Time of use tariffs charge different rates for electricity depending on when you use it, with cheaper overnight periods and peak daytime rates
Time of use tariffs divide the day into time bands, each with a different unit rate for electricity. The core structure is a lower rate during specified off-peak hours (typically overnight) and a higher rate during peak hours (usually late afternoon to early evening). Some tariffs have two distinct rates (Economy 7-style), while newer smart tariffs may have three or more time bands, including a high peak rate.
The most common off-peak window is between midnight and 7am in winter, or midnight and 6am in summer, though exact times vary by supplier and tariff. These tariffs are designed to encourage shifting electricity use away from the grid’s busiest times, reducing strain and potentially lowering the supplier’s costs (Ofgem, 2026).
You typically need a smart meter to access the best time of use tariffs in 2026
Most modern time of use tariffs, especially those with three or more rate periods, require a smart meter to record half-hourly consumption data. Smart meters enable suppliers to bill you accurately for the exact units used in each time band, unlike older Economy 7 meters which use a simple two-rate timer. If you do not have a smart meter, you are generally limited to older Economy 7 or Economy 10 tariffs, which rely on a separate meter or a timer switch.
Suppliers may refuse to switch you to a multi-rate smart tariff if your smart meter is not fully functioning or is in “dumb” mode (not sending readings) (Smart Energy GB, 2026; Ofgem, 2026).
The savings from a time of use tariff depend entirely on how much of your electricity use you can shift to off-peak hours
The typical off-peak rate is 40–60% lower than the standard variable tariff rate, but the peak rate is often 20–50% higher than the standard rate. To break even, you typically need to shift at least 40–50% of your total electricity consumption to the off-peak window, depending on the specific tariff. High-consuming appliances that can be delayed include washing machines, tumble dryers, dishwashers, electric vehicle chargers, and water heaters.
If you cannot shift a meaningful proportion of your usage, you will almost certainly pay more than on a standard single-rate tariff (Energy Saving Trust, 2026; Ofgem, 2026).
Quick numbers – Typical rates and savings for a three-rate time of use tariff in 2026
| Rate type | Amount | Source |
|---|---|---|
| Off-peak rate | ~12p/kWh | Ofgem, 2026 |
| Peak rate | ~35p/kWh | Ofgem, 2026 |
| Shoulder rate | ~22p/kWh | Ofgem, 2026 |
| Standard variable tariff rate | ~25p/kWh | Ofgem, 2026 |
| Annual saving if 50% of usage is off-peak | ~£120/year | Energy Saving Trust, 2026 |
| Annual saving if 70% of usage is off-peak | ~£280/year | Energy Saving Trust, 2026 |
The direct answer to ‘which time of use tariff is best’ is the one that matches your home’s daily electricity consumption pattern
The best tariff is not a single product but the one where your home’s highest electricity usage naturally falls into the cheapest time bands. For example, if you charge an electric vehicle overnight and run a dishwasher after 10pm, an Economy 7-style tariff with a long overnight window may be best. If you work from home and use little electricity during the day, a tariff with a very low overnight rate but a high peak rate may still work if you can shift most of your use.
If you have solar panels, a time of use tariff with a cheap afternoon period can let you charge a battery cheaply even on cloudy days, but a high peak rate may offset savings (Energy Saving Trust, 2026; Ofgem, 2026).
Time of use tariffs work best with electric vehicles, heat pumps, or battery storage – but can still suit other homes
Electric vehicle owners are the most obvious candidates, as overnight charging can be shifted entirely to off-peak hours; some tariffs offer sub-10p/kWh rates for EV charging. Heat pump owners can also benefit by running the heat pump at night to store heat in a hot water cylinder or in the building fabric, though this is less flexible than EV charging. Battery storage (home batteries or powerwalls) allows you to charge the battery during off-peak hours and discharge it during peak hours, effectively locking in the cheap rate all day.
Homes without high-draw appliances can still benefit if they run washing machines, tumble dryers, and dishwashers on timers to operate during off-peak periods (DESNZ, 2026; Energy Systems Catapult, 2026).
Eligibility, certification, and how to verify an installer for smart meter installation needed for time of use tariffs
To access most time of use tariffs, you need a smart meter installed by a supplier-approved installer; you cannot use an independent electrician for the meter itself. The installer must be registered with the Smart Meter Installation Code of Practice (SMICoP) and their work is certified by the supplier, not by a separate body like MCS. For the tariff itself, the supplier must be licensed by Ofgem; you can check a supplier’s licence status on the Ofgem register (Ofgem, 2026).
If you are also installing an electric vehicle charger or heat pump to optimise tariff use, the installer must be MCS-certified (heat pumps) or OZEV-approved (EV chargers, if you want grant funding) (MCS, 2026).
