From a government website:
A block heater is an electric element that warms the coolant in your engine, which in turn warms the engine block and lubricants. Warm engines start more easily, achieve their peak operating temperature more quickly, and don't have to work as hard to pump oil through the block. All of that translates into better fuel economy - in fact, studies have shown that block heaters can improve fuel economy by as much as 10 percent.
Don't throw those energy savings out the window by leaving the block heater plugged in overnight. Instead, use an electric timer to turn on the device two hours before you plan to drive the vehicle. This is all the time needed to warm the engine; anything more is a waste of electricity.