Economy 7 tariff: off-peak electricity explained

An Economy 7 tariff is a dual-rate electricity plan designed to help households manage their energy bills by offering cheaper rates for seven hours, typically overnight. It's a strategic approach for those looking to gain control over energy costs, rather than simply focusing on using less.

Economy 7 tariffs can help you save money by shifting your electricity use to off-peak hours. Fuse Energy offers dual-rate variable tariffs that allow you to track your usage and optimise consumption during these cheaper periods. Click here to see how Fuse can help you make the most of off-peak electricity.

What is an Economy 7 tariff?

An Economy 7 tariff provides two different electricity rates: a cheaper off-peak rate for seven hours, usually overnight, and a more expensive peak rate during the day. This structure means the cost of your electricity changes depending on the time of day you use it. The financial benefit relies entirely on your ability to shift a significant portion of your electricity usage to these cheaper off-peak hours.

How Economy 7 works

With an Economy 7 tariff, your electricity consumption is recorded by a multi-register meter, which tracks usage during distinct peak and off-peak periods. This could be a traditional dual-rate meter or a modern smart meter. The core idea is simple: use more electricity when it's cheaper, and less when it's more expensive. However, it's crucial to remember that the peak rate on an Economy 7 tariff is typically higher than a standard single-rate tariff, so careful management is key to saving money.

Understanding peak and off-peak times

The exact off-peak hours for Economy 7 can vary by energy supplier and geographical region, but they commonly fall between 10pm and 8am, lasting for seven continuous hours. These times are programmed into your meter. Since these hours can differ, checking with your specific energy provider for the precise timings is essential to maximise your savings.

Is Economy 7 right for you?

Deciding if Economy 7 is a good fit involves assessing your household's electricity usage patterns and your willingness to adapt them. It's not universally suitable for all households, but for those who can make the shift, it offers a tangible way to take control of energy costs.

Advantages of Economy 7

The primary advantage of Economy 7 is the potential for significant savings on your electricity bill if you can consistently use a large proportion of your energy during the cheaper off-peak hours. This means running high-consumption appliances like washing machines, tumble dryers, and dishwashers overnight. It also makes charging electric vehicles (EVs) more economical if you can plug them in during the off-peak window. You can learn more about EV charging at home to see how this fits into your lifestyle.

Disadvantages of Economy 7

The main drawback is the higher peak rate, which is often more expensive than a standard single-rate tariff. If you don't shift enough of your electricity consumption to the off-peak hours, you could end up paying more overall. This tariff requires active management and a conscious effort to change habits. Failing to do so can lead to higher bills instead of savings.

Who benefits most from Economy 7?

Economy 7 is ideal for households that:

• Have electric storage heaters or an electric hot water system that can charge overnight.
• Own an electric vehicle and can charge it during off-peak hours.
• Are able to schedule the use of high-energy appliances (like washing machines, dishwashers, and tumble dryers) for the night-time.
• Have a significant portion of their electricity usage occurring during the night, perhaps due to working night shifts or having specific home setups.

Economy 7 meters and smart technology

The type of electricity meter you have plays a crucial role in whether you can benefit from an Economy 7 tariff. A multi-register electricity meter, such as a smart meter or a traditional dual-rate meter, is essential for an Economy 7 tariff to record consumption during different periods.

Traditional Economy 7 meters

Historically, Economy 7 tariffs relied on traditional multi-register meters that had separate displays for peak and off-peak readings. Some of these older meters, particularly those linked to the Radio Teleswitch Service (RTS), used a longwave radio signal to switch between the two rates.

The role of smart meters

Smart meters are revolutionising how Economy 7 works. They automatically send meter readings to your supplier, eliminating the need for manual submissions and providing more accurate billing. Crucially, smart meters are fully compatible with dual-rate tariffs, making it easier to track and manage your peak and off-peak usage. Their advanced capabilities can also integrate with smart home devices, allowing for automated scheduling of appliances to coincide with cheaper hours. Find out more about smart meter installation and its benefits.

The RTS phase-out explained

RTS meters, which support some legacy Economy 7 tariffs, are being phased out. This industry-wide change began on 30 June 2025, according to Ofgem. These older meters are being retired and replaced with modern smart meters. If you have an RTS meter, your current supplier will arrange for a free smart meter upgrade. Once you have a smart meter, you'll be able to access the benefits of modern dual-rate tariffs and a more digital energy management experience.

Maximising your Economy 7 savings

Making the most of an Economy 7 tariff requires a proactive approach to your energy consumption. It's about empowering yourself to use energy strategically, aligning with a vision of 'power to play with' rather than being constrained by scarcity.

Shifting your energy usage

The core strategy is to shift as much of your electricity usage as possible to the cheaper off-peak hours. This includes:

• Appliances: Run your washing machine, tumble dryer, and dishwasher overnight using their timer functions.
• Heating: If you have electric storage heaters, ensure they charge fully during the off-peak period.
• Electric vehicles: Charge your EV overnight when rates are lower.
• Hot water: If you have an electric immersion heater, set it to heat water during the off-peak window.

The average UK home uses around 2,500 kWh of electricity per year1. By understanding your own consumption patterns, you can identify where the biggest shifts can be made.

Smart home integration for Economy 7

Modern technology can significantly enhance your ability to save with Economy 7. Smart plugs and smart home systems can automate the scheduling of appliances, ensuring they only operate during the cheaper off-peak times without you needing to manually intervene. This automation takes the effort out of managing your energy, turning your home into an efficient, cost-saving machine.

Monitoring your consumption with an app

Digital-first energy suppliers, like Fuse Energy, offer apps that empower you to track your electricity usage in real-time. This functionality is invaluable for Economy 7 users, allowing you to see exactly how much electricity you're consuming during peak and off-peak hours. By monitoring your consumption, you can identify areas for further optimisation and ensure you're truly benefiting from the tariff. Fuse's dual-rate variable tariffs, combined with its app functionality, help customers track usage and optimise consumption during off-peak hours. Remember that variable tariff rates are subject to change quarterly on 1 January, 1 April, 1 July, and 1 October.

Switching to an Economy 7 tariff

If you believe an Economy 7 tariff could be beneficial for your household, the process of switching involves a few key steps.

Checking your eligibility

Before switching, confirm that your current meter is compatible with a dual-rate tariff. If you have an older meter, particularly an RTS meter, it will need to be replaced with a smart meter first. Also, honestly assess your household's ability to shift a significant portion of your energy usage to the off-peak hours. If your lifestyle means you primarily use electricity during the day, Economy 7 might not be the best choice.

Comparing Economy 7 tariffs

When comparing Economy 7 tariffs from various energy suppliers, pay close attention to both the off-peak and peak unit rates. A very low off-peak rate might seem attractive, but a significantly higher peak rate could negate any savings if you can't shift enough usage. Look at the standing charge too, as this is a daily fixed cost regardless of consumption.

The switching process

Once you've found a suitable Economy 7 tariff, the switching process is generally straightforward. You'll sign up with your new supplier, who will then handle the transfer from your old provider. This typically takes a few weeks. If you need a smart meter installed, your new supplier will arrange this as part of the process.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're 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 don't 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.

References

1. Ofgem. Review of Typical Domestic Consumption Values