If you’ve been considering switching energy supplier recently, you may have seen Economy 7 and Economy 10 plans mentioned, without knowing if they could be a sensible option for your home. This guide breaks down how each tariff works and who might benefit from this type of specialised off-peak electricity plan.
How Economy 7 works
Economy 7 refers to a dual-rate electricity tariff with a 17-hour peak pricing period and a 7-hour off-peak window, which usually falls overnight. This is typically between 11 pm and 8 am, but the exact off-peak times will depend on the supplier and your location.
Households that switch to Economy 7 will need to have a dual-rate meter installed or a compatible smart meter that can record usage separately for peak and off-peak hours. This allows your supplier to bill the two rates differently, rather than charging a single flat rate for all electricity used.
The 7-hour off-peak rate is much cheaper than the peak rate, sometimes 50% cheaper, potentially resulting in significant savings if energy is used appropriately. The trade-off is that the peak-rate electricity is charged above the normal single-rate tariff. Therefore, any electricity usage during this time is more expensive than a standard contract.
Initially designed for homes with storage heaters to allow them to use cheaper electricity at night and release heat during the day, they have now become more popular for a range of use cases. A primary use case is charging electric vehicles at night, but this type of tariff can also be cost-effective for people who run energy-intensive appliances or equipment overnight.
How Economy 10 works
Economy 10 works on the same basic principle as Economy 7, with cheaper electricity during set off-peak hours. The difference is the off-peak window extends to 10 hours a day instead of 7. Rather than a continuous block overnight, those 10 hours are typically split over three periods: a portion overnight, a block in the afternoon, and a shorter window in the evening.
Economy 10 is more flexible than Economy 7 and suits households where energy usage isn’t concentrated overnight. The exact schedule will depend on the supplier and region, so it’s worth checking if a supplier’s specific plan matches your energy usage patterns.
This plan is less readily available than Economy 7 and is not offered by every supplier. It is more often linked to regional or heating-system-specific tariffs, and also requires a compatible meter to be installed. Also, like Economy 7, the value of Economy 10 is based on a household’s specific behaviours, especially if a household can shift usage patterns to tie in with the off-peak schedule.
Who Economy 10 and Economy 7 Tariffs Suit
Economy 7 and Economy 10 tariffs aren’t suitable for every household, and entirely depend on energy being used in the allocated off-peak hours to generate real savings.
Homes with Storage Heaters or Immersion Heaters
These specialised tariffs were initially introduced for homes with storage or immersion heaters that use energy overnight to store heat, and then release it during the day. If your household uses either of these as a primary heating solution, then an E7 or E10 tariff would likely be the most cost-effective option.
Electric Vehicle Owners Who Charge Overnight
EV charging is one of the biggest single loads a household can shift to off-peak hours, as plugging in overnight and letting a charger run through the Economy 7 or Economy 10 window can substantially cut the cost of charging compared to peak-rate electricity.
However, there are dedicated EV energy tariffs to consider, which are often specifically designed around overnight charging and may offer even lower off-peak rates.
Flexible Households
Some flexible households can reschedule their everyday appliance use, such as running washing machines, tumble dryers, or dishwashers overnight using a delay timer. This can result in smaller savings than charging an EV, but an Economy 7 or 10 tariff can still make a noticeable difference to monthly electricity bills compared to peak pricing.
Who Economy 7 and 10 Tariffs May Not Suit
These tariffs are not suitable for households who mainly use appliances and electronics during the day, such as people who work from home or busy families who operate on different schedules. Households that fall into this category should compare single-rate tariffs, choosing between fixed-rate and variable contracts.
Pros | Cons |
|---|---|
Cheaper off-peak rates, often around half the standard price | Peak rates are usually higher than a single-rate tariff |
Can deliver strong savings for storage heaters, immersion heaters, and overnight EV charging | Only pays off if a significant share of usage falls in off-peak hours |
Encourages shifting flexible appliance use (washing machines, dishwashers) to cheaper hours | Households with daytime-heavy usage may end up paying more overall |
Widely available (Economy 7 especially), with many suppliers offering it | Requires a compatible dual-rate or smart meter |
No behaviour change needed for already-timed loads like storage heaters | Standing charges can sometimes be higher than on single-rate tariffs |
Economy 7 & 10 Tariff Meters
To benefit from Economy 7 or Economy 10 rates, your home needs a meter that can record electricity use separately for peak and off-peak periods. Not every meter can do this, so it's worth checking what you currently have before assuming you're eligible.
Dual-rate meters with two displays or registers are required, one tracking peak usage, the other off-peak. These older meters are common in homes that have had storage heating for years, but they only support the fixed off-peak windows they were originally set up for, and they can't be remotely read, so you'll still need to submit manual readings.
Meanwhile, second-generation smart meters (SMETS2) can also support Economy 7 and Economy 10 tariffs, and they do it more flexibly. They record and send half-hourly usage data automatically and can distinguish peak and off-peak consumption without needing a separate physical register. They’re preferable because they remove the need for manual readings altogether.
Is Economy 7/10 still worth it?
The value of Economy 7 and Economy 10 tariffs changes based on the wider energy price cap. The Ofgem price cap for 1 July to 30 September 2026 sets electricity at 26.11p per kWh with a 57.19p daily standing charge, alongside gas rates, for a typical direct debit household.
With this in mind, Economy 7 and Economy 10 remain worthwhile for the same households they've always suited: those with storage heating, immersion heaters, or EV charging that can be concentrated in off-peak hours. The gap between peak and off-peak rates on these tariffs remains wide enough that it still produces meaningful savings, even as both rates rise with the cap.
Glossary
Time-of-use tariff: Any energy tariff that charges different rates depending on the time of day electricity is used, including Economy 7, Economy 10, and newer smart/EV tariffs.
Off-peak rate: The lower electricity unit rate charged during designated off-peak hours on a time-of-use tariff.
Peak rate: The standard, higher electricity unit rate charged outside off-peak hours on a time-of-use tariff.
Dual-rate meter: A meter with two registers that separately record electricity used during peak and off-peak periods, required for Economy 7/10 billing.
SMETS2: A second-generation smart meter that automatically records and transmits half-hourly usage data, and can support time-of-use tariffs like Economy 7/10.
Standing charge: A fixed daily fee charged regardless of energy usage, covering the cost of supplying energy to the property.
Energy Price cap: The maximum amount Ofgem allows suppliers to charge per unit of energy and via standing charges for customers on default tariffs, reviewed quarterly.
