Economy 7 electricity price hikes: what you need to know
Households with Economy 7 could see electricity bills go up this month as suppliers raise prices – how can this happen under the Energy Price Guarantee?
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Sign up to our newsletter Newsletter

More than two million Economy 7 electricity meter customers are expected to see bills go up by over £100 a year - even if they don’t change their energy habits.
While Economy 7 households are still protected by the Energy Price Guarantee, prices can be slightly more complicated as suppliers don’t charge one single price per unit of energy.
Due to the way Economy 7 works, suppliers can charge different rates – one higher ‘peak’ rate and a cheaper ‘off peak’ rate when appliances are used overnight.
While the current Energy Price Guarantee is in place until April, after which it will rise, when it comes to Economy 7 tariffs, suppliers can raise prices in January.
Ofgem, the energy regulator, has put up the price that suppliers can charge Economy 7 customers this month and if suppliers impose the price rises households using Economy 7 will face higher bills.
According to a BBC report (opens in new tab), number crunching by Future Energy Associates, shows these households face an average 7.6% rise in prices with a typical annual Economy 7 bill coming in at £2,964.
This is higher than the £2,500 figure banded around under the Energy Price Guarantee for an average household energy bill, based on typical usage. However important to remember the Energy Price Guarantee is an illustration of what the average household could pay, and not a cap on bills.
An Ofgem spokesperson said: “Our priority is to keep costs down for all customers.
“Economy 7 users pay lower average unit rates than single rate customers and are protected by the government’s Energy Price Guarantee – saving the equivalent of £655 a year on average than if the full cost of electricity was passed on”.
Economy 7 electricity hikes
Can I switch from Economy 7 to a single-rate tariff?
If you think you are going to pay more each year with an Economy 7 deal than under a single rate tariff then you can switch.
This could be if you regularly forget to run appliances during off-peak times or are unable to take advantage of the cheaper off-peak rates. But, it’s best to speak to your supplier first so they can help you work out whether that really will be the cheapest deal.
Sue Hayward is a personal finance and consumer journalist, broadcaster and author who regularly chats on TV and Radio on ways to get more power for your pound. Sue’s written for a wide range of publications including the Guardian, i Paper, Good Housekeeping, Lovemoney and My Weekly. Cats, cheese and travel are Sue’s passions away from her desk!
-
-
Selling second-hand: do I need to pay tax?
If you sell on sites like eBay and Facebook – do you need to pay tax on money earned?
By Sue Hayward • Published
-
Broadband scams warning: scam calls cash in on upcoming price hikes
As broadband prices are set to hike from April, so are broadband scam - we explain how to spot the scams
By Vaishali Varu • Published
-
Water bills up in April: how much more will you pay?
Water bills are set to go up in April – what does this mean for you and how to get help with bills
By Sue Hayward • Published
-
The best energy suppliers for 2023 - and the worst, revealed by consumer organisation
See if your energy provider is rated as one of the best or below-average energy suppliers for 2023
By Vaishali Varu • Published
-
This under-used washing machine setting can save you £37
Make this one simple change when you put the wash on and save around £37 per year on your energy bills
By Vaishali Varu • Published
-
Still not filed your self-assessment tax return? Make the midnight deadline to avoid a £100 fine - though the taxman will be lenient if you have a genuine excuse
The self-assessment deadline is TONIGHT. There's a £100 fine if you miss it - and 6% interest on any tax owed
By Ruth Emery • Published
-
5G hub vs fibre broadband - do you really need a wired broadband connection?
UK’s 5G network is growing which means there might not be a need for broadband connection anymore, how is 5G hub different and it is worth it?
By Vaishali Varu • Published
-
Can thermal curtains save £327 per year on your heating bill?
Quick and affordable, thermal curtains could cut £100s off your heating bill according to experts
By Vaishali Varu • Last updated
-
Millions of Virgin Media customers to see a 13.8% hike in broadband bills
Virgin Media announces broadband bill hike of 13.8% for customers from April or May - find out if you can beat it
By Vaishali Varu • Published
-
Save up to £350 on a new iPhone or Samsung with this simple money-saving hack
How to cut costs by changing the way you buy your phone - how you can save £350 on your phone bill
By Vaishali Varu • Published