What is Economy 7 Tariff?

Full Definition

Economy 7 is a type of electricity tariff, usually paired with a dedicated Economy 7 meter, that offers a cheaper unit rate for seven hours overnight (the exact window is set by the local network and typically falls somewhere between about 11pm and 8am) in exchange for a higher unit rate during the remaining seventeen daytime hours. It was originally designed for homes with electric storage heaters and immersion water heaters, which can be run or charged overnight on the cheap rate and release heat or hot water through the day, and it is also commonly used by households charging an electric vehicle overnight. Whether Economy 7 saves money depends heavily on how much of a household's electricity use can genuinely be shifted into the overnight window -- a household that mostly uses electricity during the day, or that does not have storage heating or overnight EV charging, can end up paying more overall than on a standard single-rate tariff, because the daytime rate on Economy 7 is usually noticeably higher than a flat single-rate unit price. Other time-of-use variants exist too, including EV-specific overnight tariffs with even deeper discounts during a shorter charging window, so it is worth comparing a supplier's Economy 7 rates against a standard tariff and any EV tariff using actual half-hourly or day/night usage data before switching.

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