Economy 10 is simply the name of an energy tariff that offers cheaper rates of energy at off peak times. For example, Economy 10 tariffs will give you 10 hours of cheaper electricity a day. Typically, 7 of those hours will be during the night and 3 of those hours during the day. This is different to the Economy 7 tariff that gives you 7 hours of cheaper electricity a day during off peak times.
Although there is no limit with regard to how much cheaper electricity will be during off peak times with Economy 10, it is considered the norm for electricity to be half the price during off peak times. As a result, Economy 10 may suit households where the need for electricity during peak times is extremely low. However, it is important to consider that it is common for electricity during peak times with Economy 10 to be more expensive than the rates you would be paying on other energy tariffs. So, we recommend that you list your energy needs before taking out an Economy 10 tariff.
Will I benefit from an Economy 10 tariff?
Economy 10 tariffs best suit households with an electrical central heating system, or households that don’t use much gas. The reason for this is that you will make nominal savings, or no savings at all, if your home is heated by gas as Economy 10 is for electricity only.
Economy 10 tariffs are also best suited to households whose energy needs are higher at night than during the day. For example, your home may be vacant during the day and occupied at night. Or, you may run your appliances like your washing machine, dishwasher and dryer at night as opposed to during the day. If this is the case, then financial savings can certainly be made.
Are there any drawbacks to Economy 10?
The main drawback of Economy 10 is that electricity rates during peak times are often higher than on a regular tariff. Another drawback to Economy 10 is the cost of changing to this kind of tariff – you will need a special meter for this kind of tariff and the installation cost of this can be relatively high. Some energy suppliers can factor this installation cost into your bills, but some will require an upfront installation fee. This can all but eradicate any potential savings.
Lastly, you will need to be more structured with your electricity usage with an Economy 10 tariff. This is because your standard rates that apply during peak hours will be higher than on a normal tariff.