Economy 7 meters: are they still worth it?

For decades, Economy 7 has offered a way to save on electricity by providing cheaper rates during off-peak, overnight hours. With energy technology constantly evolving and traditional meters being phased out, many are asking if this tariff is still a worthwhile option. This article explores how Economy 7 works, its benefits and drawbacks, and how it compares to modern energy solutions.

Understanding your energy usage is key to finding the right tariff. Fuse Energy offers clear pricing and real-time usage data through its app, helping you make informed decisions about your electricity consumption. Click here to see how Fuse can help you manage your home energy.

What is an Economy 7 meter and how does it work?

Economy 7 is an electricity tariff designed to offer cheaper electricity for a fixed period, typically seven hours, during off-peak times, usually overnight. This dual-rate system charges different prices for electricity depending on when it is used.

Understanding peak and off-peak hours

With an Economy 7 tariff, your electricity usage is divided into two periods: a cheaper "off-peak" rate and a more expensive "peak" rate. The off-peak window generally lasts for seven hours, though the exact timings can vary by energy supplier and your specific meter configuration. Electricity used outside these seven hours is charged at the higher, peak rate.

The purpose of Economy 7

Economy 7 was introduced to encourage electricity consumption during periods of lower demand, typically overnight, helping to balance the load on the National Grid. It was particularly beneficial for homes with electric night storage heaters and hot water tanks, allowing these high-consumption appliances to charge during the cheaper off-peak hours and release heat or hot water throughout the following day.

The benefits and drawbacks of Economy 7

Economy 7 can be a cost-effective choice for certain households, but it comes with specific conditions that need to be met to realise savings.

Potential for savings with high off-peak usage

The primary benefit of Economy 7 is the opportunity to significantly reduce electricity costs by shifting a substantial portion of your usage to the cheaper off-peak hours. Households that use at least a third of their electricity overnight, particularly those with electric storage heaters or electric vehicles that can be charged during these times, are most likely to benefit. The off-peak rate can be considerably lower than the daytime rate.

Usage restrictions and higher day rates

The main drawback of Economy 7 is that the daytime, peak rates are typically higher than those on a standard single-rate tariff. This means that if you do not manage to shift enough of your electricity consumption to the off-peak window, your overall electricity bill could end up being more expensive than on a standard tariff. It requires a disciplined approach to energy use, often necessitating the use of timers for appliances like washing machines and dishwashers to run during the night.

Is Economy 7 being phased out? The RTS meter switch-off

The technology behind many traditional Economy 7 meters is indeed being phased out, impacting numerous households across the UK.

What is a radio Teleswitch service (RTS) meter?

A Radio Teleswitch Service (RTS) meter is a legacy meter type that uses a longwave radio signal to switch between peak and off-peak electricity rates. Introduced in the 1980s, these meters allowed energy suppliers to remotely control when a customer's tariff switched, enabling cheaper overnight rates for those with electric heating or Economy 7 tariffs. You might have an RTS meter if you have electric storage heaters and receive cheaper energy at different times of the day.

The future of legacy Economy 7 meters

The RTS system has reached the end of its operational life. The signal that controls these meters began to be switched off from 30 June 2025. This industry-wide initiative means that if you have an RTS meter, it will need to be replaced, typically with a smart meter, to avoid disruption to your heating and hot water supply or inaccurate billing. Energy suppliers are contacting affected customers to arrange a free smart meter upgrade.

Economy 7 vs modern dual-rate tariffs with smart meters

While Economy 7 served its purpose, modern technology offers more flexible and efficient ways to manage time-of-use tariffs.

How smart meters enhance time-of-use tariffs

Modern smart meters are key to accessing the full benefits of today's dual-rate tariffs. Unlike older meters, smart meters automatically send accurate readings to your supplier, eliminating estimated bills and the need for manual submissions. They also provide real-time data on your energy consumption, often via an in-home display or an app, allowing you to monitor your usage in pounds and pence. This real-time insight empowers you to identify usage patterns and make informed decisions about when to use energy, helping you shift consumption to cheaper periods. Many homeowners often pair this with a smart meter installation to track usage.

Beyond fixed off-peak windows

Smart meters enable access to a wider range of time-of-use tariffs, including more dynamic options than the traditional fixed Economy 7 window. While Economy 7 typically offers a single, static seven-hour off-peak period, modern dual-rate tariffs can provide greater flexibility, with some offering different rates at various times of the day or even dynamic pricing that changes based on grid demand. This means you can potentially benefit from cheaper electricity not just overnight, but also during other periods of low demand or high renewable generation. For those with an electric vehicle, understanding EV charging at home can further optimise these tariffs.

Is Economy 7 still worth it for your home?

The question of whether Economy 7 is still beneficial largely depends on your household's specific energy habits and heating systems.

Assessing your household's energy usage

To determine if Economy 7 or a modern dual-rate tariff is right for you, it is crucial to understand your energy consumption patterns. The average UK home uses around 2,500 kWh of electricity per year, according to Ofgem's medium typical domestic consumption value, effective from 1 July 2026. If you have electric storage heaters, an electric vehicle, or other high-energy appliances that you can reliably run for 30% or more of your total electricity usage during off-peak hours, then a dual-rate tariff could still offer savings. However, if most of your electricity use occurs during the day, the higher peak rates of a dual-rate tariff could make your bills more expensive.

Optimising for cost savings with current technology

Even if you have an older heating system, modern technology can help you optimise your energy use. Smart meters provide the data needed to make informed decisions, allowing you to see exactly when you are using electricity and how much it is costing. This visibility makes it easier to schedule appliances during cheaper periods, whether you are on a traditional Economy 7 tariff or a more flexible modern dual-rate option. For more details on how these meters work, read our guide on what is a smart meter.

Making the switch: moving to a modern energy solution

For many, moving beyond traditional Economy 7 to a modern energy solution offers greater control and potential savings.

Getting a smart meter for flexible tariffs

If you currently have an older, non-smart Economy 7 meter, upgrading to a smart meter is a crucial step towards accessing more flexible tariffs and accurate data. Fuse Energy offers free smart meter upgrades, enabling customers to benefit from modern dual-rate tariffs that can outperform traditional Economy 7 by providing more accurate readings and flexible options. This upgrade is part of a broader effort to modernise the energy grid and give customers more control over their energy usage.

Choosing the right tariff for your needs

With a smart meter installed, you gain access to a wider array of tariffs, including flexible dual-rate variable tariffs that offer similar benefits to Economy 7 but with greater control and transparency. Fuse Energy positions itself as the modern evolution of time-of-use energy savings, offering free smart meter upgrades and flexible dual-rate variable tariffs that surpass traditional Economy 7. These modern solutions give you the 'power to play with' your energy usage, helping you optimise for cost savings through transparent app control and real-time data.

Ready to take control of your energy usage and potentially lower your bills? Fuse Energy offers straightforward pricing, real-time usage data, and 24/7 human customer support. Switching is quick and easy, allowing you to manage your energy more effectively from day one. Click here to switch to Fuse Energy today. You can also learn more about our mission to make energy simpler and greener by clicking here.