Economy 7 explained

Many UK homeowners looking into Economy 7 are really asking how they can trim their electricity bills by using energy more wisely. With energy costs a constant concern, understanding your tariff can make a real difference. Economy 7 is one such option, a dual-rate electricity tariff designed to reward those who can shift a significant portion of their electricity use to off-peak hours.

This guide will walk you through the ins and outs of Economy 7, from how it works to whether it is the right fit for your home. We will cover the necessary meter types, the ongoing phase-out of older technology, and how modern smart home solutions can help you make the most of cheaper electricity.

Understanding dual-rate tariffs like Economy 7 can help you manage your energy usage more effectively. Fuse Energy offers dual-rate tariffs designed to give you greater control and visibility over your electricity consumption. To switch in and experience the benefits of Economy 7, click here.

What is Economy 7 and how does it work?

Economy 7 is an electricity tariff that charges different rates for electricity depending on the time of day. It offers a cheaper rate for a continuous seven-hour period, typically overnight, and a higher rate during the day. This structure was originally introduced to encourage the use of electricity during times of lower demand, particularly for appliances like storage heaters. At Fuse, our off-peak hours run from 00:30am-07:30am, during which time you have a lower off-peak unit rate applied to your electricity usage.

Understanding dual-rate tariffs

A dual-rate tariff, like Economy 7, means you pay two different prices for your electricity: one for energy used during 'off-peak' hours (usually at night) and another, higher rate for energy used during 'peak' hours (during the day). This contrasts with a standard single-rate tariff, where you pay the same price per kilowatt-hour (kWh) regardless of when you use it. The aim is to incentivise customers to use high-consumption appliances when demand on the National Grid is lower, contributing to a more balanced energy system.

Typical Economy 7 off-peak hours

The "7" in Economy 7 refers to the seven hours of cheaper electricity you receive. While these off-peak hours are typically overnight, their exact timing can vary by supplier and even by region. It is crucial to confirm your specific off-peak times with your energy supplier, as using high-consumption appliances outside these hours will mean paying the more expensive daytime rate. It is also worth noting that these times can shift with British Summer Time (BST) changes.

Is Economy 7 right for your home?

Economy 7 can offer significant savings for some households, but it is not universally beneficial. Its suitability largely depends on your lifestyle and how you use electricity.

Benefits of Economy 7

The primary benefit of Economy 7 is the significantly cheaper electricity rate during the designated off-peak hours. This can be particularly advantageous for homes that rely on electric heating, such as storage heaters, or have hot water tanks that can be programmed to heat overnight. By charging these systems during the cheaper night-time window, you can store heat or hot water for use throughout the day, effectively reducing your overall energy costs. It also benefits those who can schedule other high-energy activities, like running washing machines, tumble dryers, or dishwashers, overnight. For electric vehicle (EV) owners, charging their car during off-peak hours can also lead to substantial savings.

Potential drawbacks and considerations

While the night rates are cheaper, the daytime rates on an Economy 7 tariff are typically higher than those on a standard single-rate tariff. This means that if you use a significant amount of electricity during peak daytime hours, any savings from the cheaper night rate could be negated, potentially leading to higher overall bills. As a rule of thumb, Economy 7 is generally most cost-effective if you can shift a significant portion of your electricity usage to off-peak times. If your lifestyle does not allow for this shift, a single-rate tariff might be a better option. Another consideration is the complexity of meter readings for traditional Economy 7 meters, which record day and night usage separately.

Ideal usage patterns for savings

Economy 7 is ideal for households with specific usage patterns. These include:

• Homes with electric storage heaters and hot water tanks: These appliances are designed to consume electricity during off-peak hours and release heat or hot water throughout the day.
• Electric vehicle owners: Charging an EV overnight can significantly reduce running costs by taking advantage of cheaper electricity.
• Households that can schedule appliance use: If you can programme washing machines, dishwashers, and tumble dryers to run during the night, you stand to benefit.
• Shift workers or those with flexible schedules: Individuals who are awake and can actively use electricity during the off-peak window are well-placed to maximise savings.

Economy 7 meters and compatibility

To benefit from an Economy 7 tariff, you need a meter capable of recording your electricity usage during peak and off-peak periods separately.

Multi-register meters vs smart meters

Traditionally, Economy 7 tariffs required a multi-register meter (sometimes called a dual-rate meter) with two displays to show day and night usage. These meters rely on a clock or a radio signal to switch between the two rates. However, modern smart meters are fully compatible with dual-rate tariffs and offer a more convenient solution. A smart meter automatically sends your readings to your supplier, eliminating the need for manual submissions and providing clearer insights into your usage patterns.

The radio teleswitch service (RTS) phase-out

The Radio Teleswitch Service (RTS) meters, a legacy meter type, are being phased out in an industry-wide switch-off that began on 30 June 2025. These meters rely on a longwave radio signal to switch between peak and off-peak rates. If you have an RTS meter, your current energy supplier will need to replace it with a smart meter. This upgrade ensures you can continue to access dual-rate tariffs and benefit from modern metering technology.

Checking your meter type

There are several ways to determine if you have an Economy 7 meter. Your electricity bill should show two separate readings for day and night usage. Your meter itself might also have two sets of numbers, often labelled 'low' and 'normal' or 'day' and 'night'. If you are still unsure, contacting your energy supplier is the best course of action.

Maximising your Economy 7 savings

Making the most of an Economy 7 tariff requires a proactive approach to your energy consumption.

Shifting high-consumption appliances

The core strategy for maximising savings with Economy 7 is to shift as much of your electricity usage as possible to the cheaper off-peak hours. This means running appliances like washing machines, tumble dryers, and dishwashers overnight. Many modern appliances come with delay timers, making this shift straightforward. For those without built-in timers, external plug-in timers can be a simple and effective solution.

Optimising storage heaters and electric vehicles

For homes with storage heaters, ensuring they are correctly set to charge during the entire off-peak period is vital. These heaters store thermal energy at night and release it slowly throughout the day. Similarly, electric vehicle owners should prioritise charging their cars overnight to take full advantage of the lower rates. Smart EV chargers can even be programmed to automatically charge during the cheapest hours.

Leveraging smart home technology

Modern smart home technology can significantly enhance your ability to optimise Economy 7. Smart meters provide real-time data on your electricity consumption, allowing you to see exactly when you are using energy and at what cost. This visibility is crucial for identifying areas where you can shift usage. Smart plugs can automate the operation of various appliances, ensuring they only switch on during off-peak times. Integrating these devices with a central smart home system can create an efficient, automated energy management solution, making it easier to maintain a comfortable home without excessive bills.

The future of dual-rate tariffs

Dual-rate tariffs are evolving, playing an increasingly important role in the UK's energy landscape.

Modern tariffs for a flexible grid

The energy system is moving towards greater flexibility, with modern dual-rate tariffs rewarding users for shifting demand to times when renewable generation is high and overall grid demand is low. These tariffs are a step towards a more dynamic and responsive energy network, where consumers actively participate in balancing supply and demand. This shift not only benefits individual homeowners through potential savings but also supports the integration of more renewable energy sources into the grid.

How Fuse Energy supports smart usage

Fuse Energy is committed to empowering homeowners to manage their energy effectively. Our modern dual-rate tariffs are designed to provide clear benefits for those who can shift their electricity usage to our off-peak hours between 00:30am-07:30am. Combined with a digital-first app experience, Fuse provides clear visibility into energy usage, helping customers track and optimise their consumption across peak and off-peak periods. We believe in abundance over scarcity, allowing homeowners to enjoy more comfort and use more energy during off-peak hours without fear of excessive bills. Our 24/7 human customer support is also available to assist with understanding tariffs and optimising energy usage.

Ready to take control of your energy usage and potentially lower your bills? Fuse Energy offers straightforward dual-rate tariffs and a smart app experience to help you make the most of your electricity. Switching is quick and easy.