Economy 10 tariff explained

Economy 10 is a legacy time-of-use electricity tariff designed to offer cheaper electricity for ten hours spread across three distinct off-peak periods. These periods typically occur overnight, in the afternoon, and in the evening. This tariff requires a specific multi-rate electricity meter to track consumption during these different time bands. While it once offered flexibility, the availability of Economy 10 tariffs is declining as modern smart meter-enabled tariffs provide more dynamic and flexible time-of-use options.

If you're looking for a modern approach to managing your home's electricity, especially with time-of-use benefits, Fuse Energy offers smart meter-enabled dual-rate variable tariffs designed for today's energy landscape. You can explore your options and switch to Fuse Energy today. Click here to get started.

What is an Economy 10 tariff?

An Economy 10 tariff is an electricity pricing structure that charges different rates for electricity depending on the time of day it is used. Unlike a standard single-rate tariff, where the price per unit of electricity remains constant, Economy 10 divides the day into peak and off-peak periods. The "10" refers to the ten hours of cheaper electricity available each day.

Understanding time-of-use tariffs

Time-of-use (ToU) tariffs are designed to encourage consumers to shift their electricity consumption away from periods of high demand (peak times) to periods of lower demand (off-peak times). This helps balance the load on the National Grid and can lead to lower bills for consumers who can adapt their usage. Economy 10 was an early form of such a tariff, preceding the widespread adoption of smart meters and more dynamic pricing models.

The three off-peak windows of Economy 10

A key characteristic of Economy 10 is that its ten off-peak hours are typically split into three distinct blocks throughout the day. While exact timings can vary by supplier and region, these often include an overnight period, a shorter afternoon slot, and an evening hour. This contrasts with other multi-rate tariffs that might offer a single, longer off-peak window.

How Economy 10 works

To benefit from an Economy 10 tariff, your electricity meter must be capable of recording consumption during these different time bands. The tariff's structure means that electricity used during the specified off-peak hours is charged at a lower rate, while electricity used outside these hours (peak times) is charged at a higher rate.

Meter requirements for Economy 10

Dual-rate tariffs, including Economy 10, require either a smart meter or a multi-register (dual-rate) traditional meter capable of distinguishing between peak and off-peak usage. Without such a meter, your supplier cannot accurately bill you for the different rates, making these tariffs inaccessible.

Typical off-peak hours and rate structure

The ten off-peak hours on an Economy 10 tariff are often split into three periods: an overnight block, a mid-afternoon slot, and a short evening period. This structure allows for some flexibility, but it also means that the peak rates during the remaining 14 hours of the day are typically higher than those on a standard single-rate tariff. Economy 10 tariffs also often come with higher standing charges to offset the cheaper off-peak electricity.

Impact of the Radio Teleswitch service (RTS) phase-out

Many legacy multi-rate meters, including some used for Economy 10, rely on the Radio Teleswitch Service (RTS) to switch between peak and off-peak rates. This service began its industry-wide phase-out on 30 June 2025. This means that older Economy 10 meters relying on RTS will need to be replaced with smart meters by your current supplier. This upgrade is usually free of charge. If you have an RTS meter, your current supplier will contact you to arrange its replacement.

Benefits and drawbacks of Economy 10

Economy 10 tariffs were designed to offer potential savings for households that could significantly shift their electricity use to off-peak hours. However, they also come with specific considerations.

Potential for energy savings

The primary benefit of an Economy 10 tariff is the opportunity to pay less for electricity consumed during the ten off-peak hours. If you have energy-intensive appliances like storage heaters, electric vehicle chargers, or washing machines, and you can consistently run them during these cheaper periods, you could see a reduction in your overall electricity bill.

Higher peak rates and standing charges

To compensate for the cheaper off-peak electricity, Economy 10 tariffs typically feature higher peak rates for electricity used outside the off-peak windows. They may also have higher daily standing charges compared to standard single-rate tariffs. This means that if you do not manage to shift a substantial portion of your usage to off-peak times, your overall bill could end up being higher than on a standard tariff.

The challenge of shifting energy usage

Effectively utilising an Economy 10 tariff requires a conscious effort to schedule energy-intensive activities. The three distinct off-peak windows can be more complex to manage than a single, longer off-peak period. For many households, consistently shifting activities like cooking, laundry, or heating to these specific times can be challenging and may not align with their daily routines.

Economy 10 vs Economy 7: key differences

Economy 10 and Economy 7 are both legacy time-of-use tariffs, but they differ significantly in their structure and suitability.

Number of off-peak hours and periods

The most obvious difference is the number of off-peak hours: Economy 10 offers ten hours, while Economy 7 provides seven hours. Crucially, Economy 7 typically has one continuous off-peak period, usually overnight. Economy 10, however, splits its ten hours into three separate blocks throughout the day. This can offer more flexibility for some, but also more complexity in managing usage.

Suitability for different lifestyles

Economy 7 is often suited to households with electric storage heaters or those who can run most of their high-consumption appliances overnight. Economy 10, with its additional afternoon and evening off-peak slots, might appeal to those who can utilise these specific periods, perhaps for afternoon laundry or evening EV charging. However, both require significant behavioural changes to be cost-effective, and the higher peak rates and standing charges must always be considered.

Is Economy 10 right for your home?

Deciding if an Economy 10 tariff is suitable for you involves a careful look at your household's energy consumption and lifestyle.

Assessing your energy consumption habits

The average UK home uses around 2,500 kWh of electricity per year1. To benefit from Economy 10, you would ideally need to shift a significant portion of this usage to the ten off-peak hours. If your current habits involve heavy electricity use during typical daytime peak hours, an Economy 10 tariff might lead to higher bills due to the elevated peak rates. Analyse your current electricity bills and consider how much of your usage could realistically be moved.

Appliances that benefit most from off-peak usage

Appliances that consume a lot of electricity and can be programmed or manually run during off-peak hours are key to making Economy 10 work. These include:

• Storage heaters: Designed to charge up during cheaper off-peak hours and release heat later.
• Electric vehicle (EV) chargers: Many EVs can be programmed to charge during specific windows.
• Washing machines and tumble dryers: Modern appliances often have delay-start functions.
• Dishwashers: Can also be set to run overnight or during other off-peak slots.
• Immersion heaters: For hot water, if you can time their operation.

Availability of Economy 10 tariffs today

The availability of Economy 10 tariffs is declining. Many energy suppliers have stopped offering them to new customers, favouring more modern, smart meter-enabled tariffs. If you are currently on an Economy 10 tariff, you might be able to remain on it, but switching to a new supplier or tariff might mean moving away from Economy 10.

Modern alternatives to legacy tariffs

While Economy 10 was an early step towards time-of-use pricing, the energy landscape has evolved significantly. Modern alternatives, often enabled by smart meters, offer greater control and flexibility.

The rise of smart meter-enabled dual-rate tariffs

Today, smart meters unlock a new generation of dual-rate variable tariffs. These tariffs often provide clear off-peak windows, similar to Economy 10, but with the added benefits of smart technology. They are designed to align with a future of abundant, smart energy use, allowing customers to use energy 'smarter' when it is cheaper and cleaner.

Optimising energy use with real-time data and apps

Smart meters provide real-time data on your energy consumption, which can be accessed through supplier apps. This visibility empowers you to truly optimise your energy usage during off-peak windows. You can track exactly how much electricity you are using and when, making it easier to identify opportunities to shift consumption and maximise savings. This moves beyond the limitations of legacy tariffs, offering a more dynamic and responsive approach to energy management.

Future-proofing your home energy with flexible options

Choosing a modern, flexible dual-rate tariff is a way to future-proof your home energy setup. These tariffs are built for today's energy landscape, accommodating technologies like electric vehicles and home energy management systems. Instead of merely aiming to 'use less', modern tariffs enable you to use energy 'smarter' when it is most beneficial, facilitating activities like EV charging without constant 'moral arithmetic'. They represent a shift from a scarcity mindset towards a more efficient and abundant energy system.

Managing your home energy should be straightforward and transparent. Fuse Energy offers modern dual-rate variable tariffs that empower you with smart meter data and app control, allowing you to truly optimise your energy usage during off-peak windows. We focus on clear pricing, real-time usage data, and 24/7 human customer support to make your energy experience as smooth as possible. If you are looking for a flexible, smart meter-enabled approach to managing your home's electricity, click here to switch to Fuse Energy today. You can also learn more about our mission to build a better energy future here.