Economy 7 tariffs are electricity plans that offer two different rates on electricity; one during the day and one during the night. They work in a similar way to off-peak and peak time phone calls. The name Economy 7 comes from the fact that you will receive 7 hours worth of cheaper electricity every night.
Compare energy suppliers and save over £350* in five minutes!
As opposed to normal electricity plans, economy 7 tariffs offer rates that differ depending on what time you use your electricity. On an economy 7 plan you will pay less for the electricity that you use at night.
Economy 7 plans use a different type of electricity meter than normal energy plans. On an economy 7 tariff your electricity meter will display two varying readings; one for daytime use and one for use at night. This means that you will be able to track your energy use on the two rates separately.
One easy way to work out if you are on an economy 7 tariff is by looking at your electricity bill. When you look at your bill, see if you have two different tariffs displayed. If this is the case then you are probably paying one rate during the day and another during the night. This means that you are on an economy 7 tariff.
Another way to find out if you are on an economy 7 tariff is by checking your electricity meter. When you look at your meter, see if you have two different numbers displayed. Normally one of these numbers will be marked “normal” and the other will be marked “low”. If this is the case then it means that you are on an economy 7 tariff.
Please note that your meter may only have one number displayed. If you are on economy 7 then there will be some indication that the number displayed is your day rate. Normally you will be able to push a button on your meter that will then display your night time meter reading.
If you are still in doubt about whether or not you are on an economy 7 tariff, then the best thing to do is to contact your energy supplier. They will be able to inform you of which type of payment plan you are, as well as answer any other questions you may have.
The question of whether you should or shouldn’t be on an economy 7 tariff is not one that can be answered as a general rule for everyone. It depends entirely on each individual household and the way in which you use your energy.
Here are some of the main things that you should consider if you are trying to work whether economy 7 is the best energy deal for you.
What time do you use your electricity?
If you are somebody who uses a lot of your electricity at night time, then generally speaking economy 7 could be a good way for you to save money on your energy bills.
A lot of energy suppliers charge around double the rates for electricity used during the day, if you are on an economy 7 tariff. This means that if you are someone who uses a lot of electricity during the day, then you are likely to actually spend more money if you are on an economy 7 plan.
How is your water and home heated?
If you have a hot water tank that is heated electrically or an electric storage heater, then you may want to consider the possibility of an economy 7 tariff. The reason for this is that if you heat your water and your storage heater overnight, then you will be able to access this heat during the day. This means that you will be paying the lower rates for your heating.
If your home is heated by electricity and you don’t have a storage heater or a water tank, then economy 7 is not a good idea for you.
If your home and water is heated by gas, then there is still a chance that you could save money with economy 7. This depends on when you use your electricity.
Do you have many electric appliances?
If you’re thinking of using an economy 7 tariff, one thing you should think about is whether or not you have many appliances such as dishwashers or washing machines. If this is the case then economy 7 may save you money if you use them through the night. This means they will be running when your electricity is cheaper.
Generally economy 7’s cheap hours start at around 11pm – 1am and will last until around 6am – 8am. However, these times do vary depending on your area and on the individual energy suppliers.
Contact your energy supplier to find out what your tariff times are. You may also want to check if they are affected by the clocks going forwards or backwards.
If you have an economy 7 meter it will be one of two types.
The first type of economy 7 meter will have two rows of displays. The top display will show your daytime energy usage. This row will be marked “normal”. The second row, below, will display your night time energy use. This row will be marked “low”.
The second type of economy 7 meter will have a single display. This display will automatically show you your daytime energy usage. To view your night time energy usage just push the red button located on the front of your meter.
Economy 10 is similar to economy 7. The only difference is that economy 10 gives you 10 hours of cheaper electricity. Unlike economy 7, three of your cheaper hours are in the afternoon and then you have 7 overnight.
To find out more about economy 10 tariffs then call your supplier, they’ll talk you through all the plans they currently offer.