Economy 7 Tariff – What exactly is it?

Economy 7 Tariff – What exactly is it?

Economy 7 Tariff – What exactly is it?

If your household is already home to a legacy heater system , then chances are you are probably already familiar with the Economy 7 tariff. Although Economy 7 is designed to make electric heating more affordable by being used in conjunction with night time heat storage systems, many find this system to be inconvenient to use.

Unfortunately, this tariff is vulnerable to sudden inflation caused by the use of alternative electrical heating appliances which aren’t best suited to this particular tariff.

How does Economy 7 work?

This particular tariff is designed to be used in homes that aren’t fitted with the standard gas central heating system, as it allows the occupants to benefit from a cheaper form of electricity at certain times of the day (usually night-time) and for a duration of up to 7 hours hence the term Economy 7. The most obvious indicator that your household is fitted with an Economy 7 heating system, is that there will confusingly be two metres for you to read from. One is for daytime or peak hours and the other is for night time or off-peak heating. The system will automatically switch between the two, allowing you to change the amount that you are paying for your energy bills.  Many people report how difficult this makes it to keep track of how much electrictiy you are using.

Why was Economy 7 Introduced?

Demand for electricity naturally declines overnight when everyone tends to go to sleep and the household shuts down for the night. Economy 7 was introduced to encourage individuals to take advantage of the electricity that was produced by power stations, allowing legacy heaters to charge up and release the built-up energy throughout the course of the day.  However, many users report how extortionate the daytime tariff can be.

Are you using Night Time Legacy Heaters?

If you are using night time legacy heaters and you aren’t already on the Economy 7 tariff, then you are almost certainly paying over the odds for your electricity. However, if you are already on the Economy 7 tariff it may also be worth checking if you could not benefit from using a far more economical tariff for daytime usage.

Have you just Moved House?

If you have just moved into a new property or are exploring potential homes, there are a few telltale signs that will enable you to ascertain whether or not said property uses an outdated Economy 7 tariff.
• Does the property have two readers? Generally speaking Economy 7 households will have two readers.
• Look at your previous bills – there should be two rates listed on your bill if you have Economy 7 in your household. A MPAN (metre point access number) may also be listed on your bill. This will begin with 02 if you are on the Economy 7 tariff.
• If in doubt – ask us here at Electric Heating Expert for advice .

I have Economy 7. Now what?

• Unfortunately on Economy 7 you will be charged more for your energy consumption between the hours of 7am and 11pm meaning that your bills will rise if this is when you use electricity

• Don’t sign up for the Economy 7 tariff if you and your family rely on other sources of heating such as electric radiators, electric towel rails and infrared panels, as you won’t benefit.

• If your household uses heating predominately during daylight hours, then your energy consumption costs will be significantly higher during peak times with Economy 7 when costs rise, so it is worth asking an expert about a different tariff.

If you are looking to switch from legacy heaters to an affordable alternative or would like to learn more about the newer tariffs, then why not contact our team of experts today on 01252 560770.

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