What are deemed rates for business energy?

Deemed rates are the default business energy prices a supplier can charge when your premises is supplied without an agreed fixed contract (for example, you’ve moved in and haven’t chosen a tariff, your fixed deal has ended, or there’s no active contract in place). They are often higher than negotiated contract rates. To reduce costs, arrange a new business energy contract as soon as possible.

When can a business be put on deemed rates?

A business can be charged deemed rates if you take over a premises and don’t agree a new contract, if your previous contract has ended and you haven’t renewed, or if the supplier cannot confirm a contracted agreement for the meter. You’ll still have power, but you may pay higher unit rates and standing charges until you switch or agree new terms.

How can I avoid deemed rates for my business electricity or gas?

To avoid deemed rates, agree a new business energy contract before moving into a premises or before your current deal ends. If you’re already on deemed rates, act quickly: gather your meter details, recent usage, and business information, then compare business energy deals and switch to a fixed contract. You can start by requesting a quote at https://www.energyplus.co.uk/business-energy/.

Are deemed rates more expensive than a fixed business energy contract?

Often, yes. Deemed rates are typically higher than rates available on fixed business energy contracts because they’re default prices rather than negotiated terms. Locking in a fixed deal may help protect your business from price changes and improve cost certainty.

How do I find out if I’m currently on deemed rates?

Check your latest bill or welcome letter for phrases like “deemed”, “out of contract”, or “default rates,” and review the unit rate and standing charge. If you’re unsure, ask your supplier to confirm your tariff status and contract end date. You can also get help comparing options via https://www.energyplus.co.uk/business-energy/.

Can I switch supplier if my business is on deemed rates?

In many cases, yes—being on deemed rates usually means you’re not tied into a fixed-term contract, so switching may be possible without exit fees. The exact process can depend on your meter type and current supplier’s terms. Comparing and arranging a new contract can help you move off deemed rates quickly.

How quickly can I move off deemed rates?

Timeframes vary by supplier and meter setup, but you can usually start the process immediately by agreeing a new contract. To speed things up, have your MPAN (electricity) or MPRN (gas), business details, and estimated annual usage ready when requesting quotes.

What information do I need to get a business energy quote and avoid deemed rates?

Typically you’ll need your business name and address, the meter number(s) and identifiers (MPAN for electricity and/or MPRN for gas), current supplier (if known), and an estimate of consumption (kWh) from recent bills. Providing accurate details helps secure a more suitable fixed contract and avoid overpaying on deemed rates.

Business energy deemed rates: how to avoid them

Deemed rates can be some of the most expensive business electricity and gas prices in the UK. If you’ve moved premises, your contract ended, or you never agreed a tariff, you may be paying a deemed rate without realising. Compare whole-of-market business energy deals and switch to a fixed contract with EnergyPlus.

Check if you’re on a deemed contract and what it’s costing your business
Compare fixed, flexible and rollover options from UK business suppliers
Get quotes for single sites or multi-site portfolios (gas, electricity or both)
Fast, free support from a whole-of-market comparison service

Get business energy quotes What are deemed rates?

No obligation. We’ll use your meter and usage details to match you to suitable tariffs. Switching won’t interrupt supply.

Stop paying deemed rates — compare business energy in minutes

If you haven’t actively agreed a business energy contract with the supplier responsible for your meter, you can be placed on a deemed contract. These tariffs are typically higher than negotiated fixed deals and can include higher standing charges.

EnergyPlus is a whole-of-market business energy comparison service. We help you identify whether you’re on deemed rates, then compare available tariffs and support you through switching (gas, electricity or both) with minimal admin.

Quick check: If you moved into a new premises, took over a unit, or your fixed term ended and you didn’t sign a new deal, there’s a chance you’re on deemed rates or an expensive out-of-contract tariff. Use the form to get quotes tailored to your meter type and usage.

What you’ll need (if available)

Business postcode and site address
Electricity MPAN and/or gas MPRN (optional but helpful)
Rough annual usage (kWh) or a recent bill
End date of your current contract (if known)

Get whole-of-market business quotes

Complete the form and we’ll match you with suitable tariffs to help you avoid deemed rates.

Prefer to prepare first? Jump to what deemed rates are or the step-by-step avoidance guide.

Why deemed rates can be expensive for UK businesses

Higher unit rates and standing charges

Deemed tariffs are often priced to cover supplier risk when there’s no agreed contract. Many businesses pay more per kWh and face higher daily charges than on negotiated fixed deals.

Little control over terms

You didn’t choose the tariff, so you may not have a clear end date, predictable pricing, or the contract features you need (e.g., multi-site billing, tailored payment terms).

Budget uncertainty

When prices move, businesses on deemed rates can feel it quickly. A fixed business energy contract can reduce volatility and improve cashflow forecasting.

Good to know: You cannot be disconnected just for switching supplier. Your supply stays on throughout the process.

What are deemed rates in a business energy contract?

A deemed contract is a type of business energy arrangement that can apply when a supplier is providing electricity or gas to your premises but no formal contract has been agreed between your business and that supplier.

This often happens when you:

Move into a new commercial premises and start using energy before agreeing a tariff
Take over a tenancy/lease and the supplier account hasn’t been updated
Start trading and the meter becomes live without a signed contract
In some cases, remain supplied after contract changes without confirming new terms

Deemed rate vs out-of-contract rate

Businesses often use these terms interchangeably. In practice, both describe being supplied without a competitively agreed tariff. The key point is the same: you’re typically paying more than you need to.

How to spot you’re on deemed

Signs include:

Your bill references a “deemed” or “out of contract” tariff
You can’t find a contract end date or welcome pack
Prices seem far above recent quote levels

How to avoid deemed rates (practical step-by-step)

Identify your current supplier and tariff
Check a recent bill for the tariff name, unit rate and standing charge. If you’ve just moved in, ask the landlord/agent for supplier details or look for a recent bill at the premises.
Take opening meter reads and keep a record
Accurate meter reads protect you from being billed for a previous occupier and help ensure the new contract starts correctly.
Confirm your meter type and identifiers
For electricity, note your MPAN; for gas, your MPRN. If you don’t have them, we can still quote using your address and postcode in many cases.
Compare whole-of-market deals and choose the right contract
Fixed contracts can help stabilise costs. Depending on usage and risk appetite, a flexible option may also suit larger consumption sites.
Switch and confirm the start date
Switching is typically administrative. Supply continues as normal. You’ll receive contract confirmation from the new supplier.
Set a renewal reminder
Many businesses fall onto expensive rates when contracts end and renewals are missed. Put the end date in your calendar and start reviewing quotes ahead of time.

Tip for new premises: Don’t wait for the first bill. If you’re already consuming energy, you can be charged deemed rates from day one. Submit the form above to start the comparison process.

Rollover contracts vs deemed rates (what’s the difference?)

Two common reasons businesses overpay are deemed rates (no agreed contract) and rollover contracts (your existing contract ends and renews under new terms). Both can be costly, but they’re not the same.

Feature	Deemed rates	Rollover contract
How it starts	You use energy without agreeing a contract with the supplier	Your fixed term ends and moves to new terms if you don’t renew in time
Price competitiveness	Often among the highest business tariffs	Can be higher than market, sometimes with less favourable terms
How to avoid	Set up a contract as soon as you occupy/consume	Start renewal planning before the end date and compare options

If you’re unsure which applies, we can help you confirm your status during the quote process. Use the comparison form to get started.

Common mistakes that push businesses onto deemed rates

Assuming the landlord handles energy

In many commercial leases, the tenant is responsible for arranging the supply contract. If you move in and start trading without a contract, you could be billed on deemed rates.

Not taking (or sharing) opening meter reads

Without an agreed opening read, billing disputes are common. Taking dated photos of the meter can help if there’s a disagreement later.

Waiting for the first invoice before acting

Deemed charging can start immediately. The fastest route to lower prices is comparing and agreeing a tariff early.

Missing renewal dates

Even if you’re not deemed, missing renewal can put you onto costly terms. Put renewal dates in your calendar and review prices ahead of time.

Business deemed rates FAQs

Can I switch supplier if I’m on a deemed tariff?

In most cases, yes. You can agree a new contract and switch without interrupting your supply. If there are any site-specific restrictions (for example, meter or tenancy-related issues), we’ll help you identify them during the comparison.

How quickly can I get off deemed rates?

Timescales vary by supplier and meter type, but the key is to start the process as soon as possible. Submitting your details lets us source quotes and move towards a contract that better fits your business.

Do deemed rates apply to both business gas and business electricity?

Yes. Deemed arrangements can apply to either fuel if there’s no agreed contract. Many businesses also choose a dual-fuel approach (one supplier for both) if pricing and billing work better that way.

What if I don’t know my MPAN or MPRN?

That’s common, especially after a move-in. You can still submit the form with your business postcode and contact details. If you later find a bill, share it to speed up the quote matching.

Will switching affect my operations or cause downtime?

No — switching is an administrative change. Your physical supply stays on. You’ll continue to receive energy as normal.

I have multiple sites. Can EnergyPlus help?

Yes. We can help compare options for multi-site businesses, including aligning end dates where possible and reducing admin with consolidated pricing discussions.

Still unsure? Start with the business energy quote form and we’ll guide you through the next steps.

Trusted support for switching away from deemed rates

"We moved into a new unit and didn’t realise we were on deemed rates. EnergyPlus helped us compare and lock in a fixed tariff quickly."

Operations Manager, SME retail

"Clear explanation of rollover vs deemed and what we needed to do. The process was straightforward and we kept trading as normal."

Director, hospitality business

"Multi-site support was a big help. We got comparable offers and a plan to avoid drifting onto expensive rates again."

Facilities Lead, professional services

Why EnergyPlus: whole-of-market comparison, UK business focus, and practical guidance on avoiding high deemed and out-of-contract charges.

Avoid deemed rates — secure a better business energy contract

If you suspect you’re on a deemed or out-of-contract tariff, don’t wait for another bill. Compare whole-of-market business energy prices and move to a tariff that suits your site and budget.

Free, no-obligation quote comparison
Single-site and multi-site support
No interruption to supply during switching

Ready to compare?

Get quotes & avoid deemed rates Read the deemed rate guide

Form takes about 60 seconds. We’ll contact you with suitable business tariffs.

Back to Business Energy

Updated on 19 Jan 2026