An Economy 7 meter is a specialized electricity meter designed to facilitate a dual-rate electricity tariff, allowing consumers to pay a cheaper rate for electricity consumed during a specific seven-hour period each night. Unlike a standard meter, which records total electricity usage at a single rate, an Economy 7 meter tracks the electricity used during the day and at night separately, making it possible for energy providers to offer discounted off-peak rates.
How an Economy 7 Meter Works
Economy 7 meters are equipped with two separate registers or displays that record electricity consumption:
- Peak Rate (Day Rate): This register records the electricity used during the day, which typically comes at a higher unit cost.
- Off-Peak Rate (Night Rate): This register records the electricity used during the designated seven-hour night period, when the unit cost is significantly lower.
The meter automatically switches between these two rates based on a timer, ensuring that all electricity used within the off-peak window is charged at the discounted rate. This off-peak period usually falls between late evening and early morning, though the exact timing can vary by supplier and region.
Benefits of Economy 7
Opting for an Economy 7 tariff with a corresponding meter can offer significant advantages, especially for households that can adapt their energy usage patterns:
- Reduced Electricity Bills: The primary benefit is access to cheaper electricity for seven hours daily. By shifting high-energy tasks to this off-peak window, you can significantly lower your overall electricity costs.
- Ideal for Night-Time Appliances: It's particularly beneficial for homes with storage heaters, electric vehicle charging, or appliances like washing machines and dishwashers that can be run overnight.
- Predictable Savings: If your lifestyle or heating system aligns with the off-peak hours, the savings are consistent and predictable.
Who Can Benefit from Economy 7?
Economy 7 is often well-suited for specific types of households and energy consumption patterns:
- Homes with Storage Heaters: Storage heaters are designed to charge up during off-peak hours, storing heat to release throughout the day. Economy 7 tariffs make this heating method very cost-effective.
- Electric Vehicle (EV) Owners: Charging an EV can consume a lot of electricity. Charging overnight during the off-peak window can dramatically reduce the running costs of an electric car.
- Households with Flexible Lifestyles: If you're able to schedule the use of high-energy appliances such as washing machines, tumble dryers, and dishwashers to run overnight, you can maximize your savings.
- Individuals Working Night Shifts: Those who are awake and using electricity during the off-peak period may find Economy 7 tariffs advantageous.
Potential Considerations
While offering savings, Economy 7 also has some considerations:
- Higher Day Rates: The discounted night rate is often offset by a higher unit rate for electricity consumed during the day compared to a standard single-rate tariff. If you use a lot of electricity during the day, your overall bill might not be lower, or could even be higher.
- Requires Lifestyle Adaptation: To truly benefit, you need to actively shift a significant portion of your electricity usage to the off-peak hours.
- Less Common with Smart Meters: While some smart meters can support multi-rate tariffs, dedicated Economy 7 meters are a specific type. Many newer smart meters offer more flexible "time-of-use" tariffs rather than the fixed seven-hour window.
Checking Your Economy 7 Meter
If you have an Economy 7 meter, you'll typically see two sets of numbers on the display, corresponding to the peak and off-peak readings. These might be labelled as:
- Rate 1 / Low / Night / Off-Peak
- Rate 2 / Normal / Day / Peak
The specific labelling can vary by meter model and manufacturer. When taking a reading, you'll need to note both numbers. For more details on reading your specific meter, you can often find guides on your energy supplier's website, such as this example from British Gas or E.ON Next.
Economy 7 vs. Other Meter Types
Understanding the differences between meter types can help you decide which tariff is best for your household.
| Feature | Economy 7 Meter | Standard Single-Rate Meter | Smart Meter (SMETS2) |
|---|---|---|---|
| Tariff Type | Dual-rate (Day/Night) | Single-rate | Flexible/Time-of-Use, Variable, Fixed |
| Consumption Tracking | Tracks Day and Night usage separately | Tracks total consumption only | Real-time, granular data; supports multiple rates |
| Cost Benefit | Cheaper night usage if consumption shifted | Consistent rate; no incentive to shift usage | Optimized by specific tariff and usage patterns |
| Data Display | Two separate registers (e.g., Low & Normal) | One total consumption register | Digital display, often with in-home display (IHD) |
| Remote Reading | Manual reading required | Manual reading required | Automatic meter readings sent to supplier |
| Typical Use Case | Homes with storage heaters, EV charging | General household use with consistent energy needs | Modern homes seeking detailed insights and flexible tariffs |
Is Economy 7 Right for You?
To determine if an Economy 7 tariff and meter are suitable for your household, consider the following:
- Your Energy Usage Habits: Do you use a significant amount of electricity during the night (e.g., after 11 PM and before 6 AM)?
- Heating System: Do you have electric storage heaters, or are you considering installing them?
- Electric Vehicle: Do you own an electric vehicle that you charge at home overnight?
- Appliance Scheduling: Are you willing and able to set timers for appliances like dishwashers and washing machines to run during off-peak hours?
If you answered yes to several of these questions, an Economy 7 meter and tariff could offer substantial savings on your electricity bills. However, if most of your energy consumption occurs during the day, a standard single-rate tariff might be more cost-effective. You can compare different tariffs and meter options through energy comparison websites or by contacting energy suppliers directly. Ofgem, the energy regulator, also provides helpful advice on understanding energy tariffs.
