Best Economy 7 Tariffs: how to choose the right option

Save more by shifting use to night-time off-peak hours

Switching to an Economy 7 tariff can lower bills if you use a good chunk of electricity overnight. This guide explains how Economy 7 works, who should consider it, the trade-offs, and how to choose a deal that fits your home.

Is this you?

If you run storage heaters, heat water electrically, charge an EV, or can shift at least 40% of your use into the night, Economy 7 could work. If most of your usage is during the day or you are rarely home overnight, a single-rate tariff may be cheaper. We help you weigh it up with real numbers.

The essentials in plain English

Economy 7 is a dual-rate electricity tariff with seven cheaper off-peak hours at night, typically between around 10:30pm and 8:30am. Exact times vary by supplier and meter, and can shift with British Summer Time.

Key terms to know:

• Off-peak hours - the seven cheaper overnight hours.
• Peak hours - the remaining daytime hours with a higher unit price.
• Dual-rate meter - a meter that tracks day and night consumption separately.
• Smart meter - can record half-hourly data and apply separate day and night rates.
• Storage heaters - charge up at night, release heat in the day, ideal for Economy 7.
• EV charging - scheduling overnight charging can capture lower rates.
• Price cap - limits average annual costs, not specific day or night unit rates.

Understanding your usage split is the deciding factor - aim for at least 40% at night to make Economy 7 worthwhile.

Suppliers set different day and night prices as long as the overall cost fits within Ofgem’s cap. That means night rates can be attractive, but day rates are usually higher than on single-rate tariffs. Smart comparison is essential.

Your tariff choices compared

Different households benefit from different setups. Here is a quick comparison:

Standout point: If you cannot reach roughly 40% night-time use, a single-rate tariff may be cheaper by roughly £180 per year.

What it could cost and save

Here is a simplified illustration using example rates and typical consumption patterns:

Assumptions:

• Annual usage: 3,600 kWh
• Economy 7 example rates: 8p/kWh night, 28p/kWh day
• Single-rate comparison: 24p/kWh all day (illustrative)

Scenario A - 45% night use:

• Night: 1,620 kWh x £0.08 = £129.60
• Day: 1,980 kWh x £0.28 = £554.40
• Total: £684.00
• Single-rate: 3,600 kWh x £0.24 = £864.00
• Indicative saving: about £180 per year

Scenario B - 30% night use:

• Night: 1,080 kWh x £0.08 = £86.40
• Day: 2,520 kWh x £0.28 = £705.60
• Total: £792.00
• Single-rate: £864.00
• Indicative saving: ~£72 per year - marginal once standing charges and variations are included.

Risks and variables:

• Day rates on Economy 7 can be steep - if night use drops, costs rise quickly.
• The price cap affects overall bills, not the split between day and night.
• Supplier rates vary, so always compare actual quotes for your region and meter.

Who can get Economy 7

You need a dual-rate meter or a compatible smart meter configured for separate day and night billing. Most suppliers can arrange a smart meter install at no upfront cost.

Suitable households:

• Properties with storage heaters or an immersion heater.
• EV owners able to schedule charging overnight.
• Homes with appliances that can run late: washing machine, dishwasher, tumble dryer.

Less suitable:

• Households mainly at home daytime with limited night usage.
• Properties with gas heating and little electric hot water demand.

No dual-rate meter yet? Ask your supplier about a smart meter that supports Economy 7.

Make the switch in simple steps

1. Check your latest bill for day vs night kWh usage
2. Estimate your achievable night-time share over a month
3. Confirm your meter type or book a smart meter install
4. Compare day and night rates with live supplier quotes
5. Factor in standing charges and any exit fees
6. Schedule appliances and EV charging to off-peak windows
7. Track usage in your supplier app for the first three months
8. Reassess - adjust timers or switch tariff if savings are thin

Upsides and trade-offs

Pros:

• Cheaper night unit rates help cut bills if you shift usage.
• Ideal for storage heaters and EV charging.
• Works well with timers and smart plugs.

Cons:

• Higher daytime rates can outweigh gains if you miss the 40% target.
• Off-peak times vary and can shift with BST.
• Requires a dual-rate or smart meter and a bit of planning.

If you are not confident about shifting use, a single-rate plan may be safer.

Watch-outs before you commit

• British Summer Time: off-peak windows can move, so reset timers.
• Standing charges: these usually do not change with Economy 7 - savings rely on unit rates.
• Exit fees and contract terms: check before switching.
• Appliance safety: only use timed cycles if appliances support overnight use.
• Regional variations: day and night prices differ by region and supplier.
• Price cap mechanics: it caps typical annual costs, not specific day or night prices.

Alternatives worth exploring

• Economy 10: ten off-peak hours split across day and night - more flexible if you are at home during the day.
• EV-focused time-of-use tariffs: tailored night windows for cheap charging.
• Home energy efficiency: insulation, draught-proofing, efficient appliances reduce total kWh regardless of tariff.
• Smart home scheduling: automate off-peak use with plugs and appliance timers.

FAQs

Q: What time is Economy 7 off-peak? A: Typically overnight for seven hours, often between about 10:30pm and 8:30am. Exact hours depend on your meter and supplier and can shift with BST.

Q: Do I need a special meter? A: Yes. You need a dual-rate meter or a smart meter that records day and night usage separately for correct billing.

Q: How much night usage do I need to save? A: Aim for at least 40% of your electricity at night. Below that, a single-rate tariff can be cheaper by around £180 per year.

Q: Which suppliers are competitive? A: Octopus often offers strong Economy 7 deals, with example averages around 8p/kWh at night and 28p/kWh in the day. Always compare current regional quotes.

Q: Does the price cap limit night and day rates? A: No. It caps typical annual costs, not the specific split. Suppliers can vary day and night prices within the cap.

Q: Is Economy 7 good for EVs? A: Yes, if you can schedule overnight charging. Cheap night rates can materially cut running costs.

What to do next

• Gather your last 3 months of usage data.
• Estimate your realistic night-time percentage.
• Compare live Economy 7 and single-rate quotes.
• Try scheduling two or three appliances plus EV charging overnight.
• Recheck after a month - if savings are thin, switch back.

Use Switcha to compare Economy 7 vs single-rate deals tailored to your usage profile.

Important information

This guide is general information, not personal advice. Tariff availability, rates, and savings vary by region, meter type, and usage. Always check live quotes, contract terms, and appliance safety guidance before switching or scheduling overnight use.