Economy 7 explained: is it worth it?
Published 23 October 2026. Prices are the cap for 1 October 2026 to 31 December 2026.
Economy 7 gives you two prices for electricity: a cheaper rate for seven hours overnight and a dearer one for the rest of the day. It was designed for storage heaters, which charge up at night and give out heat during the day, and it still suits homes that use a lot of electricity at night. For everyone else it usually costs more.
What the cap allows
Ofgem caps Economy 7 and other multi-rate tariffs separately from single-rate ones. For 1 October 2026 to 31 December 2026 the multi-rate standing charge averages 54.62p a day, against 54.83p on a single rate. Ofgem caps a weighted average of the day and night rates rather than each one, so how the two are set is up to your supplier: that’s why your Economy 7 rates need reading off your own bill. Each region page gives the multi-rate cap for that region.
Who it suits
Homes on Economy 7 tend to use a lot more electricity. Ofgem’s typical figure for a multi-rate home is 3,400 kWh a year, against 2,500 on a single rate. In smart meter data for homes with no heat pump or electric car, those on Economy 7 used about 49% more electricity than those on a standard tariff, most likely because many heat with electricity.
It tends to pay if you have:
- storage heaters, which take their charge overnight
- a hot water cylinder with an immersion heater on a night timer
- an electric car you charge overnight, though an EV tariff is often cheaper still
Without any of those, most homes use well under half their electricity at night, and the higher day rate wipes out the saving.
Work out your break-even
The deciding number is the share of your electricity you use in the cheap hours. Put in your own rates; the standing charges start at the national cap.
Single rate: £1,095 a year. Economy 7: £1,041 a year.
Economy 7 is £54 a year cheaper on these numbers. Economy 7 wins once more than 31% of your electricity is used at night.
The day and night rates start as examples, not anyone’s real tariff. Replace them with the rates on your bill or quote.
Don’t know your night share? If you have a smart meter, the electricity analyser works it out from your supplier’s download, including how much falls in a typical 00:30 to 07:30 window, and shows the break-even for a time-of-use tariff.
Making the most of it
- Check your heaters and immersion timer are set to your meter’s actual cheap hours, especially after the clocks change.
- Run the washing machine, dishwasher and tumble dryer on a timer overnight.
- If you’ve replaced storage heaters or no longer heat with electricity, ask whether a single-rate tariff would now be cheaper.
Common questions
What times is Economy 7?
Seven hours of cheaper electricity overnight, but the exact hours depend on your meter and region, and older meters may run on GMT all year, so the cheap period shifts by an hour in summer. Your supplier can tell you your hours; they are often between about midnight and 8am.
Is Economy 7 worth it?
Only if you use a large share of your electricity at night, usually because of storage heaters, an electric hot water cylinder or an electric car. The day rate on Economy 7 is higher than a single rate, so a home that uses most of its electricity in the day pays more. The calculator on this page gives the break-even share for your own rates.
Does the price cap cover Economy 7?
Yes. Ofgem caps multi-rate tariffs too, with their own standing charge and a weighted average unit rate. Each supplier decides how to split that into day and night rates, so two suppliers’ Economy 7 rates can look quite different while both sitting within the cap.
How do I know if I have Economy 7?
Your bill will show two unit rates, often labelled day and night or peak and off-peak. Your MPAN, the long supply number on your electricity bill, starts with 02 on its top row if you have a multi-rate meter. Older Economy 7 meters show two readings.
Cap rates from Ofgem, checked 23 October 2026. Typical use from Ofgem’s typical domestic consumption values, 1 July 2026.