Off-peak meters: our energy team on what you need to know…
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One important element of our work supporting people in Greater Manchester and Lancashire is assisting people within the diocese of Salford with their energy bills.
We often finding that there is some confusion around off-peak meters, so one of our energy advisers has put together information to help.
Here, he explains what an off-peak meter is, why you may have one and how to ensure you’re getting the full benefits if you do…
What is an off-peak meter ?
An off-peak meter is an energy meter with multiple readings for different times of day.
These different readings may have different costs (tariffs) associated with them. Which hours of the day are covered by each different rate can vary per supplier and by what type of meter you have.
Most off-peak meters are known as Economy 7 or ECO 7 for short. The ‘7’ here refers to the number of hours you will get an economy rate for. Typically, this runs from 11:30pm-7:30am but always check with your supplier first.
Off-peak meters will only be for your electricity supply, and you will never have an off-peak rate for gas.
Traditional off-peak meters are easy to spot as they will have two readings rather than the one reading found in standard meters. However newer smart meters can also be set to have an off-peak mode.
If you are unsure if your meter is recording off-peak readings get in touch with your energy supplier.
Why do I have an off peak meter ?
Off-peak meters were initially introduced for households without a mainline gas supply. They are generally found in properties that have storage heaters and a hot water cylinder.
They allow people using electricity for water or space heating to take advantage of cheaper rates overnight. Typically, overnight rates will be around 50 percent cheaper than the standard rate offered by suppliers.
In return for receiving this discounted rate, households will pay a higher price for daytime or on peak electricity use, usually around 25% more than the standard on peak rate.
To help illustrate this we have included some prices you may find in a typical off-peak tariff vs a standard tariff:
Eco 7 /Off-Peak:
Unit rate
Day 33p/kwh / Night 14.73p/kwh
Standard:
Unit rate
27p/kwh
It’s important to note that only households with an off-peak meter or an off-peak tariff get access to cheaper rates of electricity overnight.
Those without this meter type do not benefit from cheaper overnight rates.
How can I make sure I’m using it correctly ?
Getting the most out of off-peak rates requires you to use the majority of your energy during these hours. We would recommend somewhere around 60% of your total household energy usage.
Doing this is most useful if you have storage heaters for space heating and a hot water cylinder for your hot water. Making sure that we programme these systems properly to ensure they are coming on during the correct hours and storing hot water and heat for later usage is the best way to maximise the benefits of this meter type. Shifting some energy usage, when possible, to these overnight rates can also help to reduce our bill. However, shifting usage alone would not be enough to justify using an off-peak meter. The higher prices during the day would offset any savings made.
Those with an off-peak meter who do not have storage heaters or hot water cylinders are unlikely to be receiving any financial benefit from the cheap overnight rate. Asking your supplier for a ‘Flat Eco 7 rate’ (where the two readings are kept but charged at the same rate) is an option which could see the cost of the bill reduced, though it’s important to check based on your own individual circumstances and usage.
Overall off-peak meters can be a valuable way of keeping your bills lower if you have the right systems in place to take advantage of them. They are, however, not right for every household and can lead to unnecessarily high bills in some cases.
We have free drop in sessions for advice around your energy bills or energy consumption etc too. Visit the events page of our website for more details: www.caritassalford.org.uk/events
Please get in touch with any queries or problems you may be facing: energyadvice@caritassalford.org.uk