Dual Fuel Switch
Are you being hit with rising gas and electric bills? With energy price increases being recently announced by several major suppliers such as EDF and British Gas, it is more than likely that the increases will affect you. Are you trying to conserve or use less energy to save money? Or are you thinking of switching energy suppliers to a cheaper tariff? Switching energy suppliers has become increasingly popular, with over 5 million consumers switching energy suppliers in 2007. (OFGEM)
If you still have separate gas and electric suppliers, you might want to think about choosing a dual fuel tariff when you switch.
What is a dual fuel tariff?
A dual fuel tariff or plan is simply a system where you buy your gas and electricity from one supplier. “Most people are moving from having a separate gas supplier and electricity supplier to having one utility supplier who provides both gas and electricity. Dual fuel plans, as they are known, are usually a less expensive option than separate gas and electric plans because they tend to provide incentives and price reductions that cut the overall cost.” (Motley Fool)
Dual fuel plans are popular because in addition to the lower rates, they offer increased convenience in only having to deal with one utility company. According to a 2008 survey by Energywatch, the energy watchdog agency, 67% of energy customers have dual fuel accounts. (Energywatch)
Is it hard to switch to a dual fuel plan?
No, most energy companies offer some form of dual fuel plan and the actual process of switching providers has been made very straightforward and simple through the use of energy comparison and switching sites. These companies allow you to compare your current rates and rates from all suppliers available in your area
All you need to do is provide your postcode and some basic information on your current supplier and energy use. The comparison site will display the results for your area and choice of energy type (gas, electricity or dual fuel). You can browse the results and choose a new provider by clicking its link and filling out a short online form. The actual transfer of services will be done by your new provider, so all you may have to do is to provide a final meter reading. (Money Supermarket)
There are a number of energy comparison and switch sites such as Uswitch, Energy choices, Energy Linx and Energy Helpline.
Can switching to dual fuel plans save money?
It actually depends upon your particular circumstances, location and energy usage, but in many cases, dual fuel is cheaper than two separate suppliers. However, it is worth noting that this is not necessarily true in all cases. Martin Lewis of Money Saving Expert notes that “Logically, dual fuel (gas and electricity from the same supplier) should be cheaper and it often is, but not always.” He recommends “During your comparison…compare the cost of the cheapest dual fuel supplier with separate costs from the cheapest gas supplier and cheapest electrical supplier.” (Money Saving Expert)
If you choose an online dual fuel tariff, you could save even more, as online tariffs generally provide discounts or incentives.
Online tariffs can add convenience as you can view and change account details online, as well as saving postage costs. “By switching to a paperless online tariff, where you pay by monthly direct debit, you’ll be able to take advantage of the biggest discounts and make the biggest savings.” (Energy Choices)
Another point to keep in mind is that while all energy prices are rising, some are rising faster than others. While gas bills have increased by over 100% in the past five years (Tiscali), dual fuel bills have increased by 85%. (Money Facts)
One of the best ways to save money with a dual fuel plan is to choose a capped rate plan or tariff. These plans lock in the energy rate you pay for a specified time so your rate won’t change during that period. Unfortunately, during a time of rapid price increases, they can be difficult to find. The website Money.co.uk lists top dual fuel suppliers, some of whom offer price protection on rates. Their top choices include:
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Eon—with prices fixed until November 2009
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Npower—with prices fixed until March 2009
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Scottish Power—with prices fixed until Feb. 2011
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British Gas—with prices fixed until Feb. 2009 (Money)
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