What is Economy 7?

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Page last updated on 23rd August 2024

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Economy 7 is an energy tariff offered by energy suppliers to consumers. If you’re on this tariff you will be charged a cheaper rate for the energy you use at night compared to the energy you use during the daytime.

The tariff is named ‘Economy 7’ after the seven-hour window at night when energy is charged at a cheaper rate. Typically, this window runs from 12:00am to 07:00am, but times may vary between suppliers. If you’re on Economy 7 and you’re not sure when your Economy 7 off-peak times are, contact your energy supplier to double check.

While electricity is cheaper on an Economy 7 tariff during Economy 7 off-peak times, this does not mean that this tariff will work out cheaper overall. An Economy 7 tariff might charge you at a higher rate for peak-time energy compared to a standard tariff. For this reason, Economy 7 and Economy 10 are not going to be suitable for everyone.

How does Economy 7 work?

Economy 7 works by charging a cheaper rate for energy used during Economy 7 off-peak hours. For you to access this cheaper rate, you will need to have an energy meter that is compatible with Economy 7.

You cannot access Economy 7 tariffs on a traditional energy meter. You can only access this tariff if a specific Economy 7 energy meter has been installed in your home, or if you have upgraded your traditional meter to a smart meter. With a smart meter you can switch between tariffs (including Economy 7) without the need to change your energy meter.

You can request a smart meter from your energy supplier - start by entering the name of your supplier in the box below.

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When are Economy 7 hours? What are Economy 7 off-peak times?

If you are on an Economy 7 tariff, there will be a seven-hour window where the energy you use will be cheaper. The cheaper Economy 7 hours are typically during the night, usually between 12:00am and 07:00am. But this might vary depending on your supplier and location.

If you’re not sure when your Economy 7 off-peak times are, please contact your energy supplier to confirm.

What is an Economy 7 meter?

An Economy 7 meter is a special type of energy meter that is only suitable for Economy 7 tariffs. Economy 7 meters can record peak and off-peak energy usage separately. So, your energy supplier can charge a cheaper rate for the electricity you use during Economy 7 hours at night. And a different rate for the electricity you use during the day.

Economy 7 tariffs are an older style of tariff. Specific Economy 7 meters will only be compatible with the Economy 7 tariffs. However, with a smart meter, which is a different kind of meter, you will be able to join more types of tariffs. Smart meters are compatible with Economy 7 tariffs and fixed rate tariffs. They can also enable you to join other newer time-of-use tariffs, which allow you to use your energy flexibly.

What does an Economy 7 meter look like?

An Economy 7 meter looks like a traditional energy meter but displays two sets of numbers instead of one. These two sets of numbers are typically marked ‘low’ and ‘normal’. These two sets of numbers represent your on and off-peak energy usage.

Sometimes, an Economy 7 meter will only have one set of numbers marked ‘Day Rate’. If this is the case, there should be a button you can press to switch the display to your off-peak night-time meter reading.

How do Economy 7 and storage heaters work?

Storage heaters, sometimes called Economy 7 heaters, work together with time-of-use tariffs like Economy 7 and Economy 10. Storage heaters work by using cheaper, off-peak night-time electricity to create and store heat, which can be used the day after to warm your home.

Economy 7 and Economy 10 tariffs are mainly intended for homes that run on an electric heating system and use storage heaters.

What is the difference between Economy 7 and Economy 10?

Economy 10 tariffs are very similar to Economy 7 tariffs but offer energy consumers 10 hours of cheaper electricity rather than 7. Economy 10 tariffs provide consumers with the same 7 cheaper hours of electricity during the night as Economy 7, but they also give you access to 3 cheaper hours during the day.

This may be more appealing than an Economy 7 tariff, but standing charges can be higher on an Economy 10 tariff. You can switch to an Economy 10 tariff by installing an Economy 10 meter, or if you have a smart meter.

You can request an Economy 10 meter from your energy supplier, but they may charge you to do so. You can request a smart meter from your energy supplier at no additional cost.

Cheaper overnight electricity and Economy 7

There are many ‘night rate’ tariffs which offer energy consumers cheaper overnight electricity. These tariffs include Economy 7 and Economy 10, as well as EV tariffs and more. These tariffs allow you to benefit from using off-peak electricity, as day and night rates are charged at different rates.

Peak electricity hours are typically when most people are getting ready for work or are at home in the evening. Off-peak electricity hours are when most people aren’t using lots of electricity in their homes, such as at night, and demand on the energy grid is lower. This is why many time-of-use electric tariffs are cheaper at night.

It’s important to note that you won’t get cheap night-time electricity unless you are signed-up to a tariff that offers cheaper energy at night. If you're on a standard variable or fixed tariff, you will be charged the same price for energy at all times of the day.

What time does cheap electricity start at night?

You will only get cheap night-time electricity if you are on a specific tariff that offers a cheaper rate for electricity used at night. The time that the cheaper overnight electricity starts will vary depending on the tariff you are on.

Typically, Economy 7 and Economy 10 consider off-peak electricity hours to start at midnight. But every ‘night-rate’ tariff is different. So, a night-rate EV tariff might start at a different time.

Upgrading your meter to a smart meter will let you switch between lots of different time-of-use tariffs and find one best suited to your routine. Ask your supplier for a smart meter today if you’re interested in cheaper night-time electricity tariffs.

Get a smart meter

Smart meters and the future of time-of-use tariffs

Now that most British consumers have upgraded their energy meter to a smart meter, a wider variety of time-of-use tariffs are starting to become available. Like the older Economy 7 and Economy 10 tariffs, these new time-of-use tariffs might give you rewards for using off-peak electricity like money off your electricity bill. You might also be rewarded for using more renewable energy at times when it is windier or sunnier.

If you use a lot of electricity at night-time, for example if you charge an electric vehicle overnight or if you carry out shift work, you might find that using your smart meter to switch to a time-of-use tariff is a better way to manage your energy use and lower the cost of your bills.

To request a smart meter, enter the name of your energy supplier into the search bar below.