As winter approaches, Brits can expect rising prices as households are already being warned of a 10% rise on energy bills, to an average annual energy bill of £1,717, 41% higher than in Winter 2021/22.
Simple tweaks, along with a switch in meter could save you up to 50% on your energy bills this winter.
With this in mind, Confused.com energy’s experts have provided their insight into how to maximise savings with an Economy 7 plan.
What is Economy 7, and how does it work?
It’s called Economy 7 because you get 7 hours of cheaper electricity every night. The price you pay at night could be up to 50%[1] less than the daytime rate. If you have an Economy 7 meter, you’ll benefit from cheaper electricity at night, but you'll pay more for using it in the day.
To take advantage of Economy 7 you need to be organised with your electricity use. As the daytime rate is higher, if you don’t strictly limit your daytime usage then you could end up paying more in the long run.
One unconventional way customers are overcoming this is to delay the dishwasher to run at night; the price you pay could be up to 43% less than the daytime using off-peak tariffs.
So for example, a year of dishwasher use could cost £51.57 with night cycles under Economy 7, compared to £90.48 for regular use during peak hours. Over a year, that’s a saving of £38.91, and even more if you include the savings on other big appliances such as washing machines or EV chargers.
Will Economy 7 save me money?
Whether Economy 7 could save you money depends on:
- When you use your electricity
- What fuel (gas or electric) you use to heat your home and water
- How many electrical appliances you use
Economy 7 works best for you if you’re heating electric storage heaters or a hot water tank during the cheaper hours at night. You can then use that heat during the following day.
You should plan to use your washing machine and dishwasher at night in order to take advantage of the reduced rates.
It also makes sense to charge your phone, tablet and other portable devices overnight, ready for the next day.
When is Economy 7 cheaper?
The hours that you get the lower rate with Economy 7 depend on the electricity supplier you’re with, as well as where you live. Your off-peak hours could be 11pm to 6am, or 1.30am to 8.30am, or anything in between.
During peak time, the cost of electricity on Economy 7 could be as much as double the normal rate. Therefore, you need to be sure that Economy 7 is right for you before getting it. Economy 7 can work well for shift workers, people who work nights and EV owners.
How to maximise your savings on an Economy 7 tariff:
To make the most of Economy 7, here are some simple tips:
- Use your dishwasher, washing machine, or EV charger during off-peak hours to save up to 43% on your bills.
- If you have electric storage heaters or a hot water tank, charge them overnight to enjoy warmth during the day.
- Keep your meter updated: keep an eye on the clock on your meter to make sure it's changing from the day to the night rate at the right time.
- If you find yourself using more electricity during the day, consider switching to a standard tariff for better rates.
Can I switch to Economy 7?
If you think Economy 7 could work for you, then you should be able to switch. Contact your energy supplier to arrange for them to install a meter and switch to an Economy 7 tariff. If you already own a smart meter, your supplier can remotely switch you to Economy 7.
If you’re struggling with energy bills:
If you receive benefits or pension, you might also qualify for energy grants to help with your bills.
For more on what to do if you’re struggling to pay your energy bills visit Citizens Advice and Ofgem.
If you're looking for certainty on your energy bills, compare energy deals to see what’s currently available.
