What is Economy 7 UK?

Economy 7 is an electricity tariff that provides cheaper electricity for 7 hours overnight (usually midnight to 7am, but times vary by region) and charges a higher rate during the day. It was designed for homes with storage heaters and immersion hot water tanks that heat up overnight using cheap electricity.

Is Economy 7 worth it?

Economy 7 is only worth it if you use at least 40-50% of your electricity during the off-peak period. The daytime rate is typically 30-50% more expensive than a standard single-rate tariff. If you have storage heaters or can shift most of your energy use to nighttime, it can save money. For most modern households, a standard tariff is cheaper.

What is the difference between Economy 7 and Economy 10?

Economy 7 gives you 7 hours of cheap electricity overnight. Economy 10 gives you 10 hours of cheaper electricity split across three periods: overnight, an afternoon period, and an evening period. Economy 10 offers more flexibility but is less widely available and the off-peak rate may not be as low as Economy 7.

Can I switch from Economy 7 to a normal tariff?

Yes. You can switch to a standard single-rate tariff at any time. However, you may need your meter replaced if it is a dual-rate meter, which your new supplier will arrange. With the rollout of smart meters, switching between single and multi-rate tariffs is becoming simpler.

Economy 7 and Economy 10 — Is It Worth It? | PocketWise

Economy 7 and Economy 10 are multi-rate electricity tariffs that offer cheaper electricity at certain times of day. They were designed for specific heating systems but many households are on these tariffs without knowing whether they are saving — or wasting — money.

How Economy 7 Works

Feature	Details
Off-peak hours	7 hours overnight (exact times vary by region)
Typical off-peak times	Midnight to 7am or 1am to 8am
Off-peak rate	Cheaper than standard tariff
Peak rate	More expensive than standard tariff
Meter type	Dual-rate meter (records peak and off-peak separately)

Typical Rates (Illustrative)

Tariff type	Day rate	Night rate	Standing charge
Standard single rate	24p/kWh	24p/kWh	60p/day
Economy 7	30p/kWh	12p/kWh	60p/day

The off-peak rate is roughly half the day rate, but the day rate is significantly higher than a standard tariff. You need to use a large proportion of electricity at night to come out ahead.

The Break-Even Point

Off-peak usage %	Economy 7 vs standard	Verdict
20% off-peak	More expensive	Switch to standard
30% off-peak	Roughly the same	Marginal — check exact rates
40% off-peak	Slightly cheaper	Worth staying
50%+ off-peak	Significantly cheaper	Economy 7 is working for you

You need at least 40–50% of your electricity usage during off-peak hours for Economy 7 to save money.

How Economy 10 Works

Feature	Details
Off-peak hours	10 hours per day across three periods
Typical periods	7 hours overnight + 1.5 hours afternoon + 1.5 hours evening
Availability	Less widely available than Economy 7
Meter type	Multi-rate meter

Economy 10 is less common and exact times vary by supplier and region. It gives more flexibility than Economy 7 but may have a less competitive off-peak rate.

Who Benefits from Economy 7?

Situation	Benefit?
Storage heaters (charge overnight, release heat during the day)	Yes — this is what Economy 7 was designed for
Immersion hot water tank (heats overnight)	Yes
Electric vehicle charging overnight	Yes, but dedicated EV tariffs may be better
Working from home during the day	No — high daytime electricity use is expensive
Running washing machine and dryer at night	Helps, but usually not enough on its own
Gas central heating with electric appliances	No — most electricity used during the day

Economy 7 vs Smart Time-of-Use Tariffs

Smart time-of-use tariffs (like Octopus Go or Agile) have largely replaced the need for Economy 7.

Feature	Economy 7	Smart time-of-use tariffs
Off-peak hours	7 hours overnight	Varies (Octopus Go: 5 hours overnight)
Off-peak rate	~12p/kWh	7–12p/kWh (can be lower)
Peak rate	~30p/kWh	24–40p/kWh
Meter required	Dual-rate meter	Smart meter
Flexibility	Fixed hours	Some tariffs change by half-hour
Supplier choice	Most suppliers	Specific suppliers (Octopus, OVO, etc.)
EV charging	Decent	Often better rates
Solar export	Not designed for it	Some integrate export payments

If you have a smart meter, a dedicated time-of-use tariff is usually better than Economy 7 for overnight usage patterns.

Should You Switch Away from Economy 7?

Switch to a standard tariff if:

Less than 40% of your electricity is used off-peak
You have moved from storage heaters to gas central heating
You work from home and use electricity throughout the day
Your current daytime rate is significantly above standard tariff rates

Stay on Economy 7 if:

You have storage heaters that charge overnight
You heat water with an immersion heater on a timer
You can genuinely shift most usage to nighttime
Your night rate is very competitive

Consider a smart time-of-use tariff if:

You have a smart meter
You charge an electric vehicle at home
You want cheaper nighttime rates with less penalty in the day
You have solar panels and a battery system

How to Check Your Usage Split

Method	How
Check your bills	Your bill should show peak and off-peak usage separately
Smart meter IHD	If you have one, it shows when you use electricity
Supplier’s online portal	Many suppliers show usage by time of day
Estimate	Calculate what runs overnight vs during the day

How to Switch

From	To	What happens
Economy 7 → standard	Contact a new supplier or your current one	May need a meter change (smart meter swap)
Standard → Economy 7	Requires a dual-rate or smart meter	Ask your supplier
Economy 7 → smart TOU tariff	Get a smart meter first, then switch	Supplier handles everything

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