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Economy 7 vs standard tariff: which is cheaper for your home?

Updated June 2026 8 min read

Quick verdict

Economy 7 is only cheaper if you can shift a large share of electricity use into the seven-hour night window. For most homes without storage heaters, an EV or heavy overnight use, a standard single-rate tariff is simpler and often cheaper.

Option A

Economy 7

A two-rate electricity tariff with a cheaper night rate for seven hours and a higher day rate.

Option B

Standard tariff

A single-rate electricity tariff where each kWh costs the same at any time of day.

Side-by-side comparison

Economy 7 wins on the night rate but loses on the day rate. A standard tariff wins for simplicity and typical daytime use.

Day rate

Economy 7

28p to 35p per kWh

Standard tariff

22p to 26p per kWhBetter

Night rate

Economy 7

11p to 15p per kWhBetter

Standard tariff

Same as day rate

Night window

Economy 7

7 consecutive hoursBetter

Standard tariff

None

Typical home without shifting

Economy 7

Often more expensive

Standard tariff

Usually cheaperBetter

Storage heaters

Economy 7

Designed for themBetter

Standard tariff

Usually expensive

Best for

Economy 7

Storage heaters, EVs and high night use

Standard tariff

Most general households

Pros and cons

Economy 7 pros and cons

Pros

  • ✓Cheap night rate
  • ✓Good for storage heaters
  • ✓Can suit overnight EV charging
  • ✓Works for shiftable appliances

Cons

  • -Higher day rate
  • -Needs high night usage
  • -Can be awkward to schedule
  • -Not always best for heat pumps

Standard tariff pros and cons

Pros

  • ✓Simple single rate
  • ✓Usually cheaper for normal usage
  • ✓No scheduling needed
  • ✓Works with any meter

Cons

  • -No cheap night period
  • -EV charging may cost more
  • -Poor fit for storage heaters
  • -No time-of-use savings

Cost examples

Low night use

If only 10% of use is overnight, Economy 7 is usually poor value.

Likely fit
Standard

Storage heaters

If most heating is charged overnight, Economy 7 can make sense.

Night use
40%+

EV charging

Economy 7 can help, though dedicated EV tariffs may be better.

Compare
EV tariff

When to choose Economy 7

  • ›You have storage heaters
  • ›You can shift at least 40% of use overnight
  • ›You charge an EV overnight
  • ›You understand your night window
  • ›You can avoid high day use

When to choose Standard tariff

  • ›You use most electricity during the day
  • ›You want simplicity
  • ›You do not have storage heaters
  • ›You cannot shift appliances overnight
  • ›You want predictable single-rate billing

Calculator

Calculate your own figures

Use the calculator below for a personal estimate, or open the full tool for the complete calculator page.

Inputs

Estimate a household electricity bill including standing charge.

Open full calculator

FAQs

What are Economy 7 night hours?

They are usually seven consecutive off-peak hours, often around midnight to 7am, but exact times vary by region, meter and supplier.

Do I need a special meter?

You need a two-rate meter or a smart meter configured for day and night readings.

Is Economy 7 worth it with a heat pump?

Often not by itself, because heat pumps may need to run across the day. Compare dedicated heat pump or smart tariffs.

How do I know if I am on Economy 7?

Your bill will show two rates or two readings, often labelled day and night or rate 1 and rate 2.

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