Economy 7 was introduced in the 1970s to encourage off-peak nuclear consumption. For UK businesses in 2026 it is a niche tariff — useful for some, expensive for most. This guide explains who Economy 7 still works for in business contexts and how it compares to modern HH-settled time-of-use alternatives.
How Economy 7 works
An Economy 7 meter has two registers: a “day” register (typically 7am-12am) at standard rate and a “night” register (typically 12am-7am) at a discounted rate. Exact night-rate hours vary slightly by Distribution Network Operator (DNO).
Typical 2026 Economy 7 business rates:
- Day rate: 30-35p/kWh.
- Night rate: 14-19p/kWh (roughly half the day rate).
- Standing charge: similar or slightly higher than single-rate tariffs.
Who benefits from Economy 7?
Worth considering if at least 40% of your usage falls in the 12am-7am window. Common business cases:
- Cold storage warehouses and refrigerated distribution centres.
- Manufacturing with overnight production shifts.
- Hotels with night laundries and large hot-water tanks.
- EV fleet operators charging vehicles overnight.
- Bakeries that fire ovens overnight.
- Cleaning contractors with night shifts.
Who should avoid Economy 7?
- Offices and shops (daytime-only load).
- Restaurants and cafes (peak load 12-2pm and 6-9pm).
- Anyone with under 30% night-rate usage — the day rate uplift will outweigh the night rate saving.
Economy 7 vs HH-settled time-of-use tariffs
HH tariffs (mandatory above 100 kW peak demand, optional below) offer more granular time-of-use pricing — typically a 4-band schedule (red/amber/green/super-green) reflecting actual wholesale and network prices for each half-hour. For businesses that can shift load, HH usually beats Economy 7.
How to switch to or away from Economy 7
If your meter is already Economy 7-capable, switching tariff is just a contract change. If you need to install or remove the dual-rate functionality, the meter operator will visit (free with most suppliers, takes 30-90 minutes).
Frequently Asked Questions
Economy 7 night rates run for 7 hours, typically 12am-7am, but exact hours vary by DNO. Some areas use 12.30am-7.30am or 1am-8am. Check your bill or supplier.
Typically 30-50% below the day rate. The day rate itself is usually 5-15% higher than a single-rate tariff to compensate.
Yes — suppliers still offer Economy 7 for businesses where it suits. New installations often choose modern HH-settled time-of-use tariffs instead because they offer finer-grained pricing.
Yes — smart meters fully support Economy 7 dual-rate billing. Many smart meters can also switch to multi-band time-of-use tariffs without hardware changes.
Almost certainly not — offices and shops have most of their load during the day-rate window, so the day-rate uplift will outweigh the night-rate saving. Stick with single-rate or HH-settled tariffs.
Got a business with significant overnight load? Get a free 60-second business energy quote covering Economy 7, single-rate and HH options for your meter.
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