Economy 7 Tariffs jargon buster: key terms explained

Decode Economy 7: night rates, meters, and real savings

Understanding APR is useful - but for electricity, it is about kWh timing. With Economy 7, when you use power matters as much as how much you use.

Use more at night, pay less overall - if your pattern fits.

What you will get from this guide

In five minutes, you will grasp the essentials of Economy 7 - how dual rates work, which homes benefit, typical prices, and how to check your off-peak window. You will also see how it compares with Economy 10 and single-rate tariffs.

Is this right for you?

Economy 7 suits UK households that can shift at least 40% of electricity use to night hours. Think storage heaters, hot water tanks, or an EV charging overnight. If you are home most days, use electric cooking and appliances then, a single-rate tariff may be cheaper.

Jargon buster - the key terms made simple

• Economy 7: A dual-rate electricity tariff with seven cheaper off-peak hours overnight and higher day rates. Off-peak typically sits between midnight and 7am, but supplier times vary.
• Off-peak hours: The cheaper window. It can start as early as 11pm or end as late as 8am depending on region and supplier. British Summer Time can shift the clock used by meters.
• Day rate: The higher price you pay outside the off-peak window. Often around 25-30p per kWh.
• Night rate: The cheaper price during off-peak. Often around 7-12p per kWh - typically 20-50% lower than the day rate.
• Economy 7 meter: A meter that records day and night use separately. It shows two readings labelled low and normal. Many smart meters can be configured for Economy 7.
• Storage heaters: Electric heaters that charge at night and release heat by day. A classic Economy 7 pairing.
• Immersion heater: Heats water in a tank. Set its timer so the tank heats during off-peak.
• Price cap: Ofgem limits a typical household’s annual cost. For July-September 2025 a typical Economy 7 customer paying by Direct Debit would pay £1,145, rising to £1,179 for October-December 2025. Suppliers can choose the day-night split within the cap.

Your tariff choices at a glance

Economy 7 is widely available across Great Britain. Economy 10 exists too, but is less common and splits off-peak across day and night. A standard single-rate tariff keeps one price for every hour.

How the main options compare

The right pick depends on your usage clock, not your postcode alone.

Pounds and pence - savings, impacts, and risks

• Savings potential: If you can push 40% or more of your usage into off-peak, you can meaningfully cut costs. Average savings are often modest at around £45 per year, but vary widely.
• The price gap: Night prices can be 20-50% cheaper than day prices. If your pattern misses the night window, the higher day rate can outweigh any off-peak benefit.
• Bill predictability: You are protected by the Ofgem price cap, yet suppliers set the day-night split. Two Economy 7 tariffs can feel very different on the same cap.
• Behaviour change: Real benefit often comes from timers and routines. Without them, you may pay more than on a single-rate.
• Risk check: High daytime use or irregular schedules reduce gains. The fixed window can be awkward for families or home workers.

Who typically benefits - and who does not

• Strong fits: Homes with electric storage heating, immersion-heated hot water tanks, and EVs charged overnight. Night-use above 40% is the rule of thumb.
• Possible fits: Night-shift households, or those happy to schedule laundry, dishwashers, and charging after midnight.
• Poor fits: Households using most electricity between breakfast and early evening, especially if you cook electrically and work from home.
• Meter must-have: You need an Economy 7 meter or a smart meter configured for dual rates. Without it, you cannot access night pricing.

Turning it on - a simple step-by-step

1. Check your meter shows two readings labelled low and normal.
2. Ask your supplier to confirm your exact off-peak hours.
3. If needed, request a smart meter or E7 reconfiguration.
4. List appliances you can shift to night use.
5. Set timers on immersion, EV charger, laundry, and dishwasher.
6. Compare suppliers for the best day-night rate split.
7. Track your day vs night kWh after one billing cycle.
8. Adjust routines if night share is below 40%.

Weighing it up - pros, cons, and caveats

Pros

• Cheaper unit rates overnight for seven hours
• Works well with storage heating and EV charging
• Encourages energy use when the grid is quieter

Cons

• Higher day rates can erase gains if habits slip
• Fixed off-peak window can be restrictive
• Savings are often modest without major night usage

Tip: Aim for at least 40% night usage and automate with timers.

Watchpoints before you switch

• Confirm the exact off-peak start and end times for your meter and region. BST changes can shift the effective window.
• Check appliances for delayed-start features. Cheap plug-in timers can help where built-in timers are missing.
• Compare more than the unit rates. The day-night split, standing charges, and your pattern all matter.
• Review quarterly. If your circumstances change, a single-rate may become cheaper.

Alternatives that might fit better

• Single-rate electricity: One predictable price at all hours. Good for daytime-heavy users and home workers.
• Economy 10: Ten off-peak hours split across day and night. Useful if you need some daytime off-peak, but availability is limited and terms vary.
• Emerging smart tariffs: As smart meters roll out, suppliers may offer more flexible time-of-use deals. Keep an eye on new options.

FAQs

Q: Do I need a special meter for Economy 7? A: Yes. You need an Economy 7 meter or a compatible smart meter configured to record day and night usage separately.

Q: How much cheaper is night electricity? A: Night rates are often 20-50% lower, around 7-12p per kWh versus 25-30p per kWh in the day. Actual prices vary by supplier.

Q: What are typical savings? A: Typical annual savings sit around £45, but depend on achieving at least 40% of your use at night and on your supplier’s rate split.

Q: Will the Ofgem price cap protect me? A: Yes. Economy 7 is covered by the cap. For July-September 2025 a typical E7 customer would pay £1,145, rising to £1,179 for October-December 2025.

Q: When are off-peak hours exactly? A: Often midnight to 7am, but suppliers set times regionally. Some start at 11pm or end at 8am. BST can affect the clock your meter uses.

Q: Is Economy 10 better than Economy 7? A: It depends. E10 offers ten off-peak hours including some daytime slots, but availability is limited. Compare timings and rates locally.

What to do next

• Check your meter type and your last bill’s day vs night kWh.
• Confirm off-peak hours with your supplier and set appliance timers.
• Compare at least three E7 tariffs, focusing on the day-night split and standing charge.
• Reassess after one or two bills. If night share is below 40%, consider switching back to single-rate.

Important note

This guide is general information for GB households and is not personalised advice. Prices and availability change. Always check current supplier terms, your metering setup, and your own usage pattern before switching.