Dual Fuel vs Single Fuel | Which Energy Tariff Is Cheaper?

What Is a Dual Fuel Tariff?

A dual fuel tariff is when you get your gas bill and electricity bill from one energy supplier. This means you have just one energy bill. There is also only one point of contact if you need help. You can pay every month by direct debit.

Main benefits of dual fuel tariffs:

• You can have one energy account and get just one bill. This makes your energy bills easier to manage.
• You only need to speak with one point of contact for any queries or help from customer service. This is simple if you want to ask something or need help.
• A dual fuel discount is usually given. That often means you pay less for your unit rates or standing charges in your energy bills.
• The energy switch guarantee helps make it easier for you to switch both fuels at the same time.
• You could get exclusive discounts or special offers when you use dual fuel and have both fuels together in your account.

What Is a Single Fuel Tariff?

A single fuel tariff means your gas and electricity are not both from the same energy company. You have gas from one company. A different energy company gives you your electricity. So, you deal with two energy companies. One will take care of your gas account, and the other looks after your electricity.

Key points about single fuel tariffs:

• There are two accounts. You get one gas bill and one electricity bill.
• This lets you have more flexibility. You can switch just your gas or only your electricity if you find a better energy deal.
• It can be good for homes where the usage is different, like if electricity use is very high or gas use is very low.

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Is Dual Fuel Cheaper Than Using Separate Suppliers?

Sometimes yes—but not always.

• A dual fuel energy comparison shows that many people like to get both their gas and electricity from one supplier. This can make billing easier for you. You may also save some money if your usage of both is average or high.
• But if you use more electricity and less gas, or more gas and less electricity, you might find better electricity tariffs or gas tariffs with separate suppliers. In this case, you need to look for the right tariffs that fit your own usage.
• If you choose separate suppliers, you get two bills and two ways to pay. You may have to deal with more customer service work. This can take more time and might add extra costs.

When Do Single Fuel Tariffs Offer Better Value?

• If you see that your electricity bill is much more than your gas bill, and there is a special tariff for electricity that has lower rates, this could help you save some money.
• In homes where people do not use a lot of energy, the standing charges need to be paid each day, no matter the amount you use. When the usage is low, the fixed cost from dual fuel tariffs can end up being most of what you pay.
• If you like having freedom with your energy supplier, you can use separate suppliers for gas and electricity. This lets you switch either gas or electricity without changing the other at the same time.
• If your energy supplier does not offer a good dual fuel deal, but another supplier has a better plan for just gas or only electricity, picking that single tariff can be the smart choice.

How Does the Ofgem Price Cap Affect Dual and Single Fuel Tariffs?

Ofgem’s energy price cap sets the top price for each unit of energy and for standing charges on standard variable tariffs. This price cap makes sure you do not have to pay too much for energy when you are on one of these variable tariffs. The energy price cap is there to help keep the cost of tariffs fair for people.

Ofgem says the cap lets you see what a normal dual fuel bill should be for a house that pays by direct debit. If you use more energy, you will pay more for it. If you use less, you pay less. The money you pay depends on your usage.

Fixed rate tariffs do not have a set limit. Once you pick one, the price does not change even if energy prices go up. So, you do not have to worry about your tariffs rising in the future.

Do Dual Fuel Tariffs Always Include a Discount?

No—not always.

• Many dual fuel deals give you a dual fuel discount. This can be lower unit rates, smaller standing charges, or both. The size of the dual fuel discount can change depending on the energy supplier and the tariff you pick.
• Some dual fuel plans only put gas and electricity together but do not bring the final cost down.
• To get the best deal, you need to look at the tariffs very carefully. Check if any dual fuel discount or other offer makes the tariff better for you. The dual fuel discount and the choice of energy supplier can really change what you pay when you compare tariffs.

• Standing charges are a set fee you pay each day. The amount stays the same, and you have to pay it on your energy bill even if you do not use any energy.
• Sometimes, dual fuel plans will let you get lower standing charges compared to choosing gas and electricity tariffs alone.
• A lot of places have electricity standing charges that be higher than gas standing charges. So, if you use lots of electricity, your energy bill can be more because of this.

Does How Much Energy You Use Change Which Option Is Cheaper?

Yes. The way you use energy can make a big difference in if dual fuel or single fuel is a good choice for you and if it is more affordable.

• If you use more energy than most people, like for electric heating or to charge your EV, a dual fuel plan can help you get cheaper energy bills because of lower rates.
• If you use less than average, standing charges make up more of what you pay. In this case, you may get a better price if you use separate suppliers.
• Always check your recent bill to see your real usage in kWh. Use this to compare and find what is best for you.

How Do Customer Service and Billing Differ Between One Supplier vs Separate Suppliers?

• When you use one energy supplier with a dual fuel plan, you get one bill. There is one energy account and just one point of contact. This can make customer service better for you.
• If you have separate suppliers, your bills may not come at the same time. You will talk to more than one customer service team. You may also have to pay two exit fees.
• A dual fuel plan might not always be the lowest price, but many people like it. This is because the billing is easy and simple.

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How Can You Compare Dual Fuel vs Single Fuel Tariffs Accurately?

To do a fair dual fuel comparison:

1. Look at the newest numbers from Ofgem for the energy price cap on variable tariffs.
2. Get your recent bill and see how many kWh you used.
3. Compare the unit rates and standing charges.
4. Check if you have a fixed tariff to see if there are any exit fees.
5. Think about any exclusive discounts or dual fuel discounts that could be there.
6. Use our energy price postcode checker to look at tariffs from your current suppliers and any new ones you want to check.

FAQs About Dual Fuel vs Single Fuel Tariffs