Dual Fuel Energy Tariffs in the UK - A Comprehensive Guide

Dual fuel energy tariffs have become increasingly popular in the UK over the past few years, as they provide consumers with the convenience of dealing with one supplier for their electricity and gas needs. Customers can benefit from fixed prices, discounts and rewards, and the possibility of switching between suppliers without changing both services.

The ''Big Six' energy companies in the UK—British Gas, EDF, E.ON, Npower, Scottish Power, and SSE—as well as a few other smaller suppliers—offer dual fuel energy tariffs. These providers offer various options to suit different budgets and needs, including fixed price, variable price, standard and green tariffs. 

In this article, I will explore the best deals of dual fuel energy tariffs currently on the market. I will also cover the basics of dual fuel energy tariffs, including how they work, their advantages and disadvantages, their relationship to renewable energy, and how to choose the right tariff.

What exactly are dual fuel energy tariffs?

Energy tariffs known as dual fuel allow you to purchase both gas and electricity from the same source.

This can be more convenient and cost-effective than having two separate tariffs, as you will only have one bill to pay, and you may get a discount for bundling your services.

Dual fuel tariffs are available from various energy suppliers, and there are several different types of tariffs to choose from, including fixed-rate, variable-rate, and green tariffs. Fixed-rate tariffs offer a fixed price for your energy for a set time, while variable-rate tariffs can fluctuate up or down depending on the market price of energy. Green tariffs use renewable energy sources, such as wind and solar power, to generate electricity.

How Do Dual Fuel Tariffs Work?

Dual fuel energy works by bundling gas and electricity services from the same energy provider into a single package for residential customers. When customers opt for a dual fuel tariff, they often can save money through various discounts and incentives. These savings typically represent a small percentage of their overall energy bill and can take different forms, including:

Cashback

Some energy providers offer cashback incentives to customers who choose a dual fuel tariff. This means that a certain amount of money is returned to the customer as a rebate after a specified period, such as a year.

Percentage Cut off Your Bill

Customers may receive a percentage reduction on their energy bill when they opt for a dual fuel tariff. This discount is applied to the total cost of both gas and electricity services.

Cheaper Energy Unit Rate per Kilowatt-Hour (kWh)

Dual fuel customers may benefit from a lower unit rate for the energy they consume, which can result in savings over time. The unit rate is the price customers pay for each kWh of Gas and electricity they use.

Lower Standing Charge

The standing charge is a fixed daily or monthly fee associated with having a gas and electricity supply, regardless of usage. With dual fuel tariffs, providers may offer a lower standing charge, benefiting customers with low energy consumption.

These discounts and incentives are designed to make dual fuel tariffs more appealing and cost-effective for customers. While the savings may not be substantial, they can add up over time, especially when combined with energy-saving practices and efficient usage. 

Customers need to compare dual fuel offers carefully from different providers to find the one that best suits their needs and offers the most attractive discounts. Overall, dual-fuel energy simplifies billing and can lead to cost savings, making it a popular choice for many households seeking to streamline their energy expenses.

Advantages of Dual Fuel Energy Tariffs

Here are some key advantages:

Convenience

Managing your energy becomes more convenient with dual fuel tariffs. You only need to deal with one provider, use one website or app, and set up a single payment method, simplifying administration tasks.

Centralised Account Management

With a dual fuel tariff, you can manage your gas and electricity accounts in one place using a single password. This simplifies the procedure and makes measuring your energy usage simpler.

Cost Savings

One of the most notable dual fuel advantages is the capability for cost savings. Energy providers often offer discounts to customers who choose this type of tariff. These savings can come in the form of a percentage reduction on your overall energy bill, cashback, a lower standing charge, or a more favourable energy unit rate, ultimately helping you save money.

Transparent Energy Consumption

Dual fuel tariffs provide a consolidated bill, allowing you to see your gas and electricity consumption in one place. This transparency can help you understand your energy usage patterns and make informed decisions to reduce consumption and lower your bills.

Disadvantages of Dual Fuel Energy Tariffs

Here are the disadvantages of dual fuel energy tariffs:

Not Always the Cheapest

Dual fuel pricing might not always be the most inexpensive pick. Depending on your energy usage and the specific supplier, single fuel tariffs (gas-only or electricity-only) are cheaper for your particular needs.

Early Exit Fees

If you're on a fixed-rate dual fuel tariff and decide to switch to another energy supplier before the contract ends, you may be subject to early exit fees. These fees can add extra costs if you need to switch providers.

Best Deals of Dual Fuel Energy Tariffs 

Here is a table of the tariffs from various energy suppliers, including the unit rates for electricity and gas, exit fees, and their green credentials:

This table shows the best deals on dual fuel energy tariffs from the Big Six energy suppliers as of August 4, 2023. All of the tariffs in this table are fixed-rate, meaning that the price per unit of energy will remain the same for a set period, usually one or two years. All the tariffs in this table also provide 100% renewable energy while having no exit fees.

Note: These prices are subject to change, depending on where you live and other factors.

The Big Six energy suppliers 

British Gas is the UK's biggest energy supplier. It offers a wide range of dual fuel tariffs, including fixed-rate tariffs, variable-rate tariffs, and green tariffs. British Gas is known for its commitment to renewable energy and good customer service.

EDF Energy is another large energy supplier in the UK. It offers a variety of dual fuel tariffs, including fixed-rate, variable-rate, and green tariffs. EDF Energy is known for its focus on customer satisfaction and competitive prices.

E.ON is a German energy supplier operating in the UK for many years. It offers a variety of dual fuel tariffs, including fixed-rate, variable-rate, and green tariffs. E.ON is known for its innovative services and products.

Npower is a British energy supplier operating for over 100 years. It offers a variety of dual fuel tariffs, including fixed-rate, variable-rate, and green tariffs. Npower is known for its dedication to customer service and its value for money.

Scottish Power is a British energy supplier operating for over 50 years. It offers a variety of dual fuel tariffs, including fixed-rate, variable-rate, and green tariffs. Scottish Power is known for its competitive prices and commitment to renewable energy.

SSE is a British energy supplier operating for over 40 years. It offers a variety of dual fuel tariffs, including fixed-rate, variable-rate, and green tariffs. SSE is known for its good customer service and commitment to renewable energy.

Tariffs and Renewable Energy

Tariffs help make renewable energy more prevalent in a few ways. 

• One way is through feed-in tariffs (FITs), which promise renewable energy makers a set price for the electricity they make. FITs have worked well in countries like Germany and the UK. 

• Another way is with green tariffs, where you can choose to buy electricity made from renewable sources. These are getting more common because people want to help the environment. 

• Also, tariffs can make a market for renewable energy credits (RECs). These credits show how eco-friendly the energy is and can be sold to companies to offset pollution.

That helps renewable energy become more competitive and encourages more green energy projects.

Green and Eco-Friendly Options

Tariffs can also encourage eco-friendly habits. Some tariffs give discounts if you use energy-saving appliances or install solar panels. Others charge more if you use too much energy. Tariffs can also be designed to give you varying prices for electricity at different day times. 

This can make you use energy when it's cleaner and helps the environment. Tariffs can greatly promote renewable energy and help people make greener choices for a better future.

How to Choose the Right Dual Fuel Tariff?

When choosing a dual fuel tariff, there are a few things you need to consider:

• Your energy usage: How much Gas and electricity do you use each year? See your energy bills to get this information.

• Your budget: How much will you spend on your energy bills?

• Your contract length: Do you want a fixed or variable-rate tariff? Fixed-rate tariffs offer a fixed cost per unit of energy for a set time, usually one or two years. Variable-rate tariffs can fluctuate up or down depending on the market price of energy.

• Your green credentials: Do you want a tariff that uses renewable energy?

Once you have taken into account these factors, you can compare dual fuel tariffs from different suppliers. You can use a price comparison website to do this. Always carefully review each tariff's terms and conditions before you switch.

Here are some additional tips for choosing the right dual fuel tariff:

• Look for tariffs with no exit fees: Exit fees can make it challenging to switch tariffs if you find a better deal elsewhere. Avoid tariffs with exit fees, or choose a tariff with a low exit fee.

• Beware of teaser rates: Teaser rates are low introductory rates that only last for a few months. After the teaser rate period ends, the price per unit of energy will increase to the standard rate. If you choose a tariff with a teaser rate, ensure you are happy with the standard rate before switching.

• Consider your customer service needs: Some suppliers offer better customer service. If you need a lot of help with your energy account, choose a supplier with a good reputation for customer service.

Once you have chosen a dual fuel tariff, you can switch suppliers quickly and easily. Most switches can be completed within 21 days.

Conclusion

Dual fuel energy tariffs in the UK offer consumers the convenience of managing their Gas and electricity needs through a single supplier, with the potential for cost savings, fixed or variable rate options, and eco-friendly choices like 100% renewable energy. The Big Six energy providers, as well as smaller suppliers, offer a variety of dual fuel options to suit different budgets and preferences. 

To select the right tariff, it's crucial to consider factors such as your energy usage, budget, contract preferences, and green credentials. Careful comparison and reading of terms and conditions will help you make an informed choice, ultimately simplifying your energy management and promoting a more sustainable energy future.

FAQs 

Which dual fuel energy tariff is the cheapest?

The cheapest dual fuel energy tariff will vary depending on your energy usage, budget, and contract length. It is important to compare tariffs from different suppliers to get the most suitable deal.

What is a fixed-rate dual fuel energy tariff?

A fixed-rate dual fuel energy tariff offers a fixed price per unit of energy for a set time, usually one or two years. This can be an excellent pick if you want to budget for energy costs and protect yourself from price rises.

What is a variable-rate dual fuel energy tariff?

A variable-rate dual fuel energy tariff offers a price per unit of energy that can fluctuate up or down depending on the market price of energy. This can be a riskier option than a fixed-rate tariff, but it can also be cheaper if the market price of energy falls.

How do I switch to a new dual-fuel energy tariff?

Switching to a new dual fuel energy tariff is quick and easy. You can usually switch online or by phone. The new supplier will cover the rest, including cancelling your old tariff and transferring your supply.

What are the benefits of switching to a renewable energy dual fuel tariff?

Renewable energy dual fuel tariffs use energy from renewable sources, such as solar power and wind. Switching to a renewable energy tariff can reduce your carbon footprint and support renewable energy development in the UK.