Business energy deemed contract rates: how to avoid them (UK)

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

Use this as a practical checklist the moment you take keys (or the moment you realise you’re paying deemed rates). The goal is to minimise the days you’re billed on deemed terms.

1. Confirm who is responsible for the supply. If you’re the tenant/occupier, you’re usually responsible for the energy from your move-in date unless your lease says otherwise.
2. Take opening meter readings (with date-stamped photos). Do this for electricity and gas meters on day one. Keep them for billing disputes.
3. Find your meter identifiers. Electricity: MPAN (often on the meter point admin number on bills). Gas: MPRN. If you don’t have a bill yet, ask the current supplier or your landlord/agent.
4. Contact the existing supplier immediately. Tell them you’ve moved in/taken over, provide readings, and ask what tariff you’re currently on and whether you’re on deemed terms.
5. Get quotes and agree a contract promptly. The quickest way to avoid ongoing deemed rates is to agree new terms with a supplier (either the current supplier or a new one) as soon as you’re ready.
6. Check for switching blocks. Debt on the account, incorrect occupancy dates, or unresolved meter issues can delay a switch. Resolve these early.
7. Keep evidence organised. Tenancy start date, completion statement, opening readings, correspondence and any supplier reference numbers.

Two realistic scenarios (with numbers)

These examples are illustrative to show how time on deemed rates can affect cashflow. We do not use or assume live supplier unit rates. Your actual bill depends on your meter type, usage profile, region, and the supplier’s terms.

Get a business energy quote (whole of market)

If you’re on deemed rates (or about to move in), we’ll compare options for your meter and usage. No promises of savings—just clear pricing and terms where available.

What to have ready (saves time)

• Move-in / takeover date and tenancy or completion documents
• Opening meter readings (photo + date)
• MPAN (electricity) / MPRN (gas) if available
• Estimated usage or last 12 months’ bills (if you have them)
• Whether you have a smart meter / half-hourly meter

Best for you if…

• You’re moving into new premises or taking over a lease
• Your fixed contract ended and you want budget certainty again
• You can provide meter readings and a clear responsibility date
• You want transparent terms (contract length, payment method, fees)

Consider extra support if…

• The landlord controls the supply or you’re on a sub-meter
• There’s a dispute about move-in date or who owes what
• Your site has a half-hourly meter or complex multi-meter setup
• There’s an outstanding balance connected to the meter/address

Pitfall: no opening readings

Without dated readings, you may be billed for energy used before your tenancy started. Always take photos on day one.

Pitfall: wrong “responsibility date”

If the supplier’s records show the previous occupier, your account setup and switching can stall. Provide tenancy/completion evidence early.

Pitfall: meter and address mismatch

Multi-occupancy buildings can have similar addresses. Confirm meter serial numbers and the exact supply address formatting.

What can affect what you’re offered

• Meter type: smart vs non-smart; half-hourly vs non-half-hourly; multi-rate meters
• Payment method: some suppliers price differently for direct debit vs other methods
• Credit checks and trading history: new businesses may have fewer options
• Debt flags / disputes: can delay switching until resolved
• Industry processes: registration timelines and data flows can take time even when everything is correct

What is a deemed contract in business energy?

A deemed contract is an automatically-applied business energy contract that starts when a company takes responsibility for a premises and uses gas or electricity without agreeing a formal contract. It commonly happens at move-in, takeover, or when a fixed deal ends and energy continues to be used.

Can I switch supplier if I’m on deemed rates?

Often yes, but switching can be delayed by admin issues such as the wrong occupancy date, unresolved disputes, address or meter mismatches, or debt connected to the supply. Getting the account correctly set up in your business name and confirming opening readings usually helps.

How do I know if my business is on a deemed contract?

If you didn’t sign a contract but you’re responsible for the premises and energy is being used, you may be on deemed terms. Ask the current supplier to confirm your tariff type in writing and request a copy of the deemed terms and pricing for your meter.

What should I do on day one when moving into business premises?

Take dated photos of opening meter readings, confirm the tenancy start/completion date, and contact the current supplier to register your business and confirm the tariff status. Then request quotes and agree a contract as soon as practical to reduce time on deemed rates.

Are deemed rates capped in the UK for businesses?

Business energy prices generally don’t work like domestic price caps. Protections and rules can differ by business size and circumstances, and suppliers set their own terms within regulation. If you think you’ve been treated unfairly, check guidance from Ofgem and Citizens Advice and raise a complaint with the supplier.

Can a landlord put my business on deemed rates?

A landlord may be the named account holder if they control the supply and bill you (often via sub-metering), or you may have your own supply point. If you have a direct supply, deemed rates can apply if you use energy without agreeing terms. Check your lease and confirm who the supplier says is responsible.

What documents help challenge a deemed bill or wrong start date?

Tenancy agreement or completion statement, dated meter photos, written correspondence with the landlord/agent, and any supplier emails confirming responsibility dates. Keeping a clear timeline makes it easier to correct the account and avoid being charged for someone else’s usage.

Is it ever sensible to stay on deemed rates temporarily?

Only as a short stop-gap while you gather details or resolve an account setup issue. Deemed terms are usually poor for budgeting, so most businesses aim to agree a contract as soon as practical once responsibility and meter details are confirmed.

Page ownership

Written by

EnergyPlus Editorial Team

Reviewed by

Energy Specialist

Last updated

July 2026

How we assess this topic (and limitations)

This guide is written for UK business owners and office/retail/industrial occupiers. We focus on: (1) how deemed contracts arise in real move-in and takeover situations, (2) what commonly delays switching, and (3) what information suppliers typically need to offer an agreed contract.

• No live tariff data: we don’t publish supplier-specific deemed unit rates or “typical” prices because they change and vary by meter/region/business profile.
• Practical bias: we prioritise actions that reduce time on deemed terms (e.g., readings, dates, account setup), as these are the biggest controllable factors.
• UK-specific constraints: tenancy responsibility, landlord resale/sub-metering, half-hourly metering, payment method differences, and switching blocks due to disputes or debt flags.