Economy 7 – save money on fuel bills?
According to research carried out for Guardian money, if your household is a high consumer of electricity it could save £300 a year on bills if you switch to Economy 7 electric tariff.
Economy 7 became popular in the 60s and 70s when consumers were encouraged to use a cut price tariff at night to use excess electricity generated by coal and nuclear power stations that have to be kept running at night even when demand is low.
It has fallen out of favour recently, mainly being used by flats with night storage heaters that charge up during off-peak hours – typically from midnight to 7am. This time could be used by appliances such as washing machines, dishwashers or bread makers.
Suplliers maintained that if you use 20% of your energy needs during the off-peak times, you would make a saving. However, TheEnergyShop.com foudn that figure is closer to 40%
It takes habits to change – switching on your washing machine as you go to bed for example, but some households swear by it. Some maintain it also means a lower carbon footprint.
Do your sums before hand though – I had Economy 7 in my old flat for the night storage heaters, but found no significant saving due to the daytime charges being typically higher than normal, to offset the cheaper night rate.
