Economy 7 explained: costs, times and who it suits

Learn how Economy 7 works in the UK, how off-peak hours are set, and how to check if it’s right for your home. Compare tariffs with clear assumptions and UK-specific caveats.

  • Off-peak electricity (usually 7 hours overnight) at a lower unit rate
  • Daytime electricity at a higher unit rate than standard single-rate tariffs
  • Best suited to homes that can shift a good chunk of usage overnight (e.g., storage heaters, EV charging)
Get your Economy 7 quote How Economy 7 works

Prices and hours vary by supplier, region, meter type and payment method. Examples below are estimated and for guidance only.

Fast answer: is Economy 7 worth it?

Economy 7 can be good value if you can use a meaningful share of your electricity during the off-peak window (often overnight), because you’ll pay a lower unit rate for those hours. But the day rate is typically higher than a standard single-rate tariff, so it can cost more if most of your usage is during the day/evening.

Rule of thumb: Economy 7 tends to suit homes that can shift roughly 30–40%+ of electricity use into the off-peak hours (e.g., storage heaters, immersion heater on a timer, EV charging overnight). The exact break-even depends on your rates and standing charge.

Best for

  • All-electric homes with storage heaters
  • Homes with EV charging overnight
  • Flexible households who can run appliances overnight (where safe)

Usually not ideal for

  • Gas-heated homes with most electricity used evenings
  • Households home all day (high daytime usage)
  • Anyone unsure they have a working Economy 7 meter setup

Quick checks

  • Do your bills show two unit rates (day/night) or Rate 1 / Rate 2?
  • Can you identify your off-peak hours (they vary by meter/region)?
  • Can you shift usage safely using timers?

How Economy 7 works in the UK

Economy 7 is a two-rate electricity tariff: you pay one unit rate for daytime (peak) electricity and a cheaper unit rate for off-peak electricity (traditionally totalling 7 hours per day).

It’s most common in homes with electric heating systems like storage heaters, because you can store heat using cheaper overnight electricity and release it during the day.

Important: Economy 7 off-peak times are not universal. Your “night” hours are set by your meter configuration and network region, and can vary by supplier and meter type (including smart meters and legacy teleswitch setups).

Typical Economy 7 off-peak times

Many households see off-peak hours somewhere around 00:00–07:00, but it may be split (for example, part late evening and part early morning), or shift with daylight saving depending on the meter.

  • Older meters may not change with the clocks, so the real-world hours can look “an hour off” in summer/winter.
  • Some smart meters can be configured for multi-rate tariffs, but the exact schedule still depends on your tariff and supplier setup.
  • Storage heaters / immersion heaters may be wired to a separate “controlled load” circuit that only energises off-peak.

How to tell if you’re on Economy 7

Your bill shows two rates
Look for “Day/Night”, “Peak/Off-peak”, or “Rate 1/Rate 2” with different p/kWh prices.
Your meter has two registers
The display cycles between two readings (sometimes labelled 1 and 2).
You have electric storage heating
Many storage-heated flats were set up for Economy 7 from the start (but always verify on the bill).

Compare Economy 7 tariffs

Tell us a few details and we’ll look across the market for suitable tariffs (including Economy 7 where available). You’ll get results based on your region, meter type and payment preferences.

Start your comparison

By submitting, you confirm this is for a UK home energy comparison. We’ll use your details to provide quotes and contact you about your comparison. You can opt out at any time.

Tip: If you’re unsure whether your meter is Economy 7, complete the quote anyway—your results can still include standard single-rate options. You can confirm meter details before switching.

What you’ll need to compare accurately

Your latest bill (to see whether you’re billed for two registers and your current unit rates).

Rough usage split (how much you use off-peak vs day). Smart meter apps can help estimate.

Heating & hot water setup (storage heaters, immersion heater timer, heat pump, gas boiler etc.).

Economy 7 vs single-rate: what to compare

The cheapest option depends on your day/night split, your region, and the tariff’s standing charge. Use this table to compare like-for-like.

Feature Economy 7 (two-rate) Single-rate tariff Why it matters
Unit rates Two prices (day + night). Night is lower; day is often higher. One price all day. Your usage timing is the biggest driver of cost.
Standing charge Can be similar or different to single-rate (varies by supplier/region). Often similar but not guaranteed. A higher standing charge can wipe out off-peak savings for low users.
Off-peak hours Set by meter/tariff; not always the same for everyone. Not applicable. You need confidence you can actually use power in those hours.
Meter compatibility Requires a multi-rate setup (legacy or smart configured for two rates). Works with most meters. Some suppliers/tariffs may not accept every meter type.
Best fit Storage heat, immersion on timer, EV charging, high overnight load. Most households with typical daytime/evening use. Choosing a tariff that matches your lifestyle reduces bill surprises.

Decision checklist (quick and practical)

Economy 7 is likely a good fit if…

  • You can shift 30–40%+ of usage into off-peak (or you already do).
  • You have storage heaters or a controllable immersion heater.
  • You have an EV and can charge mostly overnight.
  • You’re comfortable using timers/smart plugs safely (where appropriate).

Consider a single-rate tariff if…

  • Most of your electricity is used 6pm–11pm (cooking, TV, showers).
  • You have gas central heating and low overnight electricity load.
  • You can’t identify your off-peak times or your usage split.
  • You’re a low user and a higher day rate would dominate your bill.

Safety note: Only run appliances overnight if it’s safe and you follow the manufacturer’s instructions. Avoid using tumble dryers, dishwashers or washing machines unattended if you’re not confident it’s safe in your home.

Costs, exclusions and common Economy 7 pitfalls

Economy 7 can be great when it matches your home, but there are a few UK-specific catches that regularly trip people up.

1) Off-peak times aren’t the same for everyone

Your “night rate” hours are set by the meter/tariff configuration. If you assume 12am–7am but your meter switches at different times, you may miss the cheap window.

2) The day rate can be noticeably higher

If your usage is mostly daytime/evening, the higher day unit rate can outweigh the benefit of the cheap night rate.

3) Meter and wiring quirks (especially in flats)

Some properties have separate circuits for heating/hot water. Switching tariff without checking wiring and meter setup can lead to unexpected billing or heating controls not working as intended.

4) Exit fees and tariff conditions

Some fixed tariffs have exit fees if you leave early. Always check the tariff summary before switching.

Two realistic scenarios (with numbers)

These examples show how the day/night split changes the outcome. They are illustrative estimates only.

Assumptions used (for both scenarios):

  • Annual electricity use: 3,600 kWh
  • Economy 7 unit rates: Day 33p/kWh, Night 14p/kWh
  • Single-rate unit rate: 25p/kWh
  • Standing charge: 55p/day (same in both for simplicity)
  • Costs exclude any discounts, bill credits, or future price changes

Scenario A: Storage-heated flat

Off-peak share: 60% (2,160 kWh night / 1,440 kWh day)

  • Economy 7 energy: (1,440×£0.33) + (2,160×£0.14) = £777.60
  • Standing charge: 365×£0.55 = £200.75
  • Total Economy 7: £978.35/year
  • Single-rate energy: 3,600×£0.25 = £900.00
  • Total single-rate: £1,100.75/year

Estimated difference: Economy 7 is about £122/year cheaper in this example.

Scenario B: Gas-heated family home

Off-peak share: 15% (540 kWh night / 3,060 kWh day)

  • Economy 7 energy: (3,060×£0.33) + (540×£0.14) = £1,085.40
  • Standing charge: £200.75
  • Total Economy 7: £1,286.15/year
  • Total single-rate: £1,100.75/year

Estimated difference: Economy 7 is about £185/year more in this example.

Why your result may differ: Real tariffs vary by region and payment method (direct debit, prepayment), standing charge can differ, and some Economy 7 tariffs price the day rate significantly higher than shown here.

Common “gotchas” (and how to avoid them)

  • Wrong register readings: If you submit meter readings, make sure you know which is day vs night (or Rate 1/Rate 2) to avoid incorrect bills.
  • Clock changes: Your off-peak window may shift relative to your routine in summer/winter. Check your meter manual or ask your supplier.
  • Hot water timing: If your immersion heater runs in the day by mistake, you’ll pay the day rate. A timer can help (installed safely by a qualified person if needed).
  • Tariff label confusion: Some suppliers call multi-rate tariffs different names. Always check the tariff information label/unit rates.
  • Prepayment considerations: Availability and prices can differ for prepayment meters, and changing tariff may require supplier acceptance.

If you rent: You can usually switch energy supplier, but you should check your tenancy agreement and ensure you won’t be charged for changing meter type or leaving a fixed tariff early.

Economy 7 FAQs

1) What are the Economy 7 hours?

Economy 7 usually provides 7 off-peak hours overnight, but the exact times vary by meter and region. Many people see something around midnight to 7am, but it can be different or split across two periods.

2) How do I find my exact off-peak times?

Check your tariff details or ask your supplier. You can also monitor when the meter switches registers by noting which reading increases at different times (do this carefully and over a day or two).

3) Is Economy 7 only for storage heaters?

No. It can also suit households with an EV, or homes that can run a meaningful load overnight (for example, heating hot water with an immersion heater on a timer). But storage heaters are one of the most common reasons it’s a good match.

4) Can I switch away from Economy 7?

Usually yes, but it depends on your meter and how your home is wired (especially if you have separate heating/hot water circuits). You may be able to move to a single-rate tariff on the same meter, or you may need a meter reconfiguration/exchange—your supplier can advise.

5) Do smart meters work with Economy 7?

Often yes. Smart meters can support multi-rate tariffs, but it depends on the tariff configuration and supplier. If you’re moving supplier, confirm they can support your meter setup for Economy 7.

6) What if my bill shows “Rate 1” and “Rate 2”?

That often indicates a two-rate tariff, but Rate 1 isn’t always day and Rate 2 isn’t always night. Your bill or supplier should confirm which is which on your account.

7) Is Economy 7 cheaper in winter?

It can be, because electricity use may rise in winter—especially for all-electric homes—so there’s more opportunity to benefit from off-peak pricing. But the key factor is still your day/night usage split and the specific tariff rates.

8) Can I get Economy 7 with a prepayment meter?

Sometimes, but availability and pricing vary by supplier and meter type. If you’re on prepayment and considering Economy 7, it’s worth comparing options carefully and checking any requirements before switching.

Trust, transparency and how we assess Economy 7

Page ownership

Reviewed by
Energy Specialist
Last updated
March 2026

Our methodology (and limitations)

When explaining whether Economy 7 may suit a household, we focus on the factors that most affect bills:

  • Day vs night usage split (the biggest driver of cost differences)
  • Unit rates and standing charge (vary by supplier, tariff, region and payment method)
  • Meter compatibility (two-register/multi-rate capability; smart vs legacy setups)
  • Household heating/hot water setup (storage heaters, immersion heater, EV charging)

The example calculations on this page are illustrative and not a prediction of your bill. Real-world pricing and eligibility can change, and suppliers can update tariff terms. Always confirm your tariff information and off-peak schedule before switching.

Sources and further reading (UK)

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Updated on 22 Mar 2026