Economy 7 is also known as Time-of-use tariff because energy rates depend on the time you are using electricity.
Economy 7 is one of the energy tariffs provided by UK electricity suppliers and the prices for an economy 7 meter varies according to the time of day. Normally economy 7 tariffs offer much cheaper electricity rates at night and therefore, it’s most suitable for consumers who use night storage heaters or households which use lots of electricity at night.
It’s called an Economy 7 tariff, simply because it offers 7 hours of electricity at a much cheaper rate during the night.
However, it is important to note that economy 7 energy tariffs need to have a bespoke meter as it tracks the electricity usage during the day and night.
By simply looking at you bill you can find out if you are on an economy 7 plan as your current bill will show two different rates, one for night and one for daytime usage.
What’s more your suppler no (also known as “Meter Point Access number”/” MPAN” on your bill) will start with ‘02’ on the first box. Please see the grid below:
You can further identify your economy 7 plan by merely looking at your meter. If your meter has two sets of readings – one marked as “low” and other marked as “normal”, than you have an economy 7 meter. If required, you may also call your supplier and they will be able to tell you whether you have the economy 7 tariff.
“Think before do” principal works perfectly whenever you decide to make savings of £50 in a year by adopting economy 7 energy tariff. First you should calculate the electricity usage during nights (12:00 AM to 7:00 AM) and day. Second, ensure that you have installed highly energy efficient devices or equipment which stays switched on during the day time because energy rates are higher at on-peak hours. Third, ensure that you have electricity consumption in off-peak hours at least 30% or higher.
Normally it’s free to switch from standard meter to economy 7 meter but sometimes they charge around £30 to £50 for changing meter. If you switch the tariff only, not supplier then it will be offered free of cost by your supplier. E.On Energy may charge few pounds at the time of setting up economy 7 meter in place of standard meter.
If you are a high user of electricity during the night and would like to switch to an economy 7 meter than firstly you need to find out what type of meter is installed at your home. If it is not an Economy 7 meter than you need to get the relevant Economy 7 meter installed- This may be offered free of charge depending on the supplier you choose.
You can compare your price by putting your postcode in the search bar and clicking on the compare now button. On the following page you will then be asked if you have an Economy 7 meter, select “YES” and provide you current supplier details including your current usages.
Once you have provided all the required information, our comparison tool will generate the cheapest economy 7 energy tariffs for you.
If you don’t have storage heating system, economy 7 tariff probably isn’t worth in your case. Night time storage heaters are made up of clay bricks or ceramic material, they use electricity to warm up during off-peak hours (economy 7 hours) and release it the next day during day-time.
Normally from 11.00pm to 6.00am or 12.00am to 7.00am or 1.00am to 8.00am.The times tends to differ depending on the supplier of electricity.
Economy 10 energy tariffs are also known as “Heatwise” tariffs. They are effectively the same as economy 7 tariffs. The main difference is that economy 10 offers cheaper electricity prices for 10 hours instead of 7 hours.
Like the economy 7, the economy 10 tariff is broken down on when it can be used to receive cheaper rates.
For the Economy 10, the user is given cheaper rates during 3 hours in the afternoon, 2 in the evening and 5 overnight.
As per before, you would require a meter that displays separate readings for the energy used at different times of the day.
You can always move back to normal tariff whenever you feel it’s not worth to continue with economy 7 more. Economy 7 energy meter needs to be changed to standard meter and it will be processed by energy supplier.
Once you found Economy 7 isn’t for you and decide to move back to standard tariff, in few instances energy supplier will charge around £50 for a new meter but you can try following steps to beat the same.
Yes, confirm energy consumption on energy bill by checking meter reading manually. If you find you are charged incorrectly by company, call up and ask. Recently Ofgem fined £26 million to UK’s energy giant Npower for inaccurate billing to customers. Chances of getting inaccurate bill increases especially when you are on economy 7 tariff.
Set all the appliances like dishwasher, washing machine and storage heaters exactly at the off-peak time (take minutes in to account). Companies don’t want all consumers to switch appliances on at the same time because it could overload the network.