Economy 7 meter explained

An Economy 7 meter is a specific type of electricity meter designed to work with a dual-rate electricity tariff, offering cheaper rates for seven hours during off-peak periods and higher rates at other times. This tariff structure can lead to significant savings for households that can shift a substantial portion of their electricity consumption to these cheaper hours.

Understanding your energy usage is key to making the most of tariffs like Economy 7. Fuse Energy helps you do this with smart meter upgrades and clear insights into your consumption. Click here to see how Fuse can help you manage your home energy.

What is an Economy 7 meter?

An Economy 7 meter records your electricity usage across two different registers: one for peak-rate consumption and another for off-peak consumption. This allows your energy supplier to charge you different prices for the electricity you use depending on the time of day.

Understanding dual-rate tariffs

Dual-rate tariffs, like Economy 7, are designed to encourage consumers to use electricity during periods of lower demand on the National Grid. By doing so, they help balance the load on the energy network. The "7" in Economy 7 refers to the seven hours of cheaper electricity available each day.

How Economy 7 works

With an Economy 7 tariff, your electricity meter tracks your usage during two distinct periods:

• Off-peak hours: These are the seven cheaper hours, during which electricity is significantly cheaper. The exact timings can vary by supplier and region.
• Peak hours: All other hours outside the off-peak window are charged at a higher rate. This peak rate is typically more expensive than a standard single-rate tariff.

To benefit from Economy 7, you need a meter capable of recording these two rates separately. This can be an older multi-register manual meter or a smart meter configured for dual rates.

Is Economy 7 still worth it?

Whether an Economy 7 tariff is still worthwhile depends entirely on your household's energy consumption habits. It's not a universal money-saver; it requires active management of your electricity use.

Benefits of Economy 7

The primary benefit of Economy 7 is the potential for lower electricity bills if you can maximise your off-peak usage. This tariff is particularly advantageous for:

• Households with electric storage heaters that charge overnight.
• Electric Vehicle (EV) owners who can charge their cars during off-peak hours.
• Households that run energy-intensive appliances, such as washing machines, tumble dryers, or dishwashers, overnight.

Drawbacks and considerations

The main drawback is the higher peak-rate electricity cost. If you use a lot of electricity during the day, your overall bill could be higher than on a standard single-rate tariff. The average UK home uses around 2,500 kWh of electricity per year, while a home with a multi-register meter (like Economy 7) typically uses around 3,400 kWh per year, suggesting higher overall consumption often associated with these tariffs. This higher consumption means that without careful management, the higher peak rate can quickly outweigh any off-peak savings.

Assessing your usage patterns

Before committing to an Economy 7 tariff, assess your energy usage. Consider:

• When do you use the most electricity? If it's predominantly during the day, Economy 7 might not be for you.
• Can you shift significant usage? Are you able to run appliances overnight, or charge an EV during the off-peak window?
• Do you have electric storage heaters? These are designed to take advantage of cheaper overnight electricity.

If you can consistently shift a significant portion of your electricity consumption to the off-peak hours, an Economy 7 tariff could be beneficial.

Economy 7 and smart meters

Smart meters are transforming how dual-rate tariffs like Economy 7 can be managed, offering greater control and visibility over your energy use.

The smart meter advantage for dual rates

Smart meters automatically send your meter readings to your supplier, eliminating the need for manual readings. For Economy 7 users, a smart meter configured for dual rates accurately records your peak and off-peak consumption, ensuring you're billed correctly. More importantly, many modern energy apps can integrate with smart meters to provide real-time usage data, allowing you to see exactly how much electricity you're using and at what rate. This empowers you to make informed decisions about when to use your appliances, helping you optimise your savings.

Getting a free smart meter upgrade

Dual-rate tariffs require either a smart meter or a multi-register manual meter. If you currently have an older, manual Economy 7 meter, your energy supplier is responsible for replacing it with a smart meter, typically at no cost to you. Fuse Energy, for example, offers free smart meter upgrades for customers with manual meters, supporting modern energy management and moving customers away from legacy systems.

Reading your Economy 7 meter

Understanding how to read your Economy 7 meter is crucial for monitoring your consumption and ensuring accurate billing.

Manual Economy 7 meters

Older manual Economy 7 meters typically have two sets of numbers, or registers, often labelled "Low" and "Normal," "Night" and "Day," or "1" and "2."

• Low/Night: This reading represents your off-peak electricity consumption.
• Normal/Day: This reading represents your peak-rate electricity consumption.

You'll need to note down both readings separately and submit them to your supplier when requested.

Smart Economy 7 meters

With a smart meter, the process is much simpler. Your smart meter automatically sends your peak and off-peak readings to your energy supplier, so you generally don't need to read it yourself. You can usually view your current readings on the in-home display (IHD) that comes with your smart meter, or through your energy supplier's online account or app.

The future of Economy 7: RTS phase-out

The landscape for older Economy 7 meters is changing due to the phase-out of the Radio Teleswitch Service.

What is the radio Teleswitch service (RTS)?

RTS is a legacy system that uses longwave radio signals to switch older Economy 7 meters between peak and off-peak rates. It's been a reliable system for decades, but it's now being phased out as part of a wider move towards modern smart metering infrastructure.

Impact of the RTS switch-off

The RTS signal began to be switched off from 30 June 2025. This means that older Economy 7 meters that rely on RTS will no longer be able to switch between peak and off-peak rates automatically. Without an upgrade, these meters will default to a single, potentially higher, rate, which could lead to increased energy bills for affected households. Ofgem, the energy regulator, oversees this phase-out.

Your meter upgrade journey

Energy suppliers are responsible for replacing RTS meters with smart meters, typically at no cost to the consumer. If you have an RTS meter, your current supplier will contact you to arrange a free smart meter upgrade. This upgrade is essential to ensure you continue to benefit from dual-rate tariffs and to avoid any disruption to your energy supply or billing. Once your meter is upgraded to a smart meter, you'll be able to take full advantage of modern energy management tools.

Optimising your Economy 7 tariff with Fuse Energy

Fuse Energy empowers customers with Economy 7 meters to optimise their energy usage through smart meter upgrades, intuitive app control, and 24/7 support, turning a traditional tariff into a modern energy advantage.

Real-time usage tracking with the Fuse app

The Fuse app provides real-time usage data, empowering customers to monitor and shift their consumption to optimise Economy 7 tariffs. By seeing your electricity consumption broken down by peak and off-peak periods, you can identify patterns and make informed decisions. This visibility helps you move energy-intensive tasks to the cheaper off-peak window, maximising your savings and gaining more control over your energy spend.

24/7 support for dual-rate tariffs

Understanding and optimising a dual-rate tariff can sometimes be complex. Fuse Energy offers round-the-clock human customer support to help you understand your tariff, make the most of your smart meter data, and answer any questions you have about shifting your usage. This ensures you have the guidance you need to truly leverage the benefits of Economy 7.

Managing your Economy 7 tariff effectively means understanding your usage and having the right tools. Fuse Energy offers clear pricing, real-time usage data through its app, and 24/7 human customer support to help you make informed decisions about your energy. Switching to Fuse is quick and easy, allowing you to take control of your energy bills. Click here to switch to Fuse Energy today. You can also learn more about our mission to make energy simpler and more sustainable here.