We’re all trying to find ways to reduce energy bills as the cost of living continues to rise – from changing the settings on your boiler to considering the best time to turn the central heating on.
If you’re on a standard meter, you will pay the same price for each unit of energy at any given time in the day. However homes which rely on electricity for both heating and hot water will usually have an Economy 7 meter. These have overnight rates, which could make your electricity rate cheaper at night.
With energy prices potentially set to go up in 2023 and the government’s Energy Price Guarantee coming to an end in April 2023, now is a good time to think of all the ways to cut rising bills.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Why does Economy 7 make electricity cheaper at night?
Under the government’s energy price guarantee – which will now only run until April instead of until 2024 as previously announced – you pay 34p per unit of electricity. With an Economy 7 meter, you could be paying around 10p per unit less with night time rates.
So basically, you pay a daytime rate and a nighttime rate, but what time your nighttime rate kicks in depends on your supplier. For the most part, however, the night rate will run from 11pm to 6am, midnight to 7am or 1am to 8am.
Make sure you know your time window as going over could significantly increase the cost of running your appliances. Some providers will ask you to provide two readings – one per rate. Note these down correctly as mixing up day and night readings could lead to you being overcharged.
If you do choose to run them at night, you might want to invest in a plug-in timer which will turn appliances on at a pre-set time, saving you having to get up in the middle of the night to put a wash on.
But keep in mind, a cheaper nighttime rate doesn’t guarantee savings. The cost per unit can be more expensive during the daytime.
Keep safety in mind when running appliances at night
It’s worth keeping in mind that running appliances at night can be a safety issue, and no saving is worth potentially endangering your home.
Don’t run appliances with a high wattage or a motor, as these pose a fire risk and should only be used when you’re able to keep an eye on them.
-
House price affordability improves, but average first-time buyer still paying five times salaryNationwide has reported a “modest improvement” in house price affordability over the past year, with wages outstripping house price growth, but challenges remain.
-
How to profit from the scramble for metals and mineralsCopper and other metals will be vital in the transition to cleaner technologies and artificial intelligence. Soaring demand is pushing prices up
-
Act now to bag NatWest-owned Ulster Bank's 5.2% easy access savings accountUlster Bank is offering savers the chance to earn 5.2% on their cash savings, but you need to act fast as easy access rates are falling. We have all the details
-
Moneybox raises market-leading cash ISA to 5%Savings and investing app MoneyBox has boosted the rate on its cash ISA again, hiking it from 4.75% to 5% making it one of top rates. We have all the details.
-
October NS&I Premium Bonds winners - check now to see what you wonNS&I Premium Bonds holders can check now to see if they have won a prize this month. We explain how to check your premium bonds
-
Bank of Baroda closes doors to UK retail bankingAfter almost 70 years of operating in the UK, one of India’s largest bank is shutting up shop in the UK retail banking market. We explain everything you need to know if you have savings or a current account with Bank of Baroda
-
How to earn cashback on spendingFrom credit cards and current accounts to cashback websites, there are plenty of ways to earn cashback on the money you spend
-
John Lewis mulls buy now, pay later schemeThe CEO of John Lewis has said the retailer will consider introducing buy now, pay later initiatives for lower-priced items.
-
State pension triple lock at risk as cost balloonsThe cost of the state pension triple lock could be far higher than expected due to record wage growth. Will the government keep the policy in place in 2024?
-
Paragon raises rate on one-year fixed cash ISA to 5.75%Paragon Bank ups its one-year fixed cash ISA rate to 5.75% - is it enough to top the table?
