Economy 7 Tariffs checklist: what to do before you apply/buy

Your pre-switch Economy 7 action plan step-by-step

Economy 7 can cut bills if you shift enough usage to night rates. This checklist shows how to test your pattern, confirm off-peak hours, and compare deals, so you switch with confidence.

Who should consider Economy 7

Economy 7 suits homes that can push substantial usage into the night - typically at least 40%. It is particularly strong for properties with storage heaters, immersion heaters, or regular EV charging. If you are mainly at home during the day or rely on daytime electric heating, a single-rate tariff may be more cost-effective.

Key ideas to know before you compare

Economy 7 offers two unit rates: a cheaper night rate for seven hours and a higher day rate for the rest. Suppliers choose the exact hours, usually overnight. Many households save only if they can use at least 40% of their electricity at night. Below that threshold, higher daytime pricing can erase any benefit. For instance, using just 10% at night can leave you roughly £180 a year worse off than a standard single-rate deal.

Off-peak windows vary by region and supplier, commonly somewhere between 10:30pm and 8:30am. British Summer Time can shift how your meter applies those hours, so always confirm your specific schedule. You will need either a dual-rate meter or a smart meter set to record day and night usage. Some homes still have Radio Teleswitch Service (RTS) meters, which must be upgraded to smart by 30 June 2025 to avoid disruption.

While Ofgem caps overall tariff levels, suppliers set different day-night splits. You might see night rates around 7-12p per kWh, and day rates around 25-30p per kWh or higher, depending on the region and product. Understanding these fundamentals will help you decide if the cheaper night units outweigh the pricier daytime ones for your household.

Aim for at least 40% of your electricity overnight to make Economy 7 work.

Your tariff choices at a glance

Different time-of-use options can fit different routines. Compare the trade-offs before you switch.

The right choice depends on your ability to shift demand, not just headline pence per kWh.

Costs, savings, risks - the real-world impact

Savings come from concentrating heavy usage in the off-peak window. If you typically run storage heaters, heat water overnight, and charge an EV, the night rate can materially reduce costs. Conversely, the day rate is materially higher than a standard single rate. If your pattern is inflexible, your total bill may rise.

• Typical night rate: roughly 7-12p/kWh
• Typical day rate: roughly 25-30p+/kWh
• Off-peak share needed to break even: around 40% for many households
• Risk example: at only 10% night usage, you could pay about £180 more per year than on a single-rate tariff

Prices and caps update periodically. A change scheduled for 1 November 2025 could alter the day-night balance. Monitor announcements and recheck comparisons before committing to a fixed term.

Can you get it - and should you

Eligibility is practical rather than formal. You need the right meter, the right usage pattern, and the willingness to schedule tasks overnight.

• Metering: Dual-rate or configured smart meter required. If you have an RTS meter, contact your supplier to upgrade to a smart meter before 30 June 2025. Without a compatible meter, billing can be inaccurate and savings impossible.
• Heating system: Economy 7 is strongest with electric storage heating and immersion heaters. Gas-heated homes often struggle to shift enough load at night to benefit.
• Lifestyle: If you can schedule laundry, dishwashing, hot water heating, and EV charging overnight, Economy 7 looks more attractive. If your household is busy mainly in daylight hours, it probably is not.

A quick diary of your last two weeks of appliance use will reveal whether you can reach the 40% night usage threshold.

Set-up in 7 quick steps

1. Check last 12 months usage - day vs night potential
2. Confirm your supplier’s exact off-peak hours and BST handling
3. Verify your meter type - smart or dual-rate - and accuracy
4. Estimate shiftable loads - heating, water, laundry, EV charging
5. Compare day and night rates across multiple suppliers
6. Calculate break-even using your realistic off-peak share
7. Switch and monitor bills monthly, adjusting schedules as needed

Advantages and trade-offs

Pros

• Cheaper night units can materially lower bills
• Works well with storage heaters, immersion heaters, EVs
• Encourages load shifting and grid-friendly behaviour

Cons

• Day rates are significantly higher than single-rate deals
• Savings depend on achieving around 40% night usage
• Off-peak hours vary and may shift with BST

Overall, Economy 7 rewards planning and flexibility. If your life runs on daytime power, the premium daytime pricing can negate the benefit.

Pitfalls to avoid before you sign

• Assuming your off-peak window: always confirm exact times with your supplier, including BST changes.
• Ignoring metering: RTS meters require replacement by 30 June 2025. Ensure your smart meter is configured for dual-rate billing.
• Overestimating night usage: run a one-week trial of timed appliances before you switch.
• Not benchmarking: compare several suppliers. Day-night splits vary even under the price cap.
• Forgetting future changes: track Ofgem updates and supplier price notices, including the 1 November 2025 change.

If Economy 7 is not a perfect fit

• Economy 10: Ten off-peak hours spread across 24 hours. Useful if pure overnight shifting is hard. Availability is patchy.
• EV-focused time-of-use tariffs: Some suppliers offer shorter, very low-cost windows for charging. Check your smart meter compatibility.
• Stay single-rate and optimise: Improve insulation, fit smart controls, and replace inefficient appliances to lower kWh without time constraints.

A tailored approach often outperforms a forced fit.

FAQs

Q: How do I know my off-peak hours? A: Contact your supplier and check your tariff details. Hours vary by region and may shift with British Summer Time.

Q: Do I need a special meter? A: Yes. You need a dual-rate meter or a smart meter set for separate day and night registers. RTS meters must be replaced by 30 June 2025.

Q: What night usage percentage should I target? A: Around 40% is a useful rule of thumb. Much lower than that and the higher day rate can outweigh night savings.

Q: What appliances are best to run at night? A: Storage heaters, immersion heaters, EV chargers, washing machines, and dishwashers. Use timers to align with your off-peak window.

Q: Are Economy 7 rates capped? A: Tariffs sit within Ofgem’s price cap framework, but suppliers set different day and night rates. Always compare multiple quotes.

Q: Can Economy 7 make me worse off? A: Yes, if most of your use is daytime. At only 10% night usage, bills could be roughly £180 higher than a comparable single-rate plan.

What to do next

• Track your week: log appliance use and estimate your night-share.
• Confirm off-peak hours with your supplier and check meter compatibility.
• Compare day-night splits across multiple providers using a reputable comparison service like switcha.
• If the numbers work, switch and set timers for heating, hot water, laundry, and EV charging.

Bold first month monitoring prevents surprises and sharpens savings.

Important information

This guide is general information, not advice. Prices, caps, and tariff availability change regularly. Always confirm off-peak hours, meter setup, and rates with your supplier. Recalculate your potential savings before committing, and reassess after any tariff or regulatory change.