Economy 7 Explained – And Why It’s Being Phased Out

For many years, Economy 7 was a popular electricity tariff in the UK, especially for homes that relied on electric heating rather than gas. It offered a cheaper night-time electricity rate, designed to work with appliances like night storage heaters and immersion heaters.

But with modern efficiency standards and changing energy use, Economy 7 is being phased out in favour of smarter, more flexible systems. Here’s a clear guide for homeowners.

⸻

What Was Economy 7?

Economy 7 was introduced in the 1970s, when electricity companies encouraged households to make better use of off-peak electricity generated at night.

The tariff gave: • 7 hours of cheaper electricity overnight (usually midnight to 7am, though times varied). • Daytime electricity at a higher rate.

This suited homes with night storage heaters – appliances that charged up with heat overnight and released it slowly during the day – and immersion heaters that heated hot water cylinders overnight.

⸻

Why People Chose Economy 7 • Cheaper heating for properties without gas. • Worked well with night storage heaters and dual immersion heaters (one element timed for night charging). • Helped balance the electricity grid by shifting demand away from peak times.

⸻

The Downsides of Economy 7

While once cost-effective, Economy 7 also had drawbacks: • Rigid times: You had to use appliances overnight to benefit. Using too much electricity in the day cancelled out savings. • Storage heater limitations: Old models often released too much heat too early, leaving homes cold in the evening. • Lifestyle mismatch: It only worked if you were home during the day to benefit from stored heat. • Technology moved on: Modern heating controls, renewables, and insulation have made the system outdated.

⸻

The Impact of Lot 20 Regulations

In 2018, the EU’s Lot 20 regulations came into force (still in effect in the UK after Brexit). These rules require all new electric space heaters to meet higher energy efficiency standards.

For homeowners, this meant: • Old-style storage heaters were no longer compliant unless fitted with features like electronic thermostats, open-window sensors, and 24-hour programmers. • New electric heating systems had to be “smart” and efficient, with better control and less wasted energy. • Many Economy 7 storage heaters became obsolete, and replacements are now much more advanced.

⸻

Why Economy 7 is Being Phased Out • Smart meters and modern tariffs offer more flexible and fair ways to pay for electricity. • Modern electric heating (panel heaters, high-retention storage heaters, infrared panels, and heat pumps) no longer rely on rigid overnight charging. • Energy suppliers are gradually moving customers to new tariff options, making Economy 7 less widely available.

⸻

What Should Homeowners Do?

If you still use Economy 7 with storage heaters or immersion heaters: 1. Check your bills – you may be paying more overall, especially if you use electricity during the day. 2. Consider upgrading your heating – modern high-retention storage heaters or other electric systems are Lot 20 compliant and much more efficient. 3. Ask your supplier about tariffs – flexible “time of use” tariffs linked to smart meters may save you more than Economy 7. 4. Review your hot water system – dual-element immersion heaters can still work, but modern controls may make them more efficient.

⸻

Conclusion

Economy 7 was a clever solution for its time, introduced in the 1970s to make better use of off-peak electricity. It worked hand-in-hand with storage heaters and immersion tanks, but it has become outdated as energy efficiency standards have risen.

With Lot 20 regulations driving smarter, more efficient heating, and energy suppliers shifting to modern tariffs, Economy 7 is gradually being phased out.

For homeowners, the key is to review your heating system and tariff to make sure you’re not paying more than you need to – and to consider upgrading to a system that meets today’s efficiency standards.

⸻

📞 Switch Electrical & Mechanical Services Ltd Company No: 0191 9052723 WhatsApp: 07388 439427 Email: switchtoday@mail.com

Helping homeowners make sense of their energy use and stay compliant with modern standards.

Frequently Asked Questions (North East UK)

When should I upgrade my consumer unit (fuse box)? If your current fuse board has wooden backing, cast iron switches, or lacks RCD (Residual Current Device) protection, it is severely outdated and non-compliant with modern BS 7671 safety standards. Switch Electrical & Mechanical Services highly recommends upgrading to a modern, metal-clad RCBO consumer unit to dramatically improve the safety of your home in Newcastle.

Do I need a full house rewire? If your home has old rubber-coated wiring, fabric cables, or if you regularly experience blown fuses, flickering lights, and inadequate sockets, it may be time for a rewire. Properties in the North East built before 1990 often require partial or full rewires to safely handle modern electrical loads. Contact us for a full diagnostic inspection.

Are EV chargers legally required to have Open PEN fault protection? Yes. For safety reasons, especially for properties with PME (Protective Multiple Earthing) supplies common in the UK, EV chargers installed outside must have Open PEN fault protection. Switch Electrical & Mechanical Services only installs premium, fully compliant EV charge points for homeowners across the North East.