Umair Gaines
Night rates for electricity refer to the reduced rates offered by energy suppliers for usage during off-peak hours, which are typically between 10 pm and 8 am. The specific off-peak hours may vary depending on your location, supplier, and tariff plan. For example, British Gas's Economy 7 tariff offers cheaper rates for 7 hours between midnight and 8 am. By contrast, E.ON's Economy 7 tariff offers a 7-hour window between 11 pm and 8 am. These night rates are part of time-of-use or multi-rate tariffs, where electricity costs fluctuate depending on the time of day and demand.
| Characteristics | Values |
|---|---|
| Cheaper electricity at night | Yes |
| Time period | Typically 10 pm to 8 am, but can vary |
| Tariff type | Multi-rate, Economy 7, Economy 10, time-of-use, etc. |
| Savings | Requires at least 40% of electricity usage during off-peak hours |
| Peak hours | Typically 4 pm to 8 pm, but can vary |
| Appliances | Use energy-intensive appliances at night to save money |
| Electric vehicles | Cheaper to charge overnight with electric vehicle tariffs |
| Smart meters | Required for some tariffs to track off-peak usage |
| Energy suppliers | Not all suppliers offer time-of-use tariffs |
| Location | Timing depends on location and off-peak periods |
| Season | Summer rates are often higher due to air conditioning |
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What You'll Learn
Off-peak hours
The specific off-peak hours can vary depending on your location, energy supplier, and the type of tariff you are on. For example, in Southern California, the on-peak hours during summer weekdays are from 4 pm to 9 pm, with all other hours being off-peak. On summer weekends, the hours from 4 pm to 9 pm are considered mid-peak, with lower prices per kilowatt-hour.
If you are on a time-of-use tariff, you will typically be charged a higher rate during peak hours, usually from 8 am to 10 pm, and benefit from lower rates during off-peak hours, usually from 10 pm to 8 am. Some energy suppliers, such as British Gas, offer plans with discounted rates for off-peak electricity usage, such as their Electric Vehicle tariff, which offers cheaper rates between 12 am and 5 am.
To take advantage of off-peak rates and make significant savings, it is recommended to schedule the use of energy-intensive appliances, such as dishwashers, washing machines, and storage heaters, during off-peak hours. This strategy works best if at least 40% of your electricity usage occurs during off-peak hours.
You can check if you are on a time-of-use tariff by examining your electricity bill or smart meter. If it displays both a day and night rate, then you are on a time-of-use tariff.
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Economy 7 and Economy 10 tariffs
Night rates for electricity refer to the cheaper rates offered by energy suppliers during off-peak hours, usually at night. These rates are often included in multi-rate or time-of-use tariffs, such as Economy 7 and Economy 10.
Economy 7 Tariffs
Economy 7 is a type of energy tariff that offers cheaper electricity rates during a seven-hour window at night, typically from midnight to 7 am. This tariff is designed for households that consume a significant amount of electricity at night. While it provides lower rates during the specified off-peak hours, the daytime rates are usually higher compared to standard tariffs.
To benefit from an Economy 7 tariff, it is recommended that at least 40% of your electricity usage occurs during off-peak hours. This tariff is particularly suitable for those with storage heaters, electric vehicles, or households that use a considerable amount of electricity for appliances at night.
Economy 10 Tariffs
Economy 10 is similar to Economy 7 but offers ten hours of cheaper electricity rates instead of seven. It provides the same seven hours of off-peak rates at night as Economy 7, but it also includes three additional hours of cheaper rates during the day. This tariff may be more appealing to those who require some daytime usage at a lower rate.
To access Economy 7 and Economy 10 tariffs, you typically need a compatible energy meter, such as a smart meter, which can accurately track your power usage during the different rate periods.
By choosing these tariffs, you can take advantage of the cheaper night-time rates and potentially save on your energy bills, especially if you can shift your energy usage to off-peak hours.
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Time-of-use tariffs
During peak periods, electricity is typically higher carbon and more expensive because more gas-powered plants are used to meet the increased demand. Off-peak hours, on the other hand, usually fall between midnight and 8 am, and sometimes between 10 pm and 8 am, depending on the tariff and energy supplier. During these times, electricity is cheaper because there is less demand on the electric grid, so utilities charge less for the energy.
To benefit from time-of-use tariffs, it is essential to be able to shift your electricity usage to off-peak periods. This can be achieved by using smart appliances, solar batteries, and energy-efficient devices. Additionally, scheduling energy-intensive appliances, such as dishwashers, washing machines, and tumble dryers, to operate at night can take advantage of reduced rates and lower energy bills.
It is worth noting that not all energy suppliers offer time-of-use tariffs, and the majority of tariffs in the market are standard-rate tariffs, where a flat rate is charged regardless of the time of day.
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Smart meters
If you're on a multi-rate tariff, such as Economy 7 or a smart time-of-use tariff, you'll be charged less for usage at night. Economy 7 tariffs offer seven hours of off-peak rates per day, while Economy 10 provides ten. These tariffs often require a smart meter to ensure accurate tracking of your power usage.
To view the night rate on a smart meter, you can use an app such as Hugo or Bright. These apps allow you to check that the correct tariffs have been set and whether IHD costs can be relied upon.
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Saving money
Electricity is typically cheaper at night, as this is considered an off-peak time when there is less demand on the national grid. The exact off-peak hours depend on your location, energy supplier, and the type of tariff you are on. For example, some tariffs offer cheaper rates during the weekends, while others offer a set number of off-peak hours per day.
If you are on a time-of-use tariff, you can save money by using energy during off-peak hours. This requires some flexibility in your everyday habits and may involve scheduling energy-intensive tasks, such as running the dishwasher or washing machine, to take place during off-peak hours.
You can also take advantage of off-peak rates by charging electric vehicles overnight, rather than during the day. Additionally, using energy-efficient appliances, smart thermostats, and solar batteries can help you save money on your energy bills.
If you have a smart meter, you may be able to join programs such as PeakSave, which offers credits on your bills for using electricity during specified off-peak hours.
By being mindful of peak and off-peak hours and making small changes to your energy usage, you can significantly reduce your energy costs.
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Frequently asked questions
The night rate for electricity is when you pay a different amount for your electricity depending on the time of day. The night rate is usually cheaper than the day rate because there is less demand on the national grid. The exact timing depends on your location and the off-peak periods utilities operate.
Check your electricity bill – if it shows both a day and night rate, it means you’re on a time-of-use tariff. You can also look at your energy meter, which may have two dials: one for peak and one for off-peak.
To save money, shift your energy usage away from peak hours to off-peak hours. You can do this by scheduling energy-intensive appliances, such as dishwashers, washing machines, tumble dryers, and electric heaters, to operate at night.
