If your property uses both electricity and natural gas, choosing an energy supplier can involve more than simply finding the lowest advertised rate.

You may be able to keep both services with one energy company, use different suppliers for each service, or leave one service with the existing utility while selecting a competitive supplier for the other.

So, what is the better option?

The answer depends on your actual electricity and gas usage, available plans, contract terms, supplier fees, rate structures, and how much you value convenience.

The most effective way to compare gas and electric options is therefore to calculate the complete cost of both services instead of judging a plan based on a single promotional rate.

This guide explains how combined and separate energy arrangements work, what to compare between suppliers, and how to decide which setup offers better overall value.

Can You Choose Both a Gas and Electricity Supplier?

Energy choice varies by service area.

In markets where competitive energy choice is available, consumers may sometimes be able to choose an alternative company for electricity supply, natural gas supply, or both.

The Energy Information Administration's guide to natural gas customer choice explains that in customer-choice programs, consumers may purchase natural gas from a marketer while the local utility continues handling delivery.

A similar structure can apply to electricity. The EIA's electricity supplier-choice guidance explains that some customers can select an alternative electricity supplier while the distribution utility remains responsible for local delivery infrastructure.

This means several arrangements may be possible:

• One supplier for electricity and gas

• One electricity supplier and a different gas supplier

• Competitive electricity supply with utility gas service

• Competitive natural gas supply with utility electricity service

Availability depends on the specific service area.

What Is a Combined Gas and Electricity Plan?

When one company provides both electricity and natural gas supply, the arrangement is sometimes described as a combined energy or dual-fuel plan.

Instead of managing separate competitive suppliers, the customer deals with one company for both energy products.

This may provide practical benefits such as:

• Fewer supplier accounts

• One customer-service relationship

• Easier contract tracking

• Potential combined-service promotions

• More convenient energy management

However, convenience should not automatically be interpreted as savings.

Current comparison services consistently note that purchasing both fuels from one provider can be convenient, but separate suppliers can sometimes produce a lower overall cost.

That is why both arrangements should be compared.

Combined vs. Separate Energy Suppliers

Suppose your home uses both electricity and natural gas.

You find the following offers.

Combined Supplier

Electricity cost: $1,400 per year
Natural gas cost: $900 per year
Combined discount: $100

Estimated total: $2,200

Now suppose separate suppliers offer:

Electricity Supplier A

Estimated electricity cost: $1,250

Gas Supplier B

Estimated natural gas cost: $820

Combined estimated cost: $2,070

Even though the combined supplier offers a discount, the separate arrangement is still cheaper in this hypothetical example.

The opposite can also occur.

A strong combined offer may produce lower total costs than using two separate providers.

The only reliable method is to compare:

Electricity cost + gas cost + fees − applicable discounts

for every arrangement.

Start With Your Current Energy Bills

Before researching new gas and electric deals, collect several recent bills.

Ideally, review a full year of energy use.

For electricity, record:

• Monthly kWh usage

• Supply rate

• Current supplier

• Monthly supplier fees

• Contract expiration

• Cancellation fee

For natural gas, record:

• Monthly consumption

• Supply rate

• Current supplier

• Monthly charges

• Contract expiration

• Cancellation terms

Why use a full year?

Energy consumption can be highly seasonal.

Electricity usage may increase when cooling demand rises, while natural gas usage can increase when heating demand rises.

Comparing only one month can therefore give you a distorted picture of your total energy costs.

Calculate Your Current Annual Energy Cost

Before asking whether another plan is cheaper, determine what you currently spend.

Start with:

Annual Electricity Cost

plus:

Annual Natural Gas Cost

This gives you your energy-cost baseline.

Suppose your previous 12 months show:

Electricity: $1,500
Natural gas: $1,000

Your approximate combined annual cost is:

$2,500

Any competing energy arrangement should then be evaluated against that baseline.

A supplier advertising an impressive electricity rate is not automatically valuable if its gas pricing makes your overall annual costs higher.

Compare Electricity and Gas Separately First

Before evaluating a combined offer, find the best realistic options for each fuel individually.

Electricity Comparison

Review:

• Supply rate

• Fixed or variable pricing

• Estimated cost at your usage

• Monthly fees

• Usage credits

• Contract length

• Cancellation fee

• Renewal terms

Natural Gas Comparison

Review:

• Gas supply rate

• Fixed or variable pricing

• Estimated annual supply cost

• Monthly charges

• Contract duration

• Cancellation conditions

• Renewal terms

Once you know the strongest individual options, you have a benchmark for evaluating a combined offer.

Then Compare the Combined Offer

Now examine the supplier offering both services.

Ask:

Is There a Combined-Service Discount?

Determine exactly how much it saves.

Do not rely on language such as:

“Exclusive savings”

or:

“Bundle and save.”

Calculate the dollar value.

Are Both Rates Competitive?

A supplier might provide an excellent electricity rate but a mediocre natural gas rate.

Are There Additional Fees?

Review fixed monthly charges for both services.

Are the Contracts the Same Length?

Electricity and gas terms may not always align.

Do Both Contracts Renew the Same Way?

Check what happens at expiration.

What Happens If You Cancel Only One Service?

A combined discount could disappear.

After reviewing these details, calculate the expected total annual cost.

How to Calculate Combined Energy Cost

A useful simplified formula is:

Total Energy Cost = Electricity Cost + Natural Gas Cost + Supplier Fees − Discounts

For electricity:

Electricity Cost = Electricity Usage × Electricity Supply Rate

For natural gas:

Gas Cost = Gas Consumption × Gas Supply Rate

Then add applicable supplier charges.

When evaluating plans online, you can compare gas and electricity plans based on your usage and use your recent bills to assess whether the available offers improve on your current overall cost.

Do not base the decision on rate alone.

Convenience Has Financial Value Too

Price is usually the most important comparison factor, but convenience can also matter.

Using one supplier for electricity and gas can potentially make energy management simpler.

You may have:

• One online account

• Fewer passwords

• One customer-service department

• Similar billing dates

• Easier contract tracking

• Fewer suppliers to contact after moving

How much is that convenience worth?

That depends on the customer.

If separate suppliers save only a tiny amount each year, some consumers may prefer the simplicity of one provider.

But if using separate suppliers creates significant savings, managing two accounts may be worth the additional effort.

Do Not Assume One Bill Means One Price

One supplier can provide both fuels while charging completely different rates and terms for each.

Treat electricity and natural gas as separate products during the comparison.

Review:

Electricity price

and:

Natural gas price

individually before calculating the combined total.

This prevents an attractive rate for one fuel from hiding an expensive rate for the other.

Fixed vs. Variable Rates Matter

Both electricity and natural gas plans may offer different pricing structures.

Fixed-Rate Energy Plans

A fixed plan generally establishes the applicable supply rate for a defined contract period.

Fixed pricing can provide greater rate predictability.

However, your bill still changes when consumption changes.

Variable-Rate Energy Plans

Variable supply rates can change according to the contract.

This may provide flexibility but makes future costs less predictable.

When combining electricity and natural gas, you could potentially have:

• Fixed electricity + fixed gas

• Variable electricity + variable gas

• Fixed electricity + variable gas

• Variable electricity + fixed gas

Evaluate each fuel separately.

Compare Contract Expiration Dates

Contract timing is often overlooked.

Suppose you currently have:

Electricity contract ending in three months

and:

Natural gas contract ending in nine months

Switching both immediately could create an early termination fee on one service.

Before consolidating providers, compare:

• Contract end dates

• Notice periods

• Early termination fees

• Renewal conditions

Sometimes it may make sense to change one service now and reconsider the other when its contract approaches expiration.

Watch for Early Termination Fees

A new energy plan may look cheaper on paper but become expensive if switching requires cancellation fees.

Suppose changing electricity providers saves:

$120 per year

but leaving the existing contract requires:

$150

in termination fees.

Switching immediately may not make financial sense.

Use:

First-Year Savings = Expected Annual Savings − Switching Costs

rather than looking only at the new monthly rate.

Compare Fixed Monthly Charges

Supplier charges can dramatically affect the final result.

Imagine:

Plan A

Low supply rate
$15 monthly fee

Plan B

Slightly higher supply rate
No monthly supplier fee

Plan A adds:

$15 × 12 = $180 per year

If both electricity and natural gas plans include fixed charges, the annual impact can be even larger.

Always convert monthly charges into annual costs.

Watch Promotional Rates

Some gas and electricity plans use introductory pricing to attract customers.

Before enrolling, determine:

• How long the introductory price lasts

• What the normal price becomes afterward

• Whether the plan becomes variable

• Whether the discount requires both services

• Whether cancellation fees apply

An attractive three-month promotional rate should not outweigh nine months of expensive pricing.

Evaluate the entire expected contract period.

Cheap Gas and Electric Plans Are Usage-Dependent

The phrase cheap gas and electric can be misleading because the lowest-cost plan can vary according to the customer's consumption.

Household A may use large amounts of electricity but very little natural gas.

Household B may rely heavily on natural gas heating but consume less electricity.

The plan combination producing the lowest cost for Household A may be completely different from the best arrangement for Household B.

Your energy usage is therefore more valuable than a generic “cheapest supplier” ranking.

When One Supplier May Be Better

Keeping electricity and natural gas with one supplier may be worth considering when:

• The combined total cost is competitive

• A meaningful discount applies

• Contract terms are reasonable

• Both supply rates are competitive

• You value simplified account management

• Customer service is strong

• Both contracts align with your needs

The key phrase is combined total cost.

Convenience alone does not guarantee value.

When Separate Suppliers May Be Better

Using different electricity and gas suppliers may make more sense when:

• One provider offers significantly better electricity pricing

• Another provides stronger natural gas pricing

• Combined discounts are small

• Contract expiration dates differ

• You need different contract lengths

• One fuel requires greater pricing flexibility

• The total annual cost is clearly lower

Managing separate providers involves more administration, but the potential savings may justify it.

Compare Supplier Reputation

The cheapest energy offer is less attractive if billing or customer-service problems are difficult to resolve.

For each supplier, consider:

• Billing transparency

• Customer-support availability

• Contract clarity

• Complaint patterns

• Renewal communication

• Enrollment process

• Cancellation process

When the cost difference between two options is small, supplier quality can become an important tie-breaker.

Understand Supplier vs. Utility

Changing an energy supplier does not necessarily change the local company responsible for physical delivery infrastructure.

For electricity, the utility may continue handling:

• Power lines

• Meter infrastructure

• Local distribution

• Outage response

For natural gas, the local utility may continue managing:

• Gas distribution infrastructure

• Local pipelines

• Meter-related services

• Emergency response

Competitive suppliers generally deal with the supply or marketing side of the service.

EIA guidance confirms this distinction for both electricity and natural gas customer-choice arrangements.

Understanding this difference makes supplier comparison much easier.

Should You Switch Both Services at the Same Time?

Not necessarily.

Switching both at once can make sense when:

• Both contracts are ending

• A competitive combined offer is available

• There are no major cancellation fees

• Both rates provide value

Switching separately may be smarter when:

• One contract still has months remaining

• One current rate is already competitive

• A cancellation charge applies

• Better options are available for only one fuel

Do not force both services into one switching schedule simply for convenience.

Review Energy Plans Before Moving

Moving creates a good opportunity to reassess both electricity and natural gas arrangements.

Your new property may have:

• Different suppliers

• Different utility territories

• Different heating equipment

• Different electricity consumption

• Different gas consumption

• Different plan availability

Do not automatically assume your old energy arrangement remains the best choice.

Estimate the energy needs of the new property and compare available options again.

Efficiency Can Reduce Both Bills

Finding a better supplier is only one side of energy-cost management.

Lower consumption can reduce costs regardless of the supplier.

The Department of Energy recommends evaluating utility data and rate options when assessing energy costs, reinforcing the value of understanding both consumption and pricing. See its utility-rate evaluation guidance.

Practical areas to review include:

• Heating and cooling

• Insulation

• Air sealing

• Water heating

• Efficient lighting

• Appliance efficiency

• Thermostat settings

• Equipment scheduling

Reducing usage and improving your energy plan can work together.

A Simple Gas and Electricity Comparison Framework

Before choosing, create three scenarios.

Option 1: One Supplier for Both

Electricity annual cost:
Gas annual cost:
Monthly fees:
Combined discount:
Cancellation fees:
Estimated total:

Option 2: Separate Suppliers

Electricity annual cost:
Gas annual cost:
Monthly fees:
Cancellation fees:
Estimated total:

Option 3: Keep Current Plans

Current electricity cost:
Current gas cost:
Current fees:
Estimated total:

Once these three options are side by side, the decision becomes much clearer.

Common Mistakes When Comparing Gas and Electric Plans

Choosing Based on Electricity Rate Alone

The gas portion could eliminate the savings.

Choosing Based on Gas Rate Alone

The same principle applies in reverse.

Assuming Combined Is Always Cheaper

Calculate both combined and separate arrangements.

Assuming Separate Suppliers Are Always Cheaper

Combined-service discounts may produce stronger overall value.

Ignoring Your Actual Usage

Generic rankings cannot reflect your specific consumption.

Ignoring Contract Dates

Switching early can create unnecessary fees.

Forgetting Monthly Charges

Small recurring fees become meaningful over a full year.

Ignoring Renewal Terms

Competitive introductory pricing may change after expiration.

Comparing Monthly Costs Instead of Annual Costs

Seasonal energy use makes annual comparisons more reliable.

Ignoring Supplier Quality

Price and customer experience should both influence the decision.

Frequently Asked Questions

How do I compare gas and electric plans?

Start with your current electricity and natural gas usage. Estimate the total cost of combined and separate supplier arrangements, including supply rates, monthly charges, contract terms, discounts, cancellation fees, and renewal conditions.

Is it cheaper to use the same supplier for gas and electricity?

Sometimes, but not always. A combined supplier may offer a discount or simpler account management, while separate providers may have individually lower electricity and natural gas rates. Compare total annual cost.

Can I use different suppliers for electricity and natural gas?

Where competitive supplier choice is available for both fuels, it may be possible to select different suppliers. Availability depends on the service area and market structure.

What is a combined gas and electric plan?

It is an arrangement in which one company supplies both electricity and natural gas. These arrangements are sometimes called combined energy or dual-fuel plans.

Should I compare gas and electricity separately?

Yes. Compare each fuel individually first, then calculate whether placing both with one supplier produces a lower total cost.

Are combined energy discounts always worth it?

No. A discount can be outweighed by higher supply rates or additional fees. Compare the final estimated annual cost.

What information do I need to compare energy plans?

Have recent electricity and natural gas bills available. Look for consumption, supply rates, monthly charges, supplier names, contract expiration dates, and termination fees.

Should I choose fixed or variable rates?

The right option depends on your tolerance for rate changes and need for flexibility. Fixed plans generally provide greater supply-rate predictability, while variable rates can change under the contract terms.

Can I switch only my electricity supplier?

Where electricity customer choice is available, you may be able to switch electricity supply without changing your natural gas arrangement.

Can I switch only my natural gas supplier?

Where natural gas customer choice is available, you may be able to select a different gas supplier while leaving your electricity arrangement unchanged.

What are the best electricity and gas deals?

The strongest deal depends on your actual energy usage, available rates, supplier charges, contract preferences, and service area. There is no single plan that is cheapest for every household.

Final Thoughts

The best way to compare gas and electric options is not to assume that one supplier—or two suppliers—will automatically be cheaper.

Calculate both.

Start with your actual annual electricity and natural gas consumption.

Then compare:

Supply rates + usage + monthly fees + discounts + contract terms + cancellation costs + renewal conditions.

Evaluate a combined arrangement against the strongest individual electricity and gas offers you can find.

If one supplier produces competitive pricing for both fuels and simplifies account management, combining services may be worthwhile.

If separate suppliers produce meaningful savings or offer contract terms better suited to your needs, keeping the services separate can make more sense.

The best energy arrangement is ultimately the one that delivers the strongest total value across both electricity and natural gas, rather than the plan with the most attractive rate for only one part of your energy bill.