Economy 7 meter: how it works and optimisation

An Economy 7 meter offers a dual-rate electricity tariff, providing cheaper electricity during off-peak night-time hours and a higher rate during the day. This setup allows households to significantly reduce their energy bills by strategically shifting high-consumption activities to the cheaper period. Far from being a restrictive measure, Economy 7 can be a 'power play' for customers, enabling them to leverage abundant, cheaper energy and gain greater control over their electricity usage.

If you're considering an Economy 7 tariff, understanding how it works can help you make the most of your energy. Fuse Energy offers clear pricing and in-app usage data to help you manage your electricity consumption effectively. Click here to see how easy it is to get started.

What is an Economy 7 meter and tariff?

Economy 7 is a specific type of electricity tariff designed to encourage energy consumption during periods of lower demand on the National Grid. It operates on a dual-rate system, meaning the price you pay for electricity changes depending on the time of day.

Understanding dual-rate electricity

With a dual-rate tariff, your electricity usage is measured at two different rates: a lower rate for a set number of off-peak hours (typically seven, hence "Economy 7") and a higher rate for the remaining peak hours. To manage this, you need a specific meter type: either a smart meter or a multi-register (dual-rate) non-smart meter. These meters track your consumption separately for each period. The medium typical domestic consumption value (TDCV) for multi-register electricity meters is 3,400 kWh per year, effective from 1 July 20261. In comparison, the average UK home uses around 2,500 kWh of electricity per year, effective from 1 July 2026.

The purpose of off-peak hours

The concept behind off-peak hours is to balance the load on the electricity grid. Energy demand fluctuates throughout the day, with peaks occurring when most people are awake and using appliances. By offering cheaper rates during the night, energy suppliers incentivise customers to use electricity when demand is lower, helping to stabilise the grid and potentially utilise surplus generation. This approach aligns with a vision of abundant energy, allowing customers to make the most of available power.

How does Economy 7 work?

Economy 7 tariffs are straightforward once you understand the two key periods: peak and off-peak.

Peak and off-peak hours explained

The off-peak window for Economy 7 typically lasts for seven continuous hours, usually overnight. However, the exact timing can vary by supplier and even by region, and your energy supplier will confirm your specific peak and off-peak hours. During these seven hours, electricity is charged at a significantly lower rate. Outside this window, during the peak hours, the electricity rate is higher than a standard single-rate tariff. This means that to benefit from Economy 7, you must consciously shift a substantial portion of your electricity usage to the off-peak period.

Reading your Economy 7 meter

Reading an Economy 7 meter differs from a standard single-rate meter because it has two sets of readings: one for the low-rate (off-peak) usage and one for the normal-rate (peak) usage.

For older, non-smart Economy 7 meters, you will typically see two rows of numbers or two separate displays. One will be labelled "low" or "night," and the other "normal" or "day." Note down both readings. If you have a smart meter, it will automatically send your readings to your supplier, distinguishing between peak and off-peak consumption without you needing to do anything.

Is Economy 7 being phased out?

While Economy 7 tariffs themselves are not being phased out, a specific type of meter used for these tariffs is.

The radio Teleswitch service (RTS) phase-out

The Radio Teleswitch Service (RTS) meters, a legacy technology that uses a longwave radio signal to switch between peak and off-peak rates, are being phased out across the UK. This industry-wide initiative began on 30 June 2025, with the signal switch-off underway. Ofgem, the energy regulator in Great Britain, oversees this transition. If you have an RTS meter, your current energy supplier is responsible for replacing it with a smart meter. This upgrade is typically free of charge.

Upgrading to a smart meter

Smart meters are highly beneficial for modern dual-rate tariffs, though not strictly essential. Smart meters automatically record and send your electricity consumption data to your supplier, differentiating between peak and off-peak usage. This eliminates the need for manual readings and ensures accurate billing. For those with older RTS meters, the transition to a smart meter is a step towards a more efficient, future-ready energy system, aligning with the broader goal of rebuilding the energy system from scratch. Once your current supplier has replaced your RTS meter with a smart meter, you will be able to access the latest smart meter technology and digital-first experiences.

Optimising your energy usage with Economy 7

Making the most of an Economy 7 tariff means being smart about when you use electricity. It is about leveraging the cheaper off-peak rates, not about reducing your overall usage to the point of sacrifice.

Shifting high-consumption activities

The core strategy for saving money with Economy 7 is to shift your most energy-intensive activities to the cheaper off-peak hours. This requires a bit of planning but can lead to significant savings. Consider running appliances that consume a lot of electricity during the night.

Appliances best suited for off-peak use

Several household appliances are ideal candidates for off-peak usage:

• Washing machines and tumble dryers: These appliances use a lot of electricity, especially for heated cycles. Use their timer functions to run them overnight.
• Dishwashers: Similar to washing machines, dishwashers can be set to run during off-peak hours.
• Electric storage heaters: If you have electric storage heaters, ensure they are set to charge during the off-peak period to store heat for the day.
• Electric vehicle (EV) charging: Charging an EV can be a major electricity drain. Schedule your EV charging to coincide with your Economy 7 off-peak window to benefit from lower rates.
• Immersion heaters: If you use an immersion heater for hot water, program it to heat water overnight.

Monitoring your usage with smart tools

Modern energy suppliers offer digital tools and apps that can help you monitor and optimise your off-peak usage. These tools provide insights into your consumption patterns, allowing you to see how much electricity you are using during peak versus off-peak hours. This capability empowers you to make informed decisions and adjust your habits for maximum savings. With 24/7 human customer support, you can get help understanding and managing your Economy 7 tariff effectively.

Is Economy 7 right for you?

Deciding if an Economy 7 tariff is suitable depends heavily on your household's energy consumption patterns.

Assessing your household's suitability

Economy 7 is most beneficial for households that can genuinely shift a significant portion of their electricity usage to the designated off-peak hours. If you regularly use high-energy appliances overnight, charge an electric vehicle during the night, or have electric storage heaters, then an Economy 7 tariff could lead to substantial savings. However, if your lifestyle means you use most of your electricity during the day, the higher peak rates could result in higher overall bills compared to a standard single-rate tariff. It is crucial to understand your specific peak and off-peak hours and assess whether your daily routine can accommodate this shift.

Economy 7 for gas: a common misconception

It is a common misconception that Economy 7 applies to gas as well as electricity. Economy 7 is an electricity-only tariff. Gas tariffs are typically charged at a single rate, regardless of the time of day. Therefore, any optimisation strategies for Economy 7 should focus solely on your electricity consumption.

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. 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