Day rate

What it is

If your electricity meter records use in separate time bands, you pay a day rate for the daytime band and a different, usually lower, night rate for the overnight band. Meters like this are often described as two-rate, or Economy 7 style, although the hours depend on your meter and contract.

Where you will see it

Your bill lists "day" and "night" units separately, each with its own p/kWh. The meter may show two registers. Your contract's Principal Terms should list both rates, and your quote should do the same.

Why it matters

The day rate is normally the higher price, so a business that works in the day pays it on most of its use. A two-rate meter only helps if you can move a good share of your use into the night band, such as storage heaters, water heating or overnight refrigeration cycles. If almost all your use is in the day, a single-rate contract may be cheaper. Check before you accept a multi-rate quote.

Example

These rates are illustrative, not market prices. A workshop uses 10,000 kWh in the day and 4,000 kWh at night.

• Day at 30p: 10,000 × £0.30 = £3,000
• Night at 15p: 4,000 × £0.15 = £600
• Total on two rates: £3,600
• On a single rate of 28p: 14,000 × £0.28 = £3,920

Here the two-rate deal saves £320, but only because 4,000 kWh really is used at night.

Related terms

See day and night rates on business electricity, unit rate, and half-hourly meter.