Time-of-use tariffs in the UK can be worthwhile for homes looking to reduce electricity costs if your household can shift their energy usage into cheaper periods.
Homes with smart electric heating systems and flexible energy use are generally better placed to benefit from time-of-use tariffs than households that rely heavily on electricity during peak hours.
What is a time-of-use tariff?
A time-of-use tariff is an energy pricing tariff that charges different electricity prices depending on when you use energy, rather than charging one fixed fee throughout the day.
When is electricity cheaper?
Electricity is typically cheaper when demand across the national grid is lower, such as using energy overnight. When demand is high, for example in the evening when millions of households are cooking, heating their homes or charging vehicles, the cost of energy rises.
Unlike a standard single-rate tariff, time-of-use electricity tariffs encourage households to change when they run some of their appliances into these cheaper periods, known as ‘load shifting’.
What is load shifting?
Load shifting is when you change some of your electricity usage during expensive peak periods and instead power your home at a time when electricity costs less. Instead of running appliances or heating when demand on the grid is highest, you schedule them to operate during cheaper periods where possible.
This might include:
- Scheduling your heating to begin warming rooms before peak pricing starts
- Charging High Heat Retention (HHR) storage heaters overnight using lower-cost electricity
- Heating bedrooms later in the evening rather than keeping them warm all day
- Generating hot water during lower-priced periods
It’s important to remember that load shifting doesn’t mean living in a cold home. It’s about using heating controls strategically so your property stays comfortable while making better use of cheaper electricity where practical.
Types of time-of-use electricity tariffs
Some households use fixed off-peak hours each day as part of their time-of-use electricity tariff, while others use dynamic tariffs where prices change more frequently based on demand across the network. To benefit, most homes require a smart meter so their electricity consumption can be monitored throughout the day.
Are time-of-use tariffs worth it for electric heating?
Time-of-use electricity tariffs can be worth it for quieter homes, whereas for busy households they may make very little difference, depending on how and when your household uses electricity.
If you’re thinking of switching to a time-of-use tariff, you could benefit if:
- You can schedule part of your home’s heating outside of peak hours
- You can adjust your heating schedule using programmable controls, like a smart thermostat
- You spend part of the day away from home, so your energy usage is typically lower
- Usage for other large electrical needs, such as EV charging or hot water, can be shifted throughout the day
However, if your home needs heating throughout peak periods of the evening, or it’s not feasible for your household to adapt its energy consumption (for example, if you are caring for young children), your savings may be more limited.
This is why there isn’t a single ‘best’ tariff for every home with an electric heating system. The right choice depends on your property, your household’s lifestyle and how flexible you can be to switch your electricity usage during peak periods of the day.
Time-of-use tariffs vs Economy 7
The difference between time-of-use tariffs and Economy 7 is fixed overnight off-peak hours. Economy 7 is actually one example of a time-of-use tariff designed to accommodate homes who can prioritise their energy usage overnight.
In comparison, modern smart tariffs offer either different fixed pricing windows throughout the day, or electricity prices that change more frequently according to market conditions. For households with High Heat Retention Electric Storage Heaters, Economy 7 can offer a more practical solution because the heating system is designed to generate heat overnight.
Can electric radiators use off-peak electricity?
With electric radiators installed, you could save money from time-of-use tariffs, but how much you benefit depends on the type of heating solution you’re using.
For example, a common misconception is that every electric heater (including plug-in electric panel heaters) performs in exactly the same, efficient way because all electric heaters convert electricity into heat. While that’s technically true, it doesn’t take into account what happens after the heat has been generated.
Electric radiators built with a thermal mass technology will continue to release stored heat once the power has switched off (i.e. the heating schedule has finished). This means they can provide thermal energy slowly and steadily, whether you’re using a peak or lower-cost period.
A great example of this is Fischer’s electric radiators, which use a purpose-designed 40mm ceramic HeatCore. The technology stores thermal energy before releasing it into the room through a combination of radiant and convected heat. Combined with programmable wireless thermostats, homeowners can heat their home room-by-room, leveraging peak and off-peak pricing periods at their complete control, reducing unnecessary electricity consumption regardless of the tariff they’re on.
How can smart heating controls help?
Smart, wireless heating controls can make it easier to adjust heating around smart tariffs by giving households more control over when warmth is needed. Rather than manually switching heaters on and off throughout the day, programmable controls give you complete control over your heating schedule to match your daily routine.
Modern electric heating controls can help by:
- Creating daily or weekly heating schedules
- Heating rooms individually rather than the whole house
- Preventing empty rooms from being heated unnecessarily, like a spare bedroom
- Allowing heating periods to be adjusted around cheaper electricity periods, where practical
- Maintaining a more consistent indoor temperature, reducing repeated heating cycles
For households considering a time-of-use tariff, smart heating controls often provide just as much benefit as the tariff itself. Reducing unnecessary electricity consumption remains one of the most effective ways to manage your energy bills, regardless of changing electricity prices.
What about Octopus Agile and other smart tariffs?
When people search for Octopus Agile electric heating or time-of-use tariffs, Octopus Agile is often one of the first products they come across. Unlike tariffs with fixed day and night prices, Agile offers dynamic electricity prices that change throughout the day to reflect wholesale market conditions.
This means electricity may become very cheap during certain periods and can also rise significantly during peak periods of energy demand. For some households, the flexibility of a dynamic smart tariff gives them the opportunity to reduce energy costs by shifting their electricity use into lower-priced periods.
If you’re thinking of switching to a dynamic tariff, it may suit your home if you:
- Regularly monitor your electricity consumption
- Can change when your household uses appliances
- Have flexible heating schedules
- Have technology installed such as storage heaters, thermal batteries or EV charging which can operate outside of peak periods
For many households, however, a simpler fixed time-of-use tariff or Economy 7 tariff may be easier to manage, while being able to make the most of cheaper electricity at certain times of the day.
When might a time-of-use tariff not be worth it?
Time-of-use tariffs may not be worth it for your household based on a range of conditions, for example:
- Most of your electricity is used during expensive peak periods, like the evening
- Your home consistently needs heating throughout the day
- You work from home and require consistent daytime heating during the winter
- Your heating system cannot store heat or be programmed effectively
- Avoiding peak periods would make your home less comfortable
- You prefer a simple tariff without regularly monitoring electricity prices
When considering a tariff, the best kind is the one that fits naturally and best around how your household lives. Trying to force your routine around electricity prices can sometimes create more inconvenience than the savings are worth.
As an alternative for a more energy efficient home, in many cases improving your home’s heating controls with thermostats and reducing heat loss may have a greater long-term impact.
How to decide which tariff suits your electric heating
When deciding on a tariff that suits your electric heating usage, rather than going for one based on marketing claims or headline prices, always take time to understand how your household actually uses electricity.
To understand which tariff suits your electric heating needs, ask yourself the following questions:
- When does your household use the most electricity?
- When is heating needed most throughout the day?
- Could some heating be scheduled outside peak periods?
- Do you already have a smart meter?
- Does your heating system allow room-by-room control?
- Do you have other large electrical needs, such as an electric vehicle or electric hot water system, that could operate during cheaper periods?
- Would a fixed tariff provide greater peace of mind than a dynamic one?
Every household is different. Someone with High Heat Retention storage heaters, an electric vehicle and overnight hot water heating may benefit from a different tariff than someone relying on plug-in panel heaters during the evening.
The aim isn’t just about getting the cheapest unit price, but finding the best tariff for electric heating based on your heating system, household routine and electricity consumption.
| Tariff type | How pricing works | Best for | User involvement | Electric heating considerations |
|---|---|---|---|---|
| Standard single-rate tariff | Same unit price all day | Households wanting predictable pricing | Low | Suitable if you can’t reduce your heating needs |
| Economy 7 | Lower overnight rate and higher daytime rate | Homes with storage heaters or overnight hot water | Low | Great for homes with High Heat Retention storage heaters |
| Fixed time-of-use tariff | Fixed cheaper and more expensive periods during the day | Households who can adapt their electricity use | Moderate | Good option for homes who can schedule their electric heating and hot water systems |
| Dynamic smart tariff | Prices change throughout the day based on wholesale electricity markets | Households with the capacity to monitor and adapt their electricity usage | High | Can benefit homes able to change their heating schedule, EV charging or hot water usage during lower-priced periods – but requires more proactive management. |
H2: Book a free home heating survey
Choosing the right time-of-use tariff is only one part of improving your home’s heating efficiency. The heating system itself has an equally important role in determining how much electricity is used and when.
If you’re considering changing energy tariffs, replacing an old heating system or making the switch from gas altogether, Fischer’s heating specialists can assess your property and recommend a solution that’s best for your home’s layout and general energy consumption.
Book a free home heating survey to understand how your home can be futureproofed with electric heating products. Provide your household with greater comfort, efficiency and improved energy costs with a setup that suits your home long-term.
Time-of-Use Tariffs for Electric Heating FAQs
Are time-of-use tariffs worth it for electric heating?
Yes, time-of-use tariffs can be worth it for electric heating if you can prioritise your energy consumption during cheaper periods. The biggest savings are usually achieved by homes who can schedule their electricity usage, have High Heat Retention (HHR) storage heaters or other systems which can operate outside expensive peak electricity periods. However, the right tariff depends on your heating system, daily routine and how flexible your electricity use is. If most of your heating is needed during peak periods, a standard tariff or Economy 7 may be a better fit.
Can electric radiators use off-peak electricity?
Yes, electric radiators can use off-peak electricity if they are scheduled to operate during cheaper tariff periods. While standard electric radiators use electricity to produce heat, models with thermal mass technology can continue releasing warmth generated, even after the heating element switches off. Combined with smart heating controls, homeowners can make better use of lower-cost electricity without sacrificing their comfort.
What is the best tariff for electric heating?
There isn’t a single best tariff for every home. The right tariff depends on your heating system and when you need to use electricity. Homes with High Heat Retention storage heaters often benefit from Economy 7 or fixed off-peak tariffs, while households with flexible electricity use and smart heating controls may find a time-of-use tariff more suitable. Before switching, it’s worth reviewing your heating habits, electricity consumption and whether your household can realistically avoid using power during expensive peak periods.
Do smart thermostats work with time-of-use tariffs?
Yes, smart thermostats can work well with time-of-use tariffs since you can schedule when your heating turns on. Although most smart thermostats don’t automatically respond to changing electricity prices, it means you can schedule your home’s heating to come on during cheaper tariff periods. Features such as room-by-room heating and precise temperature control can also help reduce unnecessary electricity consumption, regardless of which tariff you choose.
What is load shifting in electricity?
Load shifting means changing some of your electricity usage from expensive peak periods into times when electricity costs less. This could mean heating your home before peak pricing periods begin, using storage heaters overnight or scheduling hot water production during off-peak hours. The aim isn’t to use less electricity altogether, but to use it more strategically when prices are lower, without compromising your household’s comfort.
Is Octopus Agile good for electric heating?
Octopus Agile can work well for some electric heating systems, but it isn’t the right choice for every household. Because electricity prices change throughout the day, it generally suits homeowners who can actively manage and change their heating, hot water or other electricity use outside of expensive periods. Homes with flexible heating schedules or thermal storage technologies may benefit most, while households that need consistent heating during evening peak times may prefer a fixed time-of-use tariff or Economy 7. Essentially, the best option depends on your home’s heating system, lifestyle and capacity to actively manage your energy usage.