Prices and tariffs · Tariffs
Economy 7: is it worth it for your home?
Economy 7 gives you cheaper electricity for seven hours at night, but usually a dearer rate the rest of the day. Whether it pays depends on how much of your electricity you really use at night.
Updated 2 October 2026 · energy.org.uk editorial team
The short answer
Economy 7 is worth it when enough of your electricity is used in the cheap night hours to outweigh the higher day rate. There is no single percentage that works for everyone: it depends on your own day rate, night rate and standing charge. Our Economy 7 calculator works out your break-even point.
How Economy 7 works
- You get a lower unit rate for seven hours at night and a higher one for the rest of the day.
- The Centre for Sustainable Energy says the cheap hours are normally midnight to 7am in winter and 1am to 8am in summer, though this varies between suppliers and meters.
- Your off-peak times can move when the clocks change. Check your meter or ask your supplier for your exact times.
- Ofgem's price cap covers default Economy 7 tariffs, but it is published as one average unit rate for multi-register meters. The day and night rates you pay are set by your supplier.
Check
What to check first
- Your two meter readings. An Economy 7 meter shows a day and a night reading (sometimes labelled "low" and "normal"). Your bill should show both, so you can see your own split.
- Your night share. Divide your night kWh by your total kWh. This is the number that decides whether Economy 7 pays.
- The night hours. Make sure timers on storage heaters, hot water or car charging match your actual cheap period.
- The day rate. It is usually higher than a single-rate tariff's unit rate, so daytime use costs more than it would otherwise.
- The standing charge. Compare it too: a difference of a few pence a day adds up over a year.
Who it can suit
- Homes with storage heaters or a hot-water cylinder heated overnight.
- Households that charge an electric car overnight at home.
- Homes that can run dishwashers, washing machines or tumble dryers on a timer in the night hours, where it is safe to do so.
It usually suits less well if most of your use is in the day or evening and you have no electric heating.
Do
Practical next steps
- Find your day and night kWh for the last year on your bill or online account.
- Enter them with your rates in the Economy 7 calculator.
- If you are thinking of switching to a single rate, check whether your storage heaters or hot water depend on the night supply. Some meters and heating circuits need a meter change or rewiring.
- Compare any quote using your own split, not a typical one.
Take care
Important limitations
- Night shares from a single month can mislead: heating use varies through the year.
- Smart time-of-use tariffs with different cheap periods are not the same as Economy 7; compare their own rates.
- Some homes have Economy 10 or other multi-rate tariffs with different hours.
Related tools and guides
- Economy 7 calculator
- Storage heaters: controls, tariffs and costs
- Energy tariffs explained
- Smart meters and time-of-use tariffs
Sources
- Centre for Sustainable Energy: Economy 7
- Citizens Advice: using storage heaters and immersion heaters
- Ofgem: energy price cap
Official sources checked 2 October 2026.