Gas only tariff explained

Choosing how you power your home is a significant decision, and for many in the UK, a gas-only tariff offers a compelling alternative to traditional dual-fuel deals. This approach allows you to manage your gas supply independently, providing flexibility and control over a key household expense.

For those looking to manage their gas costs effectively, Fuse Energy offers straightforward pricing and clear insights into your energy usage. Click here to explore gas tariffs designed for your home.

What is a gas only tariff?

A gas-only tariff is a contract with an energy supplier solely for your home's gas supply. It means you receive a bill and service for your gas from one company, while your electricity supply (if you have it) comes from another. This separation allows you to manage your gas costs independently, appealing to those who prioritise simplicity and cost-effectiveness in their energy choices.

Understanding the basics of separate gas supply

With a gas-only tariff, your home's gas is delivered through pipes, primarily used for heating, hot water, and sometimes gas cookers. This supply is entirely separate from your electricity. The UK energy market, including gas tariffs, is regulated by Ofgem, which sets price caps for standard variable tariffs to ensure fair pricing. All gas suppliers in Great Britain are regulated by Ofgem, ensuring fair practices and consumer protection.

Gas-only vs dual fuel: key differences

The primary difference between gas-only and dual-fuel tariffs lies in the number of suppliers you deal with. With a dual-fuel tariff, one company provides both your gas and electricity, often with a single bill. A gas-only tariff means you have one supplier for gas and a different one for electricity. While dual-fuel can sometimes offer a slight discount for bundling, a gas-only approach gives you the freedom to switch each fuel independently, potentially securing better individual rates.

Who should consider a gas only tariff?

Gas-only tariffs are not for everyone, but they can be a smart move for specific households looking to optimise their energy management and gain greater control.

Households with separate electricity suppliers

If you already have a separate electricity supplier, perhaps due to a specific green electricity tariff or an electric vehicle tariff, a gas-only tariff is a natural fit. It allows you to maintain your chosen electricity provider while seeking the most affordable gas deal on its own. This flexibility can be a powerful tool for keeping your energy costs in check.

Homes with specific gas usage patterns

Homes with distinct gas usage patterns, such as those with very high or very low gas consumption compared to electricity, might find more tailored options with a gas-only tariff. For instance, a household predominantly powered by gas might find cheaper unit rates for gas than electricity. The average UK home uses around 9,500 kWh of gas per year1, making efficient tariff choices significant for household budgets.

Seeking greater control over energy choices

Choosing a gas-only tariff gives you greater control over your energy supply decisions. It aligns with the idea of empowering choices and transparent management, allowing you to make a "power play" by managing your energy without fear or compromise. This approach challenges the industry narrative of constant scarcity by enabling smart, efficient energy use.

Benefits of choosing a gas only tariff

Opting for a gas-only tariff can offer several distinct advantages, from potential cost savings to enhanced flexibility in managing your home's energy.

Potential for tailored cost savings

While dual-fuel deals sometimes offer discounts, a gas-only tariff allows you to hunt for the most affordable rates for each fuel separately. Gas unit rates and standing charges vary significantly between different tariffs and suppliers, impacting overall cost. By comparing gas-only deals, you might find a supplier offering a lower unit rate or standing charge for gas than you would get in a bundled dual-fuel package.

Increased flexibility in supplier choice

One of the most significant benefits is the freedom to pick the best supplier for each energy type. You are not tied to a single company for both fuels, which means you can switch your gas supplier independently if a better deal comes along, without affecting your electricity contract. This is particularly useful if you find a fantastic deal for electricity but a less affordable one for gas from the same provider, or vice-versa.

Simplified energy management for specific needs

For some, separating gas and electricity simplifies energy management. If you have a clear understanding of your gas usage and prefer to focus on optimising that specific cost, a gas-only tariff makes this straightforward. Fuse Energy, for example, focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity.

How to find and switch to a gas only tariff

Switching to a gas-only tariff is a straightforward process, but it requires a few key steps to ensure you find the best deal for your home.

Assessing your current gas usage and contract

Before comparing, gather your current gas usage data. Your annual energy statement or recent bills will show your consumption in kilowatt-hours (kWh). Knowing your average usage is crucial for getting accurate quotes. Also, check your current contract for any exit fees if you're on a fixed tariff, though these often do not apply if your contract ends within 49 days or you are on a Standard Variable Tariff.

Comparing gas only deals and suppliers

Use energy comparison tools to research available gas-only tariffs from various suppliers. Focus on unit rates (p/kWh), daily standing charges (p/day), contract length, and any associated exit fees. Ofgem's energy price cap limits the maximum price suppliers can charge for each unit of gas and electricity on standard variable tariffs. Remember that while the cap limits rates, your total bill still depends on how much energy you use.

The seamless switching process

Once you have chosen a new supplier, they will handle the switch on your behalf; you do not need to contact your old provider. Switching energy suppliers in the UK typically takes around five working days, thanks to initiatives designed to make the process quicker and more reliable. You also have a statutory 14-day cooling-off period, allowing you to cancel the switch without penalty if you change your mind. This period begins when you submit your switch request. During the switch, your energy supply remains continuous, with no interruptions.

Common questions about gas only tariffs

Are gas only tariffs always cheaper?

Not automatically. While a gas-only tariff can look cheaper, the best value depends on your electricity price, standing charges, usage, and the supplier's latest deals. Dual-fuel deals can sometimes be cheaper if one supplier's combined pricing beats two separate deals once standing charges are included. The key is to compare whole-of-market options to see whether a gas-only tariff combined with a separate electricity deal works out best for your home.

Understanding exit fees and contract terms

Fixed gas-only tariffs come with a contract length, and leaving before the end date may incur exit fees. However, if you are on a Standard Variable Tariff, there are typically no exit fees, giving you the freedom to switch at any time. Always check the terms and conditions of any tariff before committing.

How often should I review my gas only tariff?

It is wise to review your gas-only tariff regularly, especially as market conditions change. If you are on a fixed tariff, consider comparing options as your contract approaches its end, typically within the last 49 days, to avoid being rolled onto a potentially more expensive Standard Variable Tariff. Regularly checking allows you to take advantage of new affordable deals.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. If you do not have a smart meter, Fuse Energy can upgrade your non-smart meter, completely for free. This can make it easier to track spending and make informed decisions about your energy use. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.

References

1. Ofgem. Review of Typical Domestic Consumption Values