Economy 7: understanding off-peak electricity

Economy 7 is a dual-rate electricity tariff designed to offer cheaper unit rates for seven hours, typically overnight, with higher rates applying during the day. This setup can genuinely save money on electricity bills, especially for households with storage heaters or those able to shift significant energy usage to off-peak hours. It is about leveraging periods of lower demand and cost, transforming your energy use into a strategic advantage rather than a restriction.

Managing your energy bills should be clear and easy. Economy 7 offers a way to take control by using electricity when it is cheaper. Click here to see how Fuse Energy can help you make the most of your energy.

What Economy 7 is

Economy 7 is an electricity tariff designed to encourage energy consumption during off-peak hours, typically overnight. It works by charging different rates for electricity depending on the time of day, making energy cheaper when demand on the National Grid is lower. This is not about using less energy, but rather using it smarter, giving you more control over your bills.

Understanding dual-rate tariffs

A dual-rate tariff, such as Economy 7, means you pay two different prices for your electricity: one rate for peak hours and another, significantly lower rate, for off-peak hours. This contrasts with a standard single-rate tariff, where you pay the same price per unit of electricity regardless of when you use it. For Economy 7, the off-peak window lasts for seven hours.

The concept of peak and off-peak electricity

The concept of peak and off-peak electricity is rooted in the varying demand on the National Grid throughout the day. Peak hours are typically during the day and early evening when most households are actively using electricity, leading to higher demand and thus higher prices. Off-peak hours, usually overnight, see much lower demand, allowing suppliers to offer electricity at a reduced cost. This system helps balance the load on the grid and can reward consumers who adapt their usage patterns.

How Economy 7 tariffs work

Economy 7 tariffs operate on a simple principle: you get seven hours of cheaper electricity, usually overnight, and pay a higher rate for electricity used outside of this window. To make this work, your electricity consumption during these two periods needs to be measured separately.

Identifying your Economy 7 hours

The specific seven-hour off-peak window for Economy 7 can vary and is set by your energy supplier, differing by region. It is crucial to know your precise off-peak hours to maximise savings, as using electricity at peak rates when you think it is off-peak can lead to higher-than-expected bills. You can usually find this information on your electricity bill, by contacting your energy supplier, or by checking your meter display. For more details on how to read your meter, you can explore our guide on how to read your electricity meter.

The role of your electricity meter

To benefit from an Economy 7 tariff, you need a compatible electricity meter that can record your peak and off-peak consumption separately. This is typically either a smart meter or a multi-register (dual-rate) traditional meter. These meters have two different readings, one for day usage and one for night usage, allowing your supplier to bill you accurately for each rate.

Legacy Radio Teleswitch Service (RTS) meters, which previously supported Economy 7, are being phased out across the UK. The RTS shutdown began on 30 June 2025. If you have an RTS meter, your current supplier will need to replace it with a smart meter to ensure you can continue to access dual-rate tariffs.

Benefits of Economy 7

Economy 7 is not for everyone, but for the right household, it offers a clear path to managing energy costs more effectively. It reframes energy use as an opportunity to gain control and achieve an energy surplus, rather than a constant battle against scarcity.

Potential for cost savings

The primary benefit of Economy 7 is the potential for significant cost savings on your electricity bills. By shifting a substantial portion of your electricity consumption to the cheaper, off-peak hours, you can reduce your overall energy expenditure. This means you can run high-energy appliances when electricity is most affordable, giving you more power to play with without the worry of inflated costs. However, it is important to remember that day rates are higher, so careful management of usage is key to realising these savings.

Ideal for storage heaters and high-usage appliances

Economy 7 is particularly well-suited for homes with storage heaters, which are designed to charge up during the night using cheaper electricity and then release heat throughout the day. It is also ideal for households that can schedule other high-energy activities, such as charging an electric vehicle, running washing machines, tumble dryers, or dishwashers, during the off-peak window. The average UK home uses around 2,500 kWh of electricity per year, a benchmark set by Ofgem's medium Typical Domestic Consumption Value (TDCV) effective from 1 July 2026. Shifting a significant portion of this to cheaper hours can make a real difference. For EV owners, understanding EV charging at home can further maximise these savings.

Is Economy 7 right for your home?

Deciding if Economy 7 is the right tariff for you depends heavily on your household's energy consumption habits and your ability to adapt them. It is not a universally cheaper option, but a strategic one.

Assessing your energy usage patterns

Before switching, take an honest look at when your household uses the most electricity. Do you typically use appliances during the day, or can you easily shift activities like laundry, dishwashing, or even charging devices to the night-time hours? If a significant proportion of your electricity use can be moved to the off-peak window, Economy 7 could be beneficial. If most of your energy use happens during the day, a standard tariff might be more cost-effective due to the higher peak rates of Economy 7.

Who benefits most from Economy 7?

Households that benefit most from Economy 7 typically include:

• Those with storage heaters: These systems are perfectly designed to take advantage of cheaper night-time electricity.
• Electric vehicle owners: Charging an EV overnight can significantly reduce running costs.
• Households with flexible schedules: If you work nights or are generally able to schedule appliance use outside of peak hours, you will see the greatest benefit.
• Homes with smart home technology: Devices that can be programmed to run automatically during off-peak times make optimising Economy 7 much easier.

Making the most of Economy 7

Once you have decided Economy 7 is for you, optimising your usage is the next step to unlocking its full potential. This involves conscious planning and, increasingly, smart technology.

Optimising appliance usage

To truly benefit from Economy 7, you need to make a concerted effort to use your high-energy appliances during the cheaper, off-peak hours. This means:

• Storage heaters: Ensure they are set to charge fully during the night.
• Washing machines and dishwashers: Use their delay-start functions to run them overnight.
• Electric vehicle charging: Plug in your EV before bed to charge during off-peak times.
• Immersion heaters: If you have one, set it to heat water during the night.
• Charging devices: Charge laptops, phones, and power tools overnight.

Integrating with smart home technology

Modern smart home technology can significantly simplify the process of optimising Economy 7. Smart plugs, smart thermostats, and smart appliance controls can be programmed to automatically switch on or off during your specific off-peak hours. This digital-first approach provides real-time insights into your energy consumption, allowing you to track and shift usage effortlessly. Fuse Energy's app, for example, can provide the transparency and control needed to make smarter energy use tangible, helping you maximise your off-peak consumption. Many homeowners often pair this with a smart meter installation to track usage.

Switching to an Economy 7 tariff

The process of switching to an Economy 7 tariff involves a few key steps, from checking your current setup to comparing available rates.

Checking your meter eligibility

First, confirm that you have a compatible meter. This means either a smart meter or a multi-register traditional meter. If you have an older, single-rate meter, you will need to upgrade. If you have an RTS meter, be aware that these are being phased out, with the signal switch-off beginning on 30 June 2025. Your current supplier will need to replace it with a smart meter. Fuse Energy offers a free smart meter upgrade to customers with manual meters, which is essential for unlocking the benefits of Economy 7 and other dual-rate tariffs.

The smart meter upgrade process

If you need a smart meter, your energy supplier is responsible for arranging the installation, which is typically free of charge. Once installed, a smart meter will automatically send your readings to your supplier, differentiating between peak and off-peak usage. This not only makes billing more accurate but also provides you with the data needed to understand and optimise your energy consumption.

Comparing Economy 7 rates

Once you are sure you have a compatible meter, compare Economy 7 tariffs from different suppliers. Look closely at both the off-peak and peak unit rates, as well as the standing charge. A tariff with a very low off-peak rate might seem attractive, but if its peak rate is excessively high, it could cost you more overall if you cannot shift enough of your usage. Compare these against standard tariffs based on your estimated usage patterns to ensure Economy 7 genuinely offers potential savings for your household.

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 whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.