Economy 7 is sometimes known as E7, and it refers to a type of electricity tariff that offers cheaper prices for at least seven hours during the night. This type of tariff needs a special electricity meter. This tariff was initially designed for homeowners with storage heaters.
Ideally, it’s assumed that many people need to use a lot of energy during the night when the grid is not very busy, so the energy prices are lower during the day’s early hours and higher during peak energy usage times. The good news is that Utility Bidder can assist you to switch to Economy 7 tariff. This article discusses the benefits of switching to economy 7 electricity tariffs.
Economy 7 tariffs
Economy 7 has meters that work by tracking the energy usage separately during the night and day. The energy supplier can then charge you using different energy rates for each of these periods. Remember that the energy rate during off-peak hours can be cheaper. On the other hand, the daytime energy rate can be higher than a standard energy tariff.
Economy 7 tariffs are good because they offer businesses and households that utilize energy during off-peak hours with energy tariffs that are suitable for their needs. After all, when you decide to utilize energy during the off-peak times, the energy rates can be cheaper. Therefore, you can benefit from a lower electricity bill.
But it can be tricky to figure out whether or not the Economy 7 tariff is ideal for your business or home. The best way to do this is to determine if your energy usage habits are suitable for this type of tariff.
You should remember that energy prices can be higher during peak periods, so if you utilize a lot of energy during this period, then your best option is to choose another type of energy tariff, such as a fixed-rate tariff.
Another option for energy consumers who utilize a lot of energy during off-peak hours is an Economy 10 tariff. This tariff provides lower electricity rates for at least 10 hours per day, which can be split between the night, evening, and afternoon.
Home and Business Electricity
It’s worth mentioning that both businesses and homes can have an Economy 7 meter. At home, they can be necessary if you desire to switch on your appliances during the night. For example, you can use the washing machine or dishwasher at night. Also, they can be useful for a home that has storage heaters because they can store up energy during the night and release it during the day.
If you have a business that runs usually at night, such as a club or a takeaway, you can save a lot of cash by switching to this tariff because of the lower rates. But you need to be careful because daytime rates on this type of tariff can be expensive compared to a standard tariff. Therefore, you need to properly manage your energy usage during the day.