Discover the cheapest Economy 7 deals, when they actually save, and how to shift usage to cut £50–£100 a year with smart meters, storage heaters, and EV charging.
Cheapest Economy 7 Tariffs: 7 ways to cut the cost
A measured route to cheaper night electricity
Economy 7 can be a smart move if you use enough electricity overnight. With night rates as low as ~8p/kWh from leading suppliers, the gains are real. But if your daytime use dominates, the higher day rate can wipe out any benefit. Here is a practical, numbers-first guide for UK households.
Who benefits most
Economy 7 suits households that can push at least 40% of their electricity to off-peak hours. Think homes with electric storage heating, hot water cylinders on timers, or EVs charged overnight. If your lifestyle or appliances keep you using power mostly in the day, a single-rate tariff may be cheaper overall.
Key terms you should know
- Off-peak window: Typically seven hours overnight. Exact times vary by supplier and region.
- Day rate vs night rate: Economy 7 has two unit prices. Night is cheaper; day is usually higher than a standard single rate.
- Price cap: Ofgem caps the overall unit costs, but suppliers set their own day and night splits within that cap.
- Usage split: The proportion of your electricity used at night. Savings generally start at 40%+ night usage.
- Smart meter: Separates day and night reads automatically, reduces billing errors, and unlocks some of the most competitive Economy 7 deals.
Aim for at least 40% of your electricity overnight to make Economy 7 work in your favour.
Where the best prices are right now
Octopus Energy’s Economy 7 tariffs have among the lowest night rates in the market, around 8p/kWh, with typical day rates near 28p/kWh for many regions. Their Snug-style variants particularly suit homes with storage heaters or EVs. Other big suppliers remain competitive, but night and day splits vary widely, so comparison matters.
| Supplier (indicative) | Night rate (p/kWh) | Day rate (p/kWh) | Smart meter required |
|---|---|---|---|
| Octopus Energy | ~8 | ~28 | Often yes |
| E.ON Next | 9–14 | 28–33 | Often yes |
| EDF | 10–16 | 29–34 | Often yes |
Rates vary by region and change frequently. Always check the latest quotes for your postcode.
What it could cost you - in practice
Economy 7 savings are highly sensitive to how much you shift to night. While some households can save £50–£100 a year versus a single rate, others may pay more if their daytime use remains high.
| Scenario (3,900 kWh/year) | Night usage share | Illustrative Economy 7 annual impact vs single-rate | Why |
|---|---|---|---|
| High shifting | 60% | Save £70–£120 | Cheap night units dominate |
| Threshold | 40% | Roughly break even | Balance of day/night rates |
| Low shifting | 10% | Pay ~£150–£180 more | Day rate erodes savings |
These are indicative, based on typical day 27–35p/kWh and night 8–18p/kWh ranges under the cap. Your exact outcome depends on your supplier, region, and standing charges.
What makes or breaks the savings
- Storage heaters and hot water: Program charging overnight.
- EV charging: Schedule to fill during the off-peak window.
- Appliances: Run washing machines, dryers, and dishwashers late evening or pre-dawn with delay timers.
- Daytime discipline: Minimise high-load daytime use; day rates can be nearly double a standard tariff.
- Smart meters: Ensure accurate split billing and access to the best E7 offers.
Are you a good candidate?
Economy 7 is most suitable if:
- Your home is all-electric for heating and hot water.
- You can reliably shift 40% or more of usage to night.
- You have controllable high-use appliances (storage heaters, immersion heaters, EV chargers).
- You will install or already have a smart meter.
It may not suit you if:
- You have mains gas heating and low overnight electricity use.
- Your schedule keeps most consumption in the daytime.
- You cannot install a smart meter where required for the cheapest deals.
How to switch successfully - step by step
- Check your current day vs night usage in kWh.
- Estimate if you can reach 40%+ overnight.
- Get quotes for your postcode from multiple suppliers.
- Compare both day and night unit rates carefully.
- Confirm standing charges and smart meter requirements.
- Book a smart meter install if you need one.
- Set timers on heaters, immersion, EV charger.
- Review bills after 1–2 cycles and adjust.
Upsides and trade-offs
Pros:
- Night rates from ~8p/kWh can significantly cut costs.
- Best for EVs and electric heating where shifting is practical.
- Smart meters automate reads and reduce billing errors.
Cons:
- Day rates are higher than standard single-rate tariffs.
- Savings collapse below 40% night usage.
- Rates and off-peak times vary by region and supplier.
If you cannot consistently hit the overnight threshold, a single-rate tariff is usually the safer bet.
Watchpoints before you commit
- Off-peak hours: Verify the exact seven-hour window for your meter profile.
- Appliance timers: Ensure your kit can schedule reliably to the night window.
- Regional pricing: The cheapest supplier varies by area, even within the same brand.
- Standing charges: Compare them alongside unit rates to avoid surprises.
- Review cadence: Re-check the market every few months as offers shift.
Alternatives if Economy 7 is not a fit
- Economy 10: Ten off-peak hours spread across day and night. More flexible for those at home during the day, but fewer suppliers offer it.
- Single-rate fixed or variable: Often better if your night usage is below 40%.
- Time-of-use smart tariffs: Some suppliers have dynamic or multi-rate options if you can automate more of your load.
FAQs
Q: How much can I actually save on Economy 7? A: If you shift 40–60% of usage overnight, typical savings can be around £50–£100 a year versus a single-rate tariff. Results vary by region, rates, and standing charge.
Q: Are Economy 7 prices capped? A: Yes, they sit under Ofgem’s price cap, but suppliers choose their day and night splits. Night can range ~8–18p/kWh, day ~27–35p/kWh.
Q: Do I need a smart meter? A: In practice, yes for the best deals. Smart meters separate day/night usage accurately and help avoid billing errors.
Q: What if I only use 20% at night? A: You are likely to pay more than on a single-rate tariff. Below 40% night usage, the higher day rate often outweighs any night savings.
Q: Is Economy 7 only for storage heaters or EVs? A: No, but those homes benefit most. Any household that can reliably schedule heavy loads overnight can gain.
Q: Can off-peak hours change? A: The length is seven hours, but start and end times vary by region and meter profile. Always confirm with your supplier.
Make your next move
- Check your last 12 months of kWh usage and estimate your night share.
- Compare day and night rates from at least three suppliers for your postcode.
- If you can hit 40%+ overnight, prioritise tariffs with night rates near 8–12p/kWh and book a smart meter install.
Important information
This guide is general information, not advice. Prices, caps, and eligibility vary by region, meter type, and supplier. Always verify current rates and terms with providers and consider your household’s usage pattern before switching.
Get smarter with your money
Join thousands of Australians who are taking control of their financial future
FAQs
Common questions about managing your personal finances
Begin by tracking every expense for one month. Use an app or spreadsheet. No judgment. Just observe your spending patterns.
Cancel unused subscriptions. Cook at home. Compare utility providers. Small changes add up quickly.
Aim for 20% of your income. Start smaller if needed. Consistency matters more than the amount.
Choose reputable apps with strong security. Read reviews. Check privacy policies. Protect your financial data.
Pay bills on time. Keep credit card balances low. Check your credit report annually. Be patient.
Still have questions?
Our team is ready to help you navigate your financial journey
More financial insights
Explore our latest articles on personal finance and money management
