What Are Off-Peak Electricity Tariffs?
Understanding time-of-use electricity pricing in 2026
Off-peak electricity tariffs offer significantly cheaper unit rates during specific low-demand hours — typically overnight — with higher rates during peak daytime hours. This pricing model encourages energy usage when national demand is lowest.
2026 Electricity Demand Drivers
Increased electric heating & heat pumps, EV adoption, home working patterns, and smart appliance usage make off-peak tariffs more valuable than ever for reducing bills.
Economy 7
7 hours of cheaper electricity overnight, higher daytime rates. Most popular for storage heaters and overnight water heating.
Economy 10
10 hours split across day, afternoon & night. Better flexibility for heating but limited regional availability.
Smart Time-of-Use
Multiple off-peak windows with smart meters. Dynamic pricing based on demand. Ideal for EV owners and flexible households.
2026 Rate Comparison
Off-peak vs peak vs single-rate electricity pricing
Average Electricity Rates per kWh
Typical Economy 7 Day Structure
Who Benefits Most?
Ideal usage patterns for off-peak electricity savings
Recommended For
- Storage heater households
- Overnight water heating systems
- EV charging at night
- Running appliances overnight
- Electric-only heating homes
- 30%+ overnight usage
Not Recommended For
- Daytime-heavy electricity usage
- No overnight consumption
- Limited usage shifting capability
- Less than 30% off-peak usage
- High daytime heating needs
- No storage heating system
EV & Heating Focus
Specialised off-peak solutions for high-usage households
EV-Specific Tariffs
- Very cheap overnight rates (as low as 7p/kWh)
- Higher daytime pricing offset
- Ideal for overnight EV charging
- Require smart meter installation
- Comparing incorrectly can wipe out savings
Electric Heating Solutions
- Storage heaters designed for Economy 7
- Heat pumps benefit from smart tariffs
- Electric boilers with timer controls
- Panel heaters better on single-rate
- Annual savings: £400–£1,500+
Smart Meters & Off-Peak Tariffs
How smart technology enables optimal savings
Smart Meter Benefits
- Enable flexible time-of-use pricing
- Accurate peak vs off-peak usage tracking
- Support for EV-specific tariffs
- Real-time consumption monitoring
- Automatic meter readings
- Expanded tariff options
Installation Note
While smart meters expand your off-peak options, they're not mandatory for all off-peak tariffs. Economy 7 continues to work with traditional meters.
Off-Peak Savings Calculator
Estimate your potential savings with time-shifted usage
Customise Your Usage Profile
Adjust sliders to match your consumption patterns
Avoid These Common Mistakes
Costly errors that reduce or eliminate off-peak savings
⚠️ Expensive Off-Peak Mistakes
These common errors can turn potential savings into higher bills:
Usage Pattern Errors
- Staying on Economy 7 without overnight usage
- Running high-consumption appliances during peak hours
- Ignoring peak rate costs in calculations
- Assuming off-peak is always cheaper
- Never checking your peak/off-peak usage split
Switching & Timing Errors
- Switching at the wrong time of year
- Not reviewing when fixed tariffs end
- Switching without usage pattern analysis
- Locking into high peak rates
- Missing smart meter upgrade opportunities
2026 Off-Peak Tariff Verdict
Expert recommendations for time-based electricity savings
✅ Powerful Savings Potential
Off-peak tariffs offer 20–50% savings for households that can shift substantial electricity usage to cheaper overnight periods. The right tariff matched to your usage pattern delivers significant bill reductions.
⚠️ Not Universally Beneficial
For households with daytime-heavy usage or limited shift capability, off-peak tariffs can actually increase costs due to higher peak rates offsetting off-peak savings.
Storage Heater Homes
Annual savings: £400–£1,000+
EV Owners
Annual savings: £300–£800+
Daytime Users
Potential loss: £100–£500+