If your electricity bill still looks the same every month regardless of when you use power, you’re almost certainly leaving money on the table. Time-of-use (TOU) tariffs — Economy 7, Agile, or Intelligent tariffs — charge different rates depending on when you use electricity. Overnight rates can be 50-70% cheaper than peak daytime prices. In 2026, with the Ofgem price cap at 24.5p per kWh during the day, some overnight TOU rates drop as low as 7p per kWh.
What Is a Time-of-Use Tariff?
A TOU tariff splits the day into peak and off-peak periods. Economy 7 gives you 7 cheap hours overnight — typically midnight to 7am. Octopus Agile offers half-hourly pricing tracking the wholesale market, so electricity can drop under 5p or even go negative.
- Economy 7: Average off-peak rate 9-12p/kWh
- Octopus Agile: Prices update every 30 minutes, off-peak can hit 7p
- Intelligent Octopus Go: Flat 7p/kWh overnight for EV owners
Which Appliances to Run Overnight
Shift your biggest energy users to cheap hours using delay-start functions.
- Washing machine: At 10p overnight vs 24.5p daytime — saving 14.5p per wash, £75/year for a daily wash
- Dishwasher: Set delay function to run from midnight
- EV charging: Charging 60kWh at 7p costs £4.20 vs £14.70 at peak rates
- Hot water cylinder: Timer your immersion heater to heat overnight
You Need a Smart Meter
Smart meter installation is free and takes about an hour. Over 60% of UK homes now have one. Without a smart meter, TOU tariffs simply aren’t available to you.
Real Savings for a Typical Household
For a 3-bed home using 3,500 kWh/year:
- Standard tariff at 24.5p flat: £857/year
- TOU tariff shifting 40% overnight at 10p: ~£660/year
- Annual saving: ~£197 with no lifestyle sacrifice
EV owners can save £500+ annually on charging alone by using Intelligent Octopus Go.
Watch Out: Peak Rates Are Higher
TOU tariffs charge more during peak hours (4-9pm). If you cook dinner when you get home and can’t shift usage, a TOU tariff might cost more, not less. Run the numbers before switching — most suppliers offer a free bill analysis tool.
Ready to cut your energy costs? Compare deals today and see how much you could save.
