By Chandraketu Tripathi · Updated April 2026 · Fact-checked Energy · April 2026Economy 7 is one of the UK's oldest electricity tariffs, originally designed for night storage heaters. In 2026, it remains relevant for households with electric vehicles, storage heaters or high overnight electricity usage. But with smart tariffs offering even cheaper overnight rates, Economy 7's advantages are narrowing for some users. Here is everything you need to know.
How Does Economy 7 Work?Economy 7 splits electricity into two rates: a cheap overnight rate (available for approximately 7 hours per night) and a higher daytime rate. The night hours vary by region and supplier, but typically run from midnight or 1am to 7am or 8am. Your Economy 7 meter records day and night usage separately. The key to benefiting from Economy 7 is shifting as much electricity use as possible to the cheap night hours. Night storage heaters charge overnight at the cheap rate and release heat throughout the day. Electric vehicle charging overnight is one of the most cost-effective applications of Economy 7 in 2026. 💡 Economy 7 only makes financial sense if you use at least 40-50% of your total electricity during the night hours. If you use most of your electricity during the day, the higher daytime rate will more than offset the savings from night usage. Use your current electricity usage data to calculate your likely day/night split before switching. Economy 7 vs Smart Tariffs in 2026Smart tariffs such as Octopus Go, OVO Charge Anytime and E.ON Next Drive offer even cheaper overnight rates specifically for EV charging — sometimes as low as 7-8p per kWh overnight. These tariffs are available to smart meter customers and may offer better value than Economy 7 for EV-only overnight charging. However, smart tariffs require a compatible smart meter and EV charger. Is Economy 7 Worth It in 2026?Economy 7 is worth it if you have: storage heaters (specifically designed for night charging), an electric vehicle you charge overnight, a hot water cylinder you can heat overnight, or a household that naturally uses 40%+ of electricity at night (shift workers, for example). If you primarily use electricity during the day, a standard single-rate tariff is almost certainly cheaper despite the higher unit rate. ⭐ OUR VERDICT Economy 7 remains worthwhile for storage heater users and overnight EV chargers in 2026. If you charge an EV overnight, an Economy 7 or smart EV tariff can reduce your annual charging cost by £200-£400 versus a standard tariff. For households without high overnight usage, the elevated daytime rate more than negates any night savings. Check your current day/night electricity split by reviewing your smart meter data or asking your supplier before switching. Frequently Asked QuestionsWhat are the Economy 7 hours in 2026? Economy 7 hours vary by region and supplier but typically run for 7 hours between midnight and 8am. Common windows are midnight to 7am, 12:30am to 7:30am, or 1am to 8am. Your supplier can confirm your exact Economy 7 hours. Some smart meters display the current rate on screen. Can I get Economy 7 on a standard smart meter? Yes. Modern SMETS2 smart meters can be configured for time-of-use tariffs including Economy 7. If you have a smart meter, ask your supplier to switch you to Economy 7 without needing a meter replacement. Older SMETS1 meters may require replacement. Is Economy 7 cheaper than a standard tariff? Economy 7 is only cheaper if you use sufficient electricity during the night hours. The daytime rate is significantly higher than a standard single-rate tariff. For households using 40%+ of electricity overnight, Economy 7 produces net savings. For those using less than 40% overnight, a standard tariff is typically cheaper overall. Are storage heaters compatible with modern smart tariffs? Traditional night storage heaters are designed for Economy 7 and cannot be controlled by app or smart systems. Newer 'smart' storage heaters can be controlled via an app and can be optimised for any time-of-use tariff. If you have older storage heaters, upgrading to smart storage heaters alongside a smart tariff can improve both comfort and efficiency. |
Economy 7 Tariff UK 2026: Is It Worth It? Rates, Hours & How It Works
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