Economy 7, Economy 10 and Restricted Meter Billing

Economy 7 is a two-rate electricity tariff: a cheap rate for seven hours overnight and a more expensive rate for the other 17 hours of the day¹. It is not a supplier, a meter brand or a contract, but a billing structure that has to be matched to a meter able to record consumption in two registers. The cheaper rate usually runs between midnight and 7am, though the exact window is set by the regional network operator and varies by supplier and region¹.

The economics are simple and unforgiving. Because the daytime rate is usually higher than on a normal tariff, the tariff only pays for a household that can shift a large share of its consumption into the cheap window¹. Independent guidance puts the threshold at more than 40% of electricity used at night, with other sources saying more than 35%, and one putting the floor at 30%¹. Below that, a single-rate tariff is likely to cost less.

Economy 10 is the variant for households that need cheap power during the day as well as at night. It gives ten off-peak hours in total, split into blocks rather than one continuous run, and it is far less widely available than Economy 7⁵. Both sit inside the price cap, which covers default tariff customers paying by standard credit, Direct Debit, prepayment meter or Economy 7 meter⁷.

What Economy 7 is: a dual-rate tariff with seven cheap hours overnight

Economy 7 is a time-of-use electricity tariff that charges two different prices depending on when power is used¹⁰. The cheaper off-peak rate applies for seven hours out of every 24, usually at night, and the on-peak rate applies for the remaining 17 hours². Ofgem has described the structure in the same terms for well over a decade: all major suppliers offer Economy 7 tariffs, which offer cheaper electricity at night but slightly more expensive rates during the day¹².

The tariff exists because of storage heating. Economy 7 and Economy 10 tariffs are mainly intended for homes that run on an electric heating system and use storage heaters, which draw power overnight to charge a thermal store and release it through the following day². People with Economy 7 typically use the cheap hours to charge their electric storage heaters with heat¹³. Storage heaters themselves need a time-of-use tariff such as Economy 7 or Economy 10 to access cheaper electricity prices, so the meter, the tariff and the heating system are a package¹⁴.

That package has a boundary. Economy 7 is only available for electricity-heated homes and not those with a gas supply, and the same restriction applies to Economy 10¹⁵. It is also not possible to get an Economy 7 meter for a gas supply¹. A household with mains gas therefore cannot use the tariff as a general cheap-power window for the whole house; the arrangement is built around an all-electric or electrically heated property.

For a household's energy independence, Economy 7 does something specific and limited. It lets a home buy a large block of electricity at a price well below the daytime rate, which suits a property that can store energy as heat or, increasingly, in a battery. It does not reduce dependence on the grid, on a supplier or on the wholesale market that sets both rates. The cheap window is a price signal, not a source of supply, and the household remains connected and billed throughout.

Off-peak hours: when the cheap window actually runs

The seven cheap hours are not a national fixed clock. The cheaper rate usually runs between midnight and 7am, but this varies across suppliers¹. One description puts the window as a seven-hour period at some point between 11.00pm and 8.00am². The regional network operator, the company responsible for physically supplying electricity to a property, defines the hours, and the window can run between seven and nine hours depending on the area².

That regional variation matters more than it first appears. A household that runs a storage heater or charges a battery needs to know its own window, not the national average, because the charging period has to fit inside it. Some energy companies also offer extra hours during winter, which lengthens the cheap period in the season when electric heating demand is highest¹⁵. Some Economy 7 variations offer 8.5 or 10 hours rather than seven¹³.

Economy 10 works differently. It gives ten hours of cheaper electricity, usually in three time periods throughout the day¹⁵. The published accounts of where those hours fall do not agree:

For a household, the difference between the two tariffs is where the cheap power lands. Economy 7 concentrates it overnight, which suits storage heating and overnight battery charging. Economy 10 spreads it into the afternoon and evening, which suits a household that is at home during the day or that wants to run appliances outside the overnight block. Neither gives cheap power at will: both are fixed windows, and consumption outside them is charged at the peak rate.

How much cheaper the night rate is, and what the day rate costs

The gap between the two rates is the whole point of the tariff, and it is wide. The assumed Economy 7 unit rates used in official modelling are 34.38p per kWh for on-peak and 15.43p per kWh for off-peak, on a 58:42 on-peak to off-peak split⁸. The off-peak figure of 15.43p per kWh is also cited as the average cost of an Economy 7 off-peak rate in January 2026¹⁴. The night rate is therefore a little under half the day rate on those assumptions.

The day rate is where the tariff bites. The daytime rate will usually be higher than on a normal tariff, and some Economy 7 tariffs charge almost double the night rate during the day¹. For comparison, most suppliers charge around 26.3p per kWh of electricity on their single-rate standard variable tariffs in the South Wales (SWALEC) region². A household on Economy 7 is therefore paying a premium on every unit used outside the cheap window, and the size of that premium is what the night usage has to overcome.

The price cap treats multi-rate tariffs as a category of their own. Ofgem defines a multi-rate tariff as one where a customer pays one rate during a specified off-peak period and another, more expensive rate during peak hours, with Economy 7 as the example¹⁷. The cap covers default tariff customers paying by standard credit, Direct Debit, prepayment meter or Economy 7 meter⁷. Within the cap, Economy 7 customers paying by standard credit face an additional £84 compared with those on Economy 7 meters paying by Direct Debit¹³. In the 1 April to 30 June 2025 period, the standard credit cap level for electricity-only customers on Economy 7 meters rose to £1,275, a £55 or 5% increase¹⁹.

The cap level for Economy 7 Direct Debit customers from 1 October 2026 is £1,046, up 1% on the previous period, against £1,723 for Direct Debit customers generally⁹. The assumed consumption split behind those figures is set by direction: Ofgem has used a specific Assumed Consumption Split for Economy 7 tariffs in the prepayment price cap²⁰. That split is what makes the Economy 7 cap figure look lower than the headline number: it assumes a household using a heavier share of its electricity overnight than many homes, which is why the threshold figures elsewhere on this page sit at 30% and above.

Is Economy 7 worth it? The night-usage threshold for savings

The threshold is the single most useful number on the page, and the published figures differ. One states that a household would have to use more than 40% of its electricity during the night to make switching worthwhile¹. Another puts the general rule of thumb at more than 35% of electricity at night for Economy 7 to be cost-effective². A third says that for Economy 7 to be economical, a household should be able to use at least 40% of its electricity at night⁶. A fourth sets the floor lower, at least 30% of electricity during the cheaper night-time hours¹⁵. A fifth says that using less than 30% of electricity during the cheaper night-time hours could mean paying less on a single-rate tariff⁷.

Read together, the range runs from 30% to 40%, and the direction of travel is consistent: the higher the night share, the safer the case. The disagreement is not trivial, because a household sitting at 35% would be inside the threshold on one source and outside it on another. The reason for the spread is that the answer depends on the size of the day rate premium on the particular tariff, which varies by supplier and region, and on the standing charge, which is not always lower on a two-rate tariff.

What drives the night share is the heating and hot water system. A property with storage heaters charging overnight, an immersion heater on a timer and a battery charging in the cheap window can push a large share of consumption into the off-peak register. A property with a gas boiler and ordinary daytime habits cannot, because most of its electricity use is lighting, appliances and cooking in the evening peak. Economy 7 is only available for electricity-heated homes and not those with a gas supply, and it suits households using a decent share of their electricity overnight; homes with little night-time use are usually better off on a single rate²¹.

For energy independence, the threshold is the honest limit of the tariff. Economy 7 rewards a household that can store energy, whether as heat in a storage heater or as charge in a battery, and it penalises one that cannot. It does not make a home self-sufficient and it does not insulate a household from price changes, because both rates move with the cap and the wholesale market. What it does is give a household with the right equipment a way to buy its energy at a materially lower price for part of the day.

The Economy 7 meter: readings, displays and how to identify one

An Economy 7 meter includes two different readings¹⁰. One is for on-peak hours, which could be marked as normal or day, and one is for off-peak hours, marked low or night, and these may be shown as Rate 1 and Rate 2 or R1 and R2¹⁵. The meter has two sets of numbers, one marked low, which means night, and normal, which refers to today¹. These two sets of numbers are typically marked low and normal².

On a digital or prepayment meter, each reading is usually accessed by pressing a button on the meter, sometimes marked Rate 1 and Rate 2²². The daytime or on-peak reading should either be the top one, marked as normal or day, or the default display, and the night-time or off-peak reading is the bottom one, marked low or night²². A meter may also have a number marked day rate alongside a red button that is pushed to get the night rate¹. A smart meter can be configured for Economy 7, and all smart meters can support tariffs which charge different prices at different times throughout the day and night, including Economy 7, with Economy 10 meters also available²³.

Identifying the meter is straightforward from the bill. The signs are:

• two meter readings;
• a low or off-peak rate;
• a normal, high or on-peak rate;
• a button to press to see each rate on an electronic meter⁶.

In Scotland, Economy 7 meters are known as white meters, because the meters supplied by energy companies are white¹⁰. Where a property has solar panels and an export meter, the display shows a small 5 followed by five numbers, and those five numbers are the export reading, which is separate from the two import registers²⁴.

Economy 10: ten off-peak hours split across the day

Economy 10 offers much cheaper usage rates during 10 off-peak hours of the day⁵. It works in the same way as Economy 7 but offers 10 hours of low-cost electricity per night, according to one description¹⁰, while others describe the hours as split. The tariff provides 10 set hours of cheaper off-peak electricity, with three hours in the afternoon, two in the evening and five through the night⁶. Another account gives seven hours during the night and three during the day, most likely in the afternoon or evening⁵. A third says three of the hours are in the afternoon and seven are overnight². A fourth gives examples including three hours in the afternoon, four in the evening and three in the early morning, and two hours at lunchtime, three in the evening and five overnight¹⁶.

The variation is the defining feature. Not all Economy 10 tariffs operate on the same off-peak hours, and some suppliers change their off-peak hours when the clocks go forward and back⁵. The off-peak times vary from supplier to supplier and region to region¹⁶. A household on Economy 10 therefore has to establish its own window from its own supplier rather than assume a national pattern.

Economy 10 is not as widely used as Economy 7, and not all suppliers offer tariffs that support it⁶. There simply are not many Economy 10 suppliers available¹⁶. Many price comparison sites, including Uswitch, cannot support comparisons for Economy 10 meters because of the complexity of the three different rates, and Uswitch does not support Economy 10 switching at all, directing customers to suppliers directly². Most price comparison sites, including Uswitch, do not compare Economy 10 deals¹⁶.

The cost structure differs too. Economy 10 offers unit rates of up to half the price of peak rates, but the standing charges are often higher¹⁶. Standing charges can be higher on an Economy 10 tariff than on Economy 7². Economy 10 tariffs typically only offer five hours of heat at night, complemented with three in the afternoon and two in the evening, which is a different shape of cheap power from the seven continuous overnight hours of Economy 7¹⁶. For a household, that means Economy 10 suits a pattern of daytime occupancy and daytime appliance use, while Economy 7 suits a pattern built around overnight storage.

Economy 10 availability, meters and the cost of switching in or out

Economy 10 requires its own meter. To get an Economy 10 tariff a household must have an Economy 10 meter⁶. A supplier may be able to install one but may charge a fee to do so, as they are fairly uncommon¹⁶. A household can request an Economy 10 meter from its energy supplier, which may charge for it, and can request a smart meter at no additional cost².

Leaving the tariff also has a cost. If a household is switching away from Economy 10 to a standard tariff, it may need to pay a fee to have a standard meter installed¹⁶. If it wants to switch back to a fixed tariff, it will need to pay to replace the meter with a regular one⁵. Switching from one Economy 10 plan to another may require the meter to be reprogrammed by an engineer¹⁶. These are meter costs, not exit fees, and they fall on the household rather than the supplier.

Economy 7 and Economy 10 are older time-of-use tariffs that need compatible meters, while newer flexible tariffs typically work with smart meters²¹. Time-of-use tariffs are becoming less common as the legacy meters that support them are being phased out²⁶. That phase-out has a hard edge for some households: anyone with radio teleswitch systems on Economy 7 or Economy 10 tariffs will need a new meter to ensure their heating and hot water continue turning on and off as usual²⁷.

For households that have already left an Economy 7 or Economy 10 tariff, the position is calmer. There is no rush: the meter will continue to function normally and, providing all electricity is on one circuit, there should be no difference, though the Centre for Sustainable Energy recommends smart meters²⁷. That distinction matters, because it separates the households facing a forced meter change from those simply sitting on an old two-rate meter they no longer use as intended.

Economy 7 compared with single-rate and smart tariffs

The comparison is not between two prices but between two shapes of pricing. A single-rate tariff charges one unit rate at all hours, so a household pays the same for a unit used at 3am as at 6pm. Economy 7 charges one rate during a specified off-peak period and another, more expensive rate during peak hours¹⁷. The single-rate tariff is simpler and has no threshold to clear; the two-rate tariff is cheaper only for households that can shift enough consumption into the window.

Smart meters change the menu rather than the principle. Smart meters enable time-of-use tariffs, where different amounts are charged for electricity used at different times⁷. Economy 7 and Economy 10 use fixed cheaper periods, while newer electric vehicle and tracker tariffs can be more dynamic and usually work best with a smart meter²¹. A household does not have to change tariff if it gets a smart meter²⁸. A smart meter is compatible with Economy 7 tariffs and fixed rate tariffs and can enable newer time-of-use tariffs, so the meter itself does not lock a household into one structure².

For a household with a battery, the guidance points in a particular direction: a battery-only setup is best served by either a dynamic tariff or Economy 7¹⁵. That is a statement about the shape of the cheap window, not a recommendation of a supplier. A dynamic tariff moves its prices with the market and can reward a battery that charges and discharges at the right moments; Economy 7 offers a fixed overnight window that a battery can be programmed to fill. Both depend on a meter able to record consumption by time, and both leave the household connected to the grid and dependent on a supplier.

The choice between them turns on how much control a household wants and how much complexity it will manage. Economy 7 is a static, predictable window with a known number of cheap hours. Dynamic tariffs are variable and usually need a smart meter to work. Neither removes the standing charge, and neither changes the fact that the household is buying from a supplier at prices that move with the cap and the wholesale market.

Northern Ireland: Economy 7 prices and the Consumer Council comparison tables

Northern Ireland has its own electricity market and its own Economy 7 price information. The Consumer Council publishes an Economy 7 price comparison table for Northern Ireland, with tariffs correct on the day of comparison²⁹. The table published on 28 August 2026 carries that date, and the Council's stated policy is that tariffs will be updated on the date when the new increase or decrease comes into effect, not when announced²⁹. The Council also offers an energy price comparison tool to compare electricity and gas tariffs for all suppliers in Northern Ireland³⁰.

The published price list for Northern Ireland Economy 7 tariffs carries prices for 18 September 2026 including VAT of 5%, and notes that some tariffs may be available to new customers only³⁰. That VAT position is a Northern Ireland feature and differs from the rest of the UK. The Consumer Council's comparison tables are the practical reference point for a household there, because the GB price cap does not apply in the same way and the supplier landscape is different.

For households struggling with bills in Northern Ireland, separate advice is available from nidirect³¹. The wider point for energy independence is the same as in Great Britain: Economy 7 in Northern Ireland buys a cheaper overnight block from a supplier, and the household remains dependent on that supplier, the network and the wholesale market. The tariff changes the price of part of the day, not the source of the power.