What is an Economy 7 Meter and Tariff?
What is an Economy 7 meter and tariff?
In short, an Economy 7 meter is a meter that works with an Economy 7 tariff. Together, they provide two electricity prices: one for during the day, and the other for overnight. For reference, energy providers usually call daytime hours on-peak and night-time hours off-peak.
Both these rates remain fixed, and the specific Economy 7 rates vary depending on your provider.
With the meter and tariff duo, your electricity will always be significantly cheaper at night, with the caveat that your day tariff is more expensive than your average Joe’s usual rate.
In terms of length, 7 hours is the standard for the cheaper overnight rate window – hence the name.
Sometimes people call Economy 7 meters two-rate meters, Eco 7, or refer to them as ‘dumb meters’.
Note that Economy 7 meters are exclusively for electricity, not gas.
Do I have an Economy 7 meter? How do I know?
There are three quick, easy ways to see if you have an Economy 7 meter:
- Open your drawer and sift through your paperwork until you find your electricity bill. Locate what you owe. If there are two prices, you’re likely on an Economy 7 meter tariff.
- On the same note, find your MPAN (Meter Point Administration Number)on your electricity bill. If it begins with 02, you’re on it.
- Wipe away the cobwebs and open your meter box. Are there two sets of numbers on your meter? If yes, then there’s your answer.
How do I take meter readings with the Economy 7 meter?
Wondering how to read an Economy 7 meter? Look no further. To take a meter reading, you need to:
Open your meter box. Note the numbers or take a picture – just make sure you have both meter readings for the on-peak and off-peak hours.
The higher row will be for the day rate, usually tagged as ‘Normal’, ‘Rate 1’ or ‘Day’. The bottom row is for overnight electricity usage, and will be labelled either ‘Low’, ‘Night’ or ‘Rate 2’. Send this to your energy provider online.
Warning – make sure you take accurate meter readings and take care when inputting to your electricity provider, as they will vary significantly depending on the time frames. You don’t want to put your usage in for the wrong and be charged a higher amount.
What are the Economy 7 times?
The window for cheaper electricity with the Economy 7 meter and tariff will always be seven hours. But it depends on the energy provider, your area, and also Coordinated Universal Time (UTC) as to when the exact hours are. One key thing to keep in mind is that the hours will change in summer and winter as the clocks change. So, the time frame is never set in stone.
That said, there is a rough guideline for Economy 7 times for each energy supplier:
Is Economy 7 going to be phased out?
No, don’t worry – the Economy 7 meter and tariff are not being phased out. What’s being phased out by electricity providers is actually an older meter, the Radio Teleswitch Service meters (RTS).
From 30 June 2025, energy providers will switch off RTS, and it will stop working. Economy 7 will continue into the future though.
What are the pros?
1. Cheaper electricity at night
The main perk of an Economy 7 meter and tariff combo is undoubtedly the cheaper electricity overnight. So much so that it is possible for the cheaper rate to be even cheaper than a single-rate tariff.
Hours of cheaper electricity are available with this electricity tariff. Saving you money by making a few smart choices.
Imagine what you could do with low-cost night rate electricity?
Tuck up toasty with your electric blanket in winter. Plug your phone, laptop, and Kindle to charge while you sleep. Charge your electric car for pennies.
Make little swaps too. Instead of putting your washing on after you’ve picked the kids up from school, when electricity prices are at their highest due to peak demand, use your washing machine and tumble dryer at night to maximise cost efficiency. As long as you don’t annoy the neighbours, of course.
The Economy 7 and storage heaters are a match made in heaven, too. Think electric storage heaters and hot water tanks. Save the cheaper electricity and then trickle use it the next day.
What are the cons?
1. Not compatible with special EV tariffs
While you can certainly set your electric vehicle to charge overnight with the charge scheduling feature, nine times out of ten, you can’t take advantage of a special EV charger if you’re on an Economy 7 meter.
Most electric car tariffs require a smart meter to be able to function with an energy company’s specially tailored tariff for electric cars. Sadly, with Economy 7, you will most likely not be able to use the EV tariff.
For example, to reap the rewards of the 7.9p per kWh during off-peak hours with the British Gas EV tariff, you’ll need a Hive EV charger and a smart meter.
If you really want to save, and you’re an EV driver, we’d recommend an EV tariff with a smart meter.
2. Overpaying
If you’re not careful and find yourself using more electricity during the day than at night, you could find yourself in the red. Standard on-peak (during the day) prices can be extortionate compared with usual day prices, meaning there’s the risk of overpaying for your electricity.
Most importantly, watch some of your big hitters. Be careful with heat pumps, especially. Since these run throughout the day to maintain temperatures, you could unknowingly rack up a heavy bill with the more expensive daytime rates.
Anything with stored heat, like underfloor heating, is different. Those that can store and then slowly release will be okay with the Economy 7 meter and tariff.
Economy 7: Is it worth it?
As with everything, it depends on your personal circumstances. As a general rule of thumb, though, if you use a third to a quarter of your electricity overnight, then the Economy 7 meter and tariff are a great option for you. But keep in mind the time of day you usually boot up your electronics.
On the other hand, if you rarely use electricity overnight, perhaps you work nights, or work from home, the Economy 7 hours might not work for you. You’ll end up paying more than a standard tariff during the day.
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