What Is Economy 7?

Economy 7 is one of those terms that appears on energy bills without much explanation. If you have two unit rates on your electricity bill — one for day use and one for night use — you are almost certainly on Economy 7. This guide explains what it is, how it works, who it suits, and how to work out whether it is saving you money.

Originally designed for storage heaters and hot water tanks, Economy 7 has had something of a revival in recent years — driven by the rise of electric vehicles and home battery storage, both of which benefit from cheap overnight charging.

How Economy 7 Works

Economy 7 charges two different electricity unit rates depending on the time of day. During a seven-hour off-peak window — typically overnight — electricity is charged at a significantly cheaper night rate. For the remaining 17 hours of the day electricity is charged at a higher day rate.

The trade-off is deliberate. The night rate is substantially cheaper than a standard single-rate tariff, but the day rate is higher. Whether you come out ahead depends entirely on how much of your electricity use you can move into the overnight window.

Why Does Economy 7 Exist?

Economy 7 was introduced in the 1970s to help balance electricity grid demand. Nuclear and coal power stations of that era could not easily be switched off overnight, which meant excess electricity was generated when demand was low. Cheaper overnight rates were a way to encourage households to shift usage and help balance supply and demand. The principle is the same today — grid operators want to smooth out peaks and troughs in demand, and time-of-use pricing is one tool for doing so.

Economy 7 Rates in 2026

Economy 7 rates are covered by the Ofgem price cap but are set differently to standard single-rate tariffs. Suppliers have flexibility to set their own day and night rate balance within the overall cap, which means rates vary significantly by supplier and region. As a rough guide in 2026:

The day rate is typically higher than the standard single rate. The night rate is significantly lower. Always check your bill for your exact rates — do not rely on averages when calculating whether Economy 7 is working for you.

What Are the Off-Peak Hours?

The seven off-peak hours are not the same for everyone. They vary by supplier, meter type and region — and they do not automatically adjust when the clocks change, which can cause the window to shift by an hour in spring and autumn unless you contact your supplier.

Common overnight windows include 11pm to 6am, midnight to 7am, and 12:30am to 7:30am, but your actual hours could differ. Contact your supplier or check your bill to confirm your exact off-peak window. Using appliances outside your off-peak hours means paying the higher day rate, which can wipe out any savings.

How to Tell If You Are on Economy 7

If you are on Economy 7 there will be clear signs on your bill and meter:

• Your electricity bill shows two separate unit rates — a day rate and a night rate
• Your bill shows two separate kWh totals — one for day usage and one for night usage
• Your electricity meter has two registers, often labelled Rate 1 and Rate 2, or Normal and Low
• A smart meter will display both registers and may show which rate is currently active

Who Benefits from Economy 7?

Economy 7 works best when a significant proportion of your electricity use can be shifted to the overnight window. The households that tend to benefit most are:

• Storage heater households — storage heaters charge overnight using cheap electricity and release heat during the day. They are the classic Economy 7 use case
• Immersion hot water tanks — heating a large tank of water overnight at the night rate and using it during the day is cost-effective for high hot water users
• Electric vehicle owners — charging an EV overnight at 9–14p/kWh instead of 25p+ during the day can produce significant savings, especially for high-mileage drivers
• Home battery storage — charging a home battery overnight at the cheap rate and using that stored electricity during the day replicates the storage heater model for modern households

The 30–40% Rule

As a general rule of thumb, Economy 7 tends to save money when at least 30 to 40 percent of your total electricity use falls within the overnight off-peak window. Below that threshold the higher day rate typically outweighs the savings on night usage and a standard single-rate tariff works out cheaper overall.

The chart above shows illustrative annual costs at example rates — your crossover point will differ based on your own day and night rates. Use the Economy 7 Calculator with your actual rates to find your personal break-even point.

Making the Most of Economy 7

If you are on Economy 7, the key to saving money is maximising overnight usage. Practical steps include:

• Set washing machines, dishwashers and tumble dryers on a timer to run within your off-peak window
• Charge electric vehicles overnight — this is where Economy 7 delivers the biggest savings for most households
• Make sure your storage heaters are set to charge fully overnight and not top up during the day
• Confirm your off-peak hours with your supplier — especially after the clocks change
• Check your bill regularly to see your day/night usage split and adjust habits if day usage is creeping up

Related Tools

Related Guides

Frequently Asked Questions

What is Economy 7?

Economy 7 is a UK electricity tariff with two unit rates — a cheap off-peak rate for seven hours overnight and a higher rate for the rest of the day. It saves money when enough of your electricity use can be shifted to the overnight window.

What are the Economy 7 off-peak hours?

The seven off-peak hours vary by supplier, meter type and region. They are not always midnight to 7am. Contact your supplier to confirm your exact window — and check again after the clocks change in spring and autumn.

How much cheaper is the Economy 7 night rate?

Night rates in 2026 typically range from around 9p to 14p per kWh, compared to day rates of 25p to 35p per kWh. The night rate can be less than half the day rate — but the day rate is also higher than a standard single-rate tariff, which is the trade-off.

Who is Economy 7 best suited to?

Households with storage heaters, immersion hot water tanks, electric vehicles or home battery storage — any setup where significant electricity use can be shifted overnight. The rule of thumb is that at least 30 to 40 percent of total use needs to be overnight for Economy 7 to be cheaper than a single-rate tariff.

How do I know if I am on Economy 7?

Your bill will show two separate unit rates and two separate kWh totals. Your meter will have two registers — often labelled Rate 1 and Rate 2, or Normal and Low. If you only see one unit rate and one kWh total you are on a standard single-rate tariff.

Can I switch off Economy 7?

Yes — you can switch to a standard tariff at any time, though depending on your meter setup this may require a meter change. Contact your supplier to discuss your options. If you have storage heaters that depend on overnight charging, switching away from Economy 7 would require you to replace them with a different heating solution.

Summary

• Economy 7 is a two-rate electricity tariff with a cheap overnight rate and a higher daytime rate
• The off-peak window is seven hours but the exact hours vary by supplier, meter and region — always confirm with your supplier
• Night rates in 2026 are typically 9p to 14p/kWh; day rates are typically 25p to 35p/kWh
• Economy 7 saves money when at least 30 to 40 percent of electricity use falls in the overnight window
• It suits storage heater households, immersion tank users, EV owners and home battery storage setups
• To see whether Economy 7 is saving you money based on your own rates and usage split, use the Economy 7 Calculator →