Economy 7: how to save on electricity

Economy 7 is a strategic approach for UK households to gain control over their energy bills and unlock significant savings through smart, optimised usage. This guide explains how Economy 7 works, helps you assess if it is suitable for your home, and outlines how to maximise its benefits to manage your energy costs effectively.

Understanding and optimising your energy usage with tariffs like Economy 7 is about more than just saving money; it is about taking control of your energy future. Fuse Energy champions the idea of "power to play with" - a future where energy is so abundant it stops being a constant worry. By offering smart-meter-enabled dual-rate tariffs, Fuse empowers customers to actively manage and optimise their energy usage. Click here to switch to Fuse Energy today.

What is Economy 7 and how does it work?

Economy 7 is a dual-rate electricity tariff designed to offer cheaper electricity during a continuous 7-hour off-peak period, typically overnight. In exchange, the electricity consumed during the remaining 17 peak hours of the day is charged at a more expensive rate. This structure encourages households to shift a significant portion of their electricity usage to the designated off-peak window.

Understanding peak and off-peak rates

With an Economy 7 tariff, your electricity bill is split into two distinct charges: a lower unit rate for off-peak consumption and a higher unit rate for peak consumption. The idea is to reward customers for using electricity when demand on the National Grid is typically lower, such as in the middle of the night. This can be particularly beneficial if you have appliances that can be programmed to run during these cheaper hours.

The 7-hour window: when is off-peak electricity?

The "7" in Economy 7 refers to the seven continuous hours of cheaper electricity. While these off-peak hours are usually overnight, they can vary significantly. The exact timing depends on your electricity supplier and your geographical region, and can even shift with clock changes between Greenwich Mean Time (GMT) and British Summer Time (BST). It is crucial to confirm your specific times directly with your supplier.

Is Economy 7 right for your household?

Economy 7 is not a universal solution for everyone. Its suitability hinges entirely on your household's ability to adapt its energy consumption patterns. If you can shift a substantial amount of your electricity use to the cheaper night-Time hours, it could lead to considerable savings. However, if most of your heavy usage occurs during the day, you might find your overall bills increase due to the higher peak rates.

Assessing your energy usage habits

To determine if Economy 7 is a good fit, take stock of when and how you use electricity. Consider your daily routine: are you an early riser who uses a lot of power in the mornings, or do you typically run appliances in the evenings? The average UK home uses around 2,700 kWh of electricity per year, according to Ofgem's typical domestic consumption values. If a significant portion of this can be moved to off-peak, Economy 7 could work for you.

Appliances that benefit most from off-peak rates

Certain high-consumption appliances are ideal candidates for off-peak usage:

• Storage heaters: These are designed to charge up during the cheaper night-Time hours and release heat throughout the day.
• Electric hot water tanks: Similar to storage heaters, these can heat water overnight for use the following day.
• Washing machines and tumble dryers: Many modern appliances have timers, allowing you to set them to run during the off-peak window.
• Dishwashers: Like laundry appliances, dishwashers can often be programmed to start automatically overnight.
• Electric vehicle (EV) charging: Charging an EV can consume a lot of electricity, making it one of the most impactful activities to shift to off-peak hours.

Maximising your savings with Economy 7

Once you have decided Economy 7 is for you, the real 'power play' begins: actively managing your consumption to make the most of those cheaper hours.

Smart strategies for shifting consumption

Beyond simply setting timers, consider these strategies:

• Programme everything possible: Utilise timers on appliances, smart plugs, and even your boiler's timer for hot water.
• Batch tasks: Save up laundry or dishwashing for off-peak periods.
• Pre-heat and pre-cool: If you have electric heating or cooling, consider pre-heating your home before the peak rate kicks in, or pre-cooling during the cheaper hours if you have air conditioning.
• Understand your meter: Know how to read your meter to track your peak and off-peak usage, ensuring your efforts are paying off.

Integrating smart home devices and EV charging

Smart home technology can be a game-changer for Economy 7 users. Smart thermostats can learn your schedule and optimise heating, while smart plugs can automate when certain appliances turn on and off. For EV owners, smart chargers can automatically schedule charging sessions during the cheapest off-peak times, significantly reducing running costs. This integration turns energy management into an effortless process, giving you greater control and bigger savings.

Economy 7 meters: types and compatibility

To benefit from an Economy 7 tariff, you need a specific type of electricity meter that can record your consumption during peak and off-peak periods separately.

Traditional dual-rate meters vs smart meters

Historically, Economy 7 tariffs required a traditional multi-register meter (sometimes called a dual-rate meter) with two sets of readings - one for day and one for night. These meters would mechanically switch between the two rates.

Today, smart meters are the modern solution for dual-rate tariffs. They automatically record and send your consumption data for both peak and off-peak periods to your supplier, eliminating the need for manual readings and enabling more accurate billing. While many modern dual-rate tariffs are designed for smart meters, some compatible manual multi-register meters can also support them. Eligibility for dual-rate tariffs is often determined by your meter's specific configuration.

The Radio Teleswitch Service (RTS) phase-out

Some older Economy 7 meters rely on the Radio Teleswitch Service (RTS) to switch between peak and off-peak rates. This legacy technology is being phased out across Great Britain, with the signal switch-off having started from 30 June 2025.

If you have an RTS meter, your energy supplier should have already contacted you to arrange an upgrade to a smart meter or an alternative metering solution. This upgrade is essential to avoid potential disruption to your heating and hot water systems, which might rely on the RTS signal to operate correctly. Energy suppliers are responsible for replacing these meters, usually with a free smart meter installation.

Switching to or from Economy 7

Making a change to your energy tariff or meter requires a few steps to ensure a smooth transition.

Checking your eligibility and meter requirements

Before switching to an Economy 7 tariff, confirm that you have a compatible meter. If you have a traditional single-rate meter, you will need an upgrade to a dual-rate compatible meter to access these tariffs. This could be a smart meter or a manual multi-register meter, and your current supplier can arrange this for free. If you are unsure what type of meter you have, contact your energy supplier.

If you currently have an RTS meter, you cannot switch to a new supplier until it has been replaced with a smart meter by your existing supplier. Once your meter is upgraded, you will be free to choose a tariff that suits your needs.

Finding the best Economy 7 tariff

Not all Economy 7 tariffs are created equal. The rates, off-peak hours, and standing charges can vary significantly between suppliers. It is always wise to compare deals to find one that offers the best value for your specific usage patterns. Look closely at both the off-peak and peak rates, as a very cheap night rate might be offset by an excessively high day rate.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are 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 do not have a smart meter, Fuse Energy can upgrade your non-smart meter, completely for free. This can make it easier to track spending and make informed decisions about your energy use. Our 24/7 human support team is always on hand with fast response times of under 5 minutes whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.