Economy Tariffs: Can Your Business Save with Off-Peak Energy?
With energy costs remaining a significant overhead for UK businesses, many are exploring economy tariffs as a way to save. But what are economy tariffs, and are they right for your business?
Follow our Energy Tariffs Explained blog series to learn more.
What Are Economy Tariffs?
Economy tariffs, such as Economy 7 and Economy 10, offer cheaper electricity rates during designated off-peak hours, typically overnight or at specific times of day. These tariffs are designed to encourage energy use when national demand is lower.
Economy 7
Provides seven hours of cheaper electricity, usually at night.
Economy 10
Offers ten hours of off-peak rates, often split between night and day.
Who Benefits Most?
Economy tariffs are ideal for businesses that can shift significant energy use to off-peak times. Examples include:
- Bakeries or food producers operating overnight
- Laundrettes or dry cleaners
- Manufacturers with flexible production schedules
Pros and Cons
Pros:
- Significant savings if you use most energy during off-peak hours.
- Can help reduce your carbon footprint by using energy when demand is lower.
Cons:
- Daytime rates are higher, so businesses operating mainly during the day may see increased costs.
- Not all suppliers offer economy tariffs to businesses.
- Requires a compatible meter and sometimes operational changes.
Is an Economy Tariff Right for Your Business?
Analyse your energy usage patterns. If you can adapt operations to take advantage of off-peak rates, an economy tariff could deliver real savings. Otherwise, a standard or fixed tariff may be more cost-effective.
Economy tariffs can be a smart choice for businesses with flexible energy needs. Review your usage data and speak to your supplier or an independent advisor to see if this option could work for you.
Think your business may have overpaid on energy bills?
A recent court ruling means you could be entitled to reclaim hidden broker fees or mis-sold contracts.
Contact Business Energy Claims today to find out if you’re eligible to make a claim.