Cheap overnight electricity: how to save on bills

Shifting high-usage activities to off-peak hours on a dual-rate electricity tariff can significantly cut your energy bills, especially if you charge an electric vehicle (EV) or rely on storage heating. These tariffs offer substantially lower unit rates during periods of reduced demand, typically overnight, compared to peak daytime rates. This guide explains how to understand, find, and utilise these tariffs to make informed energy choices.

If you have a compatible meter and are looking to take advantage of cheaper overnight electricity, Fuse Energy offers dual-rate variable tariffs designed for modern energy users. Switch to Fuse today and start managing your energy more effectively. Click here to switch.

Understanding cheap overnight electricity

Cheap overnight electricity is not a new concept, but its application has evolved. It allows you to pay less for the energy you use during specific periods.

What are off-peak tariffs?

Off-peak tariffs, also known as time-of-use (ToU) tariffs, offer different electricity rates based on the time of day. Energy suppliers can provide electricity at a reduced unit rate during periods of lower demand on the National Grid, typically overnight. Conversely, peak hours, when demand is highest (often mornings and evenings), come with higher rates. The cheapest electricity rates in the UK are generally found during off-peak periods, though exact times vary by supplier and tariff.

How do dual-rate tariffs work?

Dual-rate tariffs operate by recording your electricity consumption at different times. You will have one unit rate for electricity used during designated off-peak hours and a different, higher unit rate for electricity used during peak hours. This setup encourages you to shift energy-intensive tasks, such as charging an EV or running a washing machine, to the cheaper off-peak window.

Who benefits from cheap overnight electricity?

Anyone can benefit from cheaper overnight electricity, but certain households stand to gain the most by aligning their energy use with off-peak times.

Electric vehicle owners

Charging an electric vehicle is one of the most significant energy demands in a modern home. By scheduling your EV charging to coincide with cheap overnight electricity periods, you can drastically reduce the running costs of your vehicle. Many smart chargers and EVs allow you to programme charging times, making it easy to take advantage of lower rates.

Homes with storage heating

Storage heaters are designed to draw and store electricity during off-peak hours, releasing the heat slowly throughout the day. For these systems, a dual-rate tariff is a natural fit, ensuring your heating is powered by the cheapest available electricity.

Households with high overnight energy consumption

Beyond EVs and storage heaters, any household with significant overnight electricity usage can benefit. This might include running dishwashers, washing machines, or tumble dryers on timers, or even using smart home devices that consume power continuously. According to Ofgem1, the average UK home uses around 2,500 kWh of electricity per year, and shifting even a portion of this to off-peak can lead to noticeable savings.

Meter types for dual-rate tariffs

To access dual-rate tariffs, you need a meter capable of recording your electricity consumption at different times of the day.

Smart meters: enabling modern tariffs

Smart meters are the most flexible option for dual-rate tariffs. They automatically send your readings to your supplier, eliminating the need for manual submissions and providing detailed insights into your energy usage. This data can help you optimise your consumption to align with cheaper periods. Smart meters are highly beneficial for accessing competitive and dynamic time-of-use tariffs.

Multi-register meters: the traditional option

Many homes still have traditional multi-register meters, often referred to as Economy 7 meters, which are also compatible with dual-rate tariffs. These meters have two displays: one for peak-rate consumption and another for off-peak. While they do not offer the same real-time data or automation capabilities as smart meters, they still allow you to benefit from cheaper night rates.

The radio Teleswitch service (RTS) phase-out

The Radio Teleswitch Service (RTS) meters are a legacy meter type that uses a longwave radio signal to switch between peak and off-peak rates. This service is being phased out across the UK, with the industry-wide switch-off beginning on 30 June 2025. If you have an RTS meter, your current supplier is responsible for replacing it with a smart meter at no cost to you. Once your meter has been upgraded, you will be able to access modern dual-rate tariffs.

Finding the best cheap overnight electricity tariff

Finding the right tariff requires a bit of research and understanding of your own energy habits.

Comparing off-peak rates and times

Do not assume all off-peak tariffs are the same. Suppliers offer varying off-peak windows and unit rates. Some might offer longer off-peak periods, while others might have significantly cheaper rates for a shorter duration. Compare these details carefully, along with the peak rates, to ensure the tariff suits your usage patterns.

Considering standing charges and contract terms

Beyond unit rates, pay attention to the daily standing charge, which is a fixed daily cost regardless of how much energy you use. A tariff with very low off-peak rates might have a higher standing charge or peak rate that could offset your savings if your daytime usage is substantial. Also, check contract lengths and any exit fees that may apply to fixed-rate tariffs.

Assessing your usage patterns

Before switching, take an honest look at your household's electricity consumption. If you can genuinely shift a significant portion of your usage to off-peak hours, a dual-rate tariff will likely save you money. If most of your energy consumption occurs during peak times, a single-rate tariff might still be more economical.

Maximising your savings with smart usage

Once you are on a dual-rate tariff, smart usage is key to unlocking the full savings potential.

Automating high-demand appliances

Use timers on appliances like washing machines, dishwashers, and tumble dryers to ensure they run during your tariff's cheapest off-peak hours. Many modern appliances have built-in delay start functions that make this simple.

Integrating with smart home technology

Smart home devices can take optimisation to the next level. Smart plugs can automate non-smart appliances, while smart thermostats can manage storage heating more efficiently. For EV owners, smart chargers can automatically schedule charging when electricity is cheapest and cleanest, often integrating directly with your energy tariff.

Monitoring and adjusting your consumption

Regularly review your energy usage, especially if you have a smart meter that provides detailed data. This allows you to see if your efforts to shift usage are paying off and identify any areas where you could further optimise. Adjust your habits as needed to align with the cheapest periods.

Switching to a cheap overnight electricity tariff

Switching to a new energy tariff is generally straightforward, but it is good to know what to expect.

Steps to switch energy suppliers

1. Check your meter: Confirm you have a smart meter or a multi-register meter. If you have an RTS meter, your current supplier will need to replace it first.
2. Compare tariffs: Use comparison sites or directly check supplier websites for dual-rate tariffs that suit your needs.
3. Initiate the switch: Once you have chosen a tariff, your new supplier will handle the switching process, which typically takes up to five working days.
4. Provide meter readings: You may be asked to provide a final meter reading to your old supplier and an opening reading to your new one. If you have a manual meter, you will submit these readings via the Fuse app within 5 days of switch-in. Smart meters automate this.

What to expect after switching

Your new supplier will keep you informed throughout the process. You will receive a welcome pack with your tariff details, terms and conditions, and information on how to manage your account. You will then start being billed under your new dual-rate tariff. Remember to continue monitoring your usage to ensure you are maximising your savings.

Fuse Energy's dual-rate variable tariffs empower homeowners to take control of their energy usage and costs. By leveraging cheaper overnight electricity, Fuse helps customers create a surplus of affordable energy, enabling them to use more when it is cheapest and cleanest without guilt. It is a power play that puts control and capability back in your hands. Click here to switch to Fuse Energy today. You can also learn more about our mission to make energy fairer and greener here.

References

1. Ofgem. Review of typical domestic consumption values