Households across the UK have been issued a critical 7am warning that could significantly impact their energy bills this winter. As temperatures plummet, the advice from Money Saving Expert (MSE), founded by Martin Lewis, is more timely than ever.
The 7am Rule Explained
Money Saving Expert has highlighted that some families may be unknowingly spending more on their heating after 7am. This specifically affects homes, typically those with electric storage heaters, that operate on an Economy 7 tariff. This type of tariff offers a cheaper electricity rate during the night, usually from midnight until 7am, and a more expensive rate for the rest of the day.
MSE stated, "An Economy 7 tariff gives a cheaper electricity rate at night and a more expensive one in the day. These tariffs are mainly for those who use night time storage heaters to heat their home and water." The crucial point is that using significant amounts of electricity during the daytime peak period can erase any savings and ultimately cost you more.
Who This Affects and How It Works
This rule is primarily intended for electricity-only properties that utilise specific heating systems. The two main types are:
- Storage heaters: These devices heat up using cheaper electricity during the off-peak night-time hours. They store the heat in special internal bricks and release it gradually throughout the following day.
- Economy 7 hot water tanks: These tanks contain two immersion heaters. One heats the water during the cheap overnight period, while the other acts as a booster during the day if you run out.
To be on an Economy 7 tariff, you need a compatible meter. All energy suppliers offer these tariffs, but they require either a smart meter or a dedicated Economy 7 meter. The quickest way to check if you have one is to look at your energy bill. An Economy 7 bill will show separate night-time and daytime readings. You can also look for the Meter Point Administration Number (MPAN); if the top line starts with "02", you are likely on an Economy 7 plan.
Important Update on Older Meters
There is a vital update for households with older Economy 7 meters. Some of these meters use the Radio Teleswitch Service (RTS), also known as the Dynamic Teleswitch Service, to switch between day and night rates.
The Government confirmed that the RTS service is being shut down in a phased, area-by-area process, which began on 30 June. This is a significant change that could affect how your meter operates. MSE advises visiting their website for detailed guidance on what to do if this applies to you.
With the NHS recommending a home temperature of around 18°C to maintain health and prevent damp and mould, managing heating costs effectively is essential. Understanding your tariff and timing your energy use could be the key to staying warm without facing unexpectedly high bills this winter.
