For years, UK households have been told that dual fuel tariffs — where gas and electricity come from the same supplier — are the simplest and cheapest option. But new market data suggests that assumption may no longer hold true.
As more suppliers compete for customers and new fixed-rate offers emerge, separate gas and electricity deals are starting to outperform traditional bundled contracts. Experts say this marks a shift in the way households should think about their energy strategy for 2025 and beyond.
Dual fuel tariffs under review
Dual fuel tariffs became popular in the early 2000s when suppliers offered discounts to customers taking both fuels together. The convenience of one bill and a single supplier made it the standard choice for most homes.
However, Ofgem’s latest market monitoring shows that dual fuel discounts have largely disappeared. Instead, pricing for gas and electricity is now often set independently, and some suppliers offer cheaper single-fuel rates.
Shay Ramani, CEO of Free Price Compare, explained:
“Bundling both fuels under one supplier used to guarantee savings, but that’s no longer the case. With today’s market structure, households could find that splitting suppliers delivers better value — especially if one company has competitive gas pricing while another offers cheaper electricity.”
Price cap doesn’t guarantee the cheapest deal
The Ofgem price cap limits what suppliers can charge per unit and in standing charges, but it only applies to standard variable tariffs. Fixed deals — whether dual fuel or single fuel — can sit below the cap.
For example, one supplier may offer an electricity rate 8% below the price cap, while another has reduced gas rates by a similar amount. Customers sticking to a dual fuel tariff might miss out on these opportunities if they don’t compare suppliers separately.
Ramani added that it takes only minutes to compare energy deals online and see whether separate tariffs are cheaper. “It’s one of those simple checks that can add up to real money over a year, especially when winter usage peaks.”
Why households may benefit from separating suppliers
Several factors are driving this shift:
- Increased competition: Smaller renewable energy suppliers are undercutting the Big Six with single-fuel offers to attract customers.
- Fixed-rate flexibility: Some households prefer locking in one fuel type at a fixed rate while keeping the other variable to follow market trends.
- Regional pricing differences: Network and standing charge variations mean the best gas supplier in one region may not be the best for electricity.
Ofgem’s regional pricing data confirms that differences in standing charges can now exceed £50 per year between suppliers, making dual fuel convenience potentially more expensive.
The convenience factor vs cost savings
For many households, simplicity still matters. A single bill, one customer service point, and synchronised payment dates can make budgeting easier.
However, as Ramani pointed out, “The convenience of dual fuel is worth something — but not at any cost. If splitting suppliers saves £10–£15 a month, that’s £120–£180 a year many families can’t afford to overlook.”
Households can explore the pros and cons of each option on dual fuel tariffs, which outlines when combined plans still make sense and when it’s worth shopping around.
Prepayment and low-use households
Those on prepayment meter tariffs are among the groups who benefit least from dual fuel arrangements. Because prepayment meters often come with higher standing charges and fewer fixed-rate offers, combining both fuels under one supplier doesn’t necessarily reduce costs.
Separating fuels can sometimes open access to cheaper regional or community-based tariffs designed specifically for low users.
Why this matters now
With colder weather approaching, energy use is set to rise across the UK. The average dual fuel household spends around £1,755 per year under the current price cap, but even modest differences in unit rates can translate to large savings over the winter.
Analysts say the market is entering a new phase of competitiveness. “Consumers who still assume dual fuel equals best value are missing the point,” said Ramani. “In 2025, flexibility and awareness win. The households comparing both single and dual fuel deals will come out ahead.”
Smart homes and tailored tariffs
Another factor changing the equation is technology. Smart meters and connected home devices are giving consumers more control over their usage patterns. Some suppliers now offer electricity-only tariffs designed for homes with solar panels, electric vehicles, or heat pumps — a trend that makes dual fuel less relevant for many.
As energy habits evolve, so too should the way households approach pricing. The key takeaway for consumers is simple: the cheapest energy deal is no longer guaranteed to come from a single supplier.
The bigger picture
After several years of turbulence, the UK energy market is stabilising, and competition is returning. That’s good news for consumers — but only for those who act on it.
By reviewing tariffs and being willing to separate suppliers, families can make meaningful savings before winter bills hit. Comparison platforms like Free Price Compare make it easier than ever to identify where those savings lie.
For millions of households still relying on the old dual fuel tariffs, it may be time to rethink what “best deal” really means in 2025.