Written by David Walter, Chief Commercial Officer
23 Oct 2024 - Navigating the complex world of energy tariffs can feel like a daunting task, but understanding your options is crucial for keeping your household bills under control.
Among these options is the Economy 7 meter, a smart choice for those looking to make their energy consumption more cost-effective. But how do you ensure you're getting the most out of it? Let’s break it down.
Economy 7 is a specialised electricity tariff that rewards you for using power during off-peak hours, typically overnight. The "7" refers to the seven hours during which electricity is billed at a much cheaper rate. This system is designed for homes that can shift their electricity consumption to these off-peak hours — think running dishwashers, heating water, or using storage heaters at night.
The tariff was initially introduced in the 1970s and remains a favourite for savvy users who are willing to adjust their usage habits. With household energy bills in the UK averaging around £150 per month, this strategy could help you save upwards of £50 each year.
Unlike traditional energy tariffs, which charge a flat rate regardless of the time of day, Economy 7 meters work on a two-rate system. Electricity is cheaper during off-peak hours (usually from midnight to 7 AM) and more expensive during peak daytime hours. If you're strategic about using energy-heavy appliances overnight, you’ll see the difference on your bill.
While standard energy tariffs charge a consistent rate throughout the day, Economy 7 meters offer the flexibility of two rates. If you can shift about 30% of your energy usage to nighttime, you’ll likely benefit from the lower rates. However, if most of your electricity use happens during the day, the higher daytime rates could negate any potential savings.
The answer depends on your electricity usage patterns. If you can manage to shift high-energy activities, like running washing machines or dishwashers, to nighttime hours, Economy 7 could save you a significant amount. However, if your household’s energy consumption happens primarily during the day, it might not be the right fit for you.
For those with electric storage heaters or immersion water heaters, the tariff is particularly beneficial, as these appliances can heat up at night when rates are low and release heat throughout the day.
Learn more about energy savings with our guide.
For households with electric storage heaters, Economy 7 is especially beneficial – allowing you to heat your home at night when electricity is cheaper and then use that stored heat during the day when your household is awake. The main thing to remember when trying to save on electricity with Economy 7 is to shift as much of your usage as possible to the off-peak period.
If you have an electric or immersion water heater, Economy 7 can also help you save money. By setting your water heater to operate during the off-peak hours, you can take advantage of the lower nighttime rates – which is especially useful for homes with hot water tanks that can store heated water for use during the day.
Whether it's for your morning shower or doing the dishes, heating your water overnight on Economy 7 means you're paying less for the energy used, which can add up to noticeable savings over time.
Many household appliances consume a significant amount of electricity, so using them during the off-peak hours of an Economy 7 tariff can help you shave money off your energy bills. Appliances like washing machines, tumble dryers, and dishwashers can be set to run overnight – either manually or with the help of timers.
By limiting your usage to nighttime hours as much as possible, you'll benefit from paying a lower rate, which can make a big difference when you receive your energy bill. Even smaller devices, like slow cookers or phone chargers, can contribute to big savings when used during the cheaper period.
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To take advantage of Economy 7 rates, you'll need a special meter that tracks your energy usage across the two time periods.
An Economy 7 meter is a type of energy meter that seamlessly switches between the daytime and nighttime rates without requiring any action from you, ensuring that you're always billed correctly according to your usage.
If you're unsure whether your home has been fitted with an Economy 7 meter, one of the biggest giveaways is the display showing two figures rather than one. Some modern Economy 7 meters even display the two rates on the same screen, while older models might require you to press a button to toggle between the readings.
If you have a smart meter, you can see whether you're on an Economy 7 tariff by cycling through the displays to see if a 'normal' and 'low' rate is available. The added benefit of a smart meter is that it sends real-time usage data to your energy provider, which can help you track and optimise your energy usage more effectively. To learn more about smart meters, see our comprehensive smart meter guide.
Taking a reading from an Economy 7 meter is slightly different to taking a reading from a standard electricity meter because it tracks two separate numbers at the same time: one for your daytime electricity usage and another for your nighttime usage. The process may vary a little, depending on whether you have a traditional dual-display meter or a modern smart meter model.
Generally, the process for reading an Economy 7 meter is as follows:
Economy 7 meters usually have a digital display showing two sets of numbers. These numbers correspond to your electricity usage during peak (daytime) and off-peak (nighttime) periods.
You’ll then need to identify which reading relates to peak and off-peak times:
Daytime usage (“Rate 1” or “Normal”) – This reading shows how much electricity you’ve used during the peak hours, typically from around 8 AM to 11 PM.
Nighttime usage (“Rate 2” or “Low”) – This reading tracks the electricity used during the off-peak hours, usually from 12 AM to 7 AM.
To accurately track your energy usage or provide a meter reading to your energy supplier, make sure you write down both numbers – including any digits before and after the decimal point if they’re shown.
Depending on your energy provider, you can usually submit your meter readings in multiple ways. At UW, we accept meter readings by logging into your online account or via the UW mobile app. Be sure to indicate which reading corresponds to your daytime and nighttime usage to ensure accurate billing.
On smart meters, you might need to press a button to toggle between the two readings. The labels on the display may vary (e.g., "Rate 1" and "Rate 2" or "Low" and "Normal"), but typically "Rate 1" refers to the daytime usage and "Rate 2" to the nighttime.
Radio Teleswitch (RTS) technology is a system used in the UK to control Economy 7 and other multi-rate electricity meters remotely. First introduced in the 1980s, RTS allows energy providers to switch between peak and off-peak rates on these meters without users needing to manually adjust them. The system operates via radio signals, automatically switching your meter to the correct tariff at the appropriate times.
Radio Teleswitch Meters are a specific type of Economy 7 or multi-rate meter that rely on the RTS system to switch between different electricity rates. These meters receive a signal from the national grid, instructing them to change from the peak daytime rate to the cheaper off-peak nighttime rate and vice versa.
From June 30, 2025, the Radio Teleswitch (RTS) service will be officially discontinued. This change is part of the UK's wider efforts to modernise the energy system, including the widespread rollout of smart meters, which offer advanced features compared to the older RTS technology.
The discontinuation of RTS will primarily impact older Economy 7 meter models. Without the RTS service, these meters will no longer automatically switch between peak and off-peak rates, resulting in billing inaccuracies or a loss of off-peak tariff benefits.
If you have a Radio Teleswitch Meter, you’ll need to upgrade to a smart meter before June 30 2025 before the service is retired and signal is cut off. Find out how you can upgrade to a smart meter for free, here.
Although support for RTS will be discontinued in 2025, this doesn't mean that you automatically need to switch from Economy 7 to a standard energy tariff.
For customers who have already been given a newer meter, such as a smart meter, this change will have no effect.
Modern meters don't rely on RTS technology; instead, they are directly connected to the energy provider's network, allowing them to have access to real-time communication and automated switching between tariffs. If you have a smart meter, your Economy 7 tariff will continue to function normally without disrupting your service. If you currently still have an older meter model, your energy provider will be in touch with you to arrange a replacement and potentially an upgrade to a smart meter — so there’s no need to worry.
However, if you still have a Radio Teleswitch Meter, you can upgrade to a smart meter here.
If your lifestyle or energy usage has changed — perhaps you're now using more electricity during the day than at night — it's worth reassessing whether Economy 7 is still the best option for you. The higher daytime rates associated with Economy 7 can outweigh the savings from off-peak usage if most of your energy consumption happens during peak hours.
If Economy 7 no longer suits your needs or you're concerned about the upcoming technology changes, you might want to consider switching to a standard energy tariff.
Switching from an Economy 7 tariff to a standard energy tariff is a simple process, but it's important to consider a few key steps to ensure a smooth transition and to determine whether the switch is right for you.
These are:
To kick-start the switch, reach out to your existing energy provider. They will be able to guide you through the process, which may involve changing your current meter if it’s designed specifically for Economy 7. Some older Economy 7 meters may not be compatible with standard tariffs, so your provider might suggest upgrading to a smart meter. These models automatically adjust to a wide range of different tariff types, making them a flexible option if you plan to switch.
While speaking with your energy provider, ask about the standard tariffs they have on offer. There are often a variety of options available, including fixed-rate and variable-rate plans. The differences can be seen below:
Fixed-rate tariffs – These provide a consistent rate over a set period, regardless of external influences.
Variable-rate tariffs — With this tariff, rates may fluctuate based on market conditions.
If your current Economy 7 meter needs to be replaced, your energy provider will arrange a time to install the new meter. This process is usually quick and straightforward, and the installer will ensure that your new meter is correctly configured for your chosen tariff.
After switching to a standard tariff, it’s a good idea to monitor your energy usage and bills for the first few months. This will help you make sure that the new tariff is actually saving you money. If you notice any issues or have questions, contact your provider for assistance.
If you’re planning on switching to a different tariff, why not get a quote at UW today and see how much you could save with our fixed and variable energy tariffs? Or, take a look at our guide if you’re not sure who your current energy provider is.
The exact start and finish times for Economy 7 can vary depending on your location and energy provider. Typically, the off-peak period begins somewhere around midnight and lasts for six to seven hours, ending between 6 AM and 7 AM. To find out the specific times for your tariff, you can check your electricity bill, contact your energy provider, or even look at your Economy 7 meter if it displays the switching times.
Yes, you can get a smart meter if you're on an Economy 7 tariff. Smart meters are fully compatible with Economy 7 and will continue to track your electricity usage during peak and off-peak periods. The benefit of a smart meter is that it automatically sends data straight to your energy provider, ensuring your bills are always accurate and making it easier for you to monitor your energy usage.
No, Economy 7 tariffs are designed only for electricity usage. In particular, they’re meant to be helpful for households that use lots of electricity for heating or hot water, not gas.
Economy 7 can be a smart way to save on your electricity bill if your household can wait until off-peak hours to power most of its devices.
To explore your options and find the best deal, browse our range of electricity tariffs or discover all our energy packages — including fixed and variable rates to suit your household's needs.
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Nobody likes having high energy bills – we can all agree on that. Which is why knowing how to be more efficient and reduce your usage is super important.
23 July 2024 - Whether you want to reduce your utility bills or contribute to a greener planet, adopting energy-efficient habits can make a significant difference. At UW, we're committed to helping you achieve these goals.
The government has announced that the energy price cap will increase on 1 April 2025. You don’t need to do anything - we’ll be in touch with all our customers on a standard variable tariff in the coming weeks with details of how this will impact you.
