Understand Economy 7 renewals, smart meter requirements, savings thresholds, November 2025 changes, and 2030 phase-out. Compare options and follow clear steps to switch with confidence.
Economy 7 Tariffs renewal guide: when & how to switch
A clear path to lower night rates - and fewer surprises
Economy 7 can cut bills if you push enough usage into the small hours. This guide explains when switching makes sense, what kit you need, how to compare rates, and what the 2025 and 2030 changes mean for your home.
Understanding APR is about real costs. Energy is the same: focus on your day-night split and the exact pence per kWh you will pay.
Who gains the most from Economy 7
Economy 7 rewards households that can shift at least 40% of electricity to off-peak hours. It suits properties with storage heating, immersion hot water, or an EV charged overnight. If you are home and using power mostly in the day, a single-rate or flexible smart tariff may cost less overall.
Key ideas you must know first
Off-peak window and price split
- Economy 7 gives around seven cheaper hours at night, often midnight to 7am. Times vary by supplier and region.
- Day rates are higher than standard single-rate tariffs. Night rates can be up to 50% lower than day rates.
The 40% usage rule of thumb
- Aim for at least 40% of annual electricity overnight to benefit.
- Typical winners: homes with electric storage heaters, immersion heaters on timers, or EVs charging nightly.
Metering requirements
- You need a meter that records day and night usage separately.
- Many suppliers now require smart meters for Economy 7. If you already have a compatible smart meter, the switch can often be done remotely.
- Using an old Radio Teleswitch (RTS) meter? You must upgrade to a smart meter by 30 June 2025 to keep dual-rate functionality.
Price cap context
- Ofgem’s cap limits the overall level, but suppliers set their own day and night unit rates and standing charges within that cap.
- For a typical 3,900kWh home with about 42% night use, a representative annual cost from July 2025 is around £1,191. Your actual cost depends on your split and supplier pricing.
Your tariff choices compared
| Tariff type | Typical day rate | Typical night rate | Best for | Key watchouts |
|---|---|---|---|---|
| Economy 7 | Higher | Much lower | Homes with 40%+ night use | Expensive daytime units if you miss the window |
| Economy 10 | Higher | Lower over more hours | Those needing some off-peak during daytime | Availability varies by region and supplier |
| Single-rate | Medium | N/A | Households mostly using power in daytime | No benefit from shifting usage |
| Flexible smart tariff | Varies by time | Varies by time | EV owners and tech-friendly homes | Prices can change daily - needs active management |
Short takeaway: match your lifestyle and appliances to the right rate design. The wrong fit can cost more than you expect.
Pounds, pence, and practical risk
- Savings potential: If you achieve 40% to 60% night usage, Economy 7 can deliver meaningful savings because night units can be up to half the daytime price.
- Risk of overspend: Using less than 40% at night can leave you paying more, due to elevated day rates.
- Supplier variation: Though capped overall, individual day and night rates differ. Two Economy 7 deals can produce very different bills on the same usage.
- Upcoming changes: A scheduled adjustment on 1 November 2025 may alter day-night differentials. Check with your supplier before renewing.
- Phase-out horizon: Economy 7 is planned to be withdrawn by 2030. Expect a shift toward smart and flexible tariffs. Properties that do not upgrade may face higher running costs.
Price caps limit the average, not your specific outcome. Your usage profile is the decisive factor.
Who is eligible and what you need
- Meter type: You must have a dual-register meter. Most suppliers prefer or require a smart meter to switch or maintain Economy 7.
- RTS deadline: If you rely on RTS switching, arrange a smart meter upgrade before 30 June 2025.
- Property profile: Strong candidates include homes with electric storage heating, immersion water heating on timers, or an EV. Flat or maisonette blocks with communal heating controls may have restrictions - check your setup.
- Access and signal: Smart installs need engineer access and a workable communications signal. Rural properties may need alternative communication solutions from the installer.
- Credit status: Standard credit checks and payment method requirements apply as with any tariff.
Step-by-step to switch confidently
- Check the current day-night split on recent bills.
- List shiftable loads and set timers for them.
- Compare suppliers’ day, night and standing charges.
- Confirm your meter type and upgrade needs.
- Get quotes based on your exact usage split.
- Book a smart meter install if required.
- Schedule the tariff start after meter commissioning.
- Recheck usage after one full billing cycle.
Pros, cons and practical trade-offs
- Pros: Lower night rates, potential savings for EVs and storage heating, encourages energy-smart habits, can reduce carbon if paired with flexible demand.
- Cons: Higher day rates, needs disciplined scheduling, appliance noise at night, limited benefit for daytime-heavy households.
- Considerations: Seasonal patterns matter. Winter storage heating can lift night share, while summer usage may slip below 40%. Build a buffer by overachieving the night-time target where possible.
Red flags before you commit
- Inflexible lifestyle: If work or family routines keep appliances running in the day, single-rate or smart flexible tariffs may be better.
- Metering delays: Installation backlogs can push dates. Confirm timelines before giving notice to your current tariff.
- Standing charge creep: Compare not only unit rates but also standing charges. They can offset savings.
- November 2025 update: Ask your supplier how the change could affect your bill and whether to lock in or wait.
- 2030 phase-out: Plan for a future move to flexible smart tariffs. Choose meters and in-home tech that keep options open.
Alternatives worth a look
- Economy 10: Ten off-peak hours spread across day and night can suit families who are home at varied times. Availability is patchy.
- Flexible smart tariffs: Prices respond to grid conditions. EV owners and tech-savvy households can benefit by charging and running appliances in cheaper windows.
- Stick with single-rate: If you cannot reach 40% night use consistently, a fair single-rate deal may minimise risk and complexity.
Frequently asked questions
What are typical Economy 7 hours?
Usually around midnight to 7am, but exact times vary by supplier and region. Always confirm your local off-peak window before switching.
Do I need a smart meter?
Increasingly yes. Many suppliers require smart meters for Economy 7. If you have an older RTS meter, upgrade to smart by 30 June 2025 to retain dual rates.
How much can I save?
If you shift at least 40% of usage into off-peak, you could achieve meaningful savings because night units can be up to 50% cheaper than day units. Results vary by supplier pricing.
Is Economy 7 capped by Ofgem?
The overall level is controlled by the price cap, but suppliers set individual day and night unit rates and standing charges. Your specific mix determines your final bill.
What if I use most power in the day?
You may pay more on Economy 7. Consider a single-rate or a flexible smart tariff that offers occasional cheaper daytime windows.
Is Economy 7 going away?
Yes. It is planned to be phased out by 2030. Expect a migration to smart and more dynamic tariffs. Plan upgrades ahead of time.
What to do next
- Pull your last 12 months of electricity data and calculate your day-night split.
- Get live quotes from at least three suppliers, comparing day, night and standing charges.
- If needed, book a smart meter install and set appliance timers. Recheck the maths after your first full Economy 7 bill.
Aim for 45% night usage to give yourself a safety margin.
Important information
This guide provides general information for GB households. It is not personalised advice. Prices, hours and eligibility vary by supplier and region. Always confirm current rates, terms, November 2025 changes and meter requirements before switching or renewing.
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