Wiktor Wise
In the UK, electricity is more expensive to produce at busy times and cheaper when demand is lower. Some suppliers reflect this by offering cheaper rates during off-peak times. These time-of-use (TOU) tariffs reward customers for using energy outside of peak hours. Off-peak hours typically fall somewhere between 10 pm and 8 am, but the exact times can vary depending on the supplier, location, and time of year. Economy 7 tariffs, for example, offer seven hours of cheaper electricity between midnight and 8 am, or 11 pm and 6 am. Other suppliers have their own defined off-peak times, such as British Gas's PeakSave Sundays, which offers half-price electricity on Sundays between 11 am and 4 pm.
| Characteristics | Values |
|---|---|
| Tariff | Economy 7, Economy 10, time-of-use tariff, single-rate tariff, EV tariff |
| Meter | Smart meter, dual-rate meter, Economy 7 meter, Economy 10 meter |
| Off-peak hours | Between 10 pm and 8 am, 7 hours between midnight and 8 am, 11 pm to 6 am |
| Peak hours | Between 4 pm and 7 pm, 7 am to 9 am |
| Conditions | At least 40% of electricity use during nighttime hours |
| Schemes | PeakSave Sundays, PeakSave Green Flex |
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What You'll Learn
Economy 7 tariffs
The main benefit of Economy 7 tariffs is that they can help reduce energy bills and carbon footprints, as users will consume less electricity during peak hours when the grid is under more strain. However, one of the drawbacks is that these tariffs can be more expensive than standard tariffs if the user consumes most of their energy during peak hours. Additionally, users may need to change their habits and shift energy usage to the off-peak hours to take advantage of the cheaper rates, which may not be convenient for everyone.
To benefit from an Economy 7 tariff, users typically need a meter that can handle multiple rates, such as an Economy 7 meter or a smart meter. Some suppliers offer dual-rate meters that can automatically switch between the off-peak and peak rates. It is worth noting that not all energy companies offer Economy 7 tariffs for commercial contracts, so businesses should look out for similar two-rate tariffs under different names.
When considering an Economy 7 tariff, it is important to carefully analyse energy usage patterns. For example, if the night rate is half the normal tariff during the day, the consumer would need to use over two-thirds of their energy during the night to break even. Economy 7 is typically more suitable for households that use electricity for domestic heating, hot water, and charging electric vehicles overnight.
Overall, Economy 7 tariffs can offer significant savings for users who are able to align their energy usage with the off-peak hours. However, it is important to compare prices from different suppliers and consider current energy usage patterns before switching to a new tariff.
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Off-peak times
Economy 7 tariffs are a common type of off-peak tariff, providing 7 hours of cheaper electricity at night. This option is particularly suitable for those with electric storage heaters or those who use a lot of energy during the night. However, daytime rates on Economy 7 tariffs can be steep. Other suppliers may offer opt-in schemes or specific tariffs with defined off-peak times to cater to the needs of EV charging or heat pump operation.
To benefit from off-peak electricity rates, it is essential to have a meter that can track both the amount of energy used and the time of day it is used. Smart meters are often required for modern off-peak tariffs, accurately monitoring energy usage throughout the day. By understanding your off-peak and peak times, you can concentrate your energy usage during the off-peak period and make the most of the reduced rates.
It is worth noting that off-peak tariffs may not be suitable for everyone. To truly benefit from these tariffs, a significant portion of electricity usage, typically around 40%, should occur during off-peak hours. Additionally, some suppliers may require the use of their charger for EV owners to obtain the best rates. It is important to carefully consider your energy consumption patterns and choose the tariff that best matches your needs.
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Time-of-use tariffs
In the UK, the hours between 4 pm and 7 pm on weekdays are typically considered peak electricity hours, with another spike in energy use in the morning between 7 am and 9 am. During these peak hours, electricity is more expensive to produce as additional power plants need to be brought online to meet the increased demand.
The aim of time-of-use tariffs is to encourage customers to shift their energy use away from peak hours, reducing the strain on the grid and promoting more efficient energy use. This can also help to reduce carbon emissions, as less additional gas-powered energy sources need to be used during peak periods.
To take advantage of time-of-use tariffs, customers typically need a smart meter that can track their energy usage and the time of day it occurs. This allows suppliers to offer tariffs that adapt to changes in demand and charge varying prices accordingly.
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Electric vehicle charging
Electric vehicle (EV) owners in the UK can benefit from various tariffs that offer cheaper electricity rates for charging their cars during off-peak hours. These tariffs are designed specifically for EV owners who use their home electricity supply to charge their vehicles.
There are generally two types of EV tariffs: two-rate tariffs and time-of-use (TOU) tariffs. Two-rate tariffs offer cheaper electricity rates overnight, with the most common type providing two different rates depending on the time of day, significantly lower at night. This allows EV owners to charge their cars at a much lower cost during the off-peak hours.
Time-of-use (TOU) tariffs also reward customers for using electricity during off-peak hours, but the specific times considered "off-peak" may vary between suppliers. Some TOU tariffs offer cheaper rates during weekends or specific periods during the day when demand is lower. For example, British Gas's PeakSave Sundays offer half-price electricity between 11 am and 4 pm on Sundays.
To take advantage of these EV tariffs, EV owners need to consider a few things. Firstly, they should review the different tariffs offered by energy suppliers and choose one that suits their usage patterns. For instance, the Next Drive tariff by E.ON offers a discounted rate from midnight to 6 am, while the EV Saver tariff by ScottishPower provides a lower rate between midnight and 5 am. Secondly, EV owners should consider installing a smart meter, as some tariffs, such as the EV Saver tariff, require data provided by smart meters to offer lower rates.
Additionally, smart charging can further optimise charging costs. Smart charging technology allows EV owners to schedule charging during periods of lower demand, higher renewable energy availability, or cheaper rates. Combining smart charging with EV tariffs that offer lower off-peak rates can maximise the cost savings for EV owners.
By utilising EV tariffs and smart charging, electric vehicle owners in the UK can effectively reduce their electricity costs for charging their cars at home.
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Suppliers and rates
The UK's National Electricity System Operator (NESO) runs the Demand Flexibility Service, which aims to reduce grid strain by incentivising customers to shift their energy use away from peak hours. Participating suppliers offer cheaper rates during off-peak hours, which are usually overnight, on weekends, and during holiday periods.
The time-of-use (TOU) tariff is one such pricing model, where customers pay less for electricity during off-peak hours and more during peak hours. The off-peak hours for a TOU tariff can vary by supplier, location, and season, but they typically fall in the evening and at night, with most suppliers agreeing that 4 pm to 7 pm constitutes peak hours.
Some suppliers offer discounted rates for off-peak electricity usage. For example, British Gas offers the PeakSave tariff, which includes half-price electricity between 11 am and 4 pm on Sundays and during periods of high renewable energy availability. They also offer an Electric Vehicle tariff with cheaper off-peak electricity every day between 12 am and 5 am.
Economy 7 and Economy 10 tariffs are also available, providing a daily off-peak rate that remains the same regardless of the day of the week. Economy 7 offers 7 hours of cheaper electricity at night, typically between midnight and 8 am, while Economy 10 offers 10 hours of discounted electricity between 10 pm and 8 am.
It's important to note that the benefits of off-peak tariffs depend on your usage habits and location. Generally, to take advantage of lower off-peak rates, households may need dual-rate or smart meters to track their energy consumption at different times of the day.
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Frequently asked questions
Yes, some suppliers offer reduced rates for using electricity during off-peak times, which typically fall between 10 pm and 8 am. However, the exact times can vary depending on the supplier, where you live, and the time of year.
Check your electricity bill or meter. If it shows both a day and night rate, or two sets of numbers (one for peak and one for off-peak), you're on a time-of-use tariff.
Contact your energy supplier to discuss the tariffs they offer for off-peak electricity use. You may need a smart meter or a dual-rate meter to take advantage of these tariffs.
