Economy 7 and Economy 10 Tariffs: Do They Still Save Money in 2026?

Economy 7 and Economy 10 tariffs have been a feature of UK energy pricing for decades, offering cheaper electricity during off-peak hours in exchange for higher daytime rates. But with energy prices having shifted dramatically and modern time-of-use tariffs like Octopus Go now available, the question many households are asking is whether an Economy 7 tariff is worth it in 2026 — or whether these legacy tariffs are actually costing them more.

Do Economy 7 and Economy 10 tariffs still save money?

Economy 7 and Economy 10 tariffs can still save money in 2026, but only if you use at least 40% of your electricity during off-peak hours. Under current rates, off-peak electricity costs around 10–12p per kWh compared to 28–35p during peak hours. If most of your usage falls in peak periods, you will pay more than on a standard flat-rate tariff. These tariffs work best for households with storage heaters, electric water heating or EV charging that can shift demand to overnight hours.

With the growth of smart tariffs and time-of-use pricing from suppliers like Octopus Energy and OVO, traditional Economy 7 and 10 meters are becoming less competitive. Modern smart meter tariffs often offer more flexible off-peak windows and better peak rates. If you still have an Economy 7 meter, it is worth comparing against agile and flexible tariffs to ensure you are on the cheapest deal for your usage pattern.

This guide explains how these tariffs work, compares them with modern alternatives, and calculates exactly when they save money and when they do not.

How Economy 7 and Economy 10 Tariffs Work

Economy 7 and Economy 10 are multi-rate electricity tariffs that charge different prices depending on the time of day. They require a special two-rate meter that tracks off-peak and peak consumption separately.

Economy 7

Economy 7 provides 7 hours of cheaper electricity per night, typically between midnight and 7am (though the exact times vary by region and supplier). All other hours are charged at a higher daytime rate.

Economy 10

Economy 10 provides 10 hours of cheaper electricity, split across three periods: typically 5 hours overnight, 3 hours in the afternoon, and 2 hours in the evening. The off-peak windows vary by supplier and region.

Both tariffs were originally designed for homes with electric storage heaters and immersion hot water cylinders, which could heat up cheaply overnight and release that stored heat during the day.

Economy 7 Rates in 2026: What You Actually Pay

Under the current energy price cap framework, Economy 7 rates are set with a significant gap between off-peak and peak prices. Here are indicative rates as of early 2026.

The critical thing to notice is that the daytime rate on Economy 7 is higher than a standard single-rate tariff. This means Economy 7 only saves money if you can shift a substantial proportion of your electricity use to the off-peak window. If most of your consumption happens during the day, you end up paying more than you would on a flat rate.

When Economy 7 Still Saves Money in 2026

Economy 7 can still deliver genuine savings for households that meet specific criteria. Here are the scenarios where it works.

Storage heater households

If your home is off the gas grid and relies on electric storage heaters for space heating, Economy 7 remains relevant. Modern high-heat-retention storage heaters can charge overnight on cheap electricity and release heat gradually throughout the day. A household using 5,000 kWh per year on overnight heating saves roughly GBP 650 to GBP 750 compared to running the same heaters on a flat rate.

However, it is worth comparing storage heaters against infrared heating panels, which use less total energy because they heat objects directly rather than warming air. Infrared panels run on demand during the day, so a flat-rate tariff may work out cheaper overall despite the higher per-unit cost.

EV charging

Charging an electric vehicle overnight is one of the best uses for Economy 7. A typical EV driven 8,000 miles per year uses around 2,400 kWh. At the Economy 7 off-peak rate of 10p/kWh, that costs roughly GBP 240 per year, compared to GBP 576 on a flat rate of 24p/kWh — a saving of over GBP 330.

Battery storage systems

Homes with a solar panel and battery storage system can charge the battery overnight on cheap Economy 7 electricity, then use that stored energy during the day to avoid the higher peak rate. A 10 kWh battery charged nightly saves roughly GBP 500 to GBP 700 per year on the rate differential alone.

Immersion water heating

Heating a hot water cylinder overnight using an immersion heater on Economy 7 is significantly cheaper than heating it during the day. A typical household uses around 1,500 kWh per year for hot water. On Economy 7 off-peak rates, this costs approximately GBP 165, compared to GBP 360 on a flat rate.

When Economy 7 Costs You More

For many households, Economy 7 is no longer the best option. Here are the warning signs that you are paying more than you need to:

• Less than 40% of your electricity is used off-peak: the break-even point for Economy 7 is typically around 40 to 45% off-peak consumption. Below this, the higher daytime rate outweighs the overnight savings
• You have switched from storage heaters to a gas boiler or heat pump: if you no longer use electric heating overnight, you have lost the main reason for being on Economy 7
• You work from home during the day: daytime electricity use (computers, lighting, cooking, appliances) is charged at the premium rate
• You use a tumble dryer, dishwasher or washing machine mainly during the day: these high-consumption appliances become expensive on Economy 7’s daytime rate

A household using 3,500 kWh per year with only 25% off-peak would pay approximately GBP 95 more per year on Economy 7 compared to a standard flat-rate tariff. That is money wasted for no benefit.

Modern Time-of-Use Tariffs: Better Alternatives to Economy 7

The energy market now offers several smart time-of-use tariffs that are more flexible and often cheaper than Economy 7. These require a smart meter (SMETS2) rather than the old two-rate meter.

The key advantage of these modern tariffs is that the off-peak rates are often lower than Economy 7’s off-peak rate, while the peak rates are similar to or lower than Economy 7’s daytime rate. For many households, switching from Economy 7 to a smart tariff saves GBP 100 to GBP 300 per year with no change in behaviour.

How to Decide Whether to Stay on Economy 7

Follow this decision process to work out whether Economy 7 still makes sense for your household.

• Check your bills: look at the split between off-peak and peak kWh on your electricity statements. If less than 40% is off-peak, you are likely overpaying
• Get a smart meter: contact your supplier and request a SMETS2 smart meter installation (free of charge). This opens up access to modern time-of-use tariffs
• Compare tariffs: use a comparison site to see what flat-rate and time-of-use options are available in your area
• Consider your heating system: if you use storage heaters, evaluate whether switching to a heat pump or infrared panels would reduce total costs regardless of the tariff
• Factor in future changes: if you are planning to install solar panels, a battery, or an EV charger, a smart time-of-use tariff almost always outperforms Economy 7

Switching Away from Economy 7: What You Need to Know

Switching from Economy 7 to a standard or smart tariff is straightforward, but there are a few things to be aware of:

• Meter change: you may need a smart meter installed to replace your old two-rate meter. This is free and usually takes 30 to 60 minutes
• Storage heater timers: if you have storage heaters connected to the off-peak meter circuit via a separate consumer unit, an electrician may need to reconfigure the wiring. This typically costs GBP 100 to GBP 200
• No exit fees: you are free to switch tariff at any time. There are no penalties for leaving Economy 7
• Immersion heater timer: if your immersion heater is on a timer linked to the off-peak meter, you will need to adjust or replace the timer when switching tariff

If you are also considering upgrading your heating system as part of the switch, get a free quote to explore heat pump, solar and insulation options for your property.

Frequently Asked Questions About Economy 7 and Economy 10

What are the exact Economy 7 off-peak hours in my area?

Economy 7 off-peak hours vary by electricity region and supplier. Common windows are midnight to 7am, 1am to 8am, or 12:30am to 7:30am. Your supplier can confirm your exact off-peak times, and they should be stated on your bill. Note that the hours may shift by one hour during British Summer Time, depending on your meter type.

Can I have Economy 7 with a smart meter?

Yes, a SMETS2 smart meter can replicate the Economy 7 two-rate structure. However, once you have a smart meter installed, you also have access to modern time-of-use tariffs that may offer better value. It is worth comparing all available options before committing to Economy 7 on a smart meter.

Is Economy 10 better than Economy 7?

Economy 10 offers more off-peak hours (10 versus 7), which means more opportunity to shift consumption to cheaper periods. The afternoon and evening off-peak windows are particularly useful for running appliances. However, Economy 10 is only available in certain regions and from fewer suppliers, so your options may be limited. In areas where it is available, it often provides better value than Economy 7 for households that can use the daytime off-peak windows.

Should I get Economy 7 if I install solar panels and a battery?

No. If you are investing in solar panels and battery storage, a smart time-of-use tariff like Octopus Go or Octopus Agile will almost certainly deliver better value. These tariffs offer lower off-peak rates than Economy 7 for overnight battery charging, and the smart export guarantee payments for surplus solar generation are typically better than Economy 7 export rates.

What percentage of my usage needs to be off-peak for Economy 7 to save money?

The break-even point depends on exact rates, but as a general rule, you need at least 40 to 45% of your total electricity consumption to fall within the off-peak window for Economy 7 to be cheaper than a flat-rate tariff. Below that threshold, the penalty you pay on daytime usage outweighs the overnight savings. Check your bills to see your actual off-peak percentage — if it is below 40%, switching to a flat rate or smart tariff will save you money immediately.