How Time-of-Use Tariffs Work
Traditional tariffs charge the same rate 24/7, but time-of-use tariffs like Economy 7, Economy 10, and smart tariffs like Octopus Agile offer cheaper rates during off-peak hours.
Peak vs Off-Peak Hours
Electricity demand (and therefore price) varies throughout the day:
- Peak hours (most expensive): 4pm–7pm weekdays
- High demand: 7am–9am weekdays
- Off-peak (cheapest): 12am–6am
- Moderate: Weekends and midday
Economy 7 Tariffs
Economy 7 gives you 7 hours of cheap electricity overnight, typically between midnight and 7am. It's ideal if you have storage heaters or an immersion heater for hot water.
Best for: Homes with electric heating, those who can shift 40%+ of usage to night hours.
Smart Tariffs (Agile, Go, etc.)
Tariffs like Octopus Agile change price every 30 minutes based on wholesale rates. Prices can be very cheap (even negative) overnight but expensive during peak demand.
Best for: EV owners, homes with batteries, those who can be flexible.
What to Run Off-Peak
- Washing machines and tumble dryers
- Dishwashers (use delay start)
- Electric vehicle charging
- Immersion heater for hot water
- Storage heaters
- Battery charging (phones, laptops, etc.)
Smart Plugs and Timers
Use smart plugs or timer switches to automatically run appliances during cheaper periods. Many smart plugs can be scheduled via an app, making it easy to optimise your usage.
Is a Time-of-Use Tariff Right for You?
These tariffs work best if you can shift at least 40% of your electricity use to off-peak hours. If you work from home or can't change when you use energy, a standard tariff may be better.
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