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Compare Dual Fuel Tariffs

For many homeowners, dual fuel bills can be a little tricky to understand. Whilst some energy suppliers offer homes separate gas and electricity tariffs that seem cheaper on the surface, domestic dual fuel energy contracts can offer some great discounts on top of the convenience of managing billing.

Here are the key things to understand about dual fuel deals to make sure you get the cheapest gas & electricity tariff for your home

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What Is A Dual Fuel Energy Tariff?

The term 'dual fuel' is often referred to by energy suppliers and price comparison sites. It is a term that means buying both your gas and electricity from one supplier as a joint deal.

Energy suppliers prefer dual fuel customers as they get two types of energy from one customer which can reduce their overheads. They often attract new customers by offering the best dual fuel deals. As a customer, you could save money and it can be more convenient to have just one energy supplier.

How Is A Dual Fuel Energy Tariff Made Up?

You might be asking yourself "How do suppliers piece together a dual fuel energy tariff?".

It's a good question and to provide a little insight, here's a breakdown of a typical dual fuel bill: 

  • Wholesale costs - 34.63%
  • Network costs - 25.35%
  • Operating costs - 18.62%
  • Environmental & social obligation costs - 15.33%
  • VAT - 4.76%
  • Other direct costs - 2.24%

Source: Ofgem

Do Dual Fuel Discounts Offer Better Value?

Dual fuel tariffs can often be better value as they offer a discount for having both fuels with the same supplier. However, it is not always the case that dual fuel tariffs are cheaper. It is advised that you compare dual fuel energy deals before committing to a contract.

Selecting a dual fuel deal is also more convenience and is easier to manage your energy.

To make sure you’re getting the best duel fuel deals, you should look at the price per kWh for each fuel.

How Do I Know If I’m on a Dual Fuel Tariff?

If you receive your energy bills from the same supplier, the chances are that you are on a dual fuel tariff. However, if your contract has ended and you have been transferred onto a standard tariff you may no longer be receiving a dual fuel discount.

How Do Dual Fuel Tariffs Work?

To be eligible for a dual fuel tariff you must switch both your gas and electricity to dual fuel deal from the same supplier.

Energy suppliers often give customers a discount for buying both gas and electricity together on one deal as it cuts the overheads of setting up two separate accounts. It is best practice to compare dual fuel energy deals to save money and time.

Dual Fuel Energy Bills

Dual fuel energy bills are still split out into gas and electricity so that you can clearly see what you are using of each of the fuels. Most energy suppliers will send a combined bill with both fuels on the same bill, but they tend to keep the gas and electricity accounts separate.

If you pay by direct debit they will work out your payment amount for each fuel separately so that your direct debit is made up of two independent elements, but you will pay just one direct debit for both fuels. The credit and debit for each fuel are also kept separate and not combined.

As a dual fuel customer, you will need to keep in mind that the energy supplier will be still treating the gas and electricity separately so that you can treat them separately too. For example, if you pay by direct debit and have credit amounting on one of your fuel accounts and a debit on the other you will not necessarily be able to move the credit between the two fuels, you will need to discuss this with your energy supplier to see if it is possible.

In this example, you may want to discuss a review of your account with the energy supplier to adjust your direct debit payments to a level that match your consumption for each fuel.

How Is the Dual Fuel Discount Applied?

The dual fuel discount will be split between the two fuels, for example, if the discount is £30 per year then you will see a discount of £3.75 per fuel each quarter or £1.25 per month. This discount may look different if it is applied before VAT which is often the case as the total discount is worked out with VAT included, but you will still get the same level of discount.

How to Switch to Dual Fuel Tariff

If you want to switch to a dual fuel tariff you are best to do a price comparison to see which energy supplier will offer you the best deal. Use your energy usage from your bills where possible on the price comparison site to get the most accurate comparison, you can use the comparison sites estimates but it will not be as accurate.

Power Compare has an energy price comparison engine that is powered by Love Energy Savings, and we also have a guide to help you understanding switching suppliers better.

Once you have found a tariff that you like you can proceed to switch. The switching process is much simpler than most people think as the new energy supplier deals with the whole switching process for you and you will not have to contact your existing supplier, just pay the final bill once it is calculated after the switch.

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