Economy 7 in 2026: Is It Still Worth It in the UK?

Economy 7 splits your day into peak and off-peak rates. With heat pumps, EVs and home batteries on the rise, here's when it still saves money in 2026 — and when a single-rate tariff wins.

What is Economy 7?

Economy 7 is a UK electricity tariff that gives you two unit rates instead of one: a cheaper off-peak rate for 7 hours overnight (usually somewhere between 11pm and 8am, depending on supplier and meter type), and a higher peak rate for the other 17 hours.

It was originally designed for homes with night storage heaters, which charge up overnight on the cheap rate and slowly release heat during the day.

How the rates compare in 2026

In 2026, a typical Economy 7 tariff in the UK looks roughly like this:

- Off-peak rate: around 12–18p/kWh - Peak rate: around 30–38p/kWh - Standard single-rate: around 24–28p/kWh

The gap between off-peak and peak is what makes or breaks Economy 7. The bigger the gap, and the more of your usage you can shift overnight, the better it works.

When Economy 7 still wins

Economy 7 makes sense in 2026 if you can genuinely move at least 40% of your electricity use into the off-peak window. That usually means:

- Night storage heaters as your main heating source. - Electric vehicle (EV) charged overnight at home. - Hot water cylinder heated by an immersion timer overnight. - Home battery charged off-peak and discharged during the day. - Dishwasher, washing machine and tumble dryer run on delay timers.

If you tick three or more of these, Economy 7 will almost always beat a standard tariff.

When Economy 7 costs you more