Economy 7 vs Standard Tariffs: Which is Best for Electric Heating?

For decades, Economy 7 tariffs have been presented as the cheapest electricity tariff for electric heating users. The promise was simple: use electricity overnight when it’s cheaper, store that heat in chunky night storage heaters, and release it throughout the day.

But as our homes, technology, and lifestyles evolve, a question arises: is this 1970s approach still relevant in today’s energy landscape?

The reality is that many homeowners are paying over the odds because they’re stuck with outdated heating systems and energy tariffs that no longer match their modern energy needs. Between flat-rate standard tariffs and the aging Economy 7 tariff, homeowners face a confusing choice that could be costing them HUNDREDS of pounds each year.

What is Economy 7?

Introduced in the 1970s, the Economy 7 is a tariff designed to be used alongside night storage heaters and offers a dual-rate billing system: seven hours of cheaper electricity overnight (typically between midnight and 7am), balanced by higher rates during daytime hours.

How does this work with Night Storage Heaters?

During the cheaper off-peak hours, the night storage heaters will use electricity to charge their clay cores, the heat is then released during the daytime, where the energy rates are higher.

The Real-World Limitations of Economy 7

While an Economy 7 and night storage heater combination might seem like a no-brainer, Economy 7 imposes a lifestyle that many modern households find increasingly restrictive. The system’s inherent limitations have become more pronounced as our energy needs and heating expectations have evolved. Here are some of the most common complaints we’ve heard about Economy & and night storage heaters:

1. Uncontrollable Heating Schedule

   Charges overnight and releases heat during the day, regardless of need.

   Leads to overheated mornings and cold evenings, when families need warmth most.

2. Misaligned with Daily Routines

   Heats when homes are empty (e.g. 8am–6pm for working families).

   Runs low by evening when warmth is actually needed.

3. Poor Temperature Control

   Minimal real-time adjustment as settings are fixed the night before.

   Can’t respond to sudden weather changes or altered plans.

4. Hidden Financial Costs

   Nighttime rates are cheap, but daytime electricity costs 20–30% more.

   Households using electricity during the day may pay more overall.

   Supplementary heating is often needed to stay warm during evenings.

5. Bulkly Outdated Design

   Large, heavy units take up wall space and continue releasing heat unnecessarily.

   Often seen as dated and clashing with modern home aesthetics.

Standard Tariffs: The Single-Rate Alternative

Standard electricity tariffs operate on a straightforward principle: you pay the same rate for electricity regardless of when you use it, creating consistency and predictability in your energy costs. This uniformity offers a stark contrast to the time-dependent rates of Economy 7, eliminating the need to schedule electricity usage around specific hours.

For modern households with electric heating, standard tariffs provide flexibility that Economy 7 simply cannot match. Heat can be generated precisely when needed, rather than relying on stored warmth from overnight charging. This on-demand approach aligns perfectly with contemporary lifestyles where occupancy patterns vary and spontaneity is valued.

What about Energy Costs?

The financial comparison between Economy 7 and standard tariffs depends heavily on individual circumstances and heating options. While standard tariffs may be higher than an economy 7 off peak rate, energy-efficient electric radiators with precise thermostatic controls allow users to heat only the rooms they’re using, exactly when they need warmth which reduces their bills. This targeted approach typically consumes less electricity overall compared to the “charge and release” method of storage heaters, even accounting for the uniform rate structure.

However, standard tariffs aren’t without limitations. During periods of high electricity demand—typically weekday evenings—the national grid faces increased pressure. Standard tariff users pay the same rates during these peak periods as during low-demand times, missing potential savings that more dynamic tariff structures could offer.

Is There a Better Energy Tariff for Electric Heating Users?

Energy providers have recognised the limitations of both Economy 7 and standard tariffs, spurring the development of more sophisticated options that reflect our increasingly connected world. Smart tariffs represent the next evolutionary step in electricity pricing, designed to work harmoniously with modern technology and contemporary energy usage patterns.

The Octopus Cosy Tariff exemplifies this new approach. Specifically designed for homes with electric heating, it offers discounted rates during typical heating hours while maintaining competitive pricing throughout the day. Unlike Economy 7’s rigid overnight structure, the Cosy Tariff provides lower rates three times a day every day.

What’s better is the integration with modern heating technology. App-controlled electric radiators like the NEOS can can be scheduled to take advantage of the lower tariffs.

So not only are you saving 51% on energy tariffs, compared to the day rate in your region, you’re also saving energy by using a heating system that uses less energy. AND for Trust Electric Heating customers, a FREE £50 energy credit is available when switching to the Octopus Cosy Tariff, further enhancing first-year savings.

Beyond pure economics, smart tariffs offer unprecedented flexibility. Unlike Economy 7, which forces consumers to commit to a rigid heating schedule, smart tariffs work around your lifestyle. If your schedule changes unexpectedly, your heating can adapt without incurring punitive rates. This adaptability extends to seasonal variations as well, with smart systems capable of learning and anticipating household patterns.

NEOS vs Storage Heaters: A New Generation of Electric Heating

The NEOS electric radiator is a clear step forward from outdated storage heaters—not just in looks, but in how it delivers, stores, and controls heat.

At its core is natural soapstone, chosen for its ability to heat up quickly and retain warmth for longer. Unlike old-style storage heaters that rely on overnight charging and slow-release clay bricks, NEOS radiators offer fast response and consistent comfort throughout the day—without the need to ‘guess the weather’ the night before.

But it’s the controllability where the NEOS really shines.

Each radiator features a precision digital thermostat, ensuring stable room temperatures without swings or waste. Programmable schedules let users tailor heating to daily routines, while smart learning technology adapts to usage and occupancy patterns over time. The NEOS also connects with smartphone apps for remote control, so users can adjust the heating from anywhere. No more coming home to a cold house or overheated empty rooms.

This level of control not only improves comfort but also reduces energy use. Independent testing shows NEOS radiators use around 50% less energy than typical storage heaters to maintain the same room temperature across 24 hours.

Add in the sleek, wall-mounted design, simple installation using standard sockets, and a low-maintenance build with no moving parts, and the advantages over storage heaters become impossible to ignore.

Making the Right Choice for Your Home

Ultimately, the best heating setup for your home isn’t just about the heater—it’s about how well it works with your tariff, your schedule, and your lifestyle.

If you’re still relying on Economy 7 and night storage heaters, it might be time to rethink. Heating your home shouldn’t mean planning your day around when your system decides to give off warmth. And it shouldn’t mean paying more during the hours you actually use electricity.

With a modern electric radiator like the NEOS and a smart tariff like Octopus Cosy, you get control, comfort, and serious savings, without compromise.

Want to find out if switching could save you money?
Call us on 08005999109 or email [email protected] to chat with a heating advisor who can help you compare your current setup and see if it’s time for a smarter way to heat your home.

Tags: Comparisons.