Economy 7 Tariffs eligibility & requirements (UK)

Cut your bills by shifting power to the night

A clear guide to eligibility, meters, and off-peak savings

Economy 7 can lower electricity costs if you use more power overnight. This guide explains who qualifies, what meters are required, how off-peak hours work, the RTS phase-out, and when switching makes financial sense.

If you cannot move at least 40% of your electricity use to night hours, Economy 7 is unlikely to save you money.

Who should consider Economy 7

Households that can schedule high-energy tasks overnight benefit most. Think electric storage heating, immersion hot water, or charging an EV while you sleep. If your lifestyle or appliances mean daytime use dominates, a single-rate tariff may be cheaper. Renters and homeowners can qualify, provided the right meter and supplier support are in place.

Key terms you will see

• Economy 7: A dual-rate electricity tariff with around seven cheaper hours overnight and higher day rates.
• Off-peak window: Typically around midnight to 7am, but varies by region and supplier. Confirm your exact times.
• Dual-rate meter: A meter that records day and night usage separately. This can be a traditional Economy 7 meter or a smart meter configured for dual rates.
• Smart meter: A modern meter that sends accurate readings automatically and can be configured remotely for time-of-use tariffs.
• Radio Teleswitch Service (RTS): Legacy switching technology for some E7 meters. UK support ends on 30 June 2025, so affected homes must upgrade to smart meters.
• British Summer Time (BST): Some meters do not automatically adjust. Your off-peak hours may shift by the clock in summer.
• Price cap: Ofgem limits what a typical household pays annually, but suppliers set the specific day and night unit rates and standing charges.
• Night usage share: The proportion of your electricity you can move to off-peak. Aim for at least 40% to see a benefit.

Your tariff choices compared

Economy 7 is one of several time-of-use options. Choosing the right one depends on your usage pattern, appliances, and supplier availability.

• Suppliers set their own splits between day and night rates. The best deal is rarely the same for every home.
• Some smart tariffs offer automation features to schedule charging and hot water for the cheapest hours.

Pounds and pence - what to expect

• With around 42% night usage and 3,900 kWh per year, a typical Economy 7 bill in July 2025 modelling is roughly £1,191. Your exact cost depends on supplier rates, region, and standing charges.
• Savings hinge on shifting demand. Storage heaters that charge at night and release heat by day, immersion heaters timed for early hours, and EV charging can move the needle.
• Risks: Higher daytime rates can outweigh night savings if you fall short of the 40% threshold. Some households see bills rise after switching because their routine stays daytime heavy.
• Meter upgrades are often free. Suppliers frequently install smart meters at no extra cost, which is essential for accurate dual-rate billing.

Bold idea: schedule appliances automatically so your real usage matches the tariff you pay for.

Do you qualify

You are likely eligible if:

• You have or can install a dual-rate meter. A smart meter configured for E7 usually qualifies.
• Your home can push at least 40% of electricity use to night hours.
• Your supplier offers Economy 7 for your region and meter type.
• You do not rely on an RTS meter beyond 30 June 2025. If you do, your supplier should replace it with a smart meter.

Considerations before applying:

• Heating type: Electric storage heating or heat-intensive appliances at night suit E7. Gas-heated homes with light night usage usually do not.
• Property setup: A hot water cylinder and timed immersion help. Flats with storage heaters often align well.
• Time bands: Off-peak hours vary by supplier and region. Confirm yours, including BST behaviour.

Switching in simple steps

1. Check your last 12 months of kWh usage by time of day.
2. Estimate your night share - aim for at least 40%.
3. Contact your supplier to confirm E7 availability and hours.
4. Arrange a smart meter or dual-rate meter installation if needed.
5. Compare suppliers for day-night prices and standing charges.
6. Set timers for heating, hot water, and EV charging overnight.
7. Monitor your first three bills and adjust schedules as needed.

Upsides and trade-offs

Pros:

• Lower night rates reward smart scheduling.
• Works well with storage heaters and EVs.
• Smart meters enable accurate billing and remote configuration.

Cons:

• Higher daytime rates can erase savings if habits do not change.
• Off-peak windows vary and may not suit your schedule.
• RTS meters must be upgraded before 30 June 2025.

Context matters: your actual day-night split determines the outcome more than headline unit prices.

Read this before committing

• Confirm exact off-peak hours and whether your meter auto-adjusts for BST.
• Ask about exit fees, standing charges, and any minimum term.
• Check landlord or freeholder consent for meter changes if you rent or live in a leasehold property.
• Plan automation: smart plugs, EV schedules, and heating timers increase night usage.
• Keep an eye on supplier communications about the RTS switch-off and any required meter appointments.

Alternatives worth a look

• Economy 10: Adds daytime off-peak blocks, useful for storage heating top-ups, but availability is patchy.
• Single-rate tariff: Simple and predictable if your life is mostly daytime.
• EV-specific tariffs: Ultra-cheap night windows for charging, sometimes with app scheduling and integrations.
• Other smart time-of-use plans: Dynamic or staggered pricing windows that reward flexibility. Requires a smart meter and careful scheduling.

FAQs

Q: What meter do I need for Economy 7? A: A dual-rate meter that records day and night separately. A modern smart meter configured for E7 is usually the simplest route.

Q: What happens to RTS meters in 2025? A: RTS support ends on 30 June 2025. Suppliers will replace affected meters with smart meters to maintain dual-rate service.

Q: How do I know my off-peak hours? A: They vary by supplier and region, usually around midnight to 7am. Check your bill, meter label, or ask your supplier, including BST details.

Q: Is the 40% rule strict? A: It is guidance based on supplier experience. If you cannot reach roughly 40% night usage, savings are unlikely once higher day rates are factored in.

Q: Can renters switch to E7? A: Often yes, but meter changes may require landlord approval. Confirm before booking a smart meter installation.

Q: Are rates capped? A: Ofgem caps a typical annual bill, not individual unit rates. Suppliers set day-night prices, so comparison is essential.

What to do next

• Check your usage patterns and estimate your night share.
• Contact your supplier to confirm E7 availability, off-peak hours, and meter requirements.
• Compare day-night splits across suppliers. If the maths works, book a smart meter and set schedules for heating, hot water, and EV charging.

Important information

This content is general guidance for Great Britain. Tariffs, hours, eligibility, and prices vary by supplier and region. Always confirm details with your supplier and check Ofgem updates before switching. switcha is not providing personalised advice.