Economy 10 tariff explained

An Economy 10 tariff offers 10 hours of off-peak electricity at a cheaper rate, spread across three distinct periods of the day. This multi-rate electricity tariff was designed for households that could significantly shift their electricity consumption to these off-peak hours to save money, particularly those with electric heating systems.

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What is an Economy 10 tariff?

Economy 10 is a type of multi-rate electricity tariff that provides a discounted rate for electricity usage during specific off-peak periods. Unlike a standard single-rate tariff where you pay the same price per unit of electricity regardless of when you use it, Economy 10 divides the day into peak and off-peak windows.

Understanding multi-rate electricity tariffs

Multi-rate tariffs, also known as time-of-use (ToU) tariffs, charge different prices for electricity depending on the time of day. The aim is to encourage consumers to use electricity when demand on the grid is lower, or when generation from renewable sources is higher, which can help balance the energy network.

The 10-hour off-peak window

The defining feature of an Economy 10 tariff is its 10 hours of cheaper electricity, typically split into three periods: usually some hours overnight, a few in the afternoon, and a couple in the evening. This spread differs from other multi-rate tariffs by offering more flexibility throughout the day, rather than just a single overnight block.

How Economy 10 works: off-peak hours and metering

To benefit from an Economy 10 tariff, you need to understand its specific timings and the type of meter required to track your usage.

Typical Economy 10 time slots

The exact off-peak hours for an Economy 10 tariff can vary significantly by energy supplier and your region. However, they generally include a combination of several hours overnight, a few hours in the afternoon, and a couple in the evening. For example, cheaper rates might be available between 1pm and 4pm, then again from 8pm to 10pm, and finally from 1am to 6am. These hours could change when the clocks change for British Summer Time (BST) or Greenwich Mean Time (GMT), so it is crucial to check the specific timings with your energy provider.

The role of multi-rate meters

An Economy 10 tariff requires a specific multi-rate electricity meter to accurately record consumption during the different peak and off-peak periods. These meters typically display two or three readings, differentiating between "normal" or "day" usage and "low" or "night" usage. Without such a meter, your supplier cannot correctly bill you for the varied rates.

Legacy meters and the RTS phase-out

Many older multi-rate meters, including some used for Economy 10 tariffs, rely on the Radio Teleswitch Service (RTS) to switch between peak and off-peak rates. However, the RTS is a legacy system reaching the end of its operational life, and its signal began a phased switch-off from 30 June 2025.

If you have an RTS meter, your energy supplier should have contacted you to arrange a free upgrade to a smart meter. Failure to replace an RTS meter could lead to disruptions in heating or hot water supply and inaccurate billing. Modern smart meters are now the standard for enabling time-of-use tariffs, offering accurate readings and greater flexibility.

Economy 10 vs Economy 7: key differences

Economy 10 and Economy 7 are both multi-rate tariffs designed to offer cheaper electricity during off-peak hours, but they differ significantly in their structure.

Comparing off-peak durations

The primary difference lies in the duration and distribution of cheaper electricity hours. Economy 7 provides 7 hours of off-peak electricity, typically concentrated overnight, usually between 11pm and 8am. Economy 10, as its name suggests, offers 10 hours of cheaper electricity, but these are spread across three distinct periods: overnight, in the afternoon, and in the evening.

Impact on household energy use

Economy 7 is often best suited for households that can shift at least 40% of their electricity use to the overnight period, such as those with storage heaters or electric hot water tanks that charge during the night.

Economy 10 offers more flexibility with its afternoon and evening off-peak slots, which can be beneficial for topping up heating systems or running appliances outside of the deep night hours. However, both tariffs typically have higher peak rates compared to a standard single-rate tariff, so careful management of electricity use is essential to realise savings.

Which tariff is right for you?

Deciding between Economy 10 and Economy 7 depends entirely on your household's specific energy consumption patterns and ability to shift usage. If you primarily use electricity overnight for heating or charging, Economy 7 might be suitable. If your usage is more spread out, with opportunities to use cheaper electricity in the afternoon and evening, Economy 10 could be a better fit. However, modern smart meter-enabled tariffs often offer even greater flexibility.

Is an Economy 10 tariff right for your home?

While Economy 10 was an innovative tariff in its time, its suitability for modern homes depends on various factors.

Advantages of Economy 10

The main advantage of an Economy 10 tariff is the potential for lower electricity bills if you can consistently use a significant amount of energy during the 10 off-peak hours. The spread of off-peak times across the day can offer more flexibility than Economy 7, allowing for afternoon top-ups of electric heating or charging. This can be particularly beneficial for homes with electric heating systems, such as storage heaters or electric underfloor heating.

Disadvantages and considerations

However, Economy 10 comes with notable drawbacks. The peak-rate electricity can be significantly more expensive than a standard single-rate tariff. If you do not shift enough of your consumption to the cheaper periods, your overall bill could end up higher. Economy 10 tariffs are also less widely available than they once were, with fewer suppliers offering them to new customers. This limits choice and competition.

Who benefits most from Economy 10?

Historically, Economy 10 tariffs benefited households with high electricity consumption, particularly those relying on electric heating and hot water systems, who could program appliances to run during the cheaper periods. This includes homes with modern storage heaters or electric immersion heaters. For an average UK home, which uses around 2,500 kWh of electricity per year, careful planning is needed to make Economy 10 cost-effective.

Modern alternatives to Economy 10

The energy landscape has evolved significantly, with modern smart meter-enabled tariffs offering more flexible and potentially greater savings than legacy options like Economy 10.

Smart meters and flexible time-of-use tariffs

Smart meters are central to modern time-of-use tariffs. They automatically send accurate readings to your supplier, enabling tariffs that can adapt to changes in demand and offer more dynamic pricing. This removes the need for manual readings and provides a clearer picture of your energy consumption. Many modern time-of-use tariffs require a smart meter to be installed.

Dual-rate variable tariffs for strategic usage

Today's dual-rate variable tariffs offer similar benefits to Economy 10 but with enhanced flexibility. These tariffs often have peak and off-peak rates that encourage strategic energy use, allowing you to use more energy during cheaper periods without the rigid, often inconvenient, time slots of older tariffs. This approach aligns with a vision of energy abundance, where customers are empowered to use energy smartly rather than constantly being told to "use less".

Optimising energy for electric vehicles and smart homes

Modern dual-rate tariffs are particularly well-suited for electric vehicle (EV) owners and smart home users. Many suppliers now offer specific EV tariffs or general time-of-use tariffs that make overnight EV charging significantly cheaper. Smart home devices, like smart plugs and thermostats, can also be programmed to operate during off-peak hours, further maximising savings and optimising energy use.

Switching to a time-of-use tariff

Considering a switch to a time-of-use tariff requires a clear understanding of your energy habits and meter compatibility.

Assessing your current energy consumption

Before switching, review your current electricity bills and, if you have one, your smart meter data to understand when your household uses the most electricity. Identify if you can realistically shift high-energy tasks, such as running washing machines, dishwashers, or charging EVs, to off-peak periods. This assessment is crucial to determine if a time-of-use tariff will genuinely save you money.

Checking meter compatibility and upgrades

Most modern time-of-use tariffs require a smart meter. If you do not have one, your current supplier can arrange a free smart meter upgrade. This upgrade is essential for accessing the full benefits of flexible tariffs and moving away from outdated metering systems like RTS, which began its phased shutdown from 30 June 2025.

Finding the best tariff for your needs

Once you understand your usage and have a compatible meter, compare available time-of-use tariffs from various suppliers. Look for tariffs that offer off-peak hours that align with your lifestyle and potential for energy shifting. Fuse Energy, for example, does not offer Economy 10 tariffs but provides modern dual-rate variable tariffs designed for today's energy needs and smart home technology, enabled by free smart meter upgrades. These tariffs offer greater flexibility and control, aligning with a future where you have more power to play with.

Managing your energy should be simple and rewarding. Fuse Energy offers clear pricing, real-time usage data through our app, and 24/7 human customer support to help you make the most of your energy. Our modern dual-rate variable tariffs are designed to give you greater control and flexibility over your energy use. Click here to switch to Fuse Energy today and discover a smarter way to power your home. You can also learn more about our mission to make energy abundant by clicking here.