Information On Economy 7 Electricity

What is economy 7?

Economy 7 is a cheaper night time electricity tariff operating in the UK. The tariff operates typically from midnight and lasts for 7 hours, hence the name. During this period electricity costs less than the standard daytime rate, normally about a third of the cost. Appliances such as electric heaters and boilers are configured to operate and store heat during the cheaper period. Any electric appliance can make use of the cheaper electricity, such as washing machines and dishwashers.

Click to switch:

Energy

Will Economy 7 save me money?

Economy 7 uses more energy during the night and less during the day, so you will save money. You need to be using roughly 20% of your energy consumption at night to be making a saving. However the electricity must be used at night. The cheaper tariff usually starts around midnight and finishes around 7am, although this can vary by supplier and region.

An important factor to take into consideration with Economy 7 is that although you can heat your water and storage heater continually throughout the night, this may be insufficient to last you through the day. The morning is generally nice and warm, with enough hot water for a bath or shower, but as you reach the evening your house will probably start growing colder.

Use our free price comparison service to see which of the gas and electricity suppliers offer the best Economy 7 deals.

Be aware that some Economy 7 tariffs may charge you almost double the standard rate for any energy you use during the day, which can quickly cancel out any savings you've made through using Economy 7 at night.

Should I be on Economy 7?

If you use a lot of electricity at night, probably yes. This is perhaps most likely to be the case if you heated your home with electric storage heaters, as these use electricity at night and then release heat during the day. Some people time their washing machines and tumble dryers to run at night to make use of the cheaper rate electricity.

What do I need for Economy 7?

You will need to have a meter that can separately measure the amounts of electricity used at 'night' and in the 'day'. This means the meter will normally have two registers (some models need you to push a button to show the readings for the two different rates). There will also be a timing system to change the meter over from the day to the night readings, which will either be a kind of clock, or will be a system that changes over when it receives a radio signal, which is called teleswitching.

How cheap is it?

Prices vary from supplier to supplier, but an example could be 8 pence per unit for standard rate, and 2.5 pence per unit for the cheaper rate. The 'standard' rate will usually be a bit more expensive than the standard rate for non-Economy 7 accounts. If you pay a standing charge on your account, this too will be higher if you have Economy 7 (possibly around 50% more). If your account does not have a standing charge, then instead the first 'day' units you pay each quarter will be charged at a much higher rate (the same way as ordinary accounts without a standing charge work).

I'm still considering Economy 7. What do I need to do?

Moving to an Economy 7 tariff involves a change of meter, which your current supplier should be able to arrange for you, although sometimes for a price. Once you have an Economy 7 meter installed you can then change to the best Economy 7 energy provider, which our free service can find for you.