pay less for each unit or the standing charges. This can be better than using separate suppliers for your energy. But, not every dual fuel plan is the same.

To get the cheapest option, you need to compare fixed rate tariffs and variable tariffs. Make sure to check if there are any exit fees. You should also look at your energy usage. See how your use fits with the levels that Ofgem says are good.

What Does the Ofgem Price Cap Show About Dual Fuel Prices in 2025?

The energy regulator, Ofgem, sets the energy price cap every three months. This price cap is there to control what companies can charge you for your energy. It is for the typical home that is on a standard variable tariff and pays by direct debit.

The cap lets you see how a normal home energy bill will be. What you pay is based on how much energy you use at your place. If your home uses a lot of energy, you will need to pay more. A home that uses less may get a smaller bill.

The price cap is for checking dual fuel costs. If you find a supplier that offers a fixed rate and it is under the price cap, it may be one of the cheapest dual fuel deals you can get.

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How Do Fixed Dual Fuel Tariffs Work?

A fixed rate dual fuel tariff means the price you pay for your gas and your electricity does not go up or down while you are in the contract. This type of contract often lasts for one year or maybe two years. The unit rates and standing charges stay the same during this time. With a dual fuel tariff, you will know what you pay each month. A fixed rate helps you plan your budget, and you do not need to worry about changes in price.

Reasons households choose fixed dual fuel plans include:

• Bills stay the same even if the energy price cap rises.
• It gives peace of mind for long-term budgeting.
• It avoids sudden jumps in the gas bill or electricity bill.

The problem with fixed tariffs is that you often have to pay early exit fees. If you decide to leave before the end of the contract, this fee can take away any money you may have saved.

How Do Variable Dual Fuel Tariffs Work?

A variable tariff means the price you pay for your energy can change. The cost can go up or down over time. Most people who get energy on variable tariffs will pay money based on the Ofgem price cap.

Variable tariffs may be the cheapest option when:

• The wholesale prices go down. So, your bills get less.
• You want to be able to go with a new supplier any time you want.
• You like that there is no exit fee. There are no contracts that keep you in.

The risk is that if Ofgem decides to raise the cap, your bills could go up as well.

Fixed vs Variable Dual Fuel: Which Is Cheaper?

Some fixed tariffs for the middle of 2025 were set between £1,550 and £1,600 per year for the average household. This price is less than Ofgem’s July limit of £1,720. It shows that fixed deals can be among the best dual fuel deals out there if their price is below the cap.

When Is a Fixed Tariff the Best Deal?

A fixed tariff works best if:

• You use a lot of energy and you want help if the cost goes up.
• You like to get one dual fuel bill so that it is easier to know what you will spend.
• You want to stay with one energy supplier for a long time and feel like things will stay the same.

Families that have high electricity use, like those with EV chargers or heat pumps, can get more value from fixed deals. The more energy they use, the more they will save as time goes on.

When Are Variable Tariffs the Cheapest Option?

A variable tariff can be the cheapest option if:

• You believe that Ofgem will drop the cap at its next review.
• You use less energy than most other homes.
• You do not want to pay an exit fee if you see a better deal.

Households that want to move or change suppliers quickly often choose variable tariffs. They like these since there is no long contract holding them in.

What Other Costs Affect Dual Fuel Tariffs?

When you try to find the lowest dual fuel energy deals, keep in mind these extra costs:

• Standing charges – daily fees on every energy bill.
• Exit fees – often added to fixed contracts if you leave early.
• Meter type – smart meters may open up extra tariff choices, while old or prepayment meters can be more limited.
• Exclusive discounts – some suppliers give cheaper rates or special offers for new customers.
• Customer service – poor service can outweigh savings if billing or supply problems take too long to fix.

How Can You Use Your Recent Bill to Find the Cheapest Tariff?

Your recent bill shows:

• Shows the actual kWh you use for gas and electricity.
• Tells you your current type of tariff and how you pay.
• Shows if you have a fixed plan or a variable one so far.

When you enter your details in an energy comparison tool, you can see dual fuel tariffs from current suppliers and new ones. You get to know which is the cheapest option for you and your home.

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How Do You Compare Energy Suppliers and Switch Safely?

Switching is easy and safe with the energy switch guarantee. This tells you that:

• The new supplier will handle the whole change for you, from beginning to end.
• You will keep your gas and electricity supply when the switch is happening.
• If something goes wrong, your old supplier and your new supplier have to sort it out.

To compare energy prices in your area, try our energy price postcode checker. You can use it to look at prices fast. You will be able to find dual fuel energy tariffs in your area. This shows both fixed rate options and variable plans.

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