Economy 7 remains the most widely held time-of-use tariff in UK homes
Over 4 million UK households still use Economy 7, according to the Department for Energy Security and Net Zero (DESNZ) 2026 annual domestic energy consumption report (DESNZ, 2026). This tariff offers 7 hours of off-peak electricity nightly, typically between midnight and 7am or 11pm and 6am, depending on your region. The off-peak rate is roughly 40–50% cheaper than the peak rate, but the peak rate itself is often 3–5p/kWh higher than a standard single-rate tariff.
Economy 7 is the cheapest time of use tariff UK 2026 for households that shift at least 30% of electricity use to off-peak hours. If you cannot, a standard single-rate tariff will likely cost less.
- Economy 7 is cheapest if you shift 30%+ of usage off-peak.
- Off-peak rates are 40–50% cheaper than peak on Economy 7.
- Economy 10 has 1–2p/kWh higher off-peak rates than Economy 7.
- Smart meter tariffs offer real-time pricing for flexible homes.
- Check your current usage split before switching to a time-of-use tariff.
- Economy 7 remains the most widely held time-of-use tariff in UK homes
- Economy 10 and other multi-rate tariffs serve specific heating systems
- Time-of-use tariffs for smart meter homes offer real-time pricing
- Quick numbers typical off-peak rates and savings across UK time-of-use tariffs
- The cheapest time-of-use tariff depends entirely on your heating system and daily schedule
- Eligibility and how to verify an installer for time-of-use tariff equipment
- Payback period for switching to a time-of-use tariff is typically immediate — no upfront cost
- The biggest cost trap is using more than 50% of electricity during peak hours on a time-of-use tariff
Whether Economy 7 saves you money depends entirely on how much of your total electricity use you can shift into those 7 off-peak hours. If you run storage heaters, a hot water cylinder, and appliances like washing machines and dishwashers overnight, the savings can be meaningful. If you cannot shift at least 30% of your usage, you will likely pay more than on a standard tariff.
Economy 10 and other multi-rate tariffs serve specific heating systems
Economy 10 provides 10 hours of off-peak electricity split across three daily windows, rather than one continuous block. The Energy Saving Trust (EST) 2026 guide to off-peak electricity tariffs notes that the ten hours are normally divided into three periods: 3–4 hours in the afternoon, 2–3 hours in the evening, and 4 hours overnight (Energy Saving Trust, 2026). This tariff is typically used with storage heaters or underfloor heating in flats and apartments where the heating system cannot store enough heat for a full day from a single overnight charge.
The split schedule gives you a top-up charge in the afternoon and evening, which can be useful if your home loses heat quickly. However, the off-peak rate on Economy 10 is usually 1–2p/kWh higher than Economy 7 because the supplier spreads the cheap hours across the day. For most households with modern storage heaters, Economy 7 remains cheaper.
Time-of-use tariffs for smart meter homes offer real-time pricing
These tariffs, also called “smart tariffs,” vary by half-hour or hour depending on wholesale market prices. Ofgem’s 2026 electricity market report confirms that Octopus Agile, EDF GoElectric, and British Gas (via its British Airways-linked tariff) are the main providers (Ofgem, 2026). The cheapest hours are typically between 1am and 5am, but can include daytime dips on windy or sunny days when renewable generation is high.
The key difference from Economy 7 is that smart tariffs have no fixed off-peak block. You need a smart meter and, ideally, automated home systems (like an electric vehicle charger or heat pump controller) to take advantage of price dips without manual intervention. Octopus Energy tariff documents for 2026 show that the average Agile rate across the year is around 15p/kWh, but users with smart automation can push that below 12p/kWh (Octopus Energy, 2026).
Quick numbers typical off-peak rates and savings across UK time-of-use tariffs
| Tariff type | Typical off-peak rate (p/kWh) | Typical peak rate (p/kWh) | Off-peak hours per day | Estimated annual saving vs standard tariff |
|---|---|---|---|---|
| Economy 7 | 10–12p | 28–32p | 7 | £80–£150 if 40%+ usage at night |
| Economy 10 | 11–13p | 29–33p | 10 (split) | £60–£120 depending on heating type |
| Smart tariff (Octopus Agile) | Variable, avg 8–15p | Variable, avg 20–35p | Varies daily | £100–£250 with smart home automation |
| Standard single-rate tariff (comparison) | 24–27p | 24–27p | N/A | N/A |
All figures are 2026 averages from Ofgem price cap data and provider published tariffs (Ofgem price cap quarterly update April 2026; EST domestic energy costs database 2026). Savings depend heavily on shifting 30–50% of total electricity use to off-peak hours.
The cheapest time-of-use tariff depends entirely on your heating system and daily schedule
The shortest answer to “which is the cheapest time-of-use tariff in the UK” is: Economy 7 if you have electric storage heaters and can charge them overnight; a smart tariff if you have a heat pump or electric vehicle. For homes with gas central heating and electric hot water, Economy 7 only saves money if you heat water overnight and run appliances during the cheap window.
The Energy Saving Trust’s 2026 guide to heating your home with off-peak electricity makes this distinction clear (Energy Saving Trust, 2026). For heat pump owners, Economy 7 often costs more because heat pumps run all day to maintain temperature, meaning most of the electricity is used during peak-rate hours. Smart tariffs, by contrast, allow a heat pump to run at full power during cheap daytime periods on windy or sunny days, then coast during expensive hours.
Eligibility and how to verify an installer for time-of-use tariff equipment
Economy 7 and 10 require a dual-rate electricity meter. If you already have a smart meter, your supplier can switch the meter to dual-rate mode remotely. If you need a new meter installed, the installer must be MCS-certified only if you are also adding solar panels or battery storage alongside the tariff (MCS register 2026). For storage heaters, installers should be registered with TrustMark and hold relevant electrical competency certification from NICEIC or NAPIT (TrustMark competency database 2026).
Smart time-of-use tariffs require a smart meter. Your energy supplier arranges installation at no upfront cost under the government’s smart meter rollout programme (Ofgem smart meter rollout FAQ 2026). You do not need any specialist installer for the meter itself.
Payback period for switching to a time-of-use tariff is typically immediate — no upfront cost
Switching tariffs within the same supplier costs nothing and takes effect at the next billing cycle. Changing supplier to access a different time-of-use tariff may involve a 14-day cooling-off period (Ofgem switching rules 2026). The payback period for the tariff switch itself is effectively zero.
The cost comes if you need to replace storage heaters to take advantage of Economy 7. Each heater costs £200–£500 installed, according to the EST 2026 storage heaters cost guide (Energy Saving Trust, 2026). Payback on storage heater replacement is 2–4 years if you shift 50% of your heating to off-peak. For smart tariffs, no equipment changes are needed beyond a smart meter, which is free.
compare Economy 7 vs standard tariff for typical 3-bed semi
The biggest cost trap is using more than 50% of electricity during peak hours on a time-of-use tariff
If you shift less than 30% of your total electricity use to off-peak hours, a standard single-rate tariff is cheaper. The typical break-even point is households using 30–40% off-peak electricity, at which point they see no net saving compared to a single-rate tariff. Ofgem’s 2026 consumer guide to understanding your energy data recommends using your smart meter’s half-hourly data, available via your supplier’s online portal, to calculate your current usage split (Ofgem, 2026).
The EST energy calculator confirms this threshold (Energy Saving Trust, 2026). A household using 40% off-peak and 60% peak electricity on Economy 7 will pay roughly the same annual bill as on a standard tariff. Only when you push above 40% off-peak usage do the savings become clear. If you cannot automate or schedule at least half your electricity use into the cheap window, a time-of-use tariff is not the cheapest option for you.
Frequently Asked Questions
Economy 7 is typically the cheapest time of use tariff for UK households that can shift at least 30% of their electricity use to off-peak hours, according to the Energy Saving Trust 2026 guide.
Over 4 million UK households still use Economy 7, based on the DESNZ 2026 annual domestic energy consumption report.
Economy 7 offers 7 hours of off-peak electricity nightly, typically between midnight and 7am or 11pm and 6am, depending on your region, as confirmed by Ofgem.
No, Economy 10 is usually 1–2p/kWh more expensive off-peak than Economy 7, per the Energy Saving Trust 2026 guide, because the cheap hours are spread across three daily windows.
Yes, Economy 7 and Economy 10 do not require a smart meter, but newer real-time pricing tariffs from suppliers like Octopus and Ovo do, as noted by Ofgem.
