What is Economy 7?
- June 10, 2020
- Posted by: admin
- Category: News
Have you heard of Economy 7? It’s a term which was used quite a lot in the Eighties, but less so today.
Economy 7 refers to a type of domestic electricity tariff which provides cheaper prices for seven hours during night time. (hence the term Economy 7).
Why was Economy 7 a ‘thing’?
This type of tariff was well suited to households which were fitted with storage heaters (like the image above). These heating units store up thermal energy overnight (when the electricity price is cheaper) and then allow that energy to be released during the daytime.
The seven hours was typically 00:00 to 07:00, but there are multiple variations where that ‘night’ period starts earlier/later or is split into two blocks.
Other extended night hours tariffs do exist, where the ‘night’ block runs for longer – e.g. an Economy 10 tariff with a 10 hour night block.
The key point is that these tariffs were great when households relied on storage heating units which needed to be run overnight. These types of tariffs resulted in a higher day price, allowing a cheaper night price.
If your household is on a two rate / day-night / economy 7 type tariff, and you DO NOT use storage heating – it’s likely you are overpaying on your tariff. You are no longer benefiting from high usage in the cheap night period.