Understand Economy 7's dual-rate electricity pricing. Get cheap overnight power but pay more during the day. Calculate if it's worth it for your home.
Calculate whether Economy 7 will save you money based on your usage pattern:
Economy 7 is a dual-rate electricity tariff that charges different prices depending on the time of day. You get cheaper electricity for 7 hours overnight (usually midnight-7am) but pay a higher rate for the remaining 17 hours.
Economy 7 splits your day into two pricing periods:
Example Economy 7 Rates (Typical 2026):
Compare to standard single-rate tariff: 27.69p/kWh all day
The exact 7-hour cheap period varies by region and supplier:
Check with your supplier for exact times - they're set by your local electricity distributor and can't usually be changed.
| Tariff Type | Day Rate | Night Rate | Standing Charge | Annual Cost* |
|---|---|---|---|---|
| Standard Single Rate | 27.69p/kWh | 27.69p/kWh | 54.75p/day | £1,058 |
| Economy 7 (25% Night) | 34p/kWh | 14p/kWh | 60p/day | £1,156 |
| Economy 7 (40% Night) | 34p/kWh | 14p/kWh | 60p/day | £1,039 |
| Economy 7 (60% Night) | 34p/kWh | 14p/kWh | 60p/day | £859 |
| Modern EV Tariff | 30p/kWh | 7.5p/kWh | 55p/day | £950 (40% night) |
← Scroll table horizontally on mobile →
*Based on 3,100 kWh annual usage. Green rows show where Economy 7 saves money.
Key Insight: Economy 7 only saves money when you use enough electricity during the cheap night hours. At 25% night usage, you pay £98 MORE per year than standard. At 40% night usage, you save £19. At 60% night usage, you save £199.
You need at least 40% of your electricity use during the night hours to break even or save money on Economy 7.
How to estimate your night percentage:
| Tariff | Night Rate | Day Rate | Best For | Annual Cost* |
|---|---|---|---|---|
| Economy 7 | 14p (7hrs) | 34p (17hrs) | Storage heaters | £1,039 |
| Octopus Intelligent Go | 7.5p (6hrs) | 29p (18hrs) | EV owners | £950 |
| Standard Variable | 27.69p (24hrs) | 27.69p (24hrs) | Most households | £1,058 |
| Octopus Go | 7.5p (4hrs) | 29p (20hrs) | EV + flexible usage | £1,020 |
← Scroll table horizontally on mobile →
*Based on 3,100 kWh annual usage with 40% night usage where applicable.
Use the calculator above to see if Economy 7 will actually save you money. If you don't have storage heaters or an EV, it's unlikely to be beneficial.
Major suppliers offering Economy 7 in 2026:
Before switching, find out the exact 7-hour window for your region. Contact your current supplier or check your meter documentation. Times are set by your Distribution Network Operator and cannot be changed.
Switching Timeline:
Use plug timers (£5-15 each) to automatically run dishwashers, washing machines, and tumble dryers during cheap night hours.
If you have an immersion heater, set it to heat water from midnight-6am only. A well-insulated tank stays hot all day.
Set storage heater input to maximum during winter. They'll charge overnight on cheap rate and release heat all day.
Don't use electric heaters, fan heaters, or boost on storage heaters during the day - costs 2-3x more than night rate.
Do all washing at night. A dishwasher or washing machine cycle costs 10-15p at night vs 30-40p during the day.
Get dual-rate meter readings monthly to check your night percentage. Aim for 40% minimum, 60%+ ideal.
Most modern dishwashers and washing machines have delay timers - set them to finish just before you wake up.
Free from suppliers, smart meters show exactly when you're using electricity and can help optimize your night usage.
No - Economy 7 is NOT automatically cheaper. It only saves money if you use at least 40% of your electricity during the 7-hour night window.
Scenarios where it saves money:
Scenarios where it costs MORE:
Economy 7 hours vary by region and are set by your Distribution Network Operator (DNO). Common windows include:
To find YOUR exact times:
Important: You cannot choose or change these times - they're fixed by infrastructure.
Yes - smart meters (SMETS2) can be configured for Economy 7 without any physical changes.
Advantages of Economy 7 on smart meters:
If you have an old Economy 7 meter: It will keep working, but upgrading to a smart meter gives better tracking and is free from suppliers.
If you have standard single-rate meter: Some suppliers install Economy 7 meters for free, others charge £50-150. Smart meter is usually free alternative.
No - modern EV tariffs are significantly better than Economy 7 for EV owners.
Octopus Intelligent Go vs Economy 7:
Other good EV alternatives:
When Economy 7 is better: If you have storage heaters AND an EV, Economy 7 with longer cheap window may work better than short EV tariff windows.
Economy 7 meters show TWO separate readings - one for day and one for night:
Traditional Economy 7 meter:
Digital/LCD meter:
Smart meter:
Important: Always submit BOTH readings. If you only submit one, you'll get estimated bills and likely overpay.
Yes, but it's complicated and often not optimal.
The problem:
Better option: Battery storage
Best option: Octopus Flux
Economy 10 gives 10 hours of cheap electricity instead of 7, but it's much rarer and harder to find.
Economy 7:
Economy 10:
When Economy 10 is better: Homes with very high heating needs and ability to use afternoon cheaper period (rare). Most people find Economy 7 simpler.
Availability: Economy 10 only available in certain regions (mainly Scotland, parts of Northern England). Check with supplier.
Yes - you can switch back easily, but meter changes depend on your setup.
If you have smart meter:
If you have old Economy 7 meter:
Switching process: Same as any tariff switch - 17-21 days, no interruption to supply, no exit fees on variable Economy 7 tariffs.
When to switch back: If you're paying more on Economy 7 than you would on standard (use calculator above to check).
What it is: Two-rate electricity tariff with cheap overnight power (10-18p/kWh for 7 hours) and expensive daytime power (32-36p/kWh for 17 hours).
Who it's for: Homes with electric storage heaters, immersion tanks, or very high overnight usage. You need 40%+ of electricity use during night hours to save money.
Who should avoid: Gas central heating homes, work-from-home households, anyone with mostly daytime usage - will cost £100-200 MORE per year.
Better alternatives: EV owners should consider Octopus Intelligent Go (7.5p/kWh), OVO Charge Anytime (7p), or EDF GoElectric (8.99p). Most households better on standard single-rate (27.69p/kWh).
Key rule: Calculate before switching. Economy 7 only works if your lifestyle fits the fixed 7-hour cheap window. Use calculator above to check your potential savings.
Meter requirements: Need dual-rate meter or smart meter configured for Economy 7. Installation usually free or low cost (£50-150).