Economy 7 and Economy 10 tariffs are two slightly different energy plans that, depending on your specific circumstances, can enable you to pay less for your electricity. They function by utilizing two different rates of tariffs, which they refer to as “low” and “normal.” The numbers differentiate the length of time each tariff has a value considered “low.” People who consume much energy at night can benefit from these plans because they provide a lower rate for that time of day.
Are economy 7 and 10 tariffs right for you? To answer that question, let’s delve deep to learn what exactly these tariff methods are and which one is better suited to fit your lifestyle.
What is an Economy 7 tariff?
Economy 7 meters keep account of daytime and nighttime power use independently; you can take advantage of a different (lower) kWh tariff during the nighttime hours, similar to what you would experience while making an off-peak phone call.
You can take advantage of lower electricity for seven hours each night if you get a special meter called an Economy 7 meter placed in your home.
What is an Economy 10 tariff?
Economy 10 meters function in the same manner as Economy 7 meters, providing you with two separate bills for the amount of electricity you use. Nevertheless, as the name implies, you will receive 10 hours of cheaper electricity instead of the standard seven.
In general, the three hours in the afternoon when you use electricity will cost you less per kilowatt-hour, while the seven hours you use at night will cost you more. However, similar to Economy 7 meters, if you use energy outside of these hours, you will be charged a higher rate than normal.
Economy 7 vs. Economy 10
When these tariff types and meters were introduced in 1978, they were geared toward households that heated their houses with storage heaters. These residences might be able to save money on their heating bills by storing heat during the nighttime hours, when power is less expensive, and then using that stored heat during the daylight hours.
Today, millions of people have economy meters installed in their homes. However, this type of meter does not work for everyone, and many individuals do not use electricity during the optimal hours to receive the full benefits of this kind of tariff. You must utilize at least 40 percent of your home’s total electricity between midnight and seven in the morning. This can be accomplished by using appliances and storage heaters during these hours.
Because daytime rates are typically much higher than other single-rate tariffs, the question of whether or not the tariff is the best for you depends on your circumstances. Daytime rates are typically much higher, and using energy during the day can outweigh the benefit of having cheaper nighttime rates.
Depending on how you choose to live your life, a tariff like this one might make significant savings possible for you or create unnecessary pressure on your monthly budget. It is essential to remember that these kinds of tariffs are not appropriate for all customers!