Is electricity cheaper at night? Off-peak explained
If you’re looking to lower your energy bill, you might be able to save some money by running your appliances at certain hours. But you'll need to be a time-of-use tariff. Read on for all you need to know about peak and off-peak electricity usage.
Key takeaways
Peak hours for electricity usage are regarded as 8am to 10pm, while off-peak is typically defined as between 10pm-8am
If you're on a multi-rate tariff, such as Economy 7 or a smart time-of-use tariff, you'll be charged less for usage at night time
Households on time-of-use tariffs can really save money by running energy-intensive appliances, such as dishwashers, washing machines and storage heaters, during off peak hours
Economy 7 and 10 tariffs have higher daytime rates so you'll need significant night-time usage to save (only applicable to electricity)
Understanding peak and off-peak electricity rates
Alongside more familiar fixed-rate, standard -rate tariffs, energy suppliers often offer what's known as a 'time-of-use tariff' or 'multi-rate tariff', which means that the cost of electricity consumption fluctuates depending on the time of day.
If you're on a time-of-use tariff, during the daylight hours of peak demand, typically from 8am to 10pm, you'll be charged the higher day rate.
Conversely, during the night time hours, usually from 10pm to 8am, you'll benefit from a more wallet-friendly night rate.
Peak hours are when most households and businesses are active, and the demand for electricity is at its highest.
The specific hours considered peak can vary depending on your meter type and your energy supplier, but as long as you're on a time-of-use tariff you can expect night time rates to be cheaper.
What are the benefits of using off-peak electricity?
If you're clever with your energy usage, a multi-rate tariff can offer significant savings compared with traditional fixed rate and standard rate tariffs,
By scheduling your dishwasher, washing machine, tumble dryer, or electric heater to operate at night, for instance, you can take advantage of significantly reduced rates and really cut your energy bills.
Standard-rate tariffs vs time-of-use tariffs
Not all energy suppliers offer time-of-use tariffs. In fact, the overwhelmingly majority of tariffs on the market are standard-rate – meaning you’ll pay the same flat rate for your electricity, no matter if you’re using it during the day or at night.
This simplicity of standard-rate tariffs can be appealing, as it means energy prices are consistent since there’s just one single rate.
But, unlike the likes of Economy 7 and Economy 10, a fixed rate tariff doesn't offer potential savings for using electricity during off-peak hours.
Are off-peak tariffs really cheaper?
While off-peak rates are indisputably lower, the actual savings you'll make hinge on your energy usage patterns.
If you're a daytime power user, the higher rates during peak hours on a time-of-use tariff could negate any savings made at night.
It's estimated that to benefit financially, at least 40% of your electricity usage should occur during off-peak hours – a target that may not align with every household's routine.
Economy 7 and Economy 10 tariffs explained
Economy 7 and Economy 10 tariffs are designed for those who consume a significant amount of electricity at night. Economy 7 tariffs offer seven hours of off-peak rates per day, while Economy 10 provides ten hours.
These tariffs often require a smart meter to ensure accurate tracking of your power usage. They are particularly beneficial for households with high power needs, such as those with electric vehicles.
Pros and cons of Economy 7 and Economy 10
Before jumping into an Economy 7 or Economy 10 tariff, consider the following:
Pros
Ideal for those who use a lot of electricity at night or early morning
Reduced costs for running electrical appliances like washing machines during off-peak hours
Suitable for meticulous bill trackers
Widely available from most major energy suppliers
Cons
Higher rates during the day
You need to consume a substantial amount of electricity at night to see savings
Applicable only to electricity, not gas
Meters may not adjust for daylight savings, affecting off-peak hours
Reducing electricity costs without time-of-use tariffs
Even without a time-of-use tariff, there are ways to cut down on electricity bills:
Install loft insulation to retain heat
Turn off gadgets and lights at night
Use draught excluders to prevent heat loss
Consider secondary glazing for windows
Avoid using power-hungry appliances like tumble dryers when possible
How to save money on your energy bills with night-time appliance use
The potential savings from using appliances at night are contingent on your willingness to change energy habits and the efficiency of your appliances.
Energy-efficient appliances with an A rating will always be cheaper to run, but if you have less efficient appliances with a G rating, running them at night could lead to more significant savings.
Other useful guides
How to choose the right tariff
When it comes to finding the best electricity deal, it's essential to compare the available tariffs.
To find the best tariff, use MoneySuperMarket to compare tariffs and find the right deal to suit your needs.
We'll help you weigh the pros and cons of different plans according to your personal energy consumption habits.
What time of day is off-peak for electricity usage?
Off-peak periods can vary slightly depending on the energy company, time of year, and where you live, but generally you can expect peak times of the day to be between 10pm and 8am.
It’s always best to check, either by calling your energy supplier or checking your energy bill.
Why is it cheaper to use electricity at off-peak times?
It’s cheaper to use electricity during off-peak hours because fewer people are using it and power demand on the national grid is at its lowest.
How do I know if I'm on an off-peak tariff?
It’s easy to find out whether you’re on an off-peak tariff. You can check your electricity bill – if it shows both a day and night rate, it means you’re on a time-of-use tariff.
You can also look at your energy meter, which may have two dials: one for peak, and one for off-peak.