Economy 7 for business

What Economy 7 is

Ofgem describes a multi-rate tariff such as Economy 7 as one where you pay one rate for electricity used during a specified off-peak period and another, more expensive rate during peak hours. The name comes from the roughly seven hours of off-peak time each night. It applies to electricity only; there is no Economy 7 for gas.

For a business the principle is the same as at home, but the tariff is agreed as part of a business contract, which can be fixed rate business energy or a variable tariff. You pay a day unit rate, a night unit rate and a standing charge, plus VAT and the Climate Change Levy. Our guide to business energy tariffs shows where multi-rate tariffs fit among the other types.

The meter you need

Economy 7 needs a meter that records day and night use separately:

• A two-rate (dual register) meter shows two readings, usually labelled day or normal, and night or low. You give both readings, and the supplier bills each at its own rate.
• A smart meter can record use against time periods and be set up for a multi-rate tariff remotely. See smart meters for business.
• Your MPAN tells the industry how the site is settled. Elexon's profile class 4 is for non-domestic Economy 7 customers, shown in the first two digits of the top line of your MPAN number. Profile class 3 is non-domestic unrestricted (single-rate) supply.

If you have a single-rate meter and want Economy 7, the meter usually needs to be changed or reconfigured, which your supplier arranges. Half-hourly metered sites are settled on their half-hourly data instead, so Economy 7 is mainly a tariff for smaller, non-half-hourly business supplies. The industry is also moving every meter to market-wide half-hourly settlement, which changes how use is settled behind the scenes; ask your supplier how that affects the tariffs it offers on your meter. See business electricity meters for the full range.

Off-peak hours, Economy 10 and other multi-rate tariffs

The off-peak window is not the same everywhere. It depends on your region, your meter and your supplier, and some meters stay on the same clock time all year so the window shifts by an hour when the clocks change. The reliable way to find your hours is to check your bill or contract, or ask your supplier, rather than relying on a general list.

Economy 10 works on the same idea with ten off-peak hours, usually split between the night and parts of the afternoon or evening. Times differ by area and supplier, and it needs a compatible multi-rate meter.

Some suppliers offer other multi-rate structures for business, and smart meters make time-of-use pricing possible. Whatever the name, the questions are the same: when are the cheaper hours, how much cheaper are they, and how much of your use falls in them?

Old Radio Teleswitch meters: the signal has ended

Some older two-rate meters switched between day and night rates, and sometimes switched heating circuits, using a long-wave radio signal called the Radio Teleswitch Service (RTS). Ofgem reports that the gradual phase-out began on 30 June 2025, and Energy UK, the industry trade body, confirms the phase-out was completed on 30 June 2026.

Without the signal, an RTS meter cannot switch rates or heating as it was designed to, so it needs replacing, usually with a smart meter that can be programmed to give a similar day and night service. If your premises still has one:

1. Check whether your meter is an RTS meter: look for a separate switch box labelled Radio Teleswitch near the meter, or ask your supplier
2. Ask your electricity supplier to book a replacement, and ask what multi-rate tariff will be available on the new meter
3. Check any storage heaters or water heaters that were switched by the old meter still come on at the right times after the change

Ofgem has also introduced automatic compensation for microbusinesses that are not offered a smart meter installation appointment within 60 working days of asking, which came into force on 23 February 2026.

How an Economy 7 business bill is worked out

An Economy 7 bill has the same building blocks as any business electricity bill, with the unit charge split in two. For each billing period the supplier works out:

1. Day units: the kWh on the day (normal) register multiplied by the day unit rate
2. Night units: the kWh on the night (low) register multiplied by the night unit rate
3. Standing charge: the daily charge multiplied by the number of days in the period
4. Climate Change Levy: charged on the kWh supplied, unless an exemption applies
5. VAT: added at the rate that applies to your use; see reduced rate VAT on business energy

Because there are two registers, there are two readings to give each time. If the supplier estimates one or both, the split between day and night can be wrong as well as the total, so submit both readings when asked, or ask about a meter that sends readings automatically. When you check a bill, make sure the day and night readings have not been swapped: that is easy to do by hand on an older meter. Our business energy standing charges guide explains the fixed daily part of the bill.

Which businesses Economy 7 suits

Economy 7 only makes sense if enough of your electricity is used in the off-peak window, because the peak rate is higher than the off-peak rate and can be higher than a single-rate tariff. It tends to suit businesses that:

• Heat premises or water with storage heaters or immersion heaters timed for the night
• Run refrigeration, cold stores or other equipment that works around the clock
• Charge electric vehicles or equipment batteries overnight
• Bake, process or run machinery in the early hours

It is usually a poor fit for offices, shops and other businesses that use most of their power during the working day. Before choosing it, look at your day and night readings, or your smart meter data, over a full year. If the split is not clearly weighted towards night use, a single-rate tariff may cost less.

A quote for a multi-rate tariff should show the day rate, the night rate and the standing charge separately, so you can work out the cost against your own usage rather than a typical profile.

How we can help

We introduce you to Fidelity Energy, an independent energy consultancy and broker, and help you gather the bills, day and night readings and MPAN details needed to price a multi-rate tariff. Fidelity Energy gets quotes from its network of suppliers for single-rate and multi-rate options, arranges the contract you choose and offers smart meter installation support, coordinating with your supplier and meter operator. Your contract is with the supplier.

Ask us for a quote and we can help you check whether day and night rates suit your usage. Thinking about Economy 7 for your business? Contact us.