Economy 7 tariffs provide businesses the option to be charged differently during the day and at night. If you want to save money on your electricity bills, and your business uses the most energy at night, you may be interested in switching to an Economy 7 electricity tariff.

What is Economy 7?

An Economy 7 is a type of electricity tariff that is considered a multi-rate business energy contract. It offers users discounted electricity during “off-peak” hours. As its name suggests, it reduces energy rates for seven hours during the night.

Businesses that operate during the night can make significant savings through the Economy 7 tariff. During low-demand hours, electricity rates can decrease by up to 45 percent.

However, the Economy 7 tariff also includes a “peak” rate. During peak hours, the electricity rates become much higher than the business utilities supplier’s standard rate. In some cases, the peak rate can be twice as expensive as the off-peak rate.

When Does the Countdown of 7 Hours Start?

Economy 7 times vary from one energy supplier to another. For instance, off-peak hours could be 11 P.M. to 6 A.M., 12 A.M. to 7 A.M., or even 1:30 A.M. to 8:30 A.M. The times change during British Summer Time and Greenwich Mean Time. It would be ideal to compare the Energy 7 times of different utility suppliers to find the suitable tariff for your business.

Additionally, it is important to note that some energy suppliers may split the seven hours into two periods. Check with your energy supplier to determine their off-peak hours so that you don’t accidentally use high-power appliances during those times.

Will Economy 7 Help Save Your Business Money?

It depends. As we mentioned earlier, Economy 7 reduces energy rates for seven ‘off-peak’ hours each day. If your business uses the most electricity during those hours, then an Economy 7 meter may be worth considering.

Economy 7 meters are ideal for establishments that are open during the night, such as a nightclub or bar, and for businesses that run high-power appliances overnight (e.g. catering services that use dishwashers in the evening).

Economy 7 meters are ideal for establishments that are open during the night, such as a nightclub or bar, and for businesses that run high-power appliances overnight (e.g. catering services that use dishwashers in the evening).

Who is Economy 7 Ideal for?

For your business to be able to benefit from Economy 7, it will have to use a lot of energy during the day. Keep in mind that under the tariff, the daytime rate will be much higher during peak hours. Energy suppliers intentionally impose higher rates during the day in order to ‘balance out’ the lower off-peak rate. Before you switch business utility UK, check carefully if the savings from your nighttime usage will exceed your expenses from your daytime use.

It’s also important to note that you will only qualify for the Economy 7 meters if you are using electricity as your main source of energy. That means that you shouldn’t be using gas, oil, and so on.

Here are a few things to consider before making the switch:

#1 Do You Use More Electricity During the Night?

If not, you may be better off without an Energy 7 tariff. If you use more electricity during the day, and you are under the tariff, you will end up paying double the amount of what you would normally pay for.

#2 Do Your Appliances Have Timers?

Unless your appliances, such as your air conditioning unit, water heater, thermostat, etc. have timers, you will have to stay up until 11 P.M. or 1 A.M. to manually switch them on when the off-peak hours start. Similarly, you will have to remember to switch them off during the daytime.

#3 Do You Own an Electric Vehicle?

Economy 7 could be a smart choice if you use an electric vehicle during the day and charge it overnight.

 

#4 What Heating System Do You Use?

Electric storage heaters are a perfect match for Economy 7. Since you’ll have to charge them overnight in order to use them during the day, you can make significant savings under the Economy 7 tariff.

#5 What is Your Lifestyle Like?

Think about whether or not the Economy 7 tariff would suit your lifestyle. If you work from home during the night, you may benefit from Economy 7, as the bulk of your energy usage is in the nighttime, anyway.

How Can You Tell if You’re on an Economy 7 Tariff?

To find out if your business is already registered under an Economy 7 tariff, refer to your most recent electricity bill. If you’ve been charged twice at two different energy rates, then you are most likely under the Economy 7 tariff.

If your business is on the Economy 7 tariff, you may notice that your meter has two sets of numbers. They’re usually labeled as ‘low’ and ‘normal’ or ‘day’ and ‘night’. If you’re unsure if your business is on the Economy 7 tariff, consider contacting your energy supplier to confirm.

How Can You Switch to Economy 7?

If you aren’t on the Economy 7 tariff yet, here’s what you need to do:

• Compare utility prices. Energy rates differ depending on the energy supplier. You can use our online comparison tool to help you choose the best (and most affordable) supplier from the list.

• Contact the supplier. Ask them if they can put you under an Economy 7 tariff. If you’re with another supplier, you may have to wait until your contract expires or pay an expensive exit fee.

Don’t want to switch to another supplier? It’s likely that your current energy supplier can transfer you to an Economy 7 tariff. You will need to contact them directly to learn more about their process. Keep in mind that your energy supplier may charge additional fees for the installation of the new meter.

Need More Info? Ask Us!

The best way to ensure that an Economy 7 tariff is ideal for your business is by comparing utility prices online. At Watt.co.uk, we can compare prices for you and help you decide which supplier can save you the most money. Contact us today for more information.