Economy 7 meter: understanding your dual-rate tariff

Economy 7 tariffs offer different electricity prices for peak and off-peak usage, typically overnight. Understanding how they work and how to read your meter is key to managing your energy bills. This article will demystify Economy 7, explain its mechanics, and help you navigate the modern energy landscape, including the ongoing phase-out of older meters.

If you're looking to make the most of dual-rate tariffs and modern energy management, Fuse Energy offers dual-rate variable tariffs and free smart meter upgrades for manual meter users. You can gain real-time insights to optimise your energy usage and benefit from 24/7 human customer support. Click here to switch to Fuse Energy today.

What is an Economy 7 meter?

An Economy 7 meter is a type of electricity meter designed to record your energy consumption at two different rates: a cheaper off-peak rate and a higher peak rate. This dual-rate system is typically offered for seven hours overnight, hence the name "Economy 7". It requires a multi-register meter to accurately track usage during these distinct periods.

How Economy 7 tariffs work

Economy 7 tariffs operate on a simple principle: you pay less for electricity used during designated off-peak hours and more for electricity used during peak hours. This encourages consumers to shift high-energy activities, such as charging electric vehicles or running washing machines, to the cheaper overnight window. The aim is to balance demand on the National Grid and offer potential savings to households that can adapt their energy usage patterns.

Typical peak and off-peak hours

While the exact timings can vary by supplier and region, Economy 7 tariffs typically offer a cheaper off-peak rate for seven hours overnight and a higher peak rate during the day. Your energy supplier will be able to confirm your specific peak and off-peak times, which are crucial for optimising your energy usage. Dual-rate tariffs have peak and off-peak periods that depend on your meter configuration.

How to read your Economy 7 meter

Reading an Economy 7 meter is slightly different from a standard single-rate meter because it tracks two separate consumption figures. A typical Economy 7 meter will have two sets of readings, one for peak (day) usage and one for off-peak (night) usage.

Identifying your meter type

Economy 7 meters come in various forms, including older mechanical dial meters and newer digital meters. Identifying your meter type is the first step to reading it correctly. Digital meters usually display readings clearly on an LCD screen, while dial meters have several small clock-like dials. Some older Economy 7 meters are controlled by the Radio Teleswitch Service (RTS), which is currently being phased out.

Reading digital and dial meters

For digital Economy 7 meters, you will typically see two rows of numbers or two distinct displays, often labelled "Rate 1" and "Rate 2", or "Low" and "Normal", or "Night" and "Day". You may need to press a button to cycle through the readings. Make a note of both sets of numbers.

For dial Economy 7 meters, you will find two banks of dials. Each bank corresponds to a different rate (peak and off-peak). Read the dials from left to right, noting the number the pointer has just passed. If the pointer is directly on a number, check the next dial to the right; if that dial is past zero, use the lower number for the current dial. Ensure you record both sets of readings accurately.

Is Economy 7 being phased out?

Yes, older Economy 7 meters are being phased out as part of an industry-wide upgrade to modern energy infrastructure. This transition is primarily driven by the switch-off of RTS.

The radio Teleswitch service (RTS) switch-off

The RTS signal, which controls many older Economy 7 meters, began being switched off on 30 June 2025. This industry-wide initiative, regulated by Ofgem, means that these legacy meters will no longer be able to switch between peak and off-peak rates automatically. Energy suppliers are responsible for replacing RTS meters with smart meters at no cost to the customer. This phase-out presents an opportunity for homeowners to upgrade to more flexible and efficient energy management systems.

Upgrading to a smart meter

The RTS switch-off means that if you have an older Economy 7 meter controlled by this service, your current energy supplier will replace it with a smart meter. This upgrade is free of charge and ensures your meter can continue to track your energy usage accurately. Smart meters offer significant advantages, including automatic meter readings, real-time energy consumption data, and the ability to support modern dual-rate tariffs.

Optimising your energy usage with Economy 7

To truly benefit from an Economy 7 tariff, you need to actively manage your energy consumption. Simply having the tariff is not enough; you must shift your usage to the cheaper off-peak hours.

Shifting high-consumption appliances

The most effective way to optimise Economy 7 is to use high-energy appliances during the off-peak window. This includes:

• Washing machines and tumble dryers: Run these overnight or schedule them to start in the early morning off-peak period.
• Dishwashers: Load them up after dinner and set them to run during the night.
• Electric heating and hot water: If you have electric storage heaters or an immersion heater, ensure they are set to charge during the off-peak hours.
• Electric vehicle charging: Charge your EV overnight to take advantage of the cheaper rates.

Monitoring your usage

Regularly monitoring your energy usage is crucial. Modern smart meters make this much easier by providing real-time data, often accessible through an in-home display or your energy supplier's app. This allows you to see exactly when you are using electricity and how much it is costing you, helping you identify further opportunities to shift consumption. Without a smart meter, you will need to take regular manual readings to track your usage patterns.

Modern alternatives to Economy 7

With the phase-out of older RTS meters, the energy market is evolving, offering more advanced and flexible options for dual-rate tariffs.

Dual-rate variable tariffs

Modern dual-rate variable tariffs are the natural successor to Economy 7. These tariffs, enabled by smart meters, offer similar peak and off-peak pricing structures but often with greater flexibility and more granular control over your energy usage. Dual-rate tariffs require either a smart meter or a multi-register (dual-rate) dumb meter. They allow you to take advantage of cheaper electricity when demand on the grid is low, mirroring the core benefit of Economy 7 but with enhanced capabilities.

The benefits of smart meters

Smart meters are central to the future of dual-rate tariffs and energy management. They provide accurate, automatic meter readings, eliminating the need for manual submissions and estimated bills. Beyond this, they offer:

• Real-time insights: Track your energy consumption in pounds and pence, helping you understand and control your spending.
• Optimised charging: For EV owners, smart meters can integrate with smart chargers to automatically charge your vehicle during the cheapest off-peak periods.
• Eligibility for advanced tariffs: Unlock access to innovative tariffs that reward you for using energy flexibly, potentially including export tariffs if you generate your own power.

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.