Switching from an economy 7 meter to a single rate tariff can be a great way to save money on your energy bills. Economy 7 meters are well suited to households that use a lot of electricity during the night, as they offer a lower rate for electricity used between midnight and 7am. However, if you don’t use much energy during the night, then a single rate tariff could be more cost-effective.
If you’re considering switching from an economy 7 meter to a single rate tariff, it’s important to understand how the two tariffs work.
What is an Economy 7 Meter?
An Economy 7 meter is an energy meter used to measure electricity consumption in a home or business. It is a special type of meter that records energy usage over two different time periods, usually peak and off-peak hours. In the UK, Economy 7 meters are the most common type of electricity meter used by households.
Economy 7 meters are beneficial for those who have a regular routine, such as those who work during the day and sleep during the night. By taking advantage of the cheaper off-peak rates, they can save money on their energy bills. In addition, if you are on a fixed tariff, Economy 7 meters can help you save money by allowing you to take advantage of the cheaper off-peak rates.
According to data from Ofgem, the UK energy regulator, as of September 2021:
- Around 3% of households in the UK have an Economy 7 tariff.
- The majority of households with an Economy 7 tariff use electric heating.
- The average household on an Economy 7 tariff uses around 50% of their electricity during off-peak hours.
- Customers with an Economy 7 tariff tend to have higher electricity consumption overall, compared to those on standard tariffs.
What are the Economy 7 times?
Economy 7 meters measure the amount of electricity used over two distinct periods. The first period is usually known as the peak period and runs from 7 am to 11 pm. During this period, electricity is charged at a higher rate than the second period, known as the off-peak period. The off-peak period typically runs from 11 pm to 7 am and is charged at a lower rate. This is because electricity is typically cheaper during off-peak hours, when energy demand is lower.
What is a Single Rate Tariff?
A single rate tariff is a type of energy tariff that charges the same rate for electricity at all times of day, rather than having different rates for different times. This makes it easier to budget for your energy costs and also means that you’re not penalised for using more energy at peak times.
The idea behind a single rate tariff is that it simplifies your energy bills. Instead of having to manage different rates for different times of the day, you only have to manage the one rate, which makes it easier to budget for your energy costs.
It’s a popular choice for households and businesses that don’t use a lot of energy during peak times. They can benefit from the simplicity of a single rate tariff, as well as save money as they won’t be paying higher rates for peak usage.
According to data from Ofgem, the UK energy regulator, as of September 2021:
- Around 95% of households in the UK have a single rate tariff.
- Single rate tariffs are the default option for most energy suppliers, and are often the default option offered to new customers.
- Single rate tariffs are typically more straightforward than other types of tariffs, with fewer variables to consider when comparing prices.
- Customers on single rate tariffs tend to have lower electricity consumption overall, compared to those on time-of-use tariffs like Economy 7.
What should I consider before switching from an Economy 7 Tariff?
Firstly, you should consider how much energy you use during the peak period, as this will determine whether you’ll actually save money by switching. If you use a lot of energy during the peak period, then you’ll be better off with an economy 7 meter. But if you don’t use much energy during the peak period, then a single rate tariff could be more cost-effective.
Secondly, you should also be aware that if you switch to a single rate tariff, you may be charged an exit fee by your supplier. This is because you’re leaving your current tariff before the end of the contract period. Therefore, you should make sure you factor this cost into your calculations when deciding whether to switch.
Can I switch from an Economy 7 Tariff to a Single Rate Tariff?
You may switch to a standard dual-fuel tariff with many suppliers without changing metres; they’ll just put your daytime and nighttime readings together to obtain your total consumption, then charge you a single rate for it.
If you have an Economy 7 metre, check the box next to “Do you pay different rates for your electricity depending on the time of day you use it?” in the “Do you pay different rates for your electricity depending on the time of day you use it?” question when registering or click “Edit” in the “Your tariffs” section of your Cheap Energy Club account.
If the provider you’re moving to can’t combine the two Economy 7 metre readings, you might want to double verify first because your switch application can be denied.