When do deemed rates apply for UK businesses?

Deemed rates can apply if you move into new business premises and start using energy before setting up a contract, if you take over a supply from a previous tenant, or if your business energy contract ends and no renewal is agreed. In these situations the supplier may place the account on a deemed (out-of-contract) tariff until you switch or sign a new deal.

Are deemed rates more expensive than fixed business energy contracts?

Often, yes. Deemed (out-of-contract) rates are usually higher than rates available on fixed business energy deals because you have not negotiated terms. If your goal is to lower bills and gain cost certainty, comparing fixed-rate options and securing a contract is typically the quickest way to avoid paying more than necessary.

How can I avoid being put on deemed rates?

To avoid deemed rates, arrange your business energy contract before you move in or before your current agreement ends. If you’re already on deemed rates, act quickly: confirm your current supplier, gather your meter details and recent usage, and request quotes for a fixed contract or switch to a better tariff. For help comparing options, use Energy Plus to secure a competitive deal.

What information do I need to switch away from deemed rates?

You’ll typically need your business details, supply address, meter numbers (MPAN for electricity and MPRN for gas), current supplier (if known), and an estimate of annual usage (kWh) or recent bills. Having these to hand helps you get accurate quotes and move off deemed rates faster.

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

In many cases, yes. Because deemed rates are generally out-of-contract, businesses are often able to agree a new contract with the existing supplier or switch to a different supplier. The best approach is to compare business energy deals and start the switch process as soon as possible to minimise time spent on higher deemed prices.

How long will I stay on deemed rates?

You usually remain on deemed rates until you agree a new contract with your current supplier or successfully switch to a new one. The exact timing depends on your circumstances and industry processes, but taking action quickly can reduce how long you pay out-of-contract prices.

What should I do if I’ve just moved into business premises and don’t know the supplier?

Start by identifying the current supplier for the premises and confirming the meter details. Once you know who is supplying your electricity and/or gas, you can request quotes to secure a fixed deal and avoid ongoing deemed charges. If you want to move quickly, Energy Plus can help you identify the supply and compare business energy tariffs.

Is a deemed contract the same as an emergency or temporary supply?

Not exactly. A deemed contract is a default arrangement that allows energy to be supplied and billed when no formal contract has been agreed. It’s commonly used when a business occupies a property and starts using energy without setting up a contract, or when a contract has ended.

How can Energy Plus help me reduce deemed-rate costs?

Energy Plus can help you compare business energy deals and secure a suitable fixed-rate contract, helping you move away from higher out-of-contract deemed rates. Start by reviewing your current supply details and request a quote via https://www.energyplus.co.uk/business-energy/ to find competitive options.

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

Q: What are business energy deemed rates?

Business energy deemed rates are default electricity or gas prices applied by a supplier when a business is consuming energy without an agreed contract in place (for example after moving into premises or when a previous contract ends). Deemed rates are typically higher than negotiated fixed deals, so arranging a contract promptly can help reduce costs.

If your business is on a deemed contract, you could be paying higher unit rates and standing charges than you need to. Compare whole-of-market business energy deals and switch to a contract that fits your usage, premises and meter type.

Check if you’re on deemed rates and what triggers them
See your options for microbusiness vs larger business supplies
Get quotes from multiple UK business energy suppliers in one place
Switch with support from start to finish

Compare business energy rates How to avoid deemed rates

Whole-of-market comparison service for UK businesses. Quotes are subject to supplier checks and meter eligibility. Saving depends on current tariff, usage and contract terms.

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

Deemed rates usually apply when your business uses energy at a new premises (or after a contract ends) without agreeing a new tariff. They’re often less competitive than fixed business contracts. EnergyPlus helps UK businesses compare suppliers and secure a suitable contract based on your meter, usage and location.

When you might be on a deemed tariff

You moved into a new commercial property and started using energy before agreeing a contract.
Your previous fixed contract ended and you didn’t renew in time.
You took over a lease and the supply stayed with the existing supplier until you arranged a new tariff.
You changed tenancy/occupier details but didn’t agree terms with the supplier.

Tip: Your bill may not say “deemed”. Look for wording such as “deemed contract”, “out of contract”, “default tariff” or rates that change with notice rather than a fixed end date.

Get business energy quotes

Complete the form and we’ll compare business electricity, business gas or dual fuel options to help you move away from deemed rates.

Already have a bill handy? If you know your MPAN/MPRN or annual kWh, you’ll get tighter quotes. If not, we can still help using postcode and business details.

What are business energy deemed rates in the UK?

A deemed contract (sometimes called out-of-contract or a default tariff) can apply when a business uses electricity or gas at a premises without having explicitly agreed a contract with the supplier. The supplier is still obliged to supply energy, but the rates can be higher and less predictable than a fixed-term business contract.

How it starts

Commonly when you move in, take over a tenancy, change legal entity, or your fixed term ends and no new agreement is in place.

How it’s priced

The supplier sets the unit rate and standing charge. Prices can change with notice, and you won’t have the certainty of a fixed end date.

Why it matters

If you stay on deemed rates, you may pay more than necessary. Switching to a suitable contract can improve cashflow and budgeting.

How to avoid deemed rates (practical steps)

The easiest way to avoid deemed rates is to agree a business contract as early as possible—ideally before you move in, or before your current term ends. If you’re already on deemed, you can usually move to a new tariff (subject to your supplier and meter situation). Use the steps below to protect your business from unnecessary charges.

Check what you’re currently paying. Look at your latest bill for unit rates (p/kWh), standing charge (p/day), and whether you’re on a fixed term or default/deemed arrangement.
Confirm who the current supplier is. If you’ve moved into new premises, you may be on a “deemed” supply with the existing supplier at that address. You can still compare and arrange a switch.
Get whole-of-market quotes. Compare suppliers based on your meter type (half-hourly, non-half-hourly, smart), usage profile and contract length (e.g., 12–36 months).
Choose the right contract structure. Many businesses prefer fixed unit rates for budgeting; others may consider flexible options depending on risk appetite and volume.
Time the switch to reduce overlap. We’ll help align start dates, manage notice requirements (where applicable), and avoid leaving gaps that can push you onto default rates.
Keep records for the next renewal. Set a reminder 3–6 months before contract end so you can re-quote and avoid rolling onto out-of-contract rates.

Moving premises? If you’re taking on a new commercial unit, organise energy early. Deemed rates can start the moment you consume energy, even if you haven’t signed anything yet.

Why businesses use EnergyPlus to avoid deemed rates

If you’re dealing with an urgent start date, a landlord handover, or a contract that’s already ended, speed and clarity matter. We focus on the practical details that get you onto the right tariff.

Whole-of-market comparison

We compare multiple UK business energy suppliers so you can see competitive options beyond the incumbent at your premises.

Support for tricky situations

Change of tenancy, multi-site portfolios, or limited billing history—we’ll guide you through what suppliers need.

Clear renewal planning

Avoid being caught out at contract end. We help you re-quote earlier so you’re less likely to fall back onto default rates.

Microbusiness vs non-microbusiness: what changes?

UK energy rules can differ depending on whether you qualify as a microbusiness. This can affect contract terms, information suppliers must provide, and how disputes are handled. If you’re unsure, we can help you identify which category you fall into when gathering quotes.

Topic	Microbusiness (may apply)	Other businesses
Definition (high level)	Small organisations meeting certain size/consumption thresholds.	Larger usage or headcount/turnover beyond microbusiness thresholds.
Contract clarity	Suppliers must provide clearer key terms and protections can apply.	Terms vary by supplier and may be more commercially negotiated.
Complaints escalation	May be able to escalate to the Energy Ombudsman depending on eligibility.	Ombudsman eligibility can be different; dispute routes may vary.
Best next step	Gather a recent bill or meter details so quotes reflect your status accurately.	Use annual consumption and meter type to access business-appropriate tariffs.

If you believe you’ve been placed on deemed rates unfairly, keep copies of tenancy start dates, emails with the supplier, and meter readings. This evidence can help resolve billing issues faster.

Deemed rates vs fixed contracts: costs, risks and savings

Deemed rates aren’t automatically “wrong”, but they’re rarely the most cost-effective way to run a business long-term. Switching to an agreed contract can help you control costs and reduce surprises on monthly bills.

Why deemed rates can cost more

Less competitive pricing: suppliers often reserve best prices for fixed-term agreements.
Price changes: deemed/default tariffs can change with notice, making forecasting harder.
Standing charge impact: high standing charges can hit low-usage sites (shops, offices, storage units).
Cashflow pressure: higher bills reduce working capital—especially across multiple sites.

Where savings can come from

Better unit rates: locking in can reduce p/kWh for electricity and gas.
Right contract length: match term to lease length or budget planning cycles.
Correct meter setup: ensuring your MPAN/MPRN and meter type are correct avoids misquoting.
Portfolio leverage: multi-site businesses may access improved pricing through aggregated usage.

Good to know: Some suppliers may require identity checks, company details and meter verification before confirming a contract. Providing accurate contact and postcode details helps speed things up.

Common mistakes that keep businesses on deemed rates

Waiting until after moving in

Energy use can begin immediately (lights, heating, equipment). Arrange a contract early to reduce time on default pricing.

Not updating occupancy details

If you don’t notify the supplier of tenant changes, billing can be delayed or disputed—often leaving you on deemed terms longer.

Missing renewal windows

Many businesses only look at energy when a big bill arrives. Set a renewal reminder months before contract end.

Business energy deemed rates FAQs

Can a supplier put my business on deemed rates without me signing?

Yes. If energy is being used at the premises without an agreed contract in place, suppliers can supply you under deemed terms. That’s why it’s important to confirm the current supplier and arrange a business tariff as early as possible.

How do I know if I’m on deemed or out-of-contract rates?

Check your bill for an end date and the name of your tariff. If there’s no fixed term, or the wording suggests “default”, “variable”, “out of contract” or “deemed”, you may be on deemed rates. If you’re unsure, submit the form above and we’ll help you confirm.

Can I switch away from deemed rates straight away?

Often yes, but it depends on supplier rules, meter status and whether there are any open issues (for example, incorrect occupancy dates or disputes). We’ll advise the quickest route to a confirmed contract based on your situation.

What if I’ve just moved into a new commercial unit?

Take meter readings on the day you move in, keep evidence of your tenancy start date, and arrange a business energy contract promptly. This helps ensure you’re billed correctly from day one and reduces time spent on deemed rates.

Do deemed rates apply to both electricity and gas?

Yes—deemed arrangements can apply to business electricity and business gas supplies. If you’re on deemed for one fuel, it’s worth checking the other as well, especially after a move or a contract end.

Will switching affect my supply?

No—your energy supply should remain continuous during the switch. The change is administrative, moving billing and rates from one supplier to another.

Trusted by UK businesses and property decision-makers

Whether you manage a single site or multiple commercial premises, avoiding deemed rates is about acting early and getting the details right. Here’s what customers value when using a comparison service during time-sensitive changes.

“We moved into a new unit and discovered we were on a default tariff. The comparison process was clear and we got a fixed deal arranged quickly.”

Operations Manager, light industrial unit

“Helpful for renewal planning—having quotes in advance meant we didn’t roll onto out-of-contract rates.”

Finance Lead, professional services

“We manage several sites. Consolidating details and comparing options saved time and reduced bill shocks.”

Facilities Coordinator, multi-site retail

What we prioritise: accurate meter matching, clear start dates, and transparent quote comparisons—so you can leave deemed rates behind with minimal admin.

Ready to get off deemed rates?

Submit your details and we’ll compare whole-of-market business energy deals for your postcode and meter setup. If you’re moving premises or your contract has ended, we’ll help you choose a start date that reduces time on default pricing.

Electricity, gas or dual fuel
Microbusiness and multi-site support
UK-based help through the switching process

Get quotes now

Back to Business Energy

Updated on 3 Feb 2026