Economy 10 tariff: your power play for cheaper electricity

An Economy 10 tariff can genuinely reduce your electricity costs if you can shift significant energy use to off-peak hours, offering three distinct rates throughout the day. This guide explains how these tariffs work, compares them to other options like Economy 7, and helps you determine if it is the right choice for your household.

If you're looking to make the most of your energy usage with a multi-rate tariff, Fuse Energy offers straightforward pricing and real-time usage data through its app. You can see exactly what you're paying and make informed decisions about your energy use. Click here to switch to Fuse Energy today.

What is an Economy 10 tariff?

Economy 10 is a multi-rate electricity tariff designed to offer cheaper electricity during specific off-peak periods, typically totalling 10 hours daily. Unlike standard tariffs, it divides the day into three pricing zones: a low off-peak rate, a medium shoulder rate, and a high peak rate. This structure rewards households that can actively manage their electricity consumption.

Understanding multi-rate tariffs

Multi-rate tariffs, such as Economy 10, charge different prices for electricity depending on the time of day it is used. This system encourages consumers to use electricity when demand on the National Grid is lower, which often corresponds to times when renewable energy sources are more abundant. To benefit from these tariffs, you need a meter capable of recording your usage across these different time bands.

How Economy 10 differs from standard tariffs

Standard electricity tariffs charge a single, flat rate for every unit of electricity consumed, regardless of the time of day. Economy 10, however, provides a more granular pricing structure. It offers 10 hours of off-peak electricity daily, usually split across morning, afternoon, and night periods, allowing for flexibility beyond a single overnight window. This contrasts sharply with the consistent unit rate of a standard tariff, meaning that while off-peak rates are cheaper, peak rates can be significantly more expensive.

Economy 10 vs Economy 7: key differences

While both Economy 10 and Economy 7 are multi-rate tariffs, their structure and suitability for different lifestyles vary considerably. Understanding these differences is crucial for choosing the right option.

Off-peak hours compared

The primary distinction lies in their off-peak scheduling. Economy 7 tariffs offer a single block of around seven hours of cheaper electricity, typically overnight. This makes them ideal for households that can run high-consumption appliances exclusively during these late-night hours.

Economy 10, on the other hand, provides its 10 off-peak hours spread across three distinct periods: usually a few hours in the morning, a few in the afternoon, and a longer stretch overnight. This split schedule offers more flexibility for households to use cheaper electricity throughout the day, rather than being restricted to a single night-time window.

Suitability for different lifestyles

Economy 7 is often best for homes with electric storage heaters that can charge overnight, or those with electric vehicles that can be plugged in exclusively during the late-night off-peak period. If your household's major electricity use occurs predominantly at night, Economy 7 could offer substantial savings.

Economy 10 is better suited for households with more diverse energy needs throughout the day. If you can run your washing machine in the afternoon, charge your EV in the early morning, or use other high-draw appliances during the split off-peak windows, Economy 10 offers greater scope for savings. It caters to a lifestyle that can adapt to a more varied schedule of cheaper electricity.

Benefits and drawbacks of Economy 10

Choosing an Economy 10 tariff can be a strategic move to reduce electricity bills, but it comes with its own set of advantages and challenges.

Potential for significant savings

The main benefit of an Economy 10 tariff is the potential for significant savings on your electricity bill. By shifting a substantial portion of your electricity usage to the designated off-peak hours, you pay a much lower rate per unit. This is particularly advantageous for households with high-consumption appliances like electric vehicles, washing machines, tumble dryers, dishwashers, and electric heating systems, as running these during cheaper periods can drastically cut costs.

Challenges and considerations

However, Economy 10 is not a guaranteed money-saver. The higher peak rates mean that if you fail to shift enough of your usage, your overall bill could be higher than on a standard tariff. Off-peak timings also vary significantly by supplier and region, so you must know your specific schedule to maximise savings. Furthermore, an Economy 10 tariff requires a specific multi-rate meter, such as a smart meter or a multi-register traditional meter, to track consumption across different time bands. The older Radio Teleswitch Service (RTS) meters, which supported some multi-rate tariffs, are being phased out, with the signal switch-off beginning on 30 June 2025. If you have an RTS meter, your current supplier will need to replace it with a smart meter, free of charge.

Is an Economy 10 tariff right for you?

Deciding if an Economy 10 tariff is suitable requires an honest assessment of your household's energy habits and current metering.

Assessing your energy usage

According to Ofgem, the average UK home uses around 2,500 kWh of electricity per year. To determine if Economy 10 is a good fit, you need to understand your own consumption patterns. Review your past electricity bills or use a smart meter's data to identify when you use the most electricity. Consider if you can realistically move high-usage activities - like charging an electric vehicle, running laundry appliances, or using electric showers - to the cheaper morning, afternoon, or night-time slots. If your lifestyle allows for this flexibility, Economy 10 could be beneficial.

Required meter types and upgrades

An Economy 10 tariff requires a specific meter that can record electricity consumption at different rates. This typically means you need either a smart meter or a multi-register traditional meter. If you have an older, single-rate meter, you would need an upgrade to a smart meter to access an Economy 10 tariff. Your current supplier can usually arrange this. It is important to note that legacy RTS meters, which used a radio signal to switch rates, are being phased out, with the signal switch-off starting in June 2025. If you have one of these, your supplier will need to replace it with a smart meter, free of charge. Once your supplier has replaced your RTS meter with a smart meter, you can switch to Fuse and get the latest smart meter technology and a digital-first experience.

Optimising your energy use with Economy 10

Once you have an Economy 10 tariff, the real work - and savings - come from actively managing your energy consumption.

Shifting high-consumption activities

The key to maximising savings with Economy 10 is to shift as much of your electricity use as possible to the low-rate periods. This means running appliances like washing machines, tumble dryers, and dishwashers during the cheaper morning, afternoon, or night-time slots. If you have an electric vehicle, scheduling its charging to coincide with these off-peak hours can lead to significant cost reductions. Even small changes, like using your immersion heater during a cheap slot, can add up.

Leveraging smart technology for efficiency

Smart technology can make optimising your Economy 10 tariff much easier. Smart meters provide detailed insights into your energy usage across different time bands, helping you identify peak consumption and areas for improvement. Many modern appliances, such as washing machines and dishwashers, come with delay-start functions, allowing you to programme them to run during off-peak hours. Smart plugs can also automate the switching of other devices. Integrating these technologies helps you take control of your energy use, aligning with the idea of having 'power to play with' your energy consumption.

Switching to an Economy 10 tariff

If you have assessed your usage and determined that an Economy 10 tariff is right for you, the next step is to find the best deal and make the switch.

Finding the best deals for your needs

Economy 10 tariffs are offered by various energy suppliers, and rates can differ significantly. It is crucial to compare available tariffs to find one that offers the most competitive off-peak rates and aligns with your household's specific consumption patterns. Look closely at the unit rates for all three periods (off-peak, shoulder, and peak) and the daily standing charge, as these collectively determine your overall bill.

The switching process explained

Switching to an Economy 10 tariff typically involves a few steps. First, ensure you have a compatible smart meter or multi-register meter. If not, your chosen supplier will arrange for an upgrade. Once your meter is ready, you can sign up for the Economy 10 tariff. The supplier will handle the transfer process, which usually takes a few weeks. After switching, actively monitor your energy usage and adjust your habits to take full advantage of the cheaper off-peak hours. Fuse Energy's customer support team can guide you through understanding complex multi-rate tariffs like Economy 10 and help you optimise your usage for maximum benefit.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. If you don't have a smart meter, Fuse Energy can upgrade your non-smart meter, completely for free. Our customer support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.