Bills and payments
Economy 7 or single rate: which is cheaper?
When Economy 7 beats a single-rate tariff, the night share that decides it, and how to check with today’s Octopus rates for your region.
Edited by Rob Gibbs. Published: . Guidance reviewed: .
Short answer
Economy 7 has a cheaper night rate and a dearer day rate. It wins only if enough of your electricity is used at night: typically homes with storage heaters, an overnight hot-water tank or EV charging. Octopus describes it as designed for storage heater homes and anyone using lots of power overnight. The Economy 7 calculator shows the break-even night share for your region.
How the maths works
Every kWh moved to the night saves the gap between the day and night rates. Every kWh left in the day costs more than on a single rate. The break-even is the night share where the two cancel out. Standing charges can differ too, so include them.
Who usually wins on Economy 7
The usual winners:
- Storage heaters charging overnight.
- A hot-water cylinder with an immersion heater on a night timer.
- Overnight EV charging, though an EV tariff is usually cheaper still.
Check your meter and readings
Economy 7 needs a two-rate meter. Send both day and night readings, correctly labelled, because mixing them up prices your use at the wrong rates. If you have storage heaters and a SMETS2 meter, Snug Octopus may be worth comparing too.
Questions people ask
Is Economy 7 worth it without storage heaters?
Rarely, unless you run a lot overnight. Use the calculator with your own night share.
Can I switch from Economy 7 to a single rate?
Usually yes, though the meter may need reconfiguring or changing. Ask Octopus first.
Tariffs in this guide
Related guides
- Understanding your Octopus Energy billWhat each part of an Octopus bill means: unit rates, standing charges, estimated and actual readings, VAT and your account balance.
- Can you refuse a smart meter?Whether you can say no to a smart meter, what changes when an old meter must be replaced, and what you give up without one.
- How to submit a meter reading to Octopus EnergyWhere to send an Octopus meter reading, how often to do it, how to read each type of meter and what to do when a reading looks wrong.
- Switching to Octopus with two electricity MPANsWhy some homes have two electricity supply numbers, usually for off-peak heating, and what to check when you switch to Octopus.
- Is Agile Octopus actually cheaper?When Agile Octopus beats a standard tariff, why the answer depends on when you use power, and how to check with your own half-hourly data.
- What is Octopus Energy? Tariffs and how it differsA plain-English introduction to Octopus Energy: who it is, the kinds of tariff it offers, and how to find the right one for your home and region.
Primary sources
- What is an Economy 7 meter and tariff? — Octopus Energy; checked 2026-10-30. What Economy 7 is, who it suits and why day and night readings must not be mixed up.
- How do I read my meter and submit a meter reading? — Octopus Energy; checked 2026-10-30. Ways to submit a meter reading: reminder email, online account and email with a photo.