Are Bundled Electricity and Gas Contracts Really Worth It? A Comprehensive Guide for Rental Residents

What Are Bundled Electricity and Gas Contracts? Understanding How Discounts Work

Bundled electricity and gas contracts (combination contracts) are services that allow you to receive discounts and special offers by contracting both electricity and gas from the same provider. Following Japan's electricity market liberalization in 2016 and gas market liberalization in 2017, many new electricity and gas companies have introduced these "set discounts," intensifying competition.

There are two main types of discount mechanisms. One is the application of a discount rate on the monthly base charge or usage (e.g., a certain amount deducted from your electricity bill each month), and the other is effective price reduction through point rebates. The discount amount varies depending on the provider, and households with higher consumption tend to benefit more.

Major Service Providers' Bundled Contract Examples (Tokyo Electric Power Area)

Below are examples of representative bundled contract services, centered on the Tokyo Electric Power area.

Tokyo Gas (Gas + Electricity) Tokyo Gas offers a "Gas + Electricity" bundle plan that gives you a fixed discount on your electricity bill when you combine services. Many households that already use Tokyo Gas for gas switch their electricity to them as well, and the process is relatively straightforward.

au Denki (au Energy & Life) When au mobile subscribers bundle electricity and gas with au, they receive Ponta points and can benefit from gas bill discounts. The service is characterized by bundle discounts with smartphones, making it a good fit for au users.

Rakuten Denki Rakuten Denki primarily offers electricity service alone, but when you apply for it together with Rakuten Gas, point return rates increase, and promotional campaigns are regularly held. It's a valuable option for those leveraging the Rakuten ecosystem.

All of these services assume city gas (such as that supplied by Tokyo Gas in its service area). For properties with propane gas (LP gas), these bundled discounts are basically not available.

Quick Comparison: Which Type of Bundle Suits You?

The key is matching the discount type to your lifestyle. Fixed discounts reliably lower your bill regardless of usage, while point-reward schemes only pay off if you can actually spend the points in your daily life.

Savings Estimates by Household Type: Single, Couple, and Families

The effectiveness of set discounts varies significantly depending on household size. The following estimates are for reference only (actual discount amounts vary depending on each provider's plan and usage).

Single-person household (1K apartment · electricity approximately ¥3,000–¥4,000/month · gas approximately ¥1,500–¥2,500/month) Combined electricity and gas expenses typically total about ¥5,000–¥6,500 per month. Bundled discounts often amount to approximately ¥100–¥300 per month, resulting in annual savings of ¥1,200–¥3,600. While the discount effect is limited due to lower consumption, choosing a point rebate-based service can increase the practical benefits.

Two-person household (1LDK–2LDK · electricity approximately ¥5,000–¥8,000/month · gas approximately ¥3,000–¥5,000/month) Combined total approximately ¥8,000–¥13,000 per month. Bundle discounts can be expected to save ¥200–¥600 per month, providing annual savings of ¥2,400–¥7,200. Households that use gas heavily for cooking and bathing will see larger benefits.

Family household (3LDK or larger · electricity approximately ¥10,000–¥15,000/month · gas approximately ¥6,000–¥10,000/month) Combined total approximately ¥16,000–¥25,000 per month. Bundle discounts can reach ¥500–¥1,000 or more per month in some cases, providing expected annual savings exceeding ¥6,000–¥12,000. Households with higher consumption benefit more from discounts, increasing the cost-effectiveness of bundled contracts.

Steps and Precautions for Switching to Bundled Contracts in Rental Housing

You can switch to bundled contracts in rental properties by following these steps.

Steps

1. Confirm whether your current property uses city gas or propane gas (LP gas)
2. If it's city gas, use each provider's official website to run a rate simulation
3. Apply (most can be completed online)
4. No switching work is required in most cases (if a smart meter is already installed, no technician visit may be necessary)
5. After the switch is complete, your old contract is automatically terminated

Important Precautions

• •Propane gas properties cannot be switched: Propane gas is supplied directly by the gas company to the building, so you cannot freely change gas providers. Be sure to confirm whether your property uses "city gas" or "propane gas" before moving in. You can ask the property information or management company about this.

• •Check rental property equipment: Gas meters and piping may be under the property owner's management. Generally, renters are free to change electricity and gas retail contracts, but it's reassuring to confirm with the management company beforehand.

• •Re-application necessary when moving: Bundled contracts are tied to your address, so you must cancel and reapply if you move. Cancellation fees may apply, so if you have a moving plan, check the contract period before applying.

Disadvantages of Bundled Contracts and How to Choose Without Making Mistakes

While bundled discounts offer savings, they also have several disadvantages.

Disadvantage ①: Contract lock-in and cancellation fees Some bundled discount plans require continued service for a set period. If you cancel during the contract period (e.g., 2 years), you may face cancellation fees of several thousand to over ¥10,000. For renters who move frequently, this risk is particularly significant.

Disadvantage ②: Single-point-of-contact service issues When you bundle both electricity and gas with one provider, billing and support for outages become concentrated in one place. While convenient, this also carries the risk of depending entirely on that company's service quality.

Disadvantage ③: Not necessarily the cheapest option A company offering a bundle discount is not necessarily the cheapest for electricity alone or gas alone. Sometimes combining separately cheaper companies results in lower total costs.

Tips for choosing without making mistakes

• •First, check the contract period and cancellation fees: If you plan to move, prioritize plans with no lock-in and no cancellation fees.
• •Run simulations based on your actual usage: Prepare your recent 3 months of meter readings (usage amounts) and run calculations on each provider's official website.
• •Verify the usability of point rebates: For point rebate services, benefits vary depending on whether you can actually use the points where you live.
• •Use comparison websites: We recommend using comparison services like "Ene Change" to find the optimal plan for your area and usage.

Frequently Asked Questions (FAQ)

Q. Can I switch to a bundled contract in a rental without my landlord's or management company's permission? A. In principle, tenants are free to choose their own electricity and gas retail contracts, and permission is not required in most cases. There are exceptions—such as gas alarm lease contracts tied to the previous gas company—so it is a good idea to give your management company a heads-up before switching.

Q. Can I use a bundle discount in an all-electric apartment? A. All-electric properties have no gas contract in the first place, so electricity-gas bundles do not apply. Instead, compare electricity plans designed for all-electric homes, such as those with discounted nighttime rates.

Q. How do I run a simulation if I don't have my meter-reading slips? A. You can check your past usage on your utility company's member page (online meter readings). If you have just moved in and have no usage history, start with a rough estimate based on average usage for your household size.

Q. What should I do about my bundled contract when I move? A. You will need to cancel the contract at your old address and apply anew at your new one. First check whether early-termination fees apply and whether the new property uses city gas or propane, then decide whether to continue the same bundle or switch to a different plan.

Summary: Bundled Electricity and Gas Contracts Are an Effective Savings Strategy Depending on Your Situation

Bundled electricity and gas contracts tend to be cost-effective for city gas properties with two or more people per household. On the other hand, they're unavailable for propane gas properties and may offer minimal discounts for single-person households.

When moving into a rental property or reviewing utility costs, confirming "which type of gas the current property uses" and choosing a plan with no lock-in is the best strategy to minimize risks while achieving savings in a rental living situation. Even with a lifestyle involving frequent moves, appropriate plan selection can realize annual savings of several thousand to over ¥10,000.