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Is Economy 7 still worth it with a smart meter?

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UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

Economy 7 can still be worthwhile if a large share of your electricity use happens during the off-peak period, especially with storage heating or overnight EV charging. If most consumption is during the day, a single-rate tariff may be cheaper.

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Compare your actual peak and off-peak usage against your current tariff before switching or fixing.

Read Ofgem Economy 7 guidance

Economy 7 is a multi-rate tariff

Economy 7 charges different electricity rates for different periods. Ofgem says the tariff normally has a cheaper off-peak period and a more expensive peak rate. The off-peak window is typically seven hours, but its exact timing can vary with the supplier and location.

The right question is therefore not “is Economy 7 good?” It is “what proportion of my electricity can I realistically move into the cheaper period?” Two homes with the same annual electricity consumption can reach different conclusions because their usage patterns are different.

When Economy 7 can make sense

Economy 7 can suit households with electric storage heaters, hot-water systems that can be scheduled overnight, or an EV that can charge during off-peak hours. A smart meter can help because it can record consumption in different time periods and support time-of-use tariffs.

If you already have an Economy 7 setup, do not assume you must change it simply because the market has moved towards smart meters. First look at the actual rates and your consumption profile.

When a single rate may be better

If you are often out during the day and already use electricity at night, Economy 7 can be attractive. Conversely, if your household uses most electricity during the peak period, the higher day rate can wipe out the benefit of the cheaper night rate. Ofgem explicitly says consumers who do not use much electricity at night are likely to be better off on a single-rate tariff.

Do current price-cap figures tell you which tariff is cheapest?

Not by themselves. Ofgem's energy price cap publishes average maximum unit rates and standing charges for standard variable arrangements, but suppliers can offer tariffs with different structures. For 1 October to 31 December 2026, Ofgem lists average direct-debit electricity at 26.32 pence per kWh and a daily electricity standing charge of 54.83 pence; these are cap averages, not a universal price for every household or tariff.

What about older Economy 7 meters?

Some older arrangements used Radio Teleswitch Service technology. Ofgem says the RTS technology was switched off from 30 June 2025 and affected customers should have been offered a replacement arrangement, usually involving a smart meter capable of supporting comparable multi-rate tariffs. If an old heating or hot-water control still appears to be linked to a legacy meter, contact your supplier.

Should you fix your energy tariff?

Choosing between a fixed deal and a price-capped standard tariff is separate from choosing Economy 7. A fixed tariff can provide certainty for the agreed period, but may include exit terms or simply prove more expensive if market prices fall. Read the total unit rates, standing charges and any early-exit terms instead of focusing on the headline “fixed” label.

What about prize draws and branded offers?

A promotion from one supplier can be enjoyable but it should not drive the tariff decision. Treat a prize draw or temporary incentive as a bonus, not as evidence that the underlying electricity rate is competitive. The durable comparison is your annual cost under your actual consumption pattern.

A simple way to compare

Take at least several months of actual kWh data.
Separate peak and off-peak usage if you are already on Economy 7.
Multiply each block of kWh by the relevant tariff rate.
Add the standing charges and any unavoidable fees.
Compare the result with a single-rate alternative.

Let your electricity pattern decide

Economy 7 works when the lower-priced period captures enough of your actual electricity use to offset the higher-priced daytime rate and any relevant standing-charge difference. The smart meter is the measuring tool; it does not, by itself, make the tariff cheaper.

The seven-hour window is not necessarily the same at every property. Ofgem says the exact off-peak period is set by the tariff and can vary with the supplier and location. That makes a quote’s labels less useful than the actual peak and off-peak unit rates attached to your account.

Households with storage heating, overnight vehicle charging or another large flexible load may have a natural fit for a multi-rate tariff. A household whose demand is concentrated during the day has less opportunity to benefit. Compare the last several months of kWh by time band, then price that pattern on both tariff types using the current supplier rates.

Illustrative annual electricity usage cost comparison

Worked example

Illustrative example: A household uses 3,600 kWh of electricity a year. Suppose, purely for comparison, 2,100 kWh falls in a cheaper overnight period at an illustrative 14p per kWh and 1,500 kWh is charged at an illustrative 31p per kWh. Ignore standing charges for the moment so that the usage-rate effect is clear.

Off-peak cost = 2,100 × £0.14 = £294.
Peak cost = 1,500 × £0.31 = £465.
Usage cost = £294 + £465 = £759.

If the same 3,600 kWh were charged at an illustrative single rate of 25p, the usage cost would be 3,600 × £0.25 = £900. The Economy 7 pattern would look cheaper in this illustration, but the comparison is only useful after adding the real standing charges and using your actual supplier rates.

Is Economy 7 worth having in 2026?#

It can be, especially if you can move a meaningful share of electricity use into the off-peak period. Storage heating and overnight EV charging are common reasons it works. If most of your consumption happens during the daytime, a single-rate tariff may cost less overall.

Do I need a special meter for Economy 7?#

You need a meter capable of recording the different tariff periods. That can be a traditional two-rate meter or a compatible smart meter. Ofgem says smart meters can support multi-rate tariffs, including Economy 7 arrangements. For the Economy 7 tariff comparison, rely on the governing rule and the current product or scheme terms rather than a generic summary.

Is Economy 7 cheaper at night?#

The tariff is designed to have a cheaper off-peak rate, but your supplier sets the actual rates. The relevant comparison is the blended annual cost, including the higher peak rate and standing charge, not just the overnight unit price. For the Economy 7 tariff comparison, rely on the governing rule and the current product or scheme terms rather than a generic summary.

Can an EV make Economy 7 worthwhile?#

An EV can increase the value of a time-of-use tariff because charging can often be scheduled for cheaper periods. The saving depends on the tariff, charging pattern and how much charging can actually be shifted into the off-peak window. For the Economy 7 tariff comparison, rely on the governing rule and the current product or scheme terms rather than a generic summary.

What happened to old Radio Teleswitch Economy 7 meters?#

Ofgem says the Radio Teleswitch Service technology was switched off from 30 June 2025. Customers with affected legacy arrangements should contact their supplier for a replacement meter or tariff arrangement that can continue to provide the intended timed heating, hot-water or Economy 7 service.

Should I choose Economy 7 or a single electricity rate?#

Compare them using your actual usage by time of day. Economy 7 tends to suit households that can use a lot of electricity off-peak. A single rate is often simpler and can be cheaper where night-time consumption is low. Standing charges must be included in the comparison.

Do supplier prizes or promotions make a tariff cheaper?#

Not necessarily. A temporary prize, cashback or promotion can change the first-year cost, but the underlying unit rates and standing charges determine the ongoing value. Compare the tariff first and treat time-limited incentives separately. For the Economy 7 tariff comparison, rely on the governing rule and the current product or scheme terms rather than a generic summary.

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Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.