Want to make sure you’re getting the best deal on your business energy?
Economy 7 meters are popular with many businesses aiming to reduce their commercial energy bills. However, it can be difficult to know if an Economy 7 is right for your business.
Paying less for the energy you use at night can be a game-changer for many companies. But you need to stay on top of when the off-peak hours are. Organisation will be critical to your business saving money with a multi-rate tariff.
In this guide, Business Energy look at which businesses can benefit from an Economy 7 tariff.
What is Economy 7?
An Economy 7 business tariff is sometimes referred to as a multi-rate business energy contract.
Businesses on an Economy 7or multi-rate meter can take advantage of cheap rates for night-time energy usage.
An Economy 7-meter records two different rates: off-peak at night and peak during the day. Suppliers can offer a cheaper rate at night because there is less demand for electricity at night. However, the peak rate during the day is more expensive.
Businesses using most of their energy at night can often reduce their energy bills with an Economy 7 tariff. The off-peak time is seven hours, hence the name Economy 7.
How do Economy 7 meters work for businesses?
Each energy supplier offers their own version of the Economy 7 tariff, so the terms and rates vary a little depending on your provider. Business Energy can give you instant quotes from dozens of suppliers. We offer business energy quotes based on your location and energy usage. We can also help to advise you on whether an Economy 7 tariff will suit your needs.
If you want to switch to an Economy 7 tariff, you may need to get a new meter installed. The contract is only available if you have a multi-rate or Economy 7 meter.
Unfortunately, not all suppliers use compatible Economy 7 meters. That means that if you want to switch supplier, you may need a new meter.
In most cases, Economy 7 is only a good deal for companies that are heavy electricity users at night and use little to no electricity during the day.
Installing a new Economy 7 meter
If you're moving premises or you currently have a standard meter, you may require a new meter installation.
Economy 7 and other multi-rate tariffs require a meter which reads your usage at different rates.
At Business Energy, we have a specialist connections team to help you install your new business energy meter.
When you switch with us, installation is free and the process can be completed in as little two weeks.
When are Economy 7 off-peak hours?
Different regions of the UK have different timescales for off-peak hours. For example, if your business is in Scotland your off-peak hours are likely to be between 11:30pm and 7:30am. In the East Midlands and North West of England the hours are usually 12:30am to 7:30am. You will need to check with your energy supplier to confirm your off-peak hours.
Will an Economy 7 meter save my business money?
What does Economy 7 do for business? The truth is they are not automatic money savers. Whether it will be a good choice for you depends on when you use the most electricity.
For example, an Economy 7 tariff could save money for places of worship. If your organisation uses storage heaters at night, which use a lot of electricity, then an Economy 7 meter may help keep your electricity bills low. Storage heaters charge overnight and release heat during the day.
Similarly, if your business is open mainly during the night, like a bar or nightclub, Economy 7 is worth considering. Many catering businesses run appliances like dish washers during the night.
You could save money with an Economy 7 deal if you have heavy electricity usage at night, but still use some electricity during the day. If your distribution centre has an electric fleet which charges during the night, for example. Equally, some warehouses run electrical equipment and machinery at night and could save with an Economy 7 tariff.
Which energy suppliers offer the best Economy 7 tariffs for businesses?
It is worth noting that not all energy suppliers offer commercial Economy 7 tariffs. Some, like EDF, offer similar two-rate tariffs instead. With the government’s promotion of smart meters, Economy 7 meters are decreasing in popularity.
However, there are still good Economy 7 business deals out there.
At the time of writing, smaller energy suppliers like Octopus Energy have great value fixed-term tariffs. Some Big 6 energy suppliers also have good deals, like Scottish Power and SSE.
Energy tariffs are constantly being launched and withdrawn from the market. The only way to guarantee you get the best deal for your business is to compare Economy 7 prices with a broker like Business Energy. We have access to thousands of tariffs and can save you time and money.