The long-standing Economy 7 electricity tariff, a staple for many UK households relying on off-peak electricity for storage heating and hot water systems, is set to be fully withdrawn by 2030.

This aligns with the UK’s broader push towards net-zero goals, including the closure of coal-fired power plants and a shift to more dynamic, renewable-focused energy systems. While Economy 7 has helped countless residents save on bills for decades, its phase-out will significantly impact social housing providers, landlords, and tenants who still depend on legacy setups.

Key Changes on the Horizon:

• Radio Teleswitch (RTS) Shutdown – Starting June 30, 2025: Many older Economy 7 meters rely on RTS technology for switching between peak and off-peak rates. This service is being phased out gradually from this date, meaning meters could lose functionality without upgrades. Suppliers are required to transition affected customers to smart meters to preserve off-peak benefits in the interim.

• Full Tariff Withdrawal – By 2030: Economy 7 will be completely phased out, potentially leading to higher running costs for properties not adapted to modern tariffs. This could affect resident billing, energy efficiency ratings, and overall property compliance with emerging regulations.

• Shift to Smarter, Greener Solutions: The change encourages adoption of smart tariffs (like time-of-use pricing), heat pumps, solar integration, and enhanced insulation, paving the way for lower carbon footprints and long-term savings.

Why This Matters for Housing Providers:

Without proactive planning, providers could face increased energy costs, resident complaints, non-compliance fines, and challenges in meeting ESG (Environmental, Social, and Governance) standards. Residents in social housing, often vulnerable, may struggle with higher bills or outdated heating systems, exacerbating fuel poverty risks.

Our Recommendations for Housing Providers:

• Conduct a Thorough Audit: Identify all properties using Economy 7 meters, RTS technology, or related systems to prioritise upgrades.
• Engage Residents Early: Communicate changes transparently, offering support to ease transitions and manage expectations around potential bill impacts.
• Explore Modern Alternatives: Assess and implement renewable heating options, smart meters, and energy-efficient upgrades to future-proof your stock.

How GCS Compliance Can Support You Every Step of the Way.

At GCS Compliance, we’re experts in helping social housing providers navigate complex technical, regulatory, and energy transitions like the Economy 7 phase-out. Our tailored services ensure your properties remain safe, cost-effective, and fully compliant with Ofgem, government, and net-zero standards. Here’s how we can provide even more comprehensive support:

• Specialised Audits and Assessments: We conduct detailed on-site audits of your housing stock to pinpoint Economy 7 dependencies, RTS meters, and energy inefficiencies. Using advanced tools and our CRM system, we deliver actionable reports with prioritised recommendations, helping you avoid disruptions from the 2025 RTS phase-out.
• Smart Meter Transition Guidance: Our team assists with supplier coordination for seamless innovative meter installations, ensuring minimal downtime and compliance with mandatory upgrades. We also evaluate compatibility with new tariffs to optimise costs.
• Regulatory Compliance Expertise: Stay ahead of evolving rules from Ofgem and the UK Government. We provide compliance checks, risk assessments, and documentation to meet energy efficiency standards (e.g., EPC ratings) and avoid penalties, especially crucial as the UK aims for 70% renewable electricity by 2030.
• Cost-Benefit Analysis and Funding Advice: We model potential bill impacts post-2030 and identify savings through alternatives like heat pumps or solar. Plus, we guide you on accessing grants, such as the Social Housing Decarbonisation Fund, to offset upgrade costs.
• Resident Engagement and Support Programs: Develop customised communication strategies, workshops, and support plans to educate tenants on changes, reducing anxiety and building trust. This includes vulnerability assessments to protect at-risk residents from fuel poverty.
• Long-Term Energy Efficiency Planning: Beyond Economy 7, we help design holistic strategies for renewable integration, insulation improvements, and carbon emissions, and enhance tenant satisfaction.

With our proven track record in social housing compliance, GCS Compliance turns challenges into opportunities for sustainable, efficient operations. We’ve already supported numerous providers in similar transitions, delivering measurable savings and peace of mind.

Ready to prepare for the Economy 7 phase-out?

Contact us today for a free initial consultation on auditing your stock, planning upgrades, and ensuring a smooth transition.

Let’s build a greener, more compliant future together!