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Does an Economy 7 tariff suit my needs?

Our expert says...

Economy 7 tariffs are designed so that they have a different pricing structure at different points of the day.

You will be charged less for the energy you use during the “off peak” hours during the night. Conversely, the “on peak” daytime hours are a lot more expensive.

In fact, some Economy 7 tariffs may charge you almost double the rate of a standard tariff for any energy you use during “on peak” time, which can quickly cancel out any savings you’ve made through using Economy 7 at night.

As a general rule of thumb you would need to use more than 40% of your energy at night to make the tariff cost effective.

How to make the most of an Economy 7 tariff

The way to manage your Economy 7 tariff and make it worth your while, means you must make use of storage heaters and place timers on things like your dishwasher, washing machine and tumble dryer.

By placing timers on these key appliances you can make sure they are only in use during ‘off peak” times.

Also, heating your water and your storage heaters during the night is the most cost effective way of using Economy 7.

The heat stored and emitted by the storage heaters during the night is generally relied on to last throughout most of the following day.

In the same way, water is also heated and stored during the night, for use throughout the day, so ensure your hot water boilers and storage heaters are switched on fully overnight, during ”off peak” hours.

How to change from Economy 7

To change off the Economy 7 tariff, you will need to have a new meter installed in your house. To do this you will need to contact your supplier.

Be warned though that replacing the meter might incur a cost of around £50.

Looking at what you said Janet, I would recommend switching energy tariffs so you are no longer on Economy 7 as soon as possible.

Not only are you not saving money with the tariff at the moment it is most likely costing even more than you should be paying.

Unfortunately to do this you will need a new meter and this could well cost you around £50 - so shop around for the best deal from a range of energy suppliers.

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