What is Economy 7 and Is It Worth It?
Economy 7 offers cheaper electricity at night but costs more during the day. Here’s everything you need to know about whether it could save you money.
In this guide
What is Economy 7?
Economy 7 is a type of electricity tariff that charges two different rates — a cheaper rate for electricity used during 7 hours at night and a more expensive rate for electricity used during the day. The name comes from the 7 hours of cheaper overnight electricity you receive.
It was originally designed for households with storage heaters and hot water tanks that could be charged up overnight using cheap electricity and then release heat and hot water during the day.
💡 Key point
Economy 7 only applies to electricity — not gas. If you have a gas boiler for heating and hot water, Economy 7 is unlikely to benefit you as much as it would a household with storage heaters or an electric boiler.
How does Economy 7 work?
Economy 7 requires a special meter that records electricity usage in two separate registers — one for daytime usage and one for overnight usage. Your bill shows both rates separately.
The overnight rate is typically around 50% cheaper than the daytime rate. However the daytime rate on an Economy 7 tariff is usually higher than the standard single rate — so if you don’t use enough electricity at night you could end up paying more overall.
What are the Economy 7 hours?
The Economy 7 cheap rate hours vary by region and supplier but are typically between midnight and 7am. Some areas use different hours — for example 1am to 8am or 11pm to 6am.
The hours also change when the clocks go forward or back — your meter operates on GMT rather than BST, so the cheap rate shifts by an hour during summer.
How to find your exact Economy 7 hours: Check your energy bill, log in to your supplier’s online account, or contact your supplier directly. Your exact hours depend on your region and distribution network.
Who is Economy 7 best suited for?
Economy 7 works best for households that can shift a significant portion of their electricity usage to the overnight cheap rate period. The general rule is that you need to use at least 40% of your electricity during the 7 cheap hours to benefit.
Economy 7 works well if you have:
✓ Storage heaters — charge overnight, release heat during the day
✓ Electric hot water tank — heat water overnight at cheap rate
✓ Electric vehicle — charge overnight when electricity is cheapest
✓ Overnight dishwasher or washing machine usage — run appliances on a timer
✓ Home battery storage — store cheap overnight electricity for daytime use
Economy 7 is less suitable if you have:
✗ A gas boiler — your heating and hot water don’t benefit from cheap overnight electricity
✗ Standard usage patterns — most electricity used during the day
✗ No way to shift usage to overnight hours
Is Economy 7 worth it?
Whether Economy 7 is worth it depends entirely on your household’s electricity usage patterns. Here’s a simple way to think about it:
Economy 7 saves money if:
✓ You use 40%+ electricity at night
✓ You have storage heaters
✓ You charge an EV overnight
✓ You can run appliances overnight
Economy 7 costs more if:
✗ Most usage is during the day
✗ You have a gas boiler
✗ You can’t shift usage overnight
✗ You use electricity throughout the day
Compare Economy 7 tariffs for your postcode
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Compare energy deals →How do I know if I have Economy 7?
There are a few ways to tell if you’re on an Economy 7 tariff:
📊 Check your meter — an Economy 7 meter has two displays or two sets of numbers labelled “normal” and “low” or “day” and “night”
📄 Check your bill — an Economy 7 bill shows two electricity unit rates and two sets of usage figures
📱 Check your online account — log in to your supplier’s app or website and look at your tariff details
📞 Call your supplier — they can confirm your meter type and tariff in minutes
Should I switch away from Economy 7?
If you’re on Economy 7 but have a gas boiler and use most of your electricity during the day you could be paying more than you need to. Switching to a standard single rate tariff might save you money.
The best way to find out is to compare your current Economy 7 tariff against standard tariffs using your actual usage split — how much do you use during the day vs overnight? Your bill or smart meter app should show you this breakdown.
If you switch away from Economy 7 your supplier will need to change your meter to a standard single rate meter — this is free and straightforward to arrange.
Related guides
What is a smart meter and do I need one? → Fixed vs variable energy tariffs explained → How to reduce your energy bills UK 2026 →Compare Economy 7 and standard tariffs
Find the cheapest tariff for your household — Economy 7 or standard. Free, no obligation, takes 2 minutes.
Compare energy deals →Written by the FastSwitch team · Last updated April 2026
FastSwitch is a free UK energy comparison service. We may earn a commission when you switch via our site — this never affects the deals or prices you see.
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