Economy 7 explained: off-peak electricity

Economy 7 is a dual-rate electricity tariff that provides cheaper rates for seven hours overnight, with higher rates during the day. It was introduced to encourage electricity use during periods of lower demand, particularly for appliances that could charge overnight.

Understanding how to make the most of off-peak electricity, whether with Economy 7 or a modern dual-rate tariff, can help you manage your energy bills. Switch to Fuse Energy today to explore smart, dual-rate options designed for your home here.

What is Economy 7 and how does it work?

Economy 7 is a time-of-use electricity tariff that charges different prices for electricity depending on when it is used. It provides cheaper rates for seven hours during the night, known as off-peak hours, and higher rates for the remaining 17 hours during the day, referred to as peak hours. This system was introduced in 1978 to encourage the use of electricity during periods of lower demand, particularly for appliances like storage heaters and immersion heaters that could charge overnight.

The concept of dual-rate tariffs

The core idea behind dual-rate tariffs like Economy 7 is to balance the load on the national electricity grid. By incentivising energy consumption during off-peak times, suppliers can make more efficient use of power generation capacity that would otherwise be underutilised overnight. This means that while you benefit from lower prices during the night, the daytime rates are typically higher than those on a standard single-rate tariff.

How Economy 7 meters track usage

To implement a dual-rate tariff, a specific type of electricity meter is required. an Economy 7 meter records your energy consumption at two different rates: one for the day (peak) and one for the night (off-peak) periods. Traditional Economy 7 meters often have two sets of numbers or dials, sometimes labelled "low" and "normal" or "night" and "day", to show these separate readings. Modern smart meters can also support Economy 7 tariffs, automatically tracking and submitting these dual readings, which helps ensure more accurate bills. If you do not have one, a smart meter installation can help you unlock these benefits.

Economy 7 hours and regional variations

The "7" in Economy 7 refers to the seven hours of cheaper electricity, but the exact timing of these off-peak hours can vary significantly depending on your region and meter configuration. Some Economy 7 meters do not automatically adjust for daylight saving time changes, which can shift your actual off-peak window by an hour. Always check with your energy supplier to confirm your precise Economy 7 times.

Do you have an Economy 7 meter?

Identifying whether you have an Economy 7 meter is crucial for understanding if the tariff is right for you. Many households have these meters, sometimes without realising it, and may not be on the most suitable tariff for their usage patterns.

Identifying your meter type

The easiest way to check if you have an Economy 7 meter is to look at your electricity bill. If you are on an Economy 7 tariff, your bill will typically show two separate readings for day and night usage, or list different rates for peak and off-peak electricity. Your physical meter might also provide clues: traditional Economy 7 meters often have two displays or sets of numbers, sometimes marked "Rate 1" and "Rate 2", or "low" and "normal". If you are still unsure, contacting your energy supplier is the most reliable way to confirm your meter type and current tariff.

Understanding your electricity bill

With an Economy 7 tariff, your electricity bill will clearly distinguish between your peak (day) and off-peak (night) consumption, showing separate unit rates for each. This contrasts with a standard single-rate tariff bill, which only shows one unit rate for all electricity consumed. Understanding these separate charges is vital because the higher daytime rate on an Economy 7 tariff can quickly negate any savings made during the cheaper night-time period if you do not manage your usage effectively.

The radio Teleswitch service (RTS) phase-out

Many older Economy 7 meters relied on the Radio Teleswitch Service (RTS) to switch between peak and off-peak rates. This service, introduced in the 1980s, uses a longwave radio signal to control these meters. However, the RTS technology has reached the end of its operational life and is being phased out, with the signal switched off from 30 June 2025.

If you have an RTS meter, your energy supplier should contact you to arrange a free upgrade to a smart meter or an alternative solution. It is important to get this replacement done promptly to avoid potential issues with your heating or hot water supply, or inaccurate billing, once the RTS signal is no longer active.

Benefits and drawbacks of Economy 7

Economy 7 can be a cost-effective option for some households, but it is not universally beneficial. Its suitability largely depends on your lifestyle and how you use electricity.

Potential savings for high night-time usage

The primary benefit of Economy 7 is the significantly cheaper electricity rate during the seven off-peak hours. This offers substantial savings for households that can shift a large portion of their electricity consumption to these night-time periods.

Higher daytime rates to consider

The main drawback is that the daytime electricity rates on an Economy 7 tariff are typically higher than those on a standard single-rate tariff. If you use a lot of electricity during the day and do not effectively shift your consumption, you could end up paying more overall than you would on a standard tariff. This makes Economy 7 less suitable for households with high daytime electricity use, such as those where people work from home or have appliances running constantly during peak hours.

Appliances best suited for Economy 7

Economy 7 is particularly well-suited for homes with specific types of appliances that can be programmed to operate during the cheaper night-time hours:

• Electric storage heaters: These heaters charge up overnight using cheaper electricity and then release heat throughout the day. Modern storage heaters are more efficient and offer better control than older models.
• Immersion heaters and hot water tanks: Similar to storage heaters, these can heat your water overnight for use the following day.
• Electric vehicles (EVs): Charging an EV at home overnight can significantly reduce running costs, making the most of the lower off-peak rates.
• High-energy appliances with timers: Washing machines, tumble dryers, and dishwashers can be set to run automatically during off-peak hours, allowing you to benefit from the cheaper rates without disrupting your daytime routine.

Is Economy 7 still worth it in today's energy market?

The energy market has evolved considerably since Economy 7 was introduced. While it can still offer savings, its value proposition needs careful assessment against modern alternatives.

Assessing your household's energy consumption

To determine if Economy 7 is still worth it for you, you need a clear understanding of your household's electricity usage patterns. The average UK home uses around 2,500 kWh of electricity per year, a figure effective from 1 July 2026. However, this figure varies significantly based on household size, property type, and lifestyle. If you can consistently use a significant portion of your electricity during the off-peak night-time hours, Economy 7 could still be beneficial. If your daytime usage is high, the more expensive peak rates could lead to higher overall bills.

Comparing Economy 7 with standard tariffs

When comparing Economy 7 with standard single-rate tariffs, it is essential to look beyond just the night-time rate. Consider the standing charge, the daytime rate, and your actual consumption habits. Some Economy 7 tariffs have higher standing charges or significantly higher daytime rates than standard tariffs, which can offset any night-time savings. It is not automatically cheaper, so a careful analysis of your specific usage and available tariffs is necessary.

The role of smart meters in optimisation

Smart meters play a crucial role in optimising energy usage, especially with dual-rate tariffs. They automatically send meter readings to your supplier, eliminating the need for manual readings and ensuring accurate billing. For Economy 7 users, smart meters make it easier to track your day and night usage, helping you understand if you are effectively shifting consumption to the cheaper hours. They also pave the way for more advanced time-of-use tariffs that offer even greater flexibility.

Modern alternatives to Economy 7

While Economy 7 was an early innovation in flexible energy pricing, modern technology and evolving energy needs have led to more sophisticated alternatives.

Time-of-use tariffs and smart energy management

Today's energy market offers a range of time-of-use (ToU) tariffs that build on the Economy 7 concept, providing more dynamic and granular pricing structures. These tariffs often have multiple pricing periods throughout the day, not just two, and some can even vary rates hourly based on wholesale electricity prices or grid demand. This allows for more precise energy management and greater potential savings for those who can adapt their usage.

The advantages of smart meters and apps

Smart meters are fundamental to these modern ToU tariffs. They enable real-time tracking of energy consumption and facilitate automated billing based on fluctuating rates. Paired with energy management apps, smart meters give homeowners unprecedented control and insight into their energy use. These apps can help you:

• Monitor your consumption in real-time.
• Identify peak and off-peak periods specific to your tariff.
• Schedule smart appliances to run during the cheapest times.
• Receive alerts and recommendations for optimising usage.

How Fuse Energy empowers smart usage

Fuse Energy champions smart meter technology, offering free upgrades for manual meter customers. This is crucial for unlocking the full potential of flexible time-of-use tariffs that evolve the Economy 7 concept. Fuse's dual-rate variable tariffs offer a modern evolution, providing greater control and capability to truly optimise electricity usage. With Fuse, you can use more energy for your needs during cheaper periods, shifting the narrative from scarcity to "power to play with". Fuse's app provides intuitive control for optimising usage, and 24/7 human customer support offers practical guidance to help homeowners maximise their off-peak benefits, ensuring they feel empowered and supported in managing their energy costs.

Making the most of off-peak electricity

Whether you are on an Economy 7 tariff or a more modern dual-rate plan, strategic energy use is key to maximising savings.

Strategies for shifting energy use

The core strategy for benefiting from off-peak tariffs is to shift as much of your electricity consumption as possible to the cheaper hours. This means:

• Timing appliances: Use timers on washing machines, dishwashers, and tumble dryers to run them overnight.
• Heating water: If you have an immersion heater, set it to heat your water during the off-peak window.
• Charging devices: Charge electric vehicles, laptops, and mobile phones during the night.
• Pre-heating: If you have storage heaters, ensure they are set to charge fully during the cheaper hours.

Integrating smart appliances and EV charging

Modern smart appliances and EV chargers can be integrated with energy management systems, often via an app, to automate this shifting process. For example, a smart EV charger can be programmed to only charge your car when electricity rates are at their lowest. This level of automation takes the guesswork out of off-peak usage and ensures you are always making the most of the cheaper rates.

Getting support for energy optimisation

Understanding complex tariffs and optimising your energy use can feel daunting. Fuse Energy offers 24/7 human customer support to help you navigate your options, understand your usage patterns, and make informed decisions. This support ensures you can confidently manage your energy consumption and maximise the benefits of dual-rate tariffs.

Ready to take control of your energy usage and make the most of off-peak rates? Fuse Energy offers clear pricing, real-time usage data through our app, and 24/7 human customer support to help you navigate your options. Our dual-rate variable tariffs are designed to empower you to optimise your electricity consumption, shifting the narrative from scarcity to 'power to play with'. Switching to Fuse is quick and easy. Click here to get started and discover how modern energy management can work for your home. You can also learn more about our mission to make energy abundant by clicking here.