Economy 7

Key takeaways

• An Economy 7 tariff provides lower electricity rates during night time hours, usually from midnight to 7 am

• It's intended to encourage consumers to use electricity when demand is lower, reducing strain on the grid and offering savings

• Economy 7 can be a really good option for homes with storage heaters and hot water tanks, as it allows heating during off-peak hours for use the next day .

What is an Economy 7 tariff?

An Economy 7 tariff provides lower electricity rates during night time hours, usually from midnight to 7am, although this can vary by supplier. It also means that you have a day rate and a night rate for your electricity.

It's intended to encourage consumers to use electricity when demand is lower, reducing strain on the grid and offering savings.

This is particularly useful if you’re able to set timers for devices such as washing machines, dishwashers and slow cookers, as well as if you prefer to charge your smartphone or tablet overnight. Doing so can bring substantial savings.

You can check if you’re on an Economy 7 tariff by taking a look at your bill. Look for two sets of readings: 'day' and 'night.' Additionally, a Meter Point Administration Number that starts with '02' is a giveaway that you're on this particular tariff.

Are Economy 7 meters being phased out?

While Economy 7 tariffs are not being phased out, older meters which use the system are.

If you have a Radio Teleswitch Service (RTS) (also known as the Dynamic Teleswitch Service (DTS) meter, then you need to speak with your energy supplier by 30 June 2025, then these meters are being phased out.

Your supplier will arrange for a new smart meter, which will still be able to offer day and night readings, so you can run appliances overnight in order to lower your energy bill.

Who are Economy 7 meters aimed at?

Economy 7 meters tend to be aimed at those who either need to use a lot of electricity overnight or those who do not have a gas supply and rely on electricity for their heating:

How do economy 7 meters work?

Economy 7 meters work by giving two separate readings, one for the day and one for the night.

The mechanics of Economy 7 are straightforward. During the designated seven-hour off-peak period, you'll pay less for your electricity. This makes it an attractive option for night owls or those with specific appliances that can take advantage of the lower rates.

However, with the RTS switch off coming on 30 June 2025, you may find that an Economy 7 meter is not for you. If you have a RTS meter, you need to speak with your supplier as soon as possible in order to assess your options.

It’s good to know, though, that if you have a smart meter, or are thinking of getting one, you can ask to be on an Economy 7 tariff. This means that you can still take advantage of cheaper rates at night, especially handy if you have a storage heater, hot water tank or EV.

Economy 7 annual savings

The savings you make on an Economy 7 tariff depend on how much energy you use overnight.

An average Economy 7 rate can save you around £50 a year. This depends on your supplier and also how much energy you use at night.

How to make the most of an Economy 7 or time-of-use tariff

You can make the most of an Economy 7 tariff by ensuring that you use your most power hungry appliances at night, as well as charging products you need to use during the day overnight.

Make sure you use appliances such as washing machines and dishwasher overnight. Most modern versions have a timer setting, which you can set for the time when your night rate kicks in.

Warm up storage heaters and hot water tanks overnight. This way you’ll have heating and hot water for the day ahead without paying more for it.

Charge your EV overnight. This is a no brainer if you need a full battery come morning and will also make the cost of running your cutting edge car a lot less. Do the same with devices such as smartphones and tablets.

Check when your night rate starts. Not all suppliers start their night rates at midnight, so be sure to check when you can set your appliances to run.

Economy 7 vs Economy 10 tariffs

On the face of it, Economy 10 tariffs are better than Economy 7 ones, as they offer an additional three hours of cheaper electricity.

However, not all suppliers offer them and the hours of cheaper power can vary more than with a simple Economy 7 tariff.

In some cases you might get four cheap hours at night, three in the morning and three in the day. This can be helpful if you need, for example, to do washing during the day, but if you need to warm up a storage heater or charge an EV, a longer overnight period may be more desirable.

Compare energy providers with MoneySuperMarket

Here at MoneySuperMarket we help you compare energy tariffs from a wide range of suppliers to save money on your gas and electricity bills. Switch to a cheaper energy deal and earn £10, plus earn up to £130 in rewards every year with SuperSaveClub^{^} .