Economy 7: how off-peak electricity works

Economy 7 is a dual-rate electricity tariff that offers cheaper electricity during specific off-peak hours, usually overnight, in exchange for higher rates during the day. This tariff structure can lead to significant savings for households able to shift a substantial portion of their energy use to these designated periods. However, to truly benefit, it requires careful management of your electricity consumption and a compatible meter.

Understanding how Economy 7 works can help you make informed decisions about your energy use. At Fuse Energy, we offer dual-rate tariffs designed to give you more control over your electricity costs. Discover how switching to Fuse can help you manage your energy more effectively by clicking here.

What is Economy 7 and how does it work?

Economy 7 is a type of electricity tariff that charges different rates for electricity depending on the time of day. It is named Economy 7 because it typically provides seven hours of cheaper electricity, usually overnight, alongside a more expensive rate during the day.

Dual-rate tariffs explained

Unlike standard single-rate tariffs where you pay the same price per unit of electricity regardless of when you use it, dual-rate tariffs like Economy 7 split the day into two pricing periods: peak and off-peak. During the off-peak hours, the unit rate for electricity is significantly lower. Conversely, the unit rate during peak (daytime) hours is higher than a standard single-rate tariff. This setup encourages users to consume electricity when demand on the National Grid is lower, helping to balance supply and demand. Economy 7 tariffs provide a cheaper off-peak rate for typically seven hours overnight, with a higher daytime rate.

Peak and off-peak hours

The exact timing of the seven off-peak hours for Economy 7 can vary. These hours are not universal across the UK; they depend on your region and your specific energy supplier. While they generally fall overnight, some regions might have off-peak periods that start earlier or finish later. It is crucial to know your specific off-peak window to maximise any potential savings.

Is Economy 7 right for your home?

Deciding if Economy 7 is suitable for your household involves more than just looking at the cheaper night-time rate. You need to consider your lifestyle and how you use electricity.

Benefits of an Economy 7 tariff

The primary benefit of an Economy 7 tariff is the potential for lower electricity bills if you can effectively shift your high-energy activities. If you have appliances that can be programmed to run overnight, such as storage heaters, electric vehicle (EV) chargers, or washing machines, you could take advantage of the reduced rates. This can be particularly beneficial for homes with high electricity consumption, allowing them to use more energy during cheaper periods.

Potential drawbacks and considerations

The main drawback is the higher daytime electricity rate. If you use a lot of electricity during peak hours and cannot shift much of your consumption, an Economy 7 tariff could end up costing you more than a standard single-rate tariff. The average UK home uses around 2,500 kWh of electricity per year, according to Ofgem1. If a significant portion of this usage occurs during the day, the higher peak rate could outweigh the off-peak savings. Additionally, there is a daily standing charge, which applies regardless of your consumption patterns.

Assessing your energy usage patterns

Before considering Economy 7, take stock of your current electricity usage. Look at your bills or, if you have a smart meter, use its data to understand when you consume the most electricity. High-usage appliances like tumble dryers, dishwashers, and immersion heaters are key candidates for shifting. If your household naturally uses more electricity during the day, or if you are unable to change your habits, Economy 7 might not be the most economical choice.

Economy 7 meters: traditional vs smart

To benefit from a dual-rate tariff like Economy 7, you need a meter capable of recording electricity consumption during different time periods.

How multi-register meters track usage

Traditional Economy 7 meters are multi-register meters, meaning they have two separate displays or registers: one for peak-rate consumption and one for off-peak. These meters automatically switch between recording at the higher and lower rates according to the programmed times. Dual-rate tariffs require either a smart meter or a multi-register (dual-rate) traditional meter.

The radio Teleswitch service (RTS) phase-out

Many older Economy 7 meters rely on the Radio Teleswitch Service (RTS) to switch between peak and off-peak rates. However, the RTS is being phased out across the UK. The industry-wide phase-out of RTS for older Economy 7 meters began on 30 June 2025. This means that if you have an RTS meter, it will need to be replaced with a smart meter by your current energy supplier. RTS meters are unsupported for switching to Fuse, so you will need to have your meter upgraded by your current supplier first.

Smart meters for modern Economy 7

Smart meters are the modern solution for dual-rate tariffs. They automatically send meter readings to your supplier, eliminating the need for manual readings. Crucially, smart meters can accurately record your consumption during different time bands, making them ideal for Economy 7 and other time-of-use tariffs. They also offer real-time insights into your energy usage, often through an in-home display or a supplier's app, empowering you to make informed decisions and optimise your consumption to align with off-peak hours.

Maximising savings with Economy 7

If you have determined that Economy 7 is a good fit for your home, the next step is to actively manage your energy use to get the most out of the cheaper off-peak rates.

Shifting high-consumption activities

The key to saving money on an Economy 7 tariff is to shift as much of your electricity usage as possible to the off-peak window. This means running appliances that consume a lot of power during the night. Think about using timers on your washing machine, dishwasher, and tumble dryer.

Appliances best suited for off-peak use

• Washing machines and dishwashers: Most modern models have delay timers.
• Tumble dryers: Can consume a lot of electricity, so running them overnight is ideal.
• Immersion heaters: If you have an electric hot water tank, heating your water during off-peak hours can be very cost-effective.
• Storage heaters: These are specifically designed to charge up during cheaper off-peak hours and release heat throughout the day.

Integrating electric vehicles and heat pumps

For households with electric vehicles (EVs) or air source heat pumps, Economy 7 (or similar dual-rate tariffs) can be particularly beneficial. EV charging consumes a significant amount of electricity, and charging overnight during off-peak hours can drastically reduce your running costs. Similarly, heat pumps can be programmed to run more intensively during cheaper periods, storing heat in your home's thermal mass or hot water tank for use later.

Finding your Economy 7 times

Knowing your specific off-peak hours is paramount to making Economy 7 work for you. These times are not fixed and can vary by supplier and region.

Checking your meter and bills

Your electricity bill is often the first place to check for your Economy 7 times. It should clearly state your peak and off-peak rates and the hours they apply. Some older multi-register meters might also have The Times printed on them or indicated by a small clock symbol.

Contacting your energy supplier

If you cannot find the information on your bill or meter, contact your energy supplier directly. They can provide you with the precise start and end times for your off-peak period. It is a simple call that can make a big difference to your savings.

Switching to or from an Economy 7 tariff

Changing your tariff, whether to or from Economy 7, is a straightforward process, but it requires some consideration.

Steps to change your tariff

1. Assess your usage: Confirm if your consumption patterns align with the tariff's structure.
2. Check your meter: Ensure you have a compatible multi-register or smart meter. If you have an RTS meter, your current supplier will need to replace it with a smart meter first.
3. Compare tariffs: Look at the peak, off-peak, and standing charges of available Economy 7 tariffs versus standard single-rate options.
4. Contact suppliers: Speak to your current supplier or others to discuss their Economy 7 offerings and confirm eligibility.
5. Initiate the switch: Once you have chosen a tariff, your new supplier will handle the switching process.

What to consider before switching

Before making any changes, consider the full picture. A cheaper off-peak rate might seem appealing, but the higher daytime rate could negate any savings if you cannot adapt your usage. Always compare the total estimated annual cost based on your actual consumption patterns, not just the unit rates in isolation. Remember that dual-rate tariffs require either a smart meter or a multi-register (dual-rate) traditional meter.

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.