Should I choose a fixed rate or variable rate dual fuel tariff?
What are the advantages of fixed rate dual fuel tariffs?
- There are no surprises. You pay the same amount each month until your contract ends.
- You’re protected from future price rises.
- You can change your tariff for free if you have less than 50 days left on your contract.
What are the disadvantages of fixed rate dual fuel tariffs?
- If energy prices go down, your payments stay the same
- You may have to pay an exit fee if you leave with 50+ days left on your contract
What are the advantages of variable rate dual fuel tariffs?
- You benefit immediately when energy prices go down
- You don’t have to pay exit fees
What are the disadvantages of variable rate dual fuel tariffs?
- Price rises have an impact – but the price per unit of energy is limited by the Ofgem energy price cap
- You’re paying different amounts each month
- You’re unlikely to have access to deals and special offers.
How do I switch to a dual fuel tariff?
1. Make sure you can switch
You might not be able to switch your current tariff because:
- You’re on a fixed rate tariff with 50+ days left on the contract – and you don’t want to pay the exit fee.
- You’ve owed money to your supplier for more than 28 days. In this case, you need to pay them before you switch.
- You’re renting and you pay your landlord for your gas and electricity.
2. Gather some key information
You need this information before you start searching:
- Your postcode
- The name of your current supplier
- The name of your current energy tariff
- Your kilowatt hour (kWh) usage year
- A recent bill so you can compare quotes
3. Decide what you want from your dual fuel tariff
- Are you looking for a green supplier?
- Do you want the cheapest tariff available?
- Do you want a fixed rate or variable rate?
- Do you want an electric vehicle (EV) tariff?
- This gives you discounted rates for charging your vehicle (and using your appliances) during off-peak hours.
- How long would you like your contract to be?
- Do you want to manage your energy online?
- Is good customer service a priority? Supplier ratings can show you what to expect.
4. Compare dual fuel energy deals
Once you start comparing energy tariffs, you soon get a feel for what you want. And remember you’ve got choices.
You can:
- Start a dual fuel contract with a new supplier
- Move one or both of your fuels to a new supplier
- Switch to a different tariff or tariffs with your current supplier
To sign up to a new dual fuel tariff, you need your Direct Debit details and current meter readings.
If you change your mind once you’ve committed, there’s still a cooling off period when it’s free to cancel. But tell your supplier as soon as possible.
Find out more about switching your energy supplier.
How does the Ofgem price cap affect variable rate dual fuel deals?
The energy price cap is set by Ofgem, the UK’s energy regulator. It sets the maximum amount that energy suppliers can charge you for each unit of gas and electricity. It also caps your daily standing charge – but not how much you actually pay for your dual fuel plan.
The bill for your variable rate dual tariff also reflects:
- Your actual household energy usage
- Where you live
- The kind of meter you have
- How you pay for your energy
Ofgem updates the energy price cap every 3 months. From 1 January to 31 March 2024, it's set at £1,928 a year for a typical dual fuel household paying by Direct Debit.
This means you’re paying for your energy at an average maximum unit rate of:
- 28.62p per kWh for electricity
- 7.42p per kWh for gas
The average daily standing charge will be 53.35p for electricity and 29.60p for gas per day.
Find out more about the energy price cap.
Frequently asked questions
Do dual fuel accounts work with smart meters?
Most homes have 2 meters - 1 for gas, 1 for electricity. These can be replaced by a single smart meter which works with dual fuel tariffs.
Using the In-Home Display, you can monitor your energy usage for gas and electricity in near real time.
Find out more about smart meters.
How do I switch to a greener dual fuel deal?
It’s as easy to switch to a green energy tariff as it is to any other type of tariff. You can find green energy deals on the results table when you run a normal energy comparison.
Find out more about green energy tariffs.
Is it easy to switch to a dual fuel tariff?
Switching to a dual fuel tariff is easy thanks to the Energy Switch Guarantee. The guarantee was created to set higher standards in customer service. By signing up, suppliers commit to making your life easier. This includes making it possible to switch to a new tariff within just 5 working days.
Even better, when you transfer to a new tariff or supplier, it’s the supplier who does the hard work not you. If they need more information from you, they get in touch.Find out more about the Energy Switch Guarantee.
What can I do to save money on my dual fuel energy tariff?
First, make sure you’re not overpaying for your energy supply. Second, stay on top of your spending. Here are some simple ways to do that:
- Stay up to date with current dual fuel deals to make sure you’re still getting the best price.
- If you’re on a fixed rate tariff, set a reminder for the end of the contract so you can look for a new deal. This is important if your tariff switches automatically to a standard variable tariff when your contract ends.
- If you haven’t got a smart meter, take regular meter readings. If you don’t, your energy company base your bills on estimates which can make them inaccurate. This means you could be charged too much or not enough for your energy.
Which supplier has the cheapest dual fuel tariffs?
Dual fuel tariffs change all the time so there's no easy answer here. Dual fuel tariff prices are set depending on the market.
That’s why comparing energy quotes regularly is so important. Use your preferred rate and the estimated cost per year and per month to explore the options.
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