Economy 7 tariffs explained: How to maximise savings with your meter
Here we explain what an Economy 7 meter is, how it works, what the pros and cons are and how to maximise your energy savings.
Updated on 20th August 2025 by:
Simon Wood, Head of Energy Pricing & Costing
What is an Economy 7 meter?
There are various meter types to suit different people’s energy needs. But it can be difficult to understand what each one offers.
Economy 7 meters are only for electricity, not gas. They can track the electricity you use during the day and night separately and are designed to offer cheaper electricity rates for 7 hours at night. These meters are mainly for households who use electric storage heaters and a hot water tank and are ideal for those that can shift at least 40% of their electricity usage to the cheaper nighttime rate.
What is an Economy 7 tariff?
An Economy 7 tariff gives you lower, off-peak rates for your electricity for seven hours at night. Think of it like the electricity equivalent of off-peak phone calls. You can have an Economy 7 tariff with any Economy 7 meter or Economy 7 smart meter.
How does Economy 7 work?
An Economy 7 meter can separate the electricity you use during the day and at night. Your electricity rate will be cheaper during the night. However, the flip side is that the price of your electricity during the day will be higher than a standard single rate tariff.
If your meter was installed by British Gas, the cheaper night-time tariff runs for a period of seven hours between the hours of 12pm and 8:30am, depending on your meter.
If British Gas didn't install the meter, cheaper tariff times will usually be seven hours between 10pm and 9am, but it’s best to check with your supplier.
Economy 7 and the Energy Price Cap
The Energy Price Cap sets a maximum price that suppliers can charge for each kilowatt hour (kWh) of energy customers use. The amount you pay depends on how many kWh of energy you use.
The Price Cap works a bit differently for Economy 7. Ofgem estimates that 42% of your energy use takes place during the off-peak period for an Economy 7 meter.
Economy 7 annual savings
An average Economy 7 rate can save you around £50 a year. But any savings will depend on your supplier and how much electricity you use at night to take advantage of the cheaper off-peak rate.
As a rule, Economy 7 meters work out cheaper for customers who use 40% or more of their electricity overnight. But if you use more electricity in the daytime at the higher unit rate you may want to consider switching to a single rate tariff.
| Electricity used at night % | Estimated annual cost £ | Savings vs Standard Variable Tariff |
|---|---|---|
| 10% | £1,369 | - £178 (You pay more) |
| 20% | £1,299 | - £108 (You pay more) |
| 30% | £1,288 | - £37 (You pay more) |
| 40% | £1,158 | + £33 |
| 50% | £1,088 | + £103 |
| 60% | £1,017 | + £174 |
| 70% | £947 | + £244 |
Based on Ofgem’s typical annual electricity multi-rate usage of 3,900 kWh per year and average July 2025 price cap for multi-rate paying by Direct Debit across all regions (average day rate 32.13p/kWh, average night rate 14.06p/kWh, average daily standing charge 51.2p/day).
Check out our energy saving tips guide to help maximise savings on your energy bills.
What are the pros and cons of Economy 7?
Pros
- Ideal for households with storage heaters and hot water tanks – appliances charge overnight and release heat and hot water during the day, making the most of the cheaper nighttime rate.
- Lower nighttime rates – electricity is cheaper during off-peak hours (usually 12-7am)
- Savings for shifting electricity usage to the cheaper off-peak nighttime rate - as a rule, Economy 7 meters work out cheaper for customers who use 40% or more of their electricity overnight. If you charge an electric car overnight, you could benefit although some specific EV tariffs could work out cheaper
- Compatible with smart meters – making is easier to track usage and automate meter readings
Cons
- Higher daytime rates – daytime rates are more expensive than standard single-rate tariffs. If you use more electricity during peak daytime hours than at night, you may want to consider switching to a single rate tariff
- Lifestyle dependent – You need to use at least 40% of your electricity during the off-peak nighttime hours to maximise savings
- Limited tariff options – Fewer suppliers offer competitive Economy 7 deals
- Complex meter readings – Economy 7 meters require separate readings for day and night usage which can be confusing. However smart meters can help with this
- RTS meters being phased out – Older meters using Radio Teleswitch technology are being phased out. However, your energy supplier should offer a smart meter upgrade ahead of the change so you can still use day and night rates.
Changes to electricity meters using Radio Teleswitch (RTS) technology
Radio teleswitch meters are a type of electricity meter used in the UK that rely on a radio signal to switch between peak and off-peak electricity rates, and to control heating and hot water systems, especially in homes without mains gas.
What are Radio Teleswitch Meters?
Radio Teleswitch Service (RTS) meters are controlled by an inbuilt radio which uses a signal to control the meter switching between day and night rates or peak and off-peak times.
What’s happening to RTS meters?
The BBC radio service that supports RTS meters is being phased out from 30th June 2025. If you have an electricity meter which switches between peak and off-peak tariff rates, such as an Economy 7 tariff, or it automatically turns on your heating or hot water, you may have a meter that uses Radio Teleswitch (RTS) technology. All British Gas customers with Radio Teleswitch meters will be offered a smart meter upgrade ahead of this change so they can still use day and night rates as before.
How do I know if I have an Economy 7 meter?
There are three main ways you’ll know if you are on Economy 7:
Day and night readings
Your electricity bill will have two separate readings for day and night.
MPAN number
The Meter Point Administration Number (MPAN) on your bill will begin with ‘02’.
Two sets of numbers
Your electricity meter will have two sets of numbers.
How to switch supplier or tariff if you have an Economy 7 meter
Switching supplier or tariff is easily done. The first thing you need to do is find the right one for you.
How to switch from an Economy 7 meter to a standard single rate meter
Economy 7 meters when used correctly (based on how and when you use electricity) could be cheaper when compared to a single rate meter.
But, if you have an Economy 7 meter and it’s working out to be too expensive, then it could be time to switch.
Just get in touch, tell us you’d like to switch to single rate metering and we’ll get the ball rolling.
Frequently Asked Questions
Can I have an Economy 7 smart meter?
The current SMETS2 smart meters can work in an Economy 7 mode. So, if you have a British Gas Economy 7 meter and would like a smart meter, you can book your installation in your online account.
How to switch to Economy 7
If you don’t have an Economy 7 tariff but would like to get one, start by comparing energy suppliers to find the cheapest Economy 7 tariff for you. Then contact the supplier to ask them to switch you to Economy 7. You may find there is a meter installation cost.
What’s the difference between Economy 7 and Economy 10 tariffs?
Economy 7 tariffs are where energy suppliers provide cheaper electricity at off-peak times – during the 7 hours of the night when energy is typically lower in demand. Some off-peak tariffs provide cheaper electricity over 10 hours of the night when demand isn’t as high – these tariffs are called Economy 10.
How to read an Economy 7 meter
If you’re on Economy 7 you might need to submit electricity readings to your energy provider to get an accurate bill. You’ll need to read and submit both sets of numbers on the meter.
You’ll need to read the numbers from left to right including any zeros and before the decimal point. The ‘low/off peak or R2’ rate is your night reading while the ‘normal or R1’ rate is your day reading. If your meter has a number pad, press 6 to see the 2 rate meter readings in kWh. Find out more in our expert guide to reading all types of meters.
Will Economy 7 save me money?
Economy 7 offers cheaper electricity for 7 hours of the night, usually between 12am -7am and a more expensive daytime rate. But any savings will depend on your supplier and how much electricity you use at night to take advantage of the cheaper off-peak rate.
As a rule, Economy 7 meters work out cheaper for customers who use 40% or more of their electricity overnight. But if you use more electricity in the daytime at the higher unit rate you may want to consider switching to a single rate tariff.
How do I know if Economy 7 is right for me?
Economy 7 is ideal for households with a hot water tank or electric storage heaters that charge overnight and release heat during the day. An Economy 7 multi-rate tariff can work out cheaper for customers use 40% or more of electricity during the cheaper nighttime hours to maximise savings. Smart meters can support Economy 7, making it easier to track usage and automate meter readings.
Is there an Economy 7 rate for gas?
Economy 7 meters are only for electricity, not gas. They track day and nighttime usage separately and are ideal for households with electric storage heaters and a hot water tank that are programmed to charge overnight and release heat and hot water during the day. Gas meters don’t support multi-rate usage.
Should I get an Economy 7 tariff if I have an electric car?
If you already have a multi-rate meter or smart meters that can track off-peak usage and you charge your car at home overnight, Economy 7 could help to reduce charging costs although some specific EV tariffs could work out cheaper.