Key findings:
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Running your dishwasher at night can save up to 43%[1] on energy bills
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Economy 7 is a great option for shift workers, people who work nights and EV owners
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The meter works best to heat electric storage heaters or a hot water tank during the cheaper hours at night
Households nationwide will now see their annual energy bills rise by 10% to £1,717, forcing many customers to rethink their energy habits and look into Economy 7.
Switching to an Economy 7 meter can save you money. But it depends on when you use your electricity, what fuel you use to heat your home and water and how many electrical appliances you have. The experts at Confused.com Energy shared their insight into the off-peak energy tariff.
What is Economy 7, and how does it work?
Done right, it can save you money. If done wrong, it can cost you more.
As customers search for more flexibility on their energy, many are signing up for ‘time of use tariffs’, Economy 7 is one example of this. If you have an Economy 7 meter, you’ll benefit from cheaper electricity at night, but you’ll pay more for using it in the day.
It’s called Economy 7 because you get 7 hours of cheaper electricity every night. The price you pay at night could be up to 43%[1] less than the daytime rate. However, during the day you’re likely to pay more for your electricity than you might on a normal fixed or variable tariff.
To take advantage of Economy 7 you need to be organised with your electricity use. As the daytime rate is higher, if you don’t strictly limit your daytime usage then you could end up paying more in the long run.
Will Economy 7 save me money?
Whether Economy 7 could save you money depends on:
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When you use your electricity
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What fuel (gas or electric) you use to heat your home and water
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How many electrical appliances you use
Economy 7 works best in houses that have a hot water tank and/or electric storage heaters. This is because you can use the cheap night-time electricity to charge them up at night, ready for use during the following day.
It’s also a good idea to make sure your hot water tank is lagged with a fibreglass or foam cover. This should reduce the amount of heat lost and keep your hot water warm for longer. If you don’t have electric storage heaters or a hot water tank, then Economy 7 tariffs probably won’t be your best choice.
When is Economy 7 cheaper?
The hours that you get the lower rate with Economy 7 depend on the electricity supplier you’re with, as well as where you live. Your off-peak hours could be 11pm to 6am, or 1.30am to 8.30am, or anything in between.
The hours may also change when the clocks go back or forward. You should check with your supplier for their specific off-peak hours.
During peak time, the cost of electricity on Economy 7 could be as much as double the normal rate. Therefore, you need to be sure that Economy 7 is right for you before getting it. Economy 7 can work well for shift workers, people who work nights and EV owners.
How can I save on my energy bills with an Economy 7 tariff?
There are lots of ways to cut your energy costs if you have an Economy 7 meter:
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Reduce your usage: ultimately your bill reflects the amount of energy you use. By cutting down how much you use, you can cut your bills.
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Keep your meter updated: keep an eye on the clock on your meter to make sure it’s changing from the day to the night rate at the right time.
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Tell your supplier if your day-time bill rises: if you can’t use more electricity at night, it might be worth switching to a standard tariff.
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Check your rates: keep an eye on what different providers are charging to make sure you’re getting the best deal possible.
How to use Economy 7
Economy 7 works best for you if you’re heating electric storage heaters or a hot water tank during the cheaper hours at night. You can then use that heat during the following day.
You should plan to use your washing machine and dishwasher at night in order to take advantage of the reduced rates.
It also makes sense to charge your phone, tablet and other portable devices overnight, ready for the next day.
Can I switch to Economy 7?
If you think Economy 7 could work for you, then you should be able to switch. Contact your energy supplier to arrange for them to install a meter and switch to an Economy 7 tariff. If you already own a smart meter, your supplier can remotely switch you to Economy 7.
