Economy 7 vs Octopus Go 2026: Which Tariff Suits You?

Last updated: Thursday 29 October 2026

In short: Octopus Go usually suits homes that charge an electric car overnight, because its cheap rate runs from 00:30 to 05:30 every night (Octopus Energy). Economy 7 suits homes that need about seven cheap hours, often for storage heaters or a hot water tank, and can keep daytime use low. Economy 7’s day rate is usually higher than a single-rate tariff, so if little of your electricity is used at night, a single-rate deal can cost less. Night and day rates vary by region and supplier, so compare quotes for your postcode and your own usage.

What Economy 7 is

Economy 7 is a two-rate electricity tariff: a cheaper rate for about seven hours at night and a higher rate during the day. The exact hours depend on your meter and region, so check your bill or ask your supplier.

Ofgem’s typical Economy 7 bill for 1 October to 31 December 2026 is £1,046 a year by Direct Debit, up 1% from £1,039, based on 3,400 kWh of electricity with 42% used at night (Ofgem summary of changes, 26 August 2026). Ofgem does not publish national Economy 7 day and night rates; suppliers set them, and together they cannot be more than the price cap (Ofgem).

Homes with storage heaters and hot water tanks have traditionally used Economy 7. Homes with heat pumps, electric cars or batteries often do better on smart tariffs, which need a working smart meter.

What Octopus Go is

Octopus Go is a smart tariff for electric car owners, with cheap electricity from 00:30 to 05:30 every night (five hours). Outside those hours you pay the Go day rate. Octopus says you do not need a home charger to join, but you need a smart meter it can connect to: a second-generation (SMETS2) meter or some first-generation (SMETS1) meters (Octopus Energy). Your day and night rates come from an Octopus quote for your postcode.

If your car cannot do most of its charging in those five hours, the day rate can cancel out the overnight saving.

Side-by-side comparison

VAT on electricity

Household electricity has 0% VAT from 1 October 2026 to 30 June 2027, and 5% from 1 July 2027 (HMRC Notice 701/19). This applies to Economy 7, Octopus Go and fixed tariffs alike, and suppliers apply it automatically. In Northern Ireland, household electricity stays at 5% VAT.

How to decide

1. Get 12 months of usage from your supplier, ideally split into day and night, or half-hourly data from a smart meter.

2. Work out what share of your electricity you use at night. Ofgem’s typical Economy 7 home uses 42%. If yours is much lower, get single-rate quotes too: Economy 7 may be costing you more.

3. If you have an electric car and can schedule charging between 00:30 and 05:30, get a quote for Octopus Go (and Intelligent Octopus Go) before renewing Economy 7.

4. If your storage heaters need the full seven hours to heat your home, Economy 7 can still be the better choice even if Go’s night rate is lower.

Do not choose using national average rates. Standing charges, regional costs and when you use electricity decide your bill.

Examples (illustrations, not quotes)

Electric car commuter: plugs in at 23:00 and the charger finishes by 05:00 most nights. Go’s hours cover most of the charging. Economy 7’s longer window only helps if the car also charges outside Go’s hours.

Flat with storage heaters: the heaters charge through a long night. Five hours may not be enough to keep the flat warm into the afternoon, so Economy 7 may still suit it.

Home worker with no electric car: neither tariff is likely to help. Cooking and daytime use are charged at the higher day rate. A competitive single-rate or dual-fuel deal is likely to cost less, unless you can move the washing machine and dishwasher into the cheap hours every day.

Intelligent Octopus Go, Cosy and Agile

When checked on 29 October 2026, Octopus said Intelligent Octopus Go gives six cheap hours for your home every night from 23:30 to 05:30, plus up to six hours of smart charging for eligible cars at 6.5p/kWh, which can fall inside or outside those hours (Octopus Energy). It needs a compatible car or charger.

Heat pump homes should look at Cosy Octopus rather than Go. Agile has prices that change every half hour, so it suits people who are happy to move their use around. Storage heater homes should not move to Go just because it suits electric cars.

Standing charges still matter

A low night rate with a high standing charge can lose to a simple single-rate deal if your total use is modest. Multiply the daily standing charge by 365 and include it in every comparison.

Gas is a separate decision. Many Go customers keep gas with another supplier or on a dual-fuel deal; Go is an electricity tariff.

Batteries and solar

A home battery charged by solar panels at midday does not automatically suit Economy 7. If the battery runs out by the evening, you may buy expensive day-rate electricity while the night rate goes unused. If you have solar or a battery, compare tariffs with your import and export together.

Switching, prepayment and shared homes

Before you switch, note your current tariff name and any exit fee. Your new supplier arranges the switch, which Ofgem says should take no more than 5 working days (Ofgem). Keep your old account details until the first bill from the new tariff arrives.

Prepayment Economy 7 tariffs exist but are harder to compare; choose prepayment when you compare so you see the right tariffs. If your landlord controls the energy account, you need written permission to switch. Shared houses on one meter should agree how to split costs before choosing a time-of-use tariff. If you are moving within three months, a tariff without exit fees may suit you better than a fix.

Related guides: Octopus Go EV tariff · Octopus Agile · Cosy Octopus · split suppliers vs dual fuel · Economy 7 and the £1,046 cap

SwitchSquid may earn a commission if you switch through the MoneySuperMarket links on this page. It does not change the price you pay. Business customers should use the business energy comparison instead.

FAQ

Is Octopus Go cheaper than Economy 7?

Often for electric car owners who charge between 00:30 and 05:30, but only quotes for your postcode and your own day and night usage can show which costs less.

What time is Economy 7 off-peak?

It varies by meter and region. Check your bill or ask your supplier for your cheap hours.

Do I need a smart meter for Octopus Go?

Yes. Octopus says it needs a smart meter it can connect to, such as a second-generation (SMETS2) meter. You do not need a home charger to join.

Can I keep my gas with another supplier?

Yes. Economy 7 and Octopus Go are electricity tariffs, so your gas can stay with another supplier or be part of a dual-fuel deal.

What if I have solar panels or a home battery?

Compare tariffs with your import and export together. A battery that runs out in the evening may mean you buy day-rate electricity.

Is there VAT on Economy 7 or Octopus Go electricity?

Household electricity has 0% VAT from 1 October 2026 to 30 June 2027 and 5% from 1 July 2027. Northern Ireland stays at 5%.

What is the typical Economy 7 bill?

Ofgem’s typical Economy 7 Direct Debit bill for October to December 2026 is £1,046 a year, based on 3,400 kWh with 42% used at night.