Economy 7 Tariffs FAQs: 25 common questions answered

Make Economy 7 work for your home in 2025

Get clear on how Economy 7 charges different rates at night and during the day, where the Ofgem price cap fits in, and whether your usage pattern makes it worthwhile. Practical, GB-specific advice you can act on today.

Who should consider this

Households with storage heaters, electric vehicles, heat batteries or programmable appliances that can run overnight are prime candidates. Night-shift workers and those at home less during the day also benefit. If most of your electricity use is between 00:30 and 07:30, Economy 7 can reduce costs. If not, a standard tariff may be cheaper.

Jargon made simple

• Economy 7 - A dual-rate electricity tariff with roughly seven cheaper off-peak hours overnight and a higher daytime rate. The exact window varies by supplier and region.
• Dual-rate meter - A meter that records day and night consumption separately. Smart meters can be configured for time-of-use tariffs.
• Off-peak window - Commonly 00:30 to 07:30, but confirm your supplier’s schedule. Some adjust for daylight saving time.
• Price cap - Ofgem’s maximum annual cost for a typical Economy 7 household paying by Direct Debit is £1,179 from Oct-Dec 2025. It limits total cost for typical use, not individual unit rates.
• Typical use - For Economy 7, Ofgem assumes 2,900 kWh per year with 42% used at night. Your pattern may differ.
• Standing charge - A daily fixed fee that covers networks, policy costs and supplier overheads - included across all tariffs.

Understanding the cap helps frame expectations, but supplier rate splits and your usage determine the real bill.

Your choices in today’s market

Suppliers in Great Britain set their own Economy 7 day and night rates within the overall cap framework. That means two households with similar use can pay different amounts depending on provider. Some tariffs prioritise very low night prices to attract EV drivers or homes with storage heating, while offsetting with higher day rates. Others aim for a more balanced split.

Economy 10 exists in some regions, offering extra off-peak hours spread through the day, but availability is patchier and pricing varies. Specialist EV tariffs may be competitive if your charging is predictable and largely overnight.

If your home cannot support a dual-rate setup yet, you can request a smart meter configured for Economy 7. Renters should check tenancy agreements and speak to landlords before arranging installations.

The right tariff is the one that matches your real-world usage pattern, not the one with the lowest headline rate.

Example supplier rate styles

Costs, value and the real trade-offs

From Oct-Dec 2025, Ofgem’s typical Economy 7 annual bill benchmark is £1,179 with 42% night use. This is a guide, not a quote. Standard electricity within dual-fuel arrangements is benchmarked higher at £1,755 per year, but your actual outcome depends on consumption and rate splits. Environmental and social policy costs, network charges and operations - around £217 per year within the cap period - are embedded across tariffs.

• If you can shift at least 40% of use to night, savings can emerge. Some households report modest gains around £45 per year, but results vary widely.
• If most consumption remains daytime, higher day rates can outweigh cheap nights.
• Exit fees may apply if you switch mid-contract. Balance potential savings against any fees.

The greater your controllable night usage, the stronger the case for Economy 7.

Can you qualify and is your home ready

To use Economy 7 you need a compatible meter - either a traditional two-rate meter or a smart meter set up for dual-rate billing. Not all existing smart meters are configured for time-of-use by default. You may need a supplier visit to reconfigure or replace hardware.

Check:

• Meter type and compatibility with dual-rate tariffs
• Supplier support for your specific meter model
• Your property’s wiring if you use storage heaters
• Tenancy permissions if you rent

Regional off-peak times can vary, and some suppliers adjust for daylight saving. Always confirm the precise window before you change habits or invest in timers.

Step-by-step to make it pay

1. Audit your usage - identify what can shift to night.
2. Verify meter compatibility - ask your supplier to confirm.
3. Confirm off-peak hours - including daylight saving adjustments.
4. Compare suppliers - focus on both day and night rates.
5. Model costs - test scenarios at 30%, 40%, 50% night use.
6. Check fees - exit charges, installation lead times, standing charges.
7. Switch and set timers - appliances, EV charging, storage heaters.
8. Review after 1-2 bills - adjust usage or supplier if needed.

Advantages and trade-offs

Pros:

• Lower unit price overnight for flexible loads
• Supports EV charging and storage heating economics
• Transparent day-night usage splits can aid budgeting

Cons:

• Higher daytime rates can erase savings
• Off-peak hours vary by supplier and may shift seasonally
• Meter changes may require appointments and landlord consent

Economy 7 rewards planning and discipline more than impulse use.

Watchpoints before you commit

• Do not assume off-peak is midnight to 7am - confirm your clock window.
• If your day usage is heavy, a standard tariff may be cheaper overall.
• Timers matter. Without automation you may not reliably shift loads.
• Consider lifestyle changes - new baby, home working, or EV purchase can alter your profile.
• Recheck annually - suppliers change rate splits and incentives.

Alternatives to weigh up

• Standard single-rate tariffs - simpler if night shifting is minimal.
• Economy 10 - more off-peak periods, limited availability.
• EV-specific tariffs - ultra-low night windows for charging, check standing charges and day rates.
• Time-of-use trials - dynamic tariffs via smart meters may suit highly flexible homes.

Create a shortlist and cost each option against realistic usage splits before moving.

FAQs

Q1. Does the Ofgem price cap fix my unit rates? A. No. It caps a typical annual cost. Suppliers set their own day and night unit rates within that framework.

Q2. How much night usage do I need to save money? A. As a rule of thumb, aim for at least 40% overnight. More is better, especially with storage heating or EV charging.

Q3. What are common off-peak hours? A. Often 00:30 to 07:30, but exact times vary by supplier and region. Some adjust for daylight saving. Always confirm.

Q4. Can smart meters handle Economy 7? A. Yes, if configured for dual-rate billing. You may need a supplier visit to set the profile correctly.

Q5. Are there extra fees to switch? A. Possibly. Exit fees can apply mid-contract. Balance any fees against projected savings before moving.

Q6. Is Economy 7 still worth it in 2025? A. For EV owners, storage heaters and night-shift households, often yes. For daytime-heavy users, a standard tariff can be cheaper.

What to do next

• Gather three months of usage data from your meter or app
• Confirm your off-peak window with your supplier
• Compare at least three Economy 7 offers using your actual splits
• Set appliance and EV timers, then review costs after the first bill

Small changes in timing can deliver outsized savings when night rates are low.

Important information

This guide is general information, not personalised advice. Prices, caps and supplier rates change frequently. Always confirm meter compatibility, off-peak hours and all fees with your supplier before switching. If in doubt, seek independent guidance.