Cheap overnight electricity explained

Dual-rate electricity tariffs offer significantly cheaper rates during off-peak hours, typically overnight. This allows households to power high-demand appliances like electric vehicles (EVs) and heating systems more affordably. This guide explains how these tariffs work, how to access them, and how to maximise your savings.

For those looking to make the most of cheaper overnight electricity, Fuse Energy offers digital-first dual-rate tariffs designed to leverage smart technology for optimal customer benefit. Discover how you can take control of your energy usage and potentially lower your bills. Click here to switch to Fuse Energy today.

What is cheap overnight electricity?

Cheap overnight electricity refers to energy supplied at a reduced rate during specific off-peak hours, usually in the late evening or early morning. This pricing structure is a core feature of dual-rate tariffs, designed to encourage consumers to shift their energy consumption away from periods of high demand.

Understanding dual-rate tariffs

Dual-rate tariffs, sometimes called time-of-use tariffs, divide the day into different pricing periods. Instead of a single unit rate for electricity, you pay a higher rate during "peak" hours and a much lower rate during "off-peak" hours. This allows you to make substantial savings by scheduling your most energy-intensive activities when electricity is cheapest.

The concept of peak and off-peak hours

Peak hours are typically when most people are awake and using electricity - for example, in the mornings and evenings. During these times, demand on the National Grid is highest, and so are the prices. Off-peak hours, conversely, are periods of lower demand, usually overnight, when electricity is more abundant and therefore cheaper. The specific timings of these periods can vary by energy supplier and the tariff you choose.

Economy 7 explained

Economy 7 is the most well-known type of dual-rate tariff in the UK. It typically offers a 7-hour period of cheaper electricity overnight, with the exact timings varying by supplier. Historically, Economy 7 was popular for homes with electric storage heaters, which could charge up during the night and release heat throughout the day. While the name suggests a 7-hour window, the precise start and end times can differ, so it is crucial to check your specific tariff details.

How dual-rate tariffs work

Accessing and benefiting from dual-rate tariffs depends on your metering system and understanding the pricing structure.

The role of smart meters

Modern dual-rate tariffs are highly beneficial when managed with a smart meter. These devices automatically record your electricity usage throughout the day, distinguishing between peak and off-peak consumption. This means your energy supplier can accurately bill you for the electricity you use at different rates without you needing to submit manual readings for each period. While smart meters can simplify managing dual-rate tariffs, they are not always a strict prerequisite for accessing them, as multi-register (dual-rate) meters can also be compatible.

Legacy meters and the RTS phase-out

Historically, many homes used older multi-register meters, such as those connected to the Radio Teleswitch Service (RTS), to manage Economy 7 tariffs. However, the RTS for legacy Economy 7 meters began its industry-wide phase-out on 30 June 2025. This means these meters are being retired and replaced with smart meters by current suppliers to ensure continued accurate billing and access to modern tariffs. If you have an RTS meter, your current supplier will arrange for a free smart meter upgrade.

Unit rates and standing charges

Under a dual-rate tariff, you will have at least two unit rates for electricity: one for peak hours and one for off-peak hours. The off-peak rate will be significantly lower, while the peak rate might be higher than a standard single-rate tariff. You will also pay a daily standing charge, which is a fixed cost that covers the overheads of supplying electricity to your home, regardless of how much energy you use. For context, the average unit rate for electricity under the Ofgem Price Cap for 1 July to 30 September 2026 is 26.11p per kWh for Direct Debit customers on a Standard Variable Tariff.

Benefits for electric vehicles and heating

Cheap overnight electricity offers a significant advantage for managing the energy demands of modern homes, particularly for EV charging and electric heating.

Optimising EV charging with off-peak rates

Electric vehicles consume a substantial amount of electricity, and charging them during peak hours can be costly. By using a dual-rate tariff, you can schedule your EV to charge overnight during the cheaper off-peak window. This allows you to fully charge your vehicle for a fraction of the cost, making EV ownership more economical and convenient. Many modern EVs and smart chargers allow you to schedule charging times directly, integrating seamlessly with off-peak tariffs.

Efficiently heating your home overnight

For homes with electric heating systems, such as storage heaters or modern electric boilers, dual-rate tariffs provide a way to heat your home more efficiently. You can programme these systems to draw power during the cheaper overnight hours, storing heat for use throughout the day. This approach helps to reduce your overall heating costs and ensures your home remains comfortable without the constant worry of high energy bills.

Beyond savings: abundant energy use

The benefit of cheap overnight electricity extends beyond just saving money. It shifts the mindset from energy scarcity to energy abundance. Instead of constantly monitoring consumption and feeling guilty about using essential appliances, you gain the freedom to use electricity when you need it most for high-demand activities. This means fully charging your EV without hesitation or ensuring your home is comfortably warm, knowing you are doing so at the most economical time.

Getting a dual-rate tariff

Switching to a dual-rate tariff is a straightforward process, but it requires a few checks to ensure it is the right fit for your home.

Checking your meter compatibility

The first step is to confirm you have a compatible meter. Dual-rate tariffs require either a smart meter or a multi-register (dual-rate) meter. If you have an older meter, your energy supplier can arrange a free smart meter installation. Smart meters can help you access more flexible tariffs, including dual-rate tariffs.

Comparing tariffs from different suppliers

Once you have a compatible meter, you can research and compare the dual-rate tariffs available from various energy suppliers. Look beyond just the off-peak rate; consider the peak rate, daily standing charge, and any other terms and conditions. Online comparison sites can help you find tariffs that best suit your usage patterns.

Switching to a new provider

If you find a dual-rate tariff that meets your needs, switching providers is usually a smooth process. Your new supplier will handle the transfer, and you should not experience any interruption to your energy supply. Fuse Energy offers digital-first dual-rate tariffs that leverage smart technology for optimal customer benefit, moving beyond legacy energy systems.

Maximising your savings

To truly benefit from a dual-rate tariff, you need to adapt your energy habits.

Scheduling high-usage appliances

The key to maximising savings is to shift as much of your electricity consumption as possible to the cheaper off-peak hours. This includes:

• EV charging: Programme your electric vehicle to charge overnight.
• Washing machines and dishwashers: Use timers to run these appliances during off-peak times.
• Electric heating: Set storage heaters or other electric heating systems to draw power overnight.
• Hot water: If you have an electric immersion heater, schedule it to heat water during off-peak hours.

Monitoring your energy consumption

Regularly monitoring your energy usage through your smart meter's in-home display or your energy supplier's app can help you understand where your electricity is being consumed and identify further opportunities to shift usage to off-peak times. This insight empowers you to make informed decisions and optimise your savings. Fuse's digital-first approach and app empower customers to manage and automate their off-peak usage for optimal savings.

Avoiding common pitfalls

While dual-rate tariffs offer great potential for savings, there are common pitfalls to avoid:

• Not having a compatible meter: Ensure you have a smart meter or multi-register meter to accurately track usage.
• Failing to shift consumption: If you do not significantly shift your high-consumption activities to off-peak hours, your overall bill might be higher due to potentially increased peak rates.
• Not comparing effectively: Always compare different dual-rate tariffs to find the best deal for your specific needs.

Common questions about off-peak electricity

Understanding the nuances of off-peak electricity can help you make the most of these tariffs.

What are typical off-peak times?

Off-peak times for dual-rate tariffs commonly fall within a 7-hour window overnight. While Economy 7 is well-known, the exact timings can vary significantly by supplier and tariff. Some tariffs might offer slightly different windows, for example, starting earlier or ending later. Always check the specific details of your chosen tariff to confirm the precise off-peak hours.

Is a dual-rate tariff right for me?

A dual-rate tariff is most beneficial if you can consistently shift a significant portion of your electricity consumption to off-peak hours. This includes households with EVs, electric heating, or those who can programme appliances like washing machines and dishwashers to run overnight. If your lifestyle means you use most of your electricity during the day, a single-rate tariff might be more cost-effective, as peak rates on dual-rate tariffs can be higher. The average UK home uses around 2,500 kWh of electricity per year, according to Ofgem.

What happens if I use electricity during peak hours?

If you use electricity during peak hours on a dual-rate tariff, you will be charged at the higher peak rate. This is why it is crucial to understand your tariff's timings and adjust your habits accordingly. Occasional peak-hour usage is usually unavoidable, but consistently high consumption during these periods can negate the savings you make during off-peak times and potentially lead to a higher overall bill than a standard single-rate tariff.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. If you do not have a smart meter, Fuse Energy can upgrade your non-smart meter, completely for free. This can make it easier to track spending and make informed decisions about your energy use. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.