The Fixer: Economy 7 energy
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My neighbour has recently switched to an Economy 7 home energy tariff and says that it has made her bills much lower.
Our bills have gone up a lot recently so I would like to make the same savings if I can, but I have read that Economy 7 plans only work out better value if you use electricity overnight.
Is there a way to work out whether switching to an Economy 7 plan would save me money?
H Church, Leicester
Dear Mrs Church,
Economy 7, or Domestic Economy, tariffs provides your household with seven hours of low-cost electricity during the night.
They are particularly economical for people who use electric storage heaters, which store up heat during the night and then release it gradually throughout the day. So if you heat your home this way, then switching to an Economy 7 tariff is a good idea.
If you heat your home and water using gas, then you may also be able to save money with an Economy 7 plan – especially if you tend to use appliances such as dishwashers and washing machines overnight.
However, if you use electricity to heat your home and water supply, but do not have storage heaters or a hot water tank, it is unlikely that an Economy 7 tariff will save you money.
In fact, you could end up paying more than you would with a standard plan. Hope that helps you to make the right decision.
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