Gas and Electricity Meters Guide - Part 2 of 4

If you’re looking to save money on your electricity bills you may wish to consider the Economy 7 meter/tariff. However, just what is Economy 7 and how does it work? This section of the gas and electricity meters guide will explain.

Quick links:

What are Economy 7 meters and how do you read them?

Economy 7 (also referred to as variable rate meters) customers generally use more energy at night than during the day to save money on their energy bills. This is because from the period that lasts from midnight to 7am (times can vary dependent on suppliers and regions), electricity costs less than the standard daytime rate - these are effectively the ‘off-peak’ hours. So, just as you can make cheaper phone calls during off-peak hours, you can do the same by using your electricity at off-peak times too.

Roughly, the charge for using electrical appliances during these hours is around a third of the regular cost - exact costs vary but you could be charged 8p per unit for a standard rate and 2.5p per unit with Economy 7. However, you will need to use at least 20% of your energy consumption at night to make a saving.

To make these tariffs work for you, you will usually need to install timing devices on key electrical appliances such as dishwashers, washing machines and so on. You’ll also need to switch on your hot water boilers and storage heaters overnight.

One of the criticisms of Economy 7 is that even though you may heat your water and storage heaters continually overnight, there still may not be sufficient heat generated to last throughout the day. You will need to take baths and showers in the morning and your home could be cold in the evenings. Additionally, some Economy 7 tariffs charge double for daytime use meaning that savings can quickly be cancelled out.

However, if you decide that Economy 7 is right for you then you’ll need to know how to read your meter accurately.

Moving to Economy 7 will mean a change of meter (sometimes at a cost). Economy 7 meters feature both night and daytime readings - you will need to record both. There are two types of Economy 7 meters - one which features two sets of numbers (daytime on top, night-time on the bottom) and the other which has one set of numbers that displays the ‘day rate’ - you will need to press a red button to display the ‘night rate’.

There will also be a timing system that is used to switch over the recordings from night to daytime.

If you are still interested in Economy 7, contact your current supplier about making the move.

Compare Gas and Electricity now with our free comparison service