What is an Economy 7 Meter and Tariff?

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.

What is Economy 7?

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.

How does Economy 7 work?

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.

How is Economy 7 different from a standard energy tariff?

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.

What is an Economy 7 meter, and how do I know if I have one?

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.

How to read an Economy 7 meter

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:

1. Locate the display

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.

2. Identify the readings

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.

3. Record the numbers

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.

4. Submit the readings

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.

What is Radio Teleswitch (RTS) technology?

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.

What are Radio Teleswitch Meters?

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.

Important updates around Radio Teleswitch Meters

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.

Do I need to switch from Economy 7?

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.

How to switch from an Economy 7 tariff to a standard energy tariff

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:

1. Contact your energy provider

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.

2. Compare tariffs

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.

3. Schedule the meter change (if necessary)

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.

4. Monitor your new 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.

Heat your home for less with UW

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.