Economy 7 meter: how it works

Economy 7 tariffs offer cheaper electricity during off-peak night hours and more expensive rates during peak day hours. This setup rewards households that can shift a significant portion of their energy use to the night. For many, understanding how these meters work, their continued relevance, and the implications of upcoming changes like the Radio Teleswitch Service (RTS) phase-out is crucial for managing energy costs effectively.

Understanding your energy usage is key to finding the right tariff. Fuse Energy helps you take control of your bills with clear pricing and smart meter insights. Click here to see how easy it is to switch to a modern energy experience.

What is an Economy 7 meter?

An Economy 7 meter is a dual-rate electricity meter that records your energy consumption at two different rates: a cheaper off-peak rate, typically for seven hours overnight, and a standard, more expensive peak rate for the remaining hours of the day. This configuration allows energy suppliers to offer tariffs that incentivise using electricity during periods of lower demand on the National Grid.

Understanding Economy 7 tariffs

Economy 7 tariffs are designed for households that can make the most of cheaper night-time electricity. This typically suits homes with electric storage heaters, immersion hot water tanks, or those who can schedule high-energy appliances like washing machines, dishwashers, and electric vehicle (EV) charging to run overnight. If your household primarily uses electricity during the day, a standard single-rate tariff might be more cost-effective.

Day and night rates explained

With an Economy 7 tariff, you will have two distinct unit rates for your electricity. The "night rate" is significantly lower, applying during the seven off-peak hours. The "day rate" is higher than a standard single-rate tariff, covering the remaining 17 hours. The exact timing of these seven off-peak hours can vary by supplier and your geographical location, so it is essential to confirm your specific timings with your energy supplier.

How an Economy 7 meter records usage

An Economy 7 meter, whether a traditional multi-register type or a smart meter configured for dual rates, has internal mechanisms to track and record electricity consumption separately for the peak and off-peak periods. Traditional Economy 7 meters often have two sets of dials or digital readings, one for each rate. Smart meters, on the other hand, automatically send these separate readings to your supplier, ensuring accurate billing based on your actual usage during each period.

Identifying your Economy 7 meter type

Knowing your meter type is the first step to understanding your Economy 7 tariff and preparing for future changes.

Traditional multi-register meters

Many older Economy 7 setups use traditional multi-register meters. These meters typically have two rows of numbers or two separate displays, one labelled "low" or "night" and the other "normal" or "day". You would need to take readings from both registers to provide your supplier with accurate consumption data. While functional, these meters lack the advanced features of modern smart meters.

Radio teleswitch Service (RTS) meters

A significant number of older Economy 7 meters are RTS (RTS) meters. These meters rely on a longwave radio signal to switch automatically between day and night rates or to control specific appliances like storage heaters. You might have an RTS meter if you use electric heating, have a separate box near your electricity meter with "radio teleswitch" or "radio telemeter" written on it, or if your electricity tariff changes at different times of the day.

Smart meters and dual-rate tariffs

Modern dual-rate tariffs, including Economy 7, are increasingly enabled by smart meters. A smart meter can record your consumption for both peak and off-peak periods and automatically send these readings to your supplier. This eliminates the need for manual meter readings and provides more accurate bills. Smart meters are crucial for accessing the latest dual-rate tariffs and managing your energy use more effectively. If you are interested in understanding more about these devices, you can learn what is a smart meter and how they work.

The RTS meter phase-out: what you need to know

RTS (RTS) is a legacy system that is being switched off, impacting many households with older Economy 7 meters.

Why RTS meters are being switched off

The RTS technology, introduced in the 1980s, has reached the end of its operational life, and the equipment that produces the radio signal can no longer be adequately maintained. This phase-out is an industry-wide initiative to replace these legacy meters with modern smart meters, which offer greater reliability and functionality.

The 30 June 2025 deadline

The phase-out of the RTS signal began on 30 June 2025. This means that RTS meters will gradually stop receiving the signal that tells them when to switch between peak and off-peak rates. If an RTS meter is not replaced, it could lead to disruptions in heating and hot water, inaccurate billing, or being stuck on a single, potentially higher, rate. Energy suppliers are managing this transition in a phased manner, meaning not all RTS meters will be switched off at the same time.

Your free smart meter upgrade

If you have an RTS meter, your current energy supplier is responsible for contacting you to arrange a free upgrade to a smart meter. This replacement is essential to ensure you continue to receive accurate billing and can access comparable tariffs to Economy 7. Do not delay in arranging this upgrade, as failure to replace your RTS meter could result in your heating and hot water systems not functioning as normal, or higher bills. Once your supplier has replaced your RTS meter with a smart meter, you can then switch to a modern energy provider. You can also find out more about smart meter installation if you need to.

Is Economy 7 right for your household?

Economy 7 can be a great way to save on energy bills, but it is not suitable for everyone.

Advantages of Economy 7

The primary advantage of an Economy 7 tariff is the significantly cheaper electricity rate during off-peak night hours. This can lead to substantial savings if you have electric storage heaters, an immersion heater, or can consistently run high-consumption appliances like washing machines, tumble dryers, and dishwashers overnight. Charging an electric vehicle during these hours can also make Economy 7 highly beneficial.

Disadvantages and who it is not for

The main drawback of Economy 7 is the higher day rate compared to standard single-rate tariffs. If your household uses most of its electricity during peak daytime hours, an Economy 7 tariff will likely result in higher bills, not lower ones. It is generally not suitable for households where people are home during the day, or those who cannot easily shift a significant portion of their energy use to the night.

Assessing your energy usage patterns

Before committing to Economy 7, it is crucial to assess your household's energy consumption habits. Review your past energy bills to see when you use the most electricity. If you have a smart meter, you can often access detailed usage data through your energy supplier's app or online portal. Consider whether your lifestyle allows you to consistently use energy-intensive appliances during the cheaper night-time window. The average UK home uses around 2,700 kWh of electricity per year. Understanding your own usage against this baseline can help you make an informed decision. You can also learn how to read your smart meter to keep track of your consumption.

Maximising savings with an Economy 7 tariff

If Economy 7 aligns with your energy usage, there are several ways to maximise your savings.

Shifting high-usage appliances off-peak

The most effective way to save money on an Economy 7 tariff is to use your most energy-hungry appliances during the cheaper night-time hours. This includes:

• Electric storage heaters: Ensure they are set to charge fully during the off-peak period.
• Immersion heaters: Use a timer to heat your water overnight.
• Washing machines and dishwashers: Run these appliances on a timer after the night rate kicks in.
• Electric vehicle charging: Schedule your EV to charge overnight when rates are lowest.

Smart home integration for optimised use

Modern smart home devices can help automate and optimise your energy use. Smart plugs, smart thermostats, and appliance timers can be programmed to switch on and off according to your Economy 7 schedule, ensuring you take full advantage of the cheaper rates without manual intervention. This level of control empowers you to manage your energy strategically, using more when it is abundant and affordable.

Monitoring your consumption

Regularly monitoring your energy consumption is key to ensuring you are saving money. If you have a smart meter, your in-home display or supplier's app will show your usage in near real-time, often broken down by peak and off-peak periods. This allows you to identify if your efforts to shift usage are successful and make adjustments as needed.

Transitioning to modern dual-rate tariffs

The energy landscape is evolving, and smart meters are at the heart of modern dual-rate tariffs.

The role of smart meters in modern tariffs

Smart meters are the gateway to a new generation of energy tariffs, including advanced dual-rate options. They provide accurate, automatic readings, which are essential for tariffs that vary by time of day, demand, or even the amount of renewable energy on the grid. With a smart meter, you gain greater visibility into your energy use and unlock opportunities for more dynamic and potentially cheaper tariffs.

Choosing the right dual-rate tariff for you

Once you have a smart meter, you can explore a wider range of dual-rate tariffs beyond traditional Economy 7. These might include tariffs with more flexible off-peak windows, or those specifically designed for EV charging. When choosing, consider your actual energy usage patterns, the specific day and night rates, and any standing charges. It is about finding a tariff that truly reflects how and when you use electricity, empowering you to manage your energy and potentially save more.

Getting support for your energy choices

Navigating energy tariffs and meter upgrades can feel complex, but support is available. Your current energy supplier is obligated to assist with RTS meter replacements and provide information on available tariffs. For those looking to make the most of modern dual-rate tariffs, companies like Fuse Energy offer 24/7 human customer support to help you understand your options and transition to smart energy solutions. This commitment to customer care ensures you always have access to modern energy management solutions.

Ready to take control of your energy? Fuse Energy offers clear pricing, real-time usage data, and 24/7 human customer support, making it simple to manage your home's electricity. Switching to Fuse is quick and easy, helping you make the most of modern tariffs. Click here to switch to Fuse Energy today. Find out more about our mission to make energy abundant by clicking here.