Fuse Energy: here's what we know about this new supplier
Fuse Energy was the first new supplier to join the market after the energy crisis. More than two years on, it claims that its variable tariff will always be cheaper than major UK suppliers and that it offers one of the UK's cheapest fixed tariffs.
That's a step down from its original claim to have the cheapest electricity tariff in the UK, but Fuse does remain focused on offering low prices. Here are some of its toplines:
- As well as selling energy tariffs, it also operates solar and wind power in the UK and installs solar panels on homes.
- It says its variable tariff beats the UK price cap, making it cheaper than major UK suppliers.
- It previously only offered electricity, but has recently introduced gas tariffs, widening its appeal to include customers with both fuels.
- It offers dedicated 'EV tariffs', and claims to offer the UK's cheapest off-peak rates.
It's primarily an app-based supplier, and you are likely to get the best experience if you're happy using its app. You can sign up and manage your account online, but functionality may be more limited.
Fuse Energy isn't the only company to have competitive rates compared to today's price cap – see the latest cheap tariffs in our guide to how to get the best energy deal.
What types of energy deal does Fuse Energy offer?
Fuse Energy currently sells both fixed and variable deals.
These include:
- Single-rate fixed tariffs
- Single-rate variable tariffs
- Off-peak fixed tariffs (electricity only), where electricity costs less at off-peak times
- Off-peak variable tariffs (electricity only), where electricity costs less at off-peak times
- Smart EV tariffs (electricity only), which Fuse claims can save up to 90% vs public charging
Find out more: the difference between fixed and variable energy tariffs
Is Fuse Energy cheap?
Many households in the UK are paying for out-of-contract, variable energy tariffs, which are typically set at the level of Ofgem's energy price cap.
For a medium household with typical usage, this would cost around £1,755 per year for a dual-fuel electricity and gas tariff, based on rates from October to December 2025.
The same household would pay around £43 less per year (£1,712) for energy with Fuse Energy's standard variable tariff (correct on 29 October 2025).
That makes it around 2.5% cheaper than the price-capped variable rates, on average.
The main reason Fuse Energy's variable tariff is cheaper is because its standing charges are lower. Standing charges are the daily amount you pay to be connected to the grid.
For example, the average standing charges per day for electricity are:
- Price cap average: 53.68p
- Fuse Energy's standard variable tariff: 42.93p
The standing charges you pay each day are the same no matter how much electricity or gas you use. The less energy you use, the bigger proportion of your bill is made up of your standing charges. That means households that use very little electricity would save the most (as a proportion of their bills) with Fuse Energy's tariff.
Fuse Energy's fixed rate energy deals
Fuse Energy also offers a range of fixed-rate deals, which frequently feature in our round-up of the cheapest energy deals.
As of the end of October 2025, its cheapest fixed-rate energy tariffs – which fix both electricity and gas rates for 13 months – would cost a medium household with typical use around £1,526 a month. This is a saving of around £186 per year on Fuse Energy's standard variable tariff, and around £229 on the energy price cap.
How do you pay for Fuse Energy's tariff?
Fuse Energy's direct debit model is different to that offered by most other energy firms. It takes payments through variable direct debit, rather than spreading the payments evenly throughout the year.
If you pay by direct debit (set up in advance to come out of your bank account at a certain time each month), the amount you are charged 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.
That means your payments will be different every time, based on your meter readings. The vast majority of other energy companies charge you the same amount each month regardless of what you've used, and you build up a credit balance with them at times of year when you're using less energy.
The upside of Fuse's model is that you won't build up a large credit balance – you're only ever paying for what you've used in the previous month.
The downside is that your monthly payments will be considerably more in winter – when most households use more electricity – than in summer.
You can also pay via open banking, but Fuse doesn't accept payments by any other means, such as fixed direct debit, payment on receipt of a bill or prepayment.
Should I switch to Fuse Energy?
Fuse Energy is still too new to have been included in our annual energy company satisfaction survey, so we can't tell you how its customer service compares with other companies or how its customers rate it.
See our most recent survey data: the best energy suppliers for 2025.
But if you're tempted to try this new firm out, here's what you should know before you switch:
- It's a digital-only supplier. You'll need to download Fuse Energy's app (from the Apple App Store or Google Play Store) or sign up on the web to switch to it and manage your account. Customer service is also managed via the app or by email.
- You'll need to pay by direct debit. It doesn't accept cash, card or cheque payments for bills, nor prepayment meters.
- Your direct debit payments will change every month depending on how much electricity you use. This means you only pay for what you've used the previous month. But it also means you'll pay much more in months when you've used more. This differs from most companies' direct debit payments, which are 'fixed' amounts each month to spread your costs throughout the year.
- As well as single-rate tariffs, it also offers tariffs with peak and off-peak prices. These are suitable for those with smart meters and traditional two-rate Economy 7 electricity meters, and could appeal to anyone who is happy to use more energy at off-peak times in order to save money.
- It installs smart meters, like other energy suppliers, and has an in-house installation team to do so.
Not sure? See our tips on how to get the best energy deal.
What is Fuse Energy?
Fuse Energy launched in July 2023, founded by former executives of banking app Revolut.
It says it operates 18MW of solar and wind sites in the UK to date, and has a pipeline to reinvest its profits into more renewable projects.
