Economy 7

Economy 7 is a multi-rate electricity tariff that charges one unit rate for seven off-peak hours, usually overnight, and a higher rate for the rest of the day. Your supplier tells you the exact hours. You need a two-rate meter or a smart meter that records use in each period.

According to Ofgem (checked 27 September 2026), peak and off-peak rates on a multi-rate tariff together cannot be more than the energy price cap. For a typical Economy 7 home, Ofgem's consumption figures from 1 July 2026 assume 3,400 kWh a year, split 58% peak and 42% off-peak.

Example (illustrative rates, not cap figures): with a day rate of 32p and a night rate of 15p per kWh, 3,400 kWh split 58/42 costs £631.04 for 1,972 day units plus £214.20 for 1,428 night units, £845.24 in total, an average of 24.86p per kWh. On a single rate of 26.32p (the capped average from 1 October 2026) the same use costs £894.88. Shift less to the night, say 20%, and Economy 7 costs £972.40, more than the single rate.

Economy 7 pays when you run storage heaters, a hot water cylinder or an electric car overnight. Test your own day and night split in the energy tariff comparison.