Economy 7 explained — best E7 rates UK August 2026
Economy 7 (E7) is the original UK time-of-use tariff. Since the 1970s it has charged a cheap unit rate during a seven-hour overnight window and a higher rate the rest of the day. It was built for night-storage heating, but in 2026 the question is sharper: with the Ofgem price cap is £1,663/yr, can a dual-rate tariff beat the £1,663 single-rate cap for your home? This is the full, current explainer plus the cheapest E7 rates, verified August 2026.
- Cheapest E7 off-peak today: British Gas Standard E7 at ~12.5p/kWh.
- Typical night window: 7 hours, ~00:30–07:30 (varies by region and meter).
- Break-even rule of thumb: at least 40% of your electricity must be used in the night window.
- Why it matters now: the July 2026 cap (£1,663/yr, +13.5%) raises the single-rate yardstick E7 has to beat.
Quick answer: is Economy 7 worth it in August 2026?
Economy 7 is worth it only if at least ~40% of your electricity is used in the seven-hour overnight window — typically homes with electric night-storage heaters or a timed hot-water immersion. For those households the cheapest off-peak rate today is British Gas Standard E7 at ~12.5p/kWh, less than half the July 2026 single-rate cap of 26.11p/kWh, so shifting heavy load overnight can save hundreds against the £1,663/yr cap. If most of your use is in the daytime, the higher E7 peak rate (28–34p/kWh) will cost you more than a flat single-rate deal — you would be better on a fixed single-rate tariff. EV drivers should skip E7 and use a dedicated EV tariff such as Intelligent Octopus Go at ~7p/kWh.
Rates verified August 2026. Cap figures are Ofgem’s confirmed 1 July–30 September 2026 levels.
Compare every Economy 7 tariff in one place
There are roughly twenty live E7 tariffs on the UK retail market in August 2026, spread across the Big Six and the larger challenger suppliers. The headline differences are: (a) the off-peak unit rate, (b) the peak unit rate, (c) the night-window start time (varies by region and meter — see the windows section below), and (d) the standing charge. A cheap off-peak rate with a punishing peak rate can still leave you worse off than a flat single-rate tariff if your daytime consumption is large, so always check both rates against your own usage split.
Tell us your postcode (so we can confirm your DNO region and night-window timings), your meter type (E7 / smart / single-rate), and roughly what proportion of your consumption is overnight. We match you against the cheapest qualifying E7 tariff, verified August 2026, and show how it stacks up against the £1,663 July cap.
Find the best Economy 7 tariff for your home
Send us your postcode and meter type and we’ll match the cheapest off-peak E7 rate you qualify for. Takes about 60 seconds.
Best UK Economy 7 rates table — verified August 2026
Rates below are the off-peak and peak unit rates published by each supplier and verified in the last 14 days, plus a typical daily standing charge. The right tariff for you depends on the ratio of night-window consumption to daytime consumption — don’t just pick the lowest off-peak rate without checking the peak.
| Tariff | Off-peak (night) | Peak (day) | Standing charge |
|---|---|---|---|
| British Gas Standard E7 | ~12.5p/kWh | ~30p/kWh | ~63p/day |
| EDF E7 Fixed | ~13.2p/kWh | ~29p/kWh | ~62p/day |
| OVO Simpler Energy E7 | ~13.8p/kWh | ~28p/kWh | ~63p/day |
| Octopus E7 | ~14p/kWh | ~28p/kWh | ~62p/day |
| Default cap-tracking E7 (from 1 July) | 15–16p/kWh | 31–34p/kWh | ~63p/day |
All rates updated August 2026. For context, the July 2026 single-rate price cap is 26.11p/kWh + 57.19p/day standing charge. Regional spread on standing charges: Merseyside & N Wales electricity SC highest at ~70p/day; East Midlands lowest at ~58p/day.
How Economy 7 actually works
Economy 7 is a dual-rate electricity tariff. Your meter — either a dedicated E7 mechanical/RTS meter or a SMETS2 smart meter configured for two-rate billing — records consumption in two separate registers: a cheap night rate and a more expensive day rate. The supplier bills each register at its own unit rate. The name “Economy 7” refers to the seven-hour off-peak window each night; “Economy 10” offers ten off-peak hours across three slots and is covered separately.
The cheap night rate exists because the grid’s overnight demand trough historically left baseload power stations with spare capacity. Modern grid economics are different — wind generation often peaks overnight and battery storage has narrowed the gap — but the legacy E7 settlement still funds genuinely cheap off-peak unit rates, because demand response from E7 customers helps balance the system. Verified August 2026 rates are 12.5p–16p/kWh off-peak and 28p–34p/kWh peak.
Economy 7 vs the July 2026 single-rate cap
The Ofgem cap sets the single-rate (one price all day) tariff at 26.11p/kWh with a 57.19p/day standing charge. Whether E7 beats that comes down to one number: the share of your electricity used in the night window. The table below shows a worked example for a home using 3,500 kWh of electricity a year, comparing a flat single-rate cap tariff with British Gas Standard E7 (~12.5p night, ~30p day) at three different night-use splits. Figures are unit-rate energy costs only (standing charges are similar on both and excluded for clarity).
| Share of use overnight | Single-rate cap (26.11p) | Economy 7 (12.5p / 30p) | E7 vs cap |
|---|---|---|---|
| 20% night / 80% day | ~£914 | ~£928 | ~£14 worse |
| 40% night / 60% day | ~£914 | ~£805 | ~£109 cheaper |
| 60% night / 40% day | ~£914 | ~£683 | ~£231 cheaper |
| 70% night / 30% day (storage heaters) | ~£914 | ~£621 | ~£293 cheaper |
The pattern is clear: below roughly 40% night use, E7’s expensive peak rate cancels out the cheap nights and a flat single-rate deal wins; above 40%, every extra unit you shift overnight widens the saving against the £1,663 cap. The exact break-even depends on your peak rate, so confirm it for your home with the comparison form.
How E7 night windows work — regional timing
There is no single national E7 night window. Each Distribution Network Operator (DNO) region sets its own start time, and even within a region the time can vary by meter type. Here are the typical seven-hour night windows seen in August 2026:
| DNO region | Typical night window | Notes |
|---|---|---|
| London & South East | 00:30–07:30 | Most common; smart-meter shifts to a fixed time |
| East Midlands | 00:00–07:00 | Older RTS meters may use 23:00–06:00 |
| North Scotland | 22:30–07:30 (split) | Split across two blocks; check your meter docket |
| South West | 00:30–07:30 | Some meters 01:00–08:00 |
| Merseyside & N Wales | 00:00–07:00 | Highest standing charge regionally (~70p/day) |
If you have an old RTS (Radio Teleswitch) E7 meter, those are being decommissioned across 2025–2026 as the longwave RTS signal is withdrawn. Switching to a SMETS2 smart meter retains your E7 tariff but locks the night window to a single fixed time, removing the seasonal drift. Use our comparison form to start a switch.
Who is Economy 7 actually suited to in 2026?
Night-storage heating homes
If you have ceramic night-storage heaters charging during the off-peak window, E7 is still the cheapest option. A typical 70%+ night-rate consumption profile makes it a clear winner against flat tariffs — worth roughly £290/yr against the July cap in our worked example above.
Hot-water-tank households
A timed immersion drawing 3kW for 3 hours overnight uses ~9 kWh/day at the off-peak rate. Add timers to laundry and the dishwasher and you’ll comfortably clear the 40% night-rate threshold, saving roughly £300–£450/year against a flat single-rate deal.
EV owners — better on a Go tariff
For EV charging, Intelligent Octopus Go at ~7p/kWh beats every E7 tariff. E7 is no longer the right answer for EV households — it’s the right answer for resistive-heating and hot-water homes. If you have both storage heaters and an EV, model both options before switching.
Heat-pump households — usually no
An air-source heat pump runs through the day to hold a steady temperature, so most of its load falls in the expensive E7 peak window. Standard E7 rarely suits heat pumps; a heat-pump-specific tariff (such as Octopus Cosy) or Economy 10’s daytime slots are usually a better fit.
Daytime-heavy homes — avoid
If you are home during the day, work from home, or have most of your load between 07:30 and 00:30, E7’s peak rate (28–34p/kWh) will cost more than the 26.11p single-rate cap. A flat fixed single-rate tariff is the safer bet.
Battery-storage homes — maybe
A home battery can charge cheaply overnight on E7 and discharge through the peak, effectively turning daytime use into night-rate use. The economics can work, but a smart import tariff usually beats E7 for battery owners — compare both.
Economy 7 pitfalls to watch
- The peak rate is the trap. E7 peak rates (28–34p/kWh) sit above the 26.11p single-rate cap. If you can’t shift enough load overnight, every daytime unit costs you more than it would on a flat tariff.
- Check the window times, not just the rate. Night windows vary by region and meter (see above). A 00:30–07:30 window is no use if your storage heaters are set to charge from 23:00.
- Old RTS meters are being switched off. The longwave Radio Teleswitch signal is being withdrawn across 2025–2026. If your E7 relies on an RTS meter, arrange a free SMETS2 replacement so you don’t lose your night rate.
- Appliances on a timer, not standby. Leaving devices on standby through the day quietly racks up peak-rate units. The savings come from genuinely moving heavy load (heating, hot water, laundry, dishwasher) into the window.
- Don’t chase the lowest off-peak rate alone. A headline 12.5p night rate paired with a high peak rate can lose to a slightly higher night rate with a lower peak. Compare the pair against your own usage split.
How to switch your Economy 7 tariff under the current price cap
- Check your meter type. If you have an existing E7 mechanical meter or RTS meter, you can switch tariffs immediately. If you have a SMETS2 smart meter currently configured for single-rate, the new supplier will reconfigure it for E7 — that typically takes 1–2 weeks.
- Estimate your night-rate share. Take a meter reading after a full week of normal use. If your night-register reading is at least 40% of total consumption, E7 will beat the 26.11p July single-rate cap; below that, stay single-rate.
- Pick the right off-peak rate. British Gas Standard E7 at ~12.5p/kWh is the cheapest off-peak today (verified August 2026), followed by EDF E7 Fixed at ~13.2p. If your peak load is high, OVO Simpler Energy E7 or Octopus E7 with their slightly lower peak rates may net out cheaper.
- Use our comparison form below. We confirm regional night-window timing, your DNO standing charge, and the cheapest qualifying E7 tariff in your region — verified August 2026 rates only.
- Take a reading on 30 June. Submitting a meter reading on 30 June means usage up to that date is billed at the cheaper pre-July cap. Then run timers on shiftable load: immersion 01:00–04:00, dishwasher and washing-machine delay-start. Pushing 5–10 kWh/day into the night window beats anything you’ll do on the bill side.
Frequently asked questions — Economy 7 (August 2026)
What is the cheapest Economy 7 off-peak rate right now?
As of August 2026 the cheapest E7 off-peak unit rate is British Gas Standard E7 at approximately 12.5p/kWh, followed by EDF E7 Fixed at ~13.2p/kWh, OVO Simpler Energy E7 at ~13.8p/kWh, and Octopus E7 at ~14p/kWh. Be sure to check peak unit rates too — compare via our comparison form.
When does the Economy 7 night window start?
The seven-hour E7 night window is set by your DNO and varies by region. Most commonly it runs 00:30–07:30 (London, South East, South West), 00:00–07:00 (East Midlands, Merseyside & N Wales) or 22:30–07:30 with a split block (North Scotland). Check the back of your meter or your latest bill for the exact times.
Is Economy 7 still worth it in 2026?
It depends entirely on your night-rate share. The rule of thumb is that at least 40% of consumption must fall in the seven-hour night window for E7 to beat the 26.11p July single-rate cap. Storage-heater and immersion-tank households clear that easily; daytime-only households should look at flat single-rate tariffs. Run the numbers using our comparison form.
Will the July 2026 price cap affect E7 rates?
Yes. The Ofgem default tariff price cap rose to £1,663/yr and applies to both single-rate and E7 cap tariffs. Default cap-tracking E7 off-peak rates rise to ~15–16p/kWh while peak rates head to 31–34p/kWh. Only Standard Variable tariffs are affected — if you are on a fixed E7 deal your rates are protected until it ends. Locking in British Gas Standard E7 at ~12.5p off-peak today shelters you from the bulk of the rise.
How much more will a typical bill cost?
The typical dual-fuel direct-debit bill under the cap is £1,663 a year. Gas unit rates climb roughly 24% while electricity rises about 5%, so homes that heat with gas feel the rise most. The next cap review is 1 October 2026, with Cornwall Insight currently forecasting around £1,701–£1,747 (on a current-usage basis).
Can I switch from E7 to a smart TOU tariff like Intelligent Octopus Go?
Yes, if you have or can install a SMETS2 smart meter. Intelligent Octopus Go’s ~7p/kWh six-hour window is roughly half the cost of the cheapest E7 off-peak rate, so EV owners should switch. Resistive-heating homes are typically better off staying on E7, because Go’s six-hour window is too short to charge night-storage heaters fully.
What is an RTS meter and is mine being switched off?
RTS (Radio Teleswitch Service) meters use a longwave radio signal to switch between day and night rates. The RTS signal is being withdrawn across 2025–2026. If you have an RTS meter, your supplier will replace it with a SMETS2 smart meter free of charge — you keep your E7 tariff, but the night window becomes a single fixed block.
How does Economy 7 differ from Economy 10?
Economy 7 gives you seven cheap hours overnight in a single block. Economy 10 gives you ten cheap hours split across three slots (typically morning, afternoon and overnight) at a slightly higher off-peak rate (~14.8p/kWh on EDF Economy 10). E10 suits households with daytime heat-pump or hot-water loads; E7 suits pure overnight loads.
Is the standing charge higher on an E7 tariff?
Standing charges on E7 and single-rate tariffs are broadly similar in August 2026 — ~62–63p/day on average across competitive E7 deals, against the 57.19p/day July single-rate cap. Regional variation matters more than tariff type: Merseyside & N Wales electricity SC is highest at ~70p/day, East Midlands the lowest at ~58p/day. Confirm your regional figure via our comparison form.
How we report these figures (methodology), trust & sources
Page details
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist (Consumer Energy)
- Last reviewed
- August 2026
Our methodology (transparent figures)
Economy 7 unit rates are supplier-published figures verified within the last 14 days (July 2026). Price-cap figures are Ofgem’s confirmed levels for 1 July to 30 September 2026, on a typical dual-fuel direct-debit basis:
- New cap: £1,663 a year.
- Single-rate unit rates (direct debit): electricity 26.11p/kWh + 57.19p/day; gas 7.33p/kWh + 29.04p/day.
- By payment method: prepayment cap £1,812; payment on receipt of bill £2,005.
- October outlook: Cornwall Insight forecast of about £1,701–£1,747 for the cap from 1 October 2026.
Limitations: the cap and E7 rates vary by region, meter type and payment method, so your exact bill will differ from the typical figure. The cost example assumes 3,500 kWh/yr and excludes standing charges for clarity. Use your own bill rates and a current comparison for a personalised view.
Lock in a competitive E7 rate under the current price cap
The Ofgem price cap is £1,663/yr. Default cap-tracking E7 off-peak rates rise to ~15–16p/kWh — locking in British Gas Standard E7 at ~12.5p today shelters you from the bulk of the rise.
Send us your postcode and meter type. We confirm regional night-window timing, your DNO standing charge, and the cheapest qualifying E7 tariff, verified August 2026.
Find your best Economy 7 rate
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