Economy 7 Tariffs cost guide: typical prices & fees in the UK

Your no-nonsense guide to Economy 7 in 2025

What you will learn in minutes

Economy 7 can be cheaper if you shift energy to the night. Get the facts on rates, typical bills, standing charges, who benefits, and when a single-rate tariff is smarter.

Understanding Economy 7 is not about chasing the lowest headline rate - it is about matching your usage to the right tariff.

Who should pay attention

Households with electric storage heaters, immersion heaters or an EV on home charge are prime candidates. If you can reliably push at least 40 percent of your electricity use into the off-peak window, Economy 7 can reduce bills. If your lifestyle is daytime-heavy or you work from home with high daytime loads, a single-rate tariff may be cheaper overall.

Jargon made simple

• Economy 7: A dual-rate electricity tariff offering around seven off-peak hours overnight at a lower unit rate and a higher unit rate for daytime.
• Off-peak window: Typically between 00:00 and 07:00 or 00:30 and 07:30 depending on your region and meter configuration.
• Unit rate: The price per kilowatt-hour you pay for electricity. On Economy 7 there are two unit rates - night and day.
• Standing charge: A fixed daily fee you pay regardless of how much electricity you use. For Q4 2025, this is around 53.68p per day for Economy 7 paid by Direct Debit, varying slightly by region.
• Smart meter configured for dual-rate: A smart meter set up to record separate day and night usage. A traditional Economy 7 meter with two registers does the same job.
• Price cap: Ofgem sets a maximum a typical user would pay per year, but suppliers can vary the split between day and night rates within that cap. You must still compare supplier rates.

Night rates can be as low as 7-12p per kWh, while day rates often land around 25-30p per kWh. The split matters more than the cap headline.

What are the choices on the table

Option 1 - Stay or switch to Economy 7

Best for homes that can automate or reliably schedule big loads overnight. Think storage heaters topping up in the small hours, an immersion heater on a timer, or an EV charging after midnight. The benefit is a lower night rate that offsets the higher daytime price. Aim for 40-50 percent of usage at night to see meaningful savings.

Option 2 - Move to a single-rate tariff

If your life runs on daytime electricity, a single-rate can be simpler and cheaper. With only one unit rate all day, you avoid the high Economy 7 day rate. For households using only 10 percent at night, a flat-rate plan can be up to about £180 per year cheaper than Economy 7.

Option 3 - Consider Economy 10 (where available)

Economy 10 offers more off-peak windows spread across day and night, but it is less common and regional. It can suit homes needing some daytime heating top-ups. Check availability and meter compatibility before you commit.

What it could cost you - and save you

• Typical annual cost: For a home using about 3,900 kWh per year with 40-42 percent at night, Economy 7 bills are around £1,179-£1,224 under the Oct-Dec 2025 cap. Your actual cost depends on your precise day-night split and supplier rates.
• Standing charges: About 53.68p per day in Q4 2025 for Economy 7 by Direct Debit. Standing charges can be a large share of low-usage bills.
• Sensitivity to usage: If you can only shift 25-30 percent to night, the higher day rate can erase savings. With 10 percent at night, single-rate could be up to £180 cheaper per year.
• Regional variation: Rates and standing charges vary across GB regions due to network costs. Always compare using your postcode.

The best savings require discipline - timers, smart plugs and predictable routines that push energy into the night window.

Risks to watch:

• Locking into a high day rate when your routine changes back to daytime usage.
• Assuming the price cap equalises providers - suppliers set very different day-night splits within the cap.

Are you eligible - and set up correctly

• Metering: You need either a traditional Economy 7 meter with two registers or a smart meter configured for dual-rate. Without this, you cannot access off-peak pricing.
• Property fit: Homes with electric storage heating, immersion water heating or an EV on home charging are best placed to benefit.
• Lifestyle fit: Shift at least 40 percent of your electricity use into the off-peak period. Night laundry, dishwashing, water heating and EV charging should be automated.
• Payment method: Figures quoted reflect Direct Debit under the cap. Other payment methods may carry different rates or charges.
• Region: Availability and exact rates depend on your distribution region. Check supplier quotes and Ofgem regional data before switching.

If you lack suitable appliances or a compatible meter, ask your supplier about a smart meter upgrade and whether they can configure dual-rate.

Setting it up in practice - step by step

1. Check your current day-night usage split on recent bills
2. Confirm you have an Economy 7 or dual-rate smart meter
3. Get supplier quotes with both rates and standing charge
4. Compare using your actual split, not the typical usage
5. Schedule big loads with timers for the off-peak window
6. Track your first two bills to verify expected savings
7. Adjust routines to push more load into night hours
8. Review again at renewal or if your lifestyle changes

The upside and the trade-offs

Pros:

• Lower night rates can materially cut bills for the right usage pattern
• Ideal for storage heating and EV charging on a schedule
• Works with smart automation for set-and-forget savings

Cons:

• Day rates are significantly higher than single-rate tariffs
• Off-peak window is fixed and may not fit every lifestyle
• Regional rate differences and standing charges reduce transparency

Bottom line: Economy 7 is efficient only when your night usage is consistently high and planned.

Pitfalls and common mistakes

• Comparing caps, not rates: The Ofgem cap limits a typical annual bill, not your exact rates. Suppliers can vary the day-night split widely.
• Ignoring standing charges: Around 53.68p per day still applies, even with minimal usage. Low users should factor this heavily.
• Overestimating night usage: Aim for 40 percent at night to break even against a single-rate. Anything less and savings evaporate quickly.
• Meter misconfiguration: Smart meters must be set to dual-rate mode to record off-peak use correctly.

Do a seven-day trial: run timers, track day vs night kWh, then make your decision with evidence.

If Economy 7 is not a match

• Single-rate fixed or variable tariffs: Straightforward pricing with no scheduling burden.
• Economy 10: Extra off-peak hours where available, useful for daytime heating top-ups.
• Demand flexibility schemes: Some suppliers pay credits for reducing usage at peak times.
• Efficiency upgrades: Insulation, smart thermostats, LED lighting and shifting to heat pumps can lower total kWh regardless of tariff.

Use a comparison tool to model your real usage split across alternatives.

Quick answers to common questions

• What are typical Economy 7 rates in 2025 Q4? Night rates often sit around 7-12p per kWh and day rates around 25-30p per kWh, varying by supplier and region.
• How much will a typical household pay? With around 3,900 kWh per year and roughly 40-42 percent at night, expect about £1,179-£1,224 under the Oct-Dec 2025 cap.
• Do price caps mean rates are the same everywhere? No. The cap limits a typical bill. Suppliers set different day and night rates within the cap, and regions vary.
• What standing charge applies? Around 53.68p per day in Q4 2025 for Direct Debit Economy 7 customers. This is paid in addition to unit rates.
• Do I need a special meter? Yes. Either a traditional Economy 7 meter with two registers or a smart meter configured for dual-rate.
• Who benefits most? Homes with storage heaters, immersion heaters or EVs that can be timed overnight and consistently reach at least 40 percent night usage.
• Could switching away save me money? If you use only about 10 percent at night, a single-rate could be up to £180 per year cheaper.

What to do next

• Gather your last three bills and calculate your day-night split
• Get at least three Economy 7 quotes showing both rates and the standing charge
• Model costs using your actual split and compare with a single-rate option
• Install timers or smart plugs to automate off-peak usage
• Recheck after two billing cycles and adjust if savings fall short

Need help? Switcha can compare supplier rate splits against your real usage to find the best fit.

Important information

This guide reflects GB pricing and Ofgem cap information for October to December 2025. Actual rates and standing charges vary by supplier, region and payment method. Always confirm your meter type and tariff terms with your provider before switching.