Beatrice Lang
Electricity is typically cheaper at night due to reduced demand, known as off-peak hours. During the night period, human activities that require electricity decrease, and businesses and offices are closed, resulting in lower power demand on the national grid. Many power companies offer off-peak tariffs, such as Economy 7 or Economy 10, which provide cheaper electricity rates during specific night-time hours. These tariffs can help customers save money by shifting their energy usage to off-peak hours, but they may also have higher daytime rates. To benefit from off-peak tariffs, customers need to use a significant amount of electricity at night and may require smart meters to track their usage.
| Characteristics | Values |
|---|---|
| Cheaper electricity | During the night |
| When | Typically between 10 pm and 8 am |
| Off-peak hours | Nights, early mornings, weekends, and holidays |
| Cheaper electricity for | Charging electric vehicles, running washing machines, dishwashers, and storage heaters |
| Tariffs | Economy 7, Economy 10, TOU, EV tariff, Power Move plan |
| Schemes | PeakSave Sundays |
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What You'll Learn
Off-peak tariffs
There are several types of off-peak tariffs available, such as Economy 7, which offers cheaper electricity rates for seven hours during the night. Other options include the Economy 10 tariff, which provides cheaper rates for 10 hours overnight, and various other time-of-use (TOU) plans offered by different energy suppliers. These TOU plans charge different prices for electricity based on the time of day and year, with higher rates during peak demand hours and lower rates during off-peak hours.
To take advantage of off-peak tariffs, it's important to understand your energy usage patterns and ensure that you utilize most of your electricity during the off-peak periods. This may involve shifting energy-intensive tasks, such as laundry or charging appliances, to the cheaper off-peak hours. Additionally, consider using timers to automate the process and ensure your appliances turn on during off-peak times.
It's worth noting that off-peak tariffs may not be suitable for everyone. For example, if you primarily use electricity during the day, you might end up paying more on an off-peak tariff compared to a standard tariff. Therefore, it's essential to compare different tariffs and consider your energy usage before making a decision.
By choosing an off-peak tariff that aligns with your energy needs and adopting energy-saving practices, you can effectively reduce your electricity costs and make a positive impact on the environment.
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Cheaper night-time rates
Electricity is generally cheaper at night due to reduced demand, also known as off-peak hours. The cheapest off-peak electricity times can vary between providers, where you live, and the time of year. However, off-peak hours typically include night-time, early mornings, weekends, and holidays.
Off-Peak Tariffs
If you're on a time-of-use tariff, you can expect cheaper electricity rates at night. Some off-peak tariffs include:
- Economy 7: Offers 7 hours of cheaper electricity at night, typically between 10pm and 8am.
- Economy 10: Provides 10 hours of cheaper electricity, which can be broken into three chunks throughout the day. For example, 4 hours in the evening (8.30 pm-12.30 am).
- Octopus Energy's Agile Octopus Plunge Pricing tariff: Alerts you when prices drop and allows you to programme smart devices to take advantage of lower rates.
- OVO's Power Move plan: Rewards customers for using energy at greener and cheaper times of the day if they meet certain targets.
Maximizing Off-Peak Benefits
To maximize the benefits of off-peak tariffs, you can:
- Schedule energy-intensive appliances such as dishwashers, washing machines, and storage heaters to run during off-peak hours.
- Charge electric vehicles at night.
- Use timers to switch on appliances during off-peak hours.
- Compare current rates with off-peak rates to ensure significant savings.
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Energy-saving alternatives
Energy bills can be expensive, but there are ways to save money without necessarily cutting back on energy usage. One way is to take advantage of off-peak electricity hours, which are typically during the night, early mornings, weekends, and holidays. During these times, electricity is cheaper because there is less demand on the grid.
- Use a smart thermostat or smart plugs: These can help you shift your energy usage to off-peak hours. For example, you can set your heating or cooling to turn on during the early morning when electricity rates are lower.
- Schedule your appliances: Many modern appliances, such as washers, dryers, and dishwashers, have scheduling functions that allow you to set the time for them to run ahead of time. You can set them to turn on during off-peak hours, such as after 10 pm.
- Charge your devices overnight: Phones, tablets, laptops, and electric vehicles can be charged during off-peak hours. Some electric vehicle tariffs offer cheaper rates for charging during specific times, such as between 12 am and 5 am.
- Cool or warm your home during off-peak hours: You can cool your home early in the day before the afternoon heat or warm it up in the morning during low electricity rate hours.
- Reduce energy usage during peak hours: Minimise your electricity usage during peak hours by unplugging appliances that are not in use, using "sleep" mode on electronics, and setting your thermostat to an efficient temperature.
- Consider renewable energy sources: During off-peak hours, the grid often draws on renewable energy sources like wind and solar power. You can also invest in tools like solar batteries to provide you with an energy reserve, reducing your reliance on the grid during peak hours.
- Take advantage of weekends and holidays: In addition to nighttime, off-peak hours typically include weekends and holidays, when electricity demand is lower. Shifting your energy-intensive tasks to these times can help you save on your energy bills.
- Review your electricity plan: Compare the rates offered by different electricity providers and consider switching to a time-of-use (TOU) plan or off-peak tariff, such as Economy 7 or 10, if they offer significant savings. Some providers also offer opt-in schemes with cheaper rates at certain times.
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Time-of-use rates
During peak hours, which are usually from 8 am to 10 pm, most households and businesses are active, leading to a higher demand for electricity. Off-peak hours, on the other hand, are typically defined as between 10 pm and 8 am, when human activities that require electricity decrease significantly as people go to bed and businesses close.
By signing up for a time-of-use plan, you can take advantage of cheaper electricity rates during off-peak hours. This is especially beneficial for those who can adjust their energy usage to off-peak times, such as by running energy-intensive appliances like dishwashers, washing machines, and storage heaters at night. Additionally, those with electric vehicles can benefit from charging their cars during off-peak hours.
It's important to note that the specific hours considered peak and off-peak can vary depending on your energy supplier, location, and time of year. For example, some suppliers offer off-peak rates during weekends and holidays in addition to nighttime hours. Therefore, it's always a good idea to check with your energy supplier or refer to your energy bill to understand the specific off-peak hours that apply to your plan.
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Economy 7 and 10 tariffs
Economy 7 and Economy 10 are energy tariffs that offer cheaper electricity rates during off-peak hours, typically from midnight to 7 am. These tariffs are designed for households that use a significant amount of electricity at night and can be particularly beneficial for those with electric heating systems and storage heaters.
Economy 7 offers seven hours of cheaper electricity rates during the night, while Economy 10 provides ten hours of reduced rates, including seven hours at night and three hours during the day. These tariffs can help households save money and increase energy efficiency, but they are not suitable for everyone. The daytime rates on these tariffs can be significantly higher, so they are most beneficial for those who use at least 40% of their electricity at night.
To access Economy 7 and Economy 10 tariffs, you will need a compatible energy meter, such as a smart meter or a dual-rate meter. These meters can record your energy usage at different times of the day, allowing you to take advantage of the cheaper off-peak rates. Some energy suppliers may charge a fee for installing a compatible meter.
It is important to note that off-peak hours can vary between suppliers, locations, and times of the year. While off-peak hours typically include nights, they can also extend to early mornings, weekends, and holidays. By embracing off-peak tariffs and shifting energy-intensive tasks to these periods, you can make a smart financial choice and contribute to a more sustainable future.
In addition to Economy 7 and Economy 10, there are other off-peak tariffs and schemes offered by energy suppliers. These include EV tariffs, which provide cheaper rates for charging electric vehicles, and opt-in schemes that offer discounted rates at certain times. It is recommended to compare different tariffs and plans to find the most suitable option based on your energy usage patterns.
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Frequently asked questions
Yes, electricity is generally cheaper at night. This is because there is less demand on the grid at night.
The cheapest time to use electricity is during the night, specifically after most people have gone to bed and before they wake up.
TOU stands for Time of Use. Under a TOU plan, you pay different prices for your electricity based on the time of day and year. On and off-peak electricity hours are when utilities shift electricity prices based on demand.
If your electricity bill shows both a day and a night rate, you're on some kind of time-of-use tariff.
If you're on a TOU plan, you can save money by scheduling your energy usage to align with off-peak hours. You can also save money by using energy-efficient appliances, smart thermostats, and solar batteries.
