What are business energy deemed rates?

Business energy deemed rates are default prices a supplier can charge when a business is taking electricity or gas without having agreed a formal contract (for example, after moving into new premises or when a fixed deal ends and no new contract is in place). Deemed rates are often higher than negotiated contract rates.

When do deemed rates apply for business electricity or gas?

Deemed rates can apply if you move into a property and start using energy without setting up a new contract, if your contract ends and you don’t renew, or if you take over a supply but haven’t agreed terms yet. You’ll normally be charged from the date you became responsible for the supply.

Are deemed rates more expensive than fixed business energy tariffs?

Often, yes. Deemed rates are typically higher because they’re not negotiated and are intended as a temporary, default arrangement. Securing a fixed or bespoke business tariff usually provides better price certainty and can reduce costs compared with staying on deemed rates.

How can I avoid being put on deemed rates?

To avoid deemed rates, arrange a new business energy contract as early as possible (especially before a move-in date or before your current deal ends). Provide accurate opening meter readings when you take over a premises, confirm the supply details (MPAN/MPRN), and agree contract terms promptly to move off default pricing.

What should I do if my business is already on deemed rates?

Act quickly: confirm your meter point details, submit up-to-date meter readings, and arrange a new contract to replace deemed pricing. If you’d like support, EnergyPlus can help you compare suitable business energy options and move to a contracted rate as soon as possible.

How long can a business stay on deemed rates?

Deemed rates are designed to be temporary and can continue until you agree a contract or the supplier moves you to another default arrangement. The quickest way to limit exposure is to secure a new contract promptly and keep your account information and readings up to date.

Do I need a credit check to move from deemed rates to a business energy contract?

Sometimes. Some suppliers may require a credit check or security deposit depending on your business profile and consumption. Even if a deposit is requested, moving onto an agreed contract can still improve control over costs versus remaining on deemed rates.

What information is needed to switch or agree a new business energy contract?

Typically you’ll need your business details, site address, current supplier (if known), and your meter identifiers (MPAN for electricity, MPRN for gas). Recent bills and estimated annual usage can also help you access more accurate pricing and speed up the process of leaving deemed rates.

Can EnergyPlus help my business get off deemed rates?

Yes. EnergyPlus can help you review your current situation, confirm key supply details, and source a suitable business energy contract to reduce the time you spend on deemed rates. Start here: https://www.energyplus.co.uk/business-energy/

Business energy deemed rates: how to avoid them

If your business is on deemed rates, you could be paying more than you need to. Compare whole-of-market business energy deals with EnergyPlus and switch to a contract that fits your usage, site type and risk profile.

Find out if you’re on deemed, out-of-contract or rollover rates
Compare business electricity and gas tariffs across the UK market
Lock in a fixed contract or explore flexible options (where suitable)
Support for new occupiers, multi-site and high-usage businesses

Compare business energy rates Check if you’re on deemed

No-obligation comparison. We’ll use your details to search business energy options and contact you about your quote.

Compare whole-of-market business energy and move off deemed rates

Deemed rates are typically applied when your business is supplied with electricity or gas but no contract has been agreed with the supplier for that meter. They’re designed as a default, not a deal—so they can be higher and harder to budget for.

EnergyPlus compares business electricity and business gas plans across the UK market and helps you secure a contract that’s appropriate for your site. Whether you’ve just moved into new premises, taken over a unit, or your previous contract ended, we’ll help you take control of your rates.

Quick check: you may be on deemed rates if…

You moved in and started using energy before signing a contract
You’re receiving bills but can’t find an agreed tariff/end date
Your supplier says you’re “deemed”, “default”, or “out of contract”
Your unit rates jumped after a move, takeover, or contract end

If you’re not sure, use the form to request a comparison—our team can help identify what you’re currently on and what options you have next.

Get business energy quotes

Complete the form and we’ll compare suppliers and tariffs for your business. No obligation.

Prefer to speak first? Use the form and note “deemed rates” in your enquiry when we contact you.

How to avoid business energy deemed rates

1) Agree a contract as early as possible

If you’re moving into a new unit, try to arrange a contract before you start trading. If you take supply without a contract, a supplier can place you on deemed rates from day one.

2) Send opening meter reads on move-in

Record and submit opening readings for electricity and gas (and keep photos). This helps ensure you’re billed correctly from the start and reduces disputes when switching.

3) Don’t let a contract end unnoticed

Set a diary reminder for your end date and notice period. If you do nothing, you may roll onto higher default/variable rates. A renewal comparison can protect your budget.

4) Update who’s responsible for supply

If you’ve taken over premises, register as the new occupier with the existing supplier quickly—then choose a new contract. Leaving responsibility unclear can prolong deemed billing.

5) Confirm your meter details (MPAN/MPRN)

Getting your MPAN (electricity) or MPRN (gas) correct avoids delays. For multi-tenant buildings and multi-site firms, mismatched meters are a common cause of billing issues.

6) Compare whole-of-market options

Deemed rates are not usually competitive. Comparing suppliers can uncover better unit rates, standing charges, and contract structures based on your usage and risk tolerance.

Tip for SMEs: if you’ve only just realised you’re on deemed rates, acting quickly often makes the biggest difference. Even small changes in unit rate can add up over a full contract term.

What are deemed rates for business energy?

A deemed contract (and the deemed rates applied to it) can occur when your business uses electricity or gas at a premises without actively agreeing a supply contract. This often happens when:

You move into new premises and start using energy straight away
You take over a unit and the previous occupier’s contract ends
The supplier for the meter bills you by default while details are updated

Deemed rates are set by the supplier and can change in line with their terms. They are different from domestic deemed tariffs and are specifically relevant to business energy supply.

Why businesses get caught out

Move-in dates and tenancy start dates don’t match
Landlords/agents don’t provide meter details promptly
Busy teams miss renewal windows
Multiple meters on one site create confusion (e.g., sub-meters vs main meters)

If you suspect you’re on deemed rates, the fastest route is to identify the current supplier and meter(s), then compare contract options.

Deemed rates vs out-of-contract vs fixed business tariffs

Different “default” situations get mixed up. This table helps you understand what you might be on and why it matters when you’re trying to reduce business energy costs.

Type of rate	When it happens	Typical risk	How to get off it
Deemed rates (deemed contract)	You take supply without agreeing terms (often on move-in/takeover)	Higher costs; limited budget certainty; potential admin complexity	Agree a new business tariff (fixed/flexible) and confirm occupancy details
Out-of-contract / variable	Your fixed contract ended and you didn’t renew in time	Rates can be higher and may change; harder to forecast	Secure a new fixed contract or suitable alternative
Rollover / auto-renewal	Supplier renews you if notice isn’t given (terms vary by contract)	Could lock you into less competitive rates	Check contract terms and explore switching/renegotiation options
Fixed business tariff	You agree prices for a set term (e.g., 1–3 years)	More predictable bills; exit fees can apply	Compare quotes and choose the right term/structure

Important: The exact names and terms vary by supplier and account type. If you share your postcode and contact details via the form, we can help clarify your current status and options.

Common scenarios that trigger deemed rates (and what to do)

You’ve moved into a new business premises

Take opening reads, note the meter serial number(s), and contact the existing supplier to confirm you’re the new occupier. Then compare and agree a new contract as quickly as practical.
You’ve taken over a unit (e.g., assignment of lease)

Ask the outgoing tenant for final reads and account details. Ensure the supplier has the right responsible party from the correct date to avoid being billed for someone else’s usage.
You’re in a multi-occupancy site or serviced office

Confirm whether you are billed directly by a supplier or via a landlord/reseller arrangement. If you have your own meter, you can typically contract directly; if not, your options may be different.
You have multiple meters or multiple sites

List each site postcode and any known meter identifiers (MPAN/MPRN). Multi-site portfolios can benefit from aligned end dates and consistent procurement strategy.
You suspect incorrect billing or tenancy dates

Keep evidence (tenancy agreement, keys handover date, photos of reads). If billing periods overlap, resolving it is often easier with clear documentation and accurate reads.

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Business energy deemed rates FAQs

How do I know if my business is on deemed rates?

Look for wording like “deemed”, “default”, or “no contract” on bills/letters. If you can’t find a contract end date, unit rates, or agreed terms, you may be deemed or out-of-contract. If you submit the form, we can help you work out what you’re currently on.

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

In many cases, yes—switching often involves agreeing a new business tariff and confirming occupancy/meter details. Some situations (like complex tenancy disputes) may take longer to resolve first.

Are deemed rates capped for business customers?

Business energy is not the same as domestic energy, and protections can differ depending on your business size and contract type. Deemed rates are set by the supplier’s terms. The practical way to reduce exposure is usually to agree a suitable contract promptly.

What information do I need to get quotes?

A business postcode is a good start. If you have them, your latest bill, annual usage (kWh), MPAN/MPRN, and preferred contract length can help improve accuracy. If you’re a new occupier, opening reads and move-in date are useful.

Will switching interrupt my supply?

Switching business energy suppliers is administrative—your gas/electricity supply should continue as normal. The key is accurate meter details and clear responsibility for the supply.

Can you help with multi-site businesses?

Yes. Multi-site comparisons often focus on aligning renewal dates, simplifying billing, and selecting procurement strategies that match your usage pattern. Submit the form and tell us it’s multi-site when we contact you.

Why use EnergyPlus to avoid deemed rates?

Whole-of-market comparison

We compare options across the UK business energy market to help you move away from expensive default pricing.

Help for new occupiers

If you’ve just moved in, we’ll focus on the details that matter: opening reads, supply responsibility, and getting a contract in place.

Less admin, clearer next steps

We’ll help you understand your current position (deemed vs out-of-contract) and what you can do next to protect your costs.

What happens after you request quotes?

We confirm your supply basics

We’ll use your postcode and details to start identifying your meter(s) and supply position, especially helpful if you’re a new occupier or unsure who the supplier is.

We compare suitable tariffs

We’ll compare business electricity and/or gas deals, considering contract length, pricing structure and the information you provide.

You choose what to do next

If you like a quote, we’ll explain the steps to switch or set up a new contract. If not, there’s no obligation to proceed.

You reduce exposure to default pricing

Getting a contract in place can help you move away from deemed/default pricing and improve cashflow predictability.

Trusted by UK businesses

“We’d moved units and realised we were being billed on default rates. EnergyPlus helped us understand the situation and compare contracts quickly.”

Operations Manager, Light Industrial (North West)

“Clear process and no jargon. We aligned our renewal and avoided rolling onto higher rates again.”

Director, Professional Services (London)

“Multi-site comparison was straightforward. We got options that suited different usage patterns across locations.”

Finance Lead, Retail (Midlands)

What you can expect: clear explanations, whole-of-market comparisons, and a focus on getting you off deemed/default pricing as efficiently as possible.

Ready to stop paying deemed business energy rates?

Request a whole-of-market comparison and see which contracts are available for your business. Moving off deemed or default pricing can make your costs more predictable.

Business electricity, gas or dual fuel
Support for new occupier and takeover scenarios
Multi-site comparisons available

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Updated on 3 Feb 2026