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. Nearly a year on, it still claims it will always be the cheapest for electricity and calls itself 'the UK's cheapest electricity supplier'. 

But its unique model might not suit everyone - here are the details.

It's an app-based company, so you'll need to be comfortable managing your account through your smartphone. 

As well as selling electricity tariffs, it also operates solar and wind power in the UK and installs solar panels on homes.

Fuse says that its tariff prices are 'protected' so that you get the cheapest rates in the UK.

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 launching new tariffs – see what other suppliers are offering and how to get the best energy deal.

Is Fuse Energy cheap? 

At the moment, most households are still paying for variable energy tariffs, which are set at the level of the energy price cap. 

For a household with 'typical usage' this would cost around £823 per year for electricity only (it's around £1,568 including gas), based on the rates for July to September 2024.

The same household would pay around £59 less per year for electricity with Fuse Energy's cheapest tariff (correct on 27 June).

That makes it around 7% cheaper than the price-capped variable rates, on average. 

The main reason Fuse Energy's deal is cheaper is because its standing charges are lower. Standing charges are the daily amount you pay to be connected to the grid.

The average standing charges per day for electricity are:

• Price cap average: 60p
• Fuse Energy's cheapest tariff: 54p

The standing charges you pay each day are the same no matter how much electricity you use. The less electricity you use, the bigger proportion of your bill is made up of your standing chargings. 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 is currently selling both fixed and variable deals. 

Find out more: the difference between fixed and variable energy tariffs.

Its direct debit model is different to that offered by most other energy firms. 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. 

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 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 2024.

But if you're tempted to try this new firm out, here's what you should know before you switch:

• It's an app-only supplier and its customer service is mainly digital. You'll need to download Fuse Energy's app (from the Apple App Store or Google Play Store) 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. 
• It doesn't supply gas, so if your home has both gas and electricity and you sign up to Fuse Energy, you'll need two suppliers.
• It offers tariffs with peak and off-peak prices, suitable for those with smart meters and traditional two-rate Economy 7 electricity meters.
• 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 and will reinvest its profits into more renewable projects.