Time-of-use electricity tariffs for UK households
Understand how time-of-use (TOU) tariffs work, whether you’re eligible, and how to estimate if they’ll cut your bill—before you switch.
- Clear explanation of peak/off-peak pricing (and what “smart” means in practice)
- Who TOU suits (EVs, heat pumps, shiftable usage) vs who should be cautious
- Two realistic UK scenarios with estimated numbers and assumptions
Estimates only. Prices, eligibility and time bands vary by supplier, region, meter type and payment method.
Fast answer: are time-of-use tariffs worth it?
A time-of-use electricity tariff charges different unit rates depending on the time of day (and sometimes day of the week). They can be good value if you can shift a meaningful chunk of electricity use into cheaper hours—for example charging an EV overnight, running a heat pump pre-heat, or using appliances on a timer.
Usually suits you if…
- You have (or plan) a smart meter and can access half-hourly data.
- You can move 15–30%+ of usage to off-peak (EV, heat pump, immersion heater, storage heating, laundry/dishwasher).
- You’re happy with variable pricing across the day and can avoid peak periods.
Be cautious if…
- Your household is home at peak times and can’t shift usage (e.g., cooking, electric heating, tumble dryer 4–8pm).
- You don’t have a smart meter yet (or can’t get one fitted soon).
- You’re comparing against a strong fixed deal—some TOU plans have higher peak rates that can outweigh the cheap hours.
Key takeaways (UK-specific)
- Eligibility
- Typically needs a smart meter. Some legacy off-peak tariffs (e.g., Economy 7) can work with traditional meters, but availability varies.
- Time bands
- Set by each supplier/tariff. Off-peak may be overnight; some have extra low-rate windows or “peak” pricing in the evening.
- What to compare
- Don’t just compare the cheapest unit rate—compare standing charge, peak unit rate, off-peak windows, and your realistic shiftable usage.
Tip: If you’re unsure, start by estimating how many kWh you can move to off-peak. That single number often decides whether TOU helps or hurts.
How time-of-use tariffs work (plain English)
On a standard single-rate tariff, you pay one unit rate (pence per kWh) any time you use electricity. With a time-of-use tariff, your unit rate changes depending on pre-set time bands. The aim is to encourage usage when the grid is quieter (often overnight) and discourage use during busy periods (often early evening).
Common UK types you’ll see
Economy 7 / Economy 10
Two (or more) rates, with a longer off-peak window—traditionally aimed at storage heating and immersion heaters. Off-peak times can vary by region and meter setup.
Smart TOU (half-hourly)
Uses smart meter readings (often half-hourly) to apply multiple price bands. Some tariffs target EV charging or offer super off-peak hours.
Dynamic / tracker-style TOU
Prices can change frequently (e.g., day-ahead). This can be great for flexible households—but it carries more bill volatility.
What you need to check before switching
- Meter: Do you have a working smart meter? If not, can your new supplier fit one?
- Payment method: Some tariffs differ for Direct Debit vs prepayment.
- Region: Standing charges and some rates vary by distribution region.
- Exit fees: Fixed tariffs may charge a fee to leave early.
- Your usage pattern: How many kWh can you realistically move to the cheap window(s)?
Important: Some “cheap overnight” tariffs have a higher daytime/peak unit rate. If you don’t shift enough usage, you may pay more overall.
Compare time-of-use tariffs (whole of market)
Tell us a few details and we’ll help you compare suitable household tariffs. We’ll use your postcode to pull region-specific charges and check smart/TOU options where available.
Compare time-of-use options (quick decision view)
Not all “off-peak” tariffs are the same. Use this table to understand what you’re trading off. Always check the tariff’s exact time bands and unit rates for your region.
| Tariff type | How prices work | Best for | Watch-outs |
|---|---|---|---|
| Single-rate | Same unit rate all day | Homes with steady usage, little flexibility | No cheap window for EV/heat pump optimisation |
| Economy 7 | Two rates: day + night (often ~7 hours off-peak) | Storage heating, immersion heater, overnight EV charging | Day rate can be higher; off-peak times vary by meter/region |
| Smart TOU (set bands) | Multiple fixed time bands (e.g., peak/standard/off-peak) | EV drivers, flexible households, timer-based appliances | Peak unit rate can be steep; you need to actively avoid peaks |
| Dynamic TOU | Prices can change frequently (e.g., day-ahead) | Highly flexible users who track prices | Bill volatility; may not suit risk-averse households |
Decision checklist: is TOU right for your home?
1) Estimate your shiftable kWh
- EV charging (kWh per week)
- Heat pump / immersion heating you can schedule
- Dishwasher, washing machine, tumble dryer
2) Map it to the tariff’s cheap windows
- Are cheap hours overnight only, or also daytime?
- Do you have a regular routine that fits those hours?
- Will you accidentally use energy in the expensive window?
3) Compare total cost, not headline rates
- Standing charge differences (can be significant)
- Peak rate vs what you pay now
- Any exit fees or contract length
Two realistic scenarios (estimated)
These examples show the mechanics of TOU. They are not a promise of savings. Rates and time bands vary by supplier, region and payment method.
Scenario A: EV driver who can charge overnight
- Household electricity use: 3,200 kWh/year (excluding EV)
- EV charging: 2,000 kWh/year (mostly overnight)
- Total: 5,200 kWh/year
Assumed rates for illustration
- Single-rate unit rate: 24p/kWh
- TOU: off-peak 10p/kWh (overnight), peak/standard blended for the rest 27p/kWh
- Standing charge: assumed no change (to isolate unit-rate effect)
- Off-peak share on TOU: EV 2,000 kWh + 400 kWh household = 2,400 kWh off-peak
Estimated annual unit cost:
- Single-rate: 5,200 × 24p = £1,248
- TOU: (2,400 × 10p) + (2,800 × 27p) = £240 + £756 = £996
- Estimated difference: ~£252/year cheaper (before standing charge differences and any fees)
Why it works: a large, predictable load (EV charging) fits the cheapest window.
Scenario B: No EV, limited ability to shift usage
- Household electricity use: 3,100 kWh/year
- Home is busy 4–9pm; cooking and laundry often in the evening
- Only 400 kWh/year can be shifted to off-peak
Assumed rates for illustration
- Single-rate unit rate: 24p/kWh
- TOU: off-peak 12p/kWh, peak/standard blended 28p/kWh
- Standing charge: assumed no change
Estimated annual unit cost:
- Single-rate: 3,100 × 24p = £744
- TOU: (400 × 12p) + (2,700 × 28p) = £48 + £756 = £804
- Estimated difference: ~£60/year more expensive (before standing charge differences and any fees)
Why it may not work: higher peak pricing affects most of the household’s consumption.
If you want, EnergyPlus can help you estimate your off-peak share and compare suitable options for your postcode.
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Costs, exclusions and common pitfalls (UK)
1) Standing charges can change the outcome
Even if the off-peak unit rate looks excellent, a higher standing charge can reduce (or remove) the benefit—especially for low-usage homes and flats.
2) Peak rates can be significantly higher
A TOU tariff can cost more if you use most electricity in peak hours (often early evening). Check the tariff’s peak window and compare it to your routine.
3) Smart meter requirements and data settings
Many smart TOU tariffs require smart meter readings at half-hourly intervals. You may need to ensure your meter is commissioned and sending readings reliably.
4) Economy 7 timing isn’t universal
Economy 7 off-peak hours can vary by meter type and region (and may not be a single continuous block). Always confirm your specific off-peak times.
5) Exit fees and contract terms
Some fixed deals include exit fees. If you’re switching mid-contract, include any fees when you compare estimated annual cost.
6) Payment method & eligibility limitations
Not every TOU tariff is available on prepayment, and some “EV” tariffs require evidence of an EV or charger. Availability differs by supplier.
FAQs
Do I need a smart meter for a time-of-use tariff?
For most modern TOU tariffs, yes—a smart meter is typically required so the supplier can bill different rates by time band. Some legacy off-peak tariffs (such as Economy 7) may work with certain older meters, but availability is more limited and depends on your setup.
What are typical off-peak hours in the UK?
There’s no single standard. Economy 7 often provides around 7 hours overnight, but the exact times can vary by meter and region. Smart TOU tariffs can have different windows (including “super off-peak” blocks). Always confirm the tariff’s published time bands before switching.
Can renters switch to a time-of-use tariff?
Usually, yes—if you pay the energy bills and your tenancy allows you to choose the supplier. You typically need the landlord’s permission for physical changes, but switching supplier is often allowed. If a smart meter installation is needed, check your tenancy and speak to your landlord/agent.
Is Economy 7 the same as a smart time-of-use tariff?
They’re related but not the same. Economy 7 is a traditional two-rate setup (day/night). Smart TOU tariffs can have multiple bands and may require half-hourly smart readings. Either way, you benefit most when you can shift usage into the cheapest period.
Will a time-of-use tariff affect my gas prices?
No—TOU is primarily an electricity pricing structure. If you’re on a dual fuel deal, your gas tariff will have its own unit rate and standing charge. Some suppliers bundle discounts, so compare the whole package.
Can I switch back if it doesn’t suit me?
In most cases you can switch again, but check whether your tariff has exit fees and whether you’re in a fixed term. Also consider whether switching back affects any special eligibility (e.g., EV tariffs) or meter configuration.
How do I estimate how much electricity I use off-peak?
If you have a smart meter, check your supplier app for half-hourly or hourly usage, then total the kWh during the tariff’s cheap window(s). Without smart data, start with big loads you can time (EV charging kWh, immersion heater, laundry) and treat the rest as peak/standard.
Are time-of-use tariffs available on prepayment meters?
Sometimes, but not always. Availability can be narrower on prepayment, and some tariffs require specific smart meter functionality. If you’re on prepayment, we recommend checking eligibility first before making assumptions about TOU deals.
How we assess time-of-use tariffs
This guide is written to help UK households make a safe, informed decision. We focus on total cost and fit with real-life routines, not just the lowest advertised unit rate.
Our approach (what we look at)
- Tariff structure: number of rates, time bands, whether bands change by day.
- Eligibility: smart meter requirements, EV/heat pump conditions (where applicable), payment method constraints.
- Cost drivers: peak unit rate risk, standing charges, exit fees, contract length.
- Household behaviour: realistic shiftable usage (kWh), not best-case assumptions.
Scenario assumptions (and limitations)
- Example unit rates are illustrative and rounded for clarity (p/kWh).
- We held standing charges constant in scenarios to isolate the effect of usage shifting—real comparisons must include standing charges.
- We used annual kWh totals typical of many households, but your usage may differ significantly depending on occupancy, heating type and appliances.
- We did not model time-varying wholesale pricing, network constraints, or future tariff changes.
Editorial principle: If a saving depends on perfect behaviour (never using energy in peak windows), we treat it as uncertain and flag the risk.
Trust, review and sources
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- March 2026
Helpful UK sources
- Ofgem (UK energy regulator) — guidance on consumers, switching and smart meters
- Citizens Advice: energy — practical help with bills, meters and problems
- GOV.UK: switching energy supplier — overview of the switching process
Transparency: EnergyPlus is a comparison service. Availability and pricing can change; we recommend confirming key terms (time bands, rates, fees) before you agree to switch.
Ready to see if a time-of-use tariff fits your routine?
We’ll compare household tariffs for your postcode and highlight where TOU could help—plus any trade-offs like peak rates, standing charges and exit fees.
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