Business energy out of contract rates (UK): what you’ll pay & how to fix it

If your business energy deal has ended (or you’ve just moved in), you’ll usually be on an out-of-contract rate—often called deemed, standard, or variable. This guide explains how these rates work in the UK, what affects the price, and the fastest routes to a new contract.

  • Understand deemed, out-of-contract and rollover rates (and the key differences)
  • See typical cost drivers (meter type, usage profile, payment method, region)
  • Follow a step-by-step plan to switch with minimal downtime and fewer billing issues
Get your business energy quote How to get off out-of-contract rates

Estimates only. Rates and availability vary by supplier, meter type (incl. half-hourly), credit status and contract terms. Switching timelines can vary.

Fast answer: what are out-of-contract business energy rates in the UK?

Out-of-contract (OOC) business energy rates are what you pay when your fixed deal ends and you haven’t agreed a new contract. In practice you may be placed on a deemed contract (common when you move into premises) or a variable/standard rate (when your fixed term ends). These rates are usually higher and more changeable than a negotiated fixed contract, and can include extra terms (for example, different notice periods).

Plain-English takeaway: if you’re out of contract, you’re paying a “default” business rate. You can usually move to a new contract by agreeing terms with your current supplier or switching—subject to meter details, credit checks and any existing contract conditions.

Key takeaways (quick scan)

  • Deemed often applies when you take over a site without arranging energy first.
  • Variable/standard can apply when a fixed contract ends and you don’t renew.
  • Your price can vary by region, meter type (incl. half-hourly), payment method, usage profile and credit status.
  • You can’t always “switch instantly”—but you can usually agree a new deal quickly once details are confirmed.

What to do today (30-minute action plan)

  1. Find your MPAN (electricity) / MPRN (gas) and recent bill/statement.
  2. Confirm whether you’re on deemed, variable, or a rollover.
  3. Check if there’s any termination notice requirement or pending contract end date.
  4. Get quotes based on your actual meter and usage pattern (not a guess).

Get quotes to replace your out-of-contract rate

EnergyPlus compares whole-of-market business tariffs where available and helps you move to a contract that matches your site and meter setup. If you’re currently out of contract, the most useful next step is to get like-for-like quotes using your meter identifiers and consumption.

What you’ll need (if you have it): postcode, business name, MPAN/MPRN, current supplier, approximate annual kWh (or a recent bill). If you don’t have all of it, we can still start the process and confirm details with you.

What happens after you submit

  1. We review your details to match the right meter/tariff types (e.g. single-rate, E7, half-hourly).
  2. We present available options and explain key terms (unit rates, standing charges, contract length, billing method).
  3. You choose whether to proceed. We’ll support the switch/renewal process and confirm next steps.

Request a business energy quote

We’ll email your quote options and any questions needed to confirm meter details.

A quick call can prevent delays (e.g. confirming MPAN/MPRN, contract end date, billing preferences).

No obligation. We’ll explain terms before you agree anything.

How to get off out-of-contract rates (step-by-step)

1) Confirm which “default” rate you’re on

  • Deemed contract: common when you move into premises without agreeing supply first.
  • Variable/standard (out of contract): after a fixed term ends without renewal.
  • Rollover: some contracts move you onto a new term automatically if you don’t renew properly.

Tip: The wording on bills varies by supplier. Look for terms like “deemed”, “default”, “out of contract”, “variable”, or “evergreen”. If in doubt, ask your supplier to confirm in writing.

2) Gather the details that drive pricing

  • Meter type: single-rate, Economy 7, multi-rate, half-hourly (HH), smart meter setup.
  • Usage: annual kWh plus day/night split for multi-rate meters.
  • Site info: postcode and industry type (some suppliers price risk differently).
  • Payment method: Direct Debit vs on receipt of invoice can affect rates/credit terms.

3) Choose the right route: renew or switch

There isn’t one best route—your priority (speed, certainty, flexibility) matters.

  • Renew with current supplier: can be quicker if billing and meter data are already aligned.
  • Switch supplier: may widen your options, but timelines vary and you’ll need clean meter details.

4) Manage the end date & handover

  • Take meter readings on key dates (move-in, contract start, switch date).
  • Ask for a written summary of contract length, rates, standing charges and any uplifts included.
  • Keep copies of emails and contracts—useful if there’s a billing dispute later.

Important: If you’re in arrears, switching can be harder (or paused). You may still be able to agree a new contract, but suppliers can apply additional credit requirements.

Compare: out-of-contract vs fixed business energy contract

The best choice depends on your risk tolerance, cash flow, and how stable your usage is. This table shows how the main options typically differ in the UK business market.

Option How it starts Price certainty Typical pros Typical cons / watch-outs
Deemed contract You take over a premises and energy continues without an agreed contract Low No interruption to supply; quick stop-gap Can be expensive; terms vary by supplier; you may need to prove tenancy start date
Variable / out-of-contract Your fixed deal ends and you don’t renew Low–medium Flexibility; you can usually change contract once arranged Rates can change; often higher than negotiated contracts; budgeting harder
Rollover / evergreen Contract renews automatically under pre-defined terms Medium Avoids a gap in contract; may keep fixed pricing (depends on terms) You might miss better deals; notice periods can be strict; check end dates carefully
Fixed business contract You agree rates/terms for a set period (e.g. 1–3 years) Higher Budgeting easier; clearer unit rate/standing charge structure Exit fees may apply; contract terms can be complex (uplifts, pass-through charges, billing options)

Decision checklist: who out-of-contract rates may suit (briefly)

  • You’re in a short-term premises situation and need supply while you confirm move dates.
  • Your usage is temporary/uncertain (e.g. refit) and you don’t want to lock in yet.
  • You’re actively comparing and expect to choose a contract very soon.

Reality check: even when OOC “suits” a situation, it’s usually best treated as a short bridge—not a long-term plan.

Who it usually doesn’t suit

  • Businesses needing stable monthly budgeting (hospitality, care, manufacturing).
  • Sites with high consumption where small p/kWh differences materially change costs.
  • Half-hourly (HH) users who benefit from a contract aligned to their load profile.
  • Anyone unsure about their notice period—you could drift into expensive default rates.

Two realistic scenarios (with numbers)

These examples are illustrative to show how out-of-contract pricing can affect real businesses. Your bill depends on your supplier’s rates, standing charges, consumption pattern and any pass-through charges in your agreement.

Scenario A: small café on electricity (single-rate)

Annual electricity use (assumed)
18,000 kWh
Standing charge (assumed)
£0.70/day
Out-of-contract unit rate (assumed)
34p/kWh
Fixed-contract unit rate (assumed)
28p/kWh
Fixed-contract standing charge (assumed)
£0.55/day

Estimated annual cost (energy + standing, ex VAT):

  • OOC: 18,000 × £0.34 + (365 × £0.70) ≈ £6,375
  • Fixed: 18,000 × £0.28 + (365 × £0.55) ≈ £5,241

What this shows: a 6p/kWh difference plus a lower standing charge can materially change annual cost, even for a modest user.

Scenario B: light industrial unit on gas + electricity (move-in deemed)

Annual gas use (assumed)
120,000 kWh
Deemed gas unit rate (assumed)
10.5p/kWh
Fixed gas unit rate (assumed)
8.2p/kWh
Gas standing charge (assumed)
£0.80/day
Annual electricity use (assumed)
55,000 kWh
Electricity difference (assumed)
OOC 3p/kWh higher

Estimated annual impact (ex VAT):

  • Gas: 120,000 × (£0.105 − £0.082) ≈ £2,760 extra on deemed
  • Electricity: 55,000 × £0.03 ≈ £1,650 extra on OOC
  • Total estimated difference: ≈ £4,410 per year (plus any standing charge differences)

Caveat: industrial sites are more likely to have half-hourly electricity metering and pass-through elements. Always compare the full cost structure, not only the headline p/kWh.

Costs, exclusions and common pitfalls (UK business energy)

Out-of-contract rates can be straightforward, but the surprises usually come from contract terms, meter data issues, and assumptions about what “switching” means. Here are the most common pitfalls we see.

Pitfall 1: confusing deemed vs variable vs rollover

If you don’t know which you’re on, it’s hard to know your rights, notice periods, or what you need to do next. Ask your supplier to confirm the current contract type and start date.

Pitfall 2: missing the “full cost” view

Comparing only unit rates (p/kWh) can mislead. Standing charges, billing options, consumption assumptions, and pass-through components can change the true cost.

What to request: written confirmation of unit rate(s), standing charge(s), contract length, payment method, billing frequency, and any additional charges included or pass-through.

Pitfall 3: meter and tenancy details not matching records

Move-ins often trigger billing issues: wrong occupancy dates, incorrect MPAN/MPRN association, or estimated reads. Keep a copy of your lease start date and opening meter reads.

Pitfall 4: assuming a price cap applies to your business

Ofgem’s price cap is for many domestic customers. Business energy pricing works differently. That’s why contracts, deemed terms and supplier pricing policies matter.

Pitfall 5: not checking contract end dates and notice windows

Some contracts require notice to avoid rollover or to leave cleanly at the end date. If you’re unsure, confirm the exact end date and termination requirements in writing.

Pitfall 6: credit and payment terms affecting offers

Some suppliers require Direct Debit, deposits, or shorter terms depending on credit assessment and trading history. This can change what’s available—not just the rate.

What we can’t do on this page

We can’t show live supplier out-of-contract prices here because they vary by meter, profile class, region, and business credit terms—and they can change frequently. Instead, we’ve focused on what those rates mean, how to identify them, and how to move onto a suitable contract using your actual supply details.

FAQs: business energy out-of-contract rates (UK)

1) Are out-of-contract rates the same as deemed rates?

They’re related but not always identical. Deemed typically applies when you occupy a property and haven’t agreed a contract for that supply. Out-of-contract/variable often applies when a fixed deal ends and you haven’t renewed. Suppliers may use different names and terms, so confirm your current status with them.

2) Can my supplier just put me on a higher rate when my contract ends?

If your fixed contract ends and you haven’t agreed new terms, you may move onto a default/variable arrangement under your supplier’s terms. That’s why it’s worth checking your end date early and comparing options before you reach it.

3) Will my business lose power if I’m out of contract?

Typically, no. Supply usually continues; the issue is the rate and terms you’re paying under. Disconnection is generally linked to safety concerns or severe non-payment situations, not simply being out of contract.

4) How quickly can I switch from an out-of-contract business tariff?

Timelines vary by supplier, meter type and whether details match industry records. Some renewals can be agreed quickly; switching supplier can take longer, especially for half-hourly or complex multi-site setups. The fastest path is usually: confirm MPAN/MPRN, confirm current status, then request quotes that match your meter profile.

5) What details affect my out-of-contract rate the most?

Common drivers include your region (network area), meter type (single-rate vs multi-rate vs half-hourly), annual usage, your load profile (when you use energy), and payment/credit terms. Two businesses next door can still pay different rates due to meter and consumption differences.

6) I’ve moved into a new unit—am I responsible for the previous tenant’s debt?

You’re usually responsible for your own usage from your tenancy start date, not a previous occupier’s debt. However, mix-ups can happen. Keep your tenancy documents and opening meter reads and raise issues with the supplier promptly if you’re billed for the wrong period.

7) Can I be locked into a rollover contract without realising?

Some business energy contracts include auto-renewal/rollover clauses if you don’t give notice. The best protection is to record your contract end date and ask your supplier to confirm the termination window. If you’re unsure, we can still help you compare your options and check what’s possible.

8) Does VAT work differently for business energy?

Many businesses pay VAT on energy, and some may qualify for reduced rates depending on usage and eligibility. Billing varies, so it’s important to compare quotes on a like-for-like basis (ask whether figures are shown inclusive or exclusive of VAT).

Trust, methodology and sources

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Last updated
May 2026

How we assess out-of-contract rates (our approach)

This guide is designed to help UK business owners understand what “out of contract” means and how to respond. We focus on factors that consistently affect pricing and switching outcomes.

  • Definitions: we map common supplier terminology (deemed, variable, rollover) to typical business situations (move-in, contract end, missed notice).
  • Cost drivers: we prioritise meter type, usage pattern, payment terms, region/network area, and credit status because these commonly influence supplier pricing and availability.
  • Scenarios: we use transparent worked examples to show how p/kWh and standing charges can change annual costs.

Limitations (important)

  • We do not publish live out-of-contract rates on this page because they change frequently and depend on your meter/profile and supplier terms.
  • Example calculations exclude VAT and assume flat consumption for simplicity; real bills can include multiple registers, varying seasonal usage, and additional charges.
  • Eligibility and timelines vary by supplier policy, credit checks, meter data quality and any outstanding account issues.

Sources (UK)

Note: Supplier terms differ and can change. Always check your contract documents and ask for written confirmation of key terms before agreeing a new deal.

Ready to move off out-of-contract rates?

Request a quote and we’ll help you compare suitable business energy contracts for your meter type and usage—without pressure.

Get your business energy quote Re-read the fast answer

Good to know: If you’ve just moved in, share your tenancy start date and opening reads—this helps resolve deemed-period billing and speeds up accurate quoting.

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Updated on 13 May 2026