This new small digital brand says that it's the 'newest and best electricity supplier' and is also building renewable generation.
Its variable tariff is 5% cheaper than price capped rates for a household that uses a typical amount of electricity.
It doesn't sell a gas tariff, so if you have both fuels you would need to buy gas through a different company.
Fuse Energy isn't the only company to launch a new tariff - see what British Gas and EDF Energy are offering andIs Fuse Energy the cheapest option?
Most households' are paying for variable energy tariffs at the moment, which are set at the level of the energy price cap. For a household with 'typical useage' this would cost around £1,067 per year for electricity only (it's around £2,074 including gas).
The same household would pay around £55 less per year for their electricity with Fuse Energy's new tariff.
That makes it around 5% cheaper that the price cap rates, on average. That percentage is greater if your household uses less energy than average.
The main reason Fuse Energy's deal is cheaper is because its standing charges are lower than others. Standing charges are the daily amount you pay to be connected to the grid.
The average standing charges per day for electricity are:
Standing charges are the same no matter how much electricity you use. That means households that use very little electricity would save the most (as a proportion of their bills) with Fuse Energy's tariff.
How do you pay for Fuse Energy's tariff?
Fuse Energy's tariff is variable. That means that its prices can change whenever the firm increases or decreases its rates. It has to give you reasonable warning that this is happening.
The other notable thing about this tariff is that while you pay by direct debit (ie. set up in advance to come out of your bank account at a certain time each month) the amount you pay is for the energy you've used in the previous month. It's a bit like paying a credit card balance in full each month.
So your payments will be different every time, based on your meter readings.
The upside of this is that you won't build up a large credit balance - you're only ever paying for what you've used. The downside is that your monthly payments will be considerably more in winter, when your central heating is on, than in summer.
It doesn't accept payments by any other means - fixed direct debit, payment on receipt of a bill or prepayment.
Should I switch to Fuse Energy?
Before you switch, here's what you should know:
It's an app-only supplier and its customer service is mainly digitalYou'll need to pay by direct debit.Your direct debit payments change every monthIt doesn't supply gas. It doesn't support Economy 7 or Economy 10It's a brand new company. Not sure? See our tips on .What is Fuse Energy?
Fuse Energy launched on 19 July, founded by former executives of banking app Revolut.
It says it operates 18MW of solar and wind sites in the UK and will reinvest its profits into more renewable projects.
source https://www.which.co.uk/news/article/fuse-energy-should-you-switch-to-the-new-cheap-energy-supplier-a9UEr1k5axdO