Cheapest tariff for a home with electric heating (UK)

Electric heating can be expensive on the wrong plan. This guide explains which UK tariff types tend to be cheapest for electric-only homes, how to check eligibility (meter type, region, payment method), and how to compare confidently.

  • Quick answer first: the cheapest option usually depends on your meter and when you use heat
  • Clear checks for Economy 7 / smart meters / heat pumps / storage heaters
  • Realistic example costs and a comparison table to help you decide
Get your electric heating tariff quote See the quick answer

Estimates use typical UK assumptions and may differ by region, meter type, supplier and how/when you use heating. Always check tariff terms, unit rates, standing charges and exit fees.

Fast answer: what’s usually the cheapest tariff for electric heating?

For most UK homes with electric heating, the cheapest tariff type is typically:

1) Single-rate (standard) tariff

Often best if your heating runs throughout the day (panel heaters, electric radiators) and you can’t shift much use overnight.

2) Economy 7 / time-of-use tariff

Often best for storage heaters and hot water tanks if you can use a meaningful share of electricity in the cheap off-peak hours.

3) Smart time-of-use (optional)

Can work well for heat pumps and homes with flexible demand, but prices and risk vary—check peak rates carefully.

Important: “Cheapest” is not a single named tariff for everyone. In the UK, the best value depends on your meter type (single-rate vs Economy 7 vs smart), region, payment method, and when you use most electricity (day vs night). This page shows you how to pick the right tariff type and compare like-for-like.

Key takeaways (60 seconds)

  • If you have storage heaters, Economy 7 is often worth checking—but only if you can shift a decent portion of usage to off-peak hours.
  • If you have panel heaters and you heat rooms on-demand during the day, a competitive single-rate tariff is commonly better.
  • If you have a heat pump, focus on low overall unit rates and standing charges; time-of-use can help if you can schedule hot water/heating.
  • Always compare the full annual estimate (unit rate(s) + standing charge), not just a headline cheap night rate.

Compare tariffs for electric heating (whole-of-market approach)

If your home is heated by electricity, small differences in tariff structure can add up—especially in winter. A good comparison focuses on:

  • Meter type: single-rate, Economy 7 (two-rate), or smart time-of-use
  • Tariff structure: unit rate(s), standing charge, discounts, exit fees
  • Your usage pattern: day/night split (important for storage heaters)
  • Payment method: Direct Debit vs pay on receipt vs prepayment (availability and price can differ)
  • Region: electricity standing charges and unit rates vary by UK distribution region

Tariff types that matter for electric heating

Single-rate (standard) tariff
One unit rate all day. Simple and often competitive if you heat mostly during daytime/evening.
Economy 7 (two-rate)
Cheaper off-peak rate for ~7 hours overnight (exact times vary by region/meter), and a higher day rate. Can suit storage heaters and overnight hot water charging.
Smart time-of-use (TOU)
Multiple price periods. Can be strong if you can schedule demand (hot water, heat pump, EV), but peak pricing can be much higher—check the worst-case day rate.
Fixed vs variable
Fixed protects your unit rate(s) for a set term; variable can change. Either can be cheapest depending on the market—always compare the annual estimate and terms.

Good to know: If you’re on Economy 7 but you don’t use much power overnight, you may pay more due to the higher day rate. The right choice is about your day/night split, not just the cheapest night unit rate.

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Two realistic scenarios (with numbers you can sanity-check)

Scenario A: Flat with panel heaters (day-heavy usage)

Assumptions (illustrative): electric-only 1–2 bed flat using 4,200 kWh/year, with 85% day and 15% night usage.

  • Single-rate example: 25p/kWh + 55p/day standing charge → estimated annual energy cost ≈ £1,435
  • Economy 7 example: 33p day, 14p night + 55p/day standing charge → estimated annual energy cost ≈ £1,566

What this shows: if most of your heating is during the day, the higher Economy 7 day rate can outweigh the cheap night rate.

Scenario B: House with storage heaters (night-heavy charging)

Assumptions (illustrative): electric-only 2–3 bed home using 7,800 kWh/year, with 45% day and 55% night (storage heaters + hot water cylinder charging overnight).

  • Single-rate example: 25p/kWh + 55p/day → estimated annual energy cost ≈ £2,410
  • Economy 7 example: 33p day, 14p night + 55p/day → estimated annual energy cost ≈ £2,017

What this shows: Economy 7 can win when you genuinely shift a large share to off-peak hours.

Numbers are examples, not predictions. Rates and standing charges vary by UK region and supplier. Use them to understand the trade-off (day rate vs night rate), then compare using your own usage and meter details.

Comparison: which tariff type suits electric heating best?

Use this table to narrow down the tariff type to compare. The “best” tariff is then the cheapest within that type for your region, meter and payment method.

Tariff type Typically suits Usually not ideal if Key checks before switching
Single-rate Panel heaters, electric radiators, daytime home working, mixed usage with little overnight shifting You can reliably charge heating/hot water overnight with storage heaters/cylinder Compare standing charges; check if you’re currently on a two-rate meter (you may need a meter/tariff change)
Economy 7 Storage heaters, immersion hot water overnight, high night-time load share Most of your heating is daytime/evening; you rarely use night rate; you don’t control overnight charging Confirm off-peak hours for your meter; compare both day and night rates; check how night usage is measured
Smart TOU Heat pump homes that can pre-heat, homes with hot water scheduling, flexible households You need heat at peak times and can’t shift; you’re uncomfortable with price variability by time You’ll need a smart meter; check peak unit rates and any price caps/guarantees; understand what happens if your schedule changes

Decision checklist (quick yes/no)

Economy 7 is more likely to suit you if…

  • You have storage heaters and/or an immersion hot water cylinder set to run overnight
  • You can keep at least around 40–50%+ of usage on the night rate (many storage-heater homes can)
  • You understand your off-peak hours (they vary by meter/region and can be split)
  • You’re happy to manage heating controls to maximise cheap periods

Single-rate is more likely to suit you if…

  • Your heating is mainly on-demand during the day/evening (panel heaters, electric radiators)
  • You don’t have a big overnight load you can shift reliably
  • You want simpler billing and fewer surprises if your routine changes
  • You’re on prepayment and Economy 7 options are limited in your area (availability can vary)

Costs, exclusions and common pitfalls (electric heating)

Electric heating magnifies tariff details. These are the issues that most often make a “cheap” tariff expensive in real life.

1) Standing charge can dominate

If you’re a low user (well-insulated flat) the standing charge matters a lot. Compare the annual estimate, not just p/kWh.

2) Economy 7 day rates can be high

If your “night share” is small, the higher daytime rate may cost more overall—even with a very cheap night price.

3) Off-peak hours are not universal

Economy 7 times vary by meter and region, and can shift with daylight saving time. Confirm your meter’s schedule before you rely on it.

Exit fees and fixed term conditions

Some fixed deals charge exit fees if you leave early. If you’re considering a move, tenancy change, or you’re unsure about your heating pattern, flexibility can matter as much as price.

Meter and tariff eligibility

Not every supplier supports every meter setup (especially legacy multi-rate). If you have an older set-up, you may have fewer options until your meter is updated.

Avoid these common mistakes

  • Comparing only the unit rate: always include the standing charge(s) and whether you have 1 or 2 rates.
  • Assuming your night rate is 00:00–07:00: check your meter’s actual off-peak times (they can differ).
  • Switching to Economy 7 with panel heaters: you may just pay a higher day rate with little benefit.
  • Ignoring heating controls: storage heaters and immersion heaters need correct timers/controls to use cheaper periods.

FAQs: cheapest tariffs for electric heating (UK)

Is Economy 7 always the cheapest for storage heaters?

Not always. Economy 7 is often a good match for storage heaters because they can charge overnight, but it’s only cheaper if enough of your electricity is used on the night rate. Compare using your actual day/night split, and check the day rate is not so high that it cancels out the night savings.

What are typical Economy 7 off-peak times in the UK?

It’s commonly around 7 hours overnight, but the exact times can vary by your meter and region, and can shift with daylight saving. If you’re unsure, check your bill, your meter display, or ask your supplier. Citizens Advice explains Economy 7 and how it works: Citizens Advice guidance on energy tariffs.

Can I switch from Economy 7 to a single-rate tariff?

Usually yes, but what’s possible depends on your meter type and supplier. Sometimes you can move to a single-rate tariff while keeping the same meter; other times a meter reconfiguration or replacement is needed. Your supplier can confirm what applies to your property.

Do smart meters make electric heating cheaper?

A smart meter doesn’t automatically lower your rates. It can enable access to some smart/time-of-use tariffs and can improve billing accuracy. Whether it reduces cost depends on the tariff and whether you can shift usage away from expensive peak periods.

Is a fixed tariff better than a variable tariff for electric heating?

It depends on the deal and your preferences. Fixed tariffs can offer price certainty (helpful if you’re worried about winter costs), but may include exit fees. Variable tariffs can change with the market. Compare the annual estimate and read the tariff terms before choosing.

Do I need to tell the supplier I have electric heating?

It helps. Electric heating changes how you use energy (especially day vs night). When comparing, note whether you have storage heaters, an immersion hot water cylinder, or a heat pump, because that affects which tariff structures are likely to be best value.

Why do prices differ by region in Great Britain?

Electricity network costs and standing charges vary by distribution region, so the same tariff name can have different rates depending on your postcode. This is why postcode is essential for accurate comparisons.

How do I check if I’m on Economy 7?

Look for two separate unit rates on your bill (day and night/off-peak). Your meter may also show two registers (often labelled 1 and 2). If in doubt, your supplier can confirm your meter configuration.

Trust, methodology and sources

Editorial details

Reviewed by
Energy Specialist
Last updated
June 2026

How we assess “cheapest” for electric heating

We treat “cheapest” as the lowest estimated annual cost for your situation, not the lowest headline unit rate. Our guidance is based on:

  • Tariff structure: single-rate vs multi-rate (Economy 7/time-of-use)
  • Full cost view: unit rate(s) + standing charge (and any known fees/conditions)
  • UK constraints: regional pricing, payment method differences, meter eligibility
  • Usage pattern fit: whether your heating system can realistically use cheap periods

Limitations and caveats (transparent)

  • Example calculations on this page use illustrative rates and typical usage splits to show trade-offs. Your actual prices can differ by supplier and region.
  • Economy 7 timings vary. If your off-peak window doesn’t match your heating/hot water charging, savings may not materialise.
  • Smart time-of-use tariffs may have higher peak rates. If you can’t shift heating load, they may cost more.
  • Tariff availability can vary for prepayment meters and some meter types.

Sources (UK)

Ready to find the best tariff for your electric heating?

Compare options based on your postcode, meter type and how you use heating—so you’re not choosing off a headline rate.

Get your energy quote Use the on-page quote form

Reminder: tariff prices and eligibility can change. Always confirm unit rates, standing charges, off-peak hours (if relevant) and any exit fees before you switch.

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Updated on 10 Jun 2026