What is Economy 7?
Economy 7 is an electricity tariff that gives you a cheaper unit rate for seven hours overnight, and a higher rate the rest of the day. It’s been around since the 1970s. It’s the original version of what the industry now calls a time of use tariff.
Instead of one flat price for every unit you use, your meter splits your electricity across two rates: a cheaper night rate and a dearer day rate. Shift a decent chunk of your usage into the cheap window and you pay less. Fail to, and you can end up paying more than you would on an ordinary single rate deal.
With the Ofgem price cap changing again from 1 October 2026, unit rates up around 4% even though the headline annual figure drops to £1,723 thanks to VAT coming off electricity for the winter, a lot of people are taking a fresh look at how they’re charged, not just who they’re with. Economy 7 is one of those options worth getting your head around before you decide.
Economy 7 in a nutshell
- You get a cheaper rate for seven hours overnight and a higher rate the rest of the time.
- As a rough rule, you need around 40% of your electricity used at night to come out ahead.
- It tends to suit homes with storage heaters, an electric hot water tank or overnight car charging.
- If you barely use anything overnight, a standard single rate tariff is usually cheaper.
How do the cheap Economy 7 hours work?
The cheap window lasts seven hours overnight, usually somewhere between about half past midnight and half past seven in the morning. The exact times move depending on your region, your meter and your supplier, so the safest thing is to ask your supplier when your own cheap hours actually run.
One thing trips people up. The window can shift by an hour when the clocks change, and it’s not always a single neat block. Some older meters split the seven hours into two shorter stretches. So if you’re planning to run the washing machine or charge the car overnight, confirm the precise hours first, otherwise your appliances might fire up at the pricey rate.
To get Economy 7 in the first place, you need a meter that can read two rates. That might be an older two rate meter, or a smart meter set up to track day and night use separately. Not sure what you have? Your latest bill usually gives it away: a two rate setup will show a day reading and a night reading.
Economy 7 rates in 2026: the numbers
Figures below checked September 2026. The cap rates are Ofgem’s for 1 October to 31 December 2026, for direct debit customers, and electricity is VAT-free from 1 October 2026 to 31 March 2027. Economy 7 rates vary by supplier and region, so those are typical market ranges.
| What you pay | Standard single rate tariff | Typical Economy 7 |
|---|---|---|
| Daytime electricity | 26.32p per kWh | Around 28p to 34p per kWh |
| Overnight electricity | 26.32p per kWh | Around 12.5p to 16p per kWh |
| Standing charge | 54.83p a day | Similar, varies by supplier |
A quick worked example shows why the night share matters so much. Take mid range Economy 7 rates of 31p by day and 14p by night. If only 20% of your usage happens overnight, your average unit works out around 27.6p, which is worse than the 26.32p standard rate. Push the night share to 40% and the average drops to roughly 24.2p, which beats it comfortably. Same tariff, opposite result, all down to when you use your power.
Is Economy 7 worth it in 2026?
Economy 7 is worth it only if you use enough of your electricity during the cheap overnight hours, and for most homes the tipping point sits somewhere around 40% of total usage. Below that, the higher daytime rate tends to swallow the overnight saving.
The reason is simple enough. To pay for that cheap night rate, the day rate on Economy 7 is usually higher than the single rate you’d get on a standard tariff. So if most of your life happens between breakfast and bedtime, you’re paying the premium daytime price for the bulk of your usage and only dipping into the cheap rate while you sleep.
For a home that genuinely runs a big share of its power overnight, the savings can be real, though modest. Industry estimates put a typical Economy 7 saver somewhere in the region of £60 a year, but that figure leans entirely on how much you use and how much of it you can move into the cheap window. Treat any saving as a rough estimate rather than a promise, and always compare the full annual cost, not just the eye-catching night rate. Ofgem publishes the latest cap unit rates and standing charges, including the separate Economy 7 figures, on its price cap page.
The quickest sanity check is to look at your own usage pattern first, then compare deals for your postcode and meter type.
Who saves money on Economy 7?
The clear winners are homes built around using power at night. If you heat with ceramic storage heaters that charge up overnight, or you have an electric immersion tank warming water in the early hours, a big slice of your usage already lands in the cheap window. For these households, Economy 7 is often the cheapest option going.
Electric car owners are a trickier case. Charging overnight does push a lot of usage into the cheap hours, but plenty of suppliers now run dedicated car charging tariffs with an even lower overnight rate than Economy 7. So if you drive an electric car, check those specialist deals before you assume Economy 7 is your best bet.
You can also tip the balance yourself. Putting the dishwasher, washing machine or tumble dryer on a timer so they finish in the cheap window can lift your night share enough to make the sums work, as long as you’re happy running appliances while you sleep.
Where Economy 7 tends to fall flat is the home that heats with gas, sits empty all day, and uses next to nothing overnight beyond a fridge and a few standby lights. There, the higher day rate usually costs you more than the cheap hours save back. It’s worth reading up on the different energy tariffs so you can match the right one to how your household really lives.
How to switch to or from Economy 7
Switching onto Economy 7 usually starts with getting the right meter. If you already have a smart meter, your supplier can often move you onto a two rate plan with no site visit at all. With an older single rate meter, you may need a meter swap, which the supplier normally sorts for you.
Coming off Economy 7 works the same way in reverse. You pick a single rate tariff that suits you, the supplier moves you across, and swaps the meter if it needs doing. Before you jump, check whether your current deal carries an exit fee, and remember you can’t be charged one in the final weeks of a fixed contract.
Either way, the smart move is to compare like for like on your real usage. You can compare energy deals for your postcode and meter type, then weigh up the total estimated annual cost rather than the night rate on its own. Want the bigger picture on trimming what you pay? Our guide on how to cut your home energy bills is a good place to start.
Frequently asked questions about Economy 7
- How do I know if I’m already on Economy 7?
- Check a recent bill or your meter. Two readings, usually labelled day and night, or two rows of unit rates, means you’re on a two rate tariff such as Economy 7. Just one rate means you’re on a single rate deal.
- What time is the cheap Economy 7 rate?
- It’s a seven hour block overnight, often roughly between half past midnight and half past seven, but it varies by region, meter and supplier. Ask your supplier for your exact hours, as they can shift when the clocks change.
- Is the Economy 7 night rate always cheaper than a standard tariff?
- The night rate is cheaper, but the day rate is usually higher than a single rate tariff. Whether you save overall comes down to how much of your electricity you use during the cheap hours.
- Can I get Economy 7 with a smart meter?
- Yes. A smart meter can record day and night use separately, so many suppliers can put you on Economy 7 or a similar time of use tariff without changing the meter.
- Is Economy 7 good for charging an electric car?
- It can help, since charging overnight uses the cheap hours, but several suppliers now offer dedicated car charging tariffs with a lower overnight rate. Compare those against Economy 7 before you decide.
