What are business energy deemed rates?

Business energy deemed rates (also called deemed tariffs) are the default prices a supplier applies when a business is using energy at premises without an agreed contract. This can happen if you’ve moved into new premises, your previous contract ended, or a change of supplier hasn’t completed.

Why are deemed rates usually more expensive?

Deemed rates are typically higher because they’re a supplier’s out-of-contract prices and can include less competitive unit rates and standing charges. In most cases, securing a fixed business energy contract offers better price certainty and may reduce overall costs.

When do deemed rates apply to my business?

Deemed rates can apply when you start using electricity or gas without agreeing a contract with the current supplier—for example after moving into a property, after a contract ends without renewal, or if your supplier changes due to an industry process. If energy is being used, you’re responsible for paying the current supplier’s deemed charges until you switch or agree a new deal.

How can I get off deemed rates quickly?

You can get off deemed rates by agreeing a new contract with your current supplier or switching to a new business energy supplier. To move quickly, gather your latest bill (or your MPAN/MPRN and meter details), confirm your business address and start date, and request business energy quotes. Energy Plus can help you compare options and arrange a switch to reduce time on deemed pricing.

Can I switch supplier while on deemed rates?

In many cases, yes. If you’re on a deemed tariff, you can usually agree a new contract or switch supplier, provided there are no outstanding issues such as debt that blocks a transfer. The exact timelines depend on your meter type and industry processes, but starting the switch as soon as possible reduces the period you pay deemed charges.

Do I have a cooling-off period for a business energy contract?

Cooling-off rights can differ for business customers compared with domestic customers and may depend on business size and how the contract is agreed. Always review the terms before you sign. If you’d like help understanding your options, Energy Plus can walk you through the quote and contract details.

What information do I need to get business energy quotes and leave deemed rates?

To secure accurate quotes you’ll typically need your business name and address, meter point details (MPAN for electricity and/or MPRN for gas), current supplier (if known), estimated annual usage or a recent bill, and your preferred contract length. Having these ready helps you lock in a new tariff faster.

What if I’ve just moved into new premises and don’t know the current supplier?

If you don’t know who supplies your new premises, you can identify the current supplier using your meter information or by checking existing documentation left at the property. Once confirmed, you can request quotes and arrange a contract or switch to avoid staying on deemed rates longer than necessary.

Will I be charged exit fees for leaving deemed rates?

Deemed tariffs are out-of-contract arrangements, so exit fees are often not applicable in the same way as fixed-term contracts. However, charges and terms can vary by supplier and meter type, so it’s best to confirm your current status and any conditions before switching.

How long does it take to switch business energy supplier?

Switching times vary based on your supply, meter type, and the information available, but it commonly takes a few weeks. Starting the process quickly is the best way to reduce the time you remain on deemed rates.

Can Energy Plus help me compare deals and switch off deemed rates?

Yes. Energy Plus can help you compare business energy options and arrange a new contract to move you off deemed rates. Visit https://www.energyplus.co.uk/business-energy/ to explore business energy support and next steps.

Business energy deemed rates: what they are & how to get off them

If your business has moved in, taken over a supply, or your contract ended without a new deal agreed, you may be paying deemed rates. This guide explains what deemed rates are in the UK, what you can do immediately, and how to switch to a contract that better fits your usage.

Fast steps to reduce the time you spend on deemed rates (without breaking the rules)
UK-specific examples with numbers (including standing charges, unit rates and VAT assumptions)
Practical checklist: what information you’ll need to switch or renegotiate

Get a business energy quote How getting off deemed works

Information is UK-focused and for guidance only. Prices vary by supplier, meter type, region and credit profile. If you’re unsure, we’ll help you confirm what tariff you’re on and your switching options.

Fast answer: how to get off business energy deemed rates

In the UK, deemed rates (also called deemed contract or out-of-contract rates) can apply when your business uses gas or electricity at a premises but you haven’t agreed a new fixed contract with the supplier. They’re often higher and less predictable than fixed deals.

What to do today (most businesses)

Confirm your current status: ask your supplier if you’re on a deemed tariff and request the current unit rate and standing charge (and the effective date).
Get your identifiers: for electricity, your MPAN; for gas, your MPRN (usually on a bill).
Compare fixed contracts (same supplier or switch): deemed tariffs are not usually the best long-term option.
Submit a switch: once a new contract is agreed, your new rates apply from the contract start date (you still pay deemed up to that point).

Key takeaways (UK caveats)

You can’t usually backdate a cheaper contract to cover time already billed on deemed rates.
Microbusiness rules may apply to you (extra protections) depending on usage and headcount.
Meter type matters: half-hourly (HH) electricity, smart meters and multi-site supplies can affect speed and pricing.
Rates vary by region (network charges) and by payment/credit terms.

Quick definition: A deemed contract is a legal supply arrangement that allows your premises to stay powered when no formal contract has been signed by the current occupier (for example after moving in). You pay the supplier’s published deemed tariff until you agree a new contract or switch.

How getting off deemed rates works (step-by-step)

The fastest route off deemed rates is usually to agree a fixed contract (either with the current supplier or by switching). The exact steps depend on whether you’re the new occupier, the existing account holder, or you’ve reached the end of a contract.

1) Confirm why you’re on deemed

Moved in / took over a premises and started using energy without signing a contract
Your fixed term ended and no renewal was agreed
A previous tenant’s supply ended and the supplier placed the site on deemed for continuity

2) Gather the minimum info suppliers ask for

Supply identifiers: Electricity MPAN / Gas MPRN (from a bill or supplier)
Business details: Company name, site address, contact details, and (sometimes) Companies House number
Consumption clues: Latest bill, meter serial number, and (for electricity) whether you’re half-hourly (HH) or non-HH

3) Compare your options

You can normally either renew with the current supplier or switch. Switching can be straightforward, but may take longer for complex meters, multi-site portfolios, or if there are account or occupancy disputes to resolve.

4) Agree a contract start date & stay bill-aware

You’ll usually pay deemed rates until the day the new contract starts. Ask for confirmation of: unit rate, standing charge, contract length, payment terms, and any administration fees.

If you’ve just moved in: take opening meter readings (with photos) and send them to the supplier. This helps prevent being billed for a previous occupier’s usage.

Two realistic scenarios (with estimated numbers)

These examples are illustrative only. Actual deemed rates and contract offers vary by supplier, region, meter type, payment method and credit checks. VAT is usually 20% for most businesses; some may qualify for reduced VAT depending on use.

Scenario A: Small shop on electricity only

Usage assumption: 4,000 kWh/month
Deemed example: 42p/kWh + 70p/day standing charge
Fixed contract example: 30p/kWh + 55p/day standing charge

Estimated monthly cost (ex VAT):

Deemed: (4,000×£0.42) + (30×£0.70) ˜ £1,701
Fixed: (4,000×£0.30) + (30×£0.55) ˜ £1,217

Difference ˜ £484/month before VAT (illustrative).

Scenario B: Café with gas + electricity

Electricity usage: 6,500 kWh/month
Gas usage: 18,000 kWh/month
Deemed examples: Elec 40p/kWh + 75p/day; Gas 12p/kWh + 40p/day
Fixed examples: Elec 29p/kWh + 60p/day; Gas 7p/kWh + 35p/day

Estimated monthly cost (ex VAT):

Deemed electricity: (6,500×£0.40) + (30×£0.75) ˜ £2,623
Fixed electricity: (6,500×£0.29) + (30×£0.60) ˜ £1,903
Deemed gas: (18,000×£0.12) + (30×£0.40) ˜ £2,172
Fixed gas: (18,000×£0.07) + (30×£0.35) ˜ £1,270

Total difference ˜ £1,622/month before VAT (illustrative).

Why examples can differ from your bill: business bills may include additional elements such as capacity charges (some sites), pass-through network costs depending on contract structure, Climate Change Levy (CCL) (unless exempt), and different standing charges by region and meter.

Get off deemed rates with a tailored business quote

Tell us your details and we’ll help you compare whole-of-market business energy options. If you’re currently on deemed rates, we’ll focus on contracts you can move to as soon as your supply can switch.

Tip for speed: If you can, have a recent bill ready. It usually shows your MPAN/MPRN, meter serial number, and current supplier.

When switching may take longer

Multi-site or landlord-managed supplies
Half-hourly electricity meters or complex profiles
Disputed occupancy dates or incorrect opening reads
Debt on the meter/account (rules vary)

Compare: deemed rates vs fixed contract vs variable business tariff

If you’re currently on deemed rates, your goal is usually to move to a tariff with clearer pricing and terms. This table summarises the most common routes, so you can choose what fits your situation.

Option	Typical pricing certainty	Who it suits	Watch-outs
Deemed tariff	Low (supplier can update rates; you didn’t negotiate)	Short-term only (while you arrange a contract)	Often higher rates; limited control; can be costly if left unmanaged
Fixed contract (12–36 months)	High (agreed unit rate + standing charge for term, subject to contract structure)	Most SMEs who want budget control	May include termination/exit fees; check pass-through charges and renewal terms
Variable business tariff (supplier’s standard variable/evergreen)	Medium to low (rates can change)	Businesses needing flexibility or short-term occupancy	Can still be expensive; not usually the best long-term value

Decision checklist: a fixed contract is usually best if…

You’ll be at the premises for 12 months+
You want predictable budgeting
You can provide basic business and meter details
You want to reduce the risk of paying deemed rates for longer than necessary

It may not suit if…

You’re leaving soon or the lease is uncertain (exit fees may apply)
You’re in a serviced office where energy is included (you may not control the supply)
The site has an unresolved tenancy/occupancy dispute
You need time to clarify metering changes (e.g., new HH setup)

Microbusiness protection: Some businesses qualify for additional protections (for example, clearer contract terms and dispute routes). Eligibility can depend on staff count and energy consumption thresholds.

Costs, exclusions and common pitfalls (so you don’t get stuck)

Deemed rates often become expensive because businesses don’t realise they’re on them, or they assume they can’t switch until the supplier “contacts them”. Here are the most common trip hazards we see and how to avoid them.

1) Assuming deemed = illegal

It’s a legitimate supply arrangement to keep you connected. The issue is cost and lack of control, not legality.

2) Missing opening readings

Without opening reads, you risk being billed for a previous occupier. Photograph the meter and email the supplier.

3) Confusing “deemed” with “rollover”

A rollover/evergreen rate can apply after a fixed term ends. Deemed often applies when no contract was agreed by the occupier.

4) Not checking contract structure

Some business contracts include pass-through charges. Ask what’s fixed versus what can vary (e.g., network or policy costs).

5) Forgetting VAT & CCL

Business energy is typically billed with 20% VAT and may include Climate Change Levy unless exempt or eligible for relief.

6) Waiting for a “best time”

If you’re on deemed rates, the best time to act is usually now—because every day on deemed is billed at deemed pricing.

Important: If you believe you’ve been placed on deemed rates incorrectly (for example, wrong move-in date or incorrect meter reads), raise a complaint with the supplier in writing and keep evidence (lease start date, inventory, photos of reads). If you qualify as a microbusiness, there may be additional dispute routes.

FAQs: business energy deemed rates (UK)

How do I know if I’m on deemed rates?

Ask your current supplier what tariff your premises is on and request the current unit rate (p/kWh) and standing charge (per day). Your bill may say “deemed”, “out of contract”, “standard” or “variable”, depending on the supplier’s wording.

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

In many cases, yes—because deemed arrangements are designed to keep you supplied while you arrange a contract. Some circumstances (like occupancy disputes, incorrect details, or certain debt situations) can delay switching. We’ll help you check what applies at your premises.

Will a new contract backdate to cover my deemed period?

Usually not. Deemed charges generally apply until the date your new contract starts (or the date a switch completes). If you think your deemed start date is wrong (for example, you moved in later), you can dispute the start date and provide evidence.

What’s the difference between deemed rates and a rollover/evergreen tariff?

A rollover/evergreen tariff often happens when an agreed fixed term ends and you don’t renew; you default onto the supplier’s non-fixed rates. Deemed rates typically apply when the occupier has not entered into a contract for that supply at all (often after moving in). Suppliers use different labels, so confirm directly.

I’ve moved in and don’t know who supplies my business energy. What do I do?

Start with any paperwork left on site (old bills, meter stickers). If you can’t find it, you can use industry lookups for the registered supplier (for example, via your MPAN/MPRN routes) or ask a broker to help identify the current supplier. Taking opening readings immediately is key.

Do deemed rates have exit fees?

Deemed arrangements are not the same as a fixed contract with explicit termination fees, but terms vary by supplier and situation. Always ask the supplier to confirm whether any charges apply for leaving the deemed tariff, and get it in writing where possible.

Does my meter type affect deemed rates and switching?

Yes. Half-hourly (HH) electricity meters and complex setups can involve additional data flows and may affect timelines and pricing. Smart meters can help with accurate readings, but you still need the correct MPAN and site details to switch smoothly.

What if I’m a microbusiness—do I have extra protections?

You may. Ofgem sets rules that can provide extra protections for microbusiness consumers (for example, around contract terms and dispute processes). Eligibility depends on criteria such as staff count and consumption. If you think you qualify, tell your supplier and keep a record of communications.

Need help quickly? If you complete the quote form above, we can help you confirm your current tariff status and identify practical next steps for your meter type and premises.

Trust, methodology and sources

Page ownership

Written by: EnergyPlus Editorial Team
Reviewed by: Energy Specialist (Business Markets)
Last updated: March 2026

How we assess this topic

This guide is built from a combination of:

UK regulator and consumer guidance on business energy contracts and switching
Supplier tariff structures commonly seen in the UK business market (deemed, variable, fixed)
Practical switching constraints (meter type, occupancy, data quality, and credit/payment terms)

We prioritise clear user outcomes: how to identify you’re on deemed rates, what levers you can pull, what info you need, and what to watch for.

Assumptions and limitations (transparency)

Example numbers are illustrative and exclude many site-specific factors (e.g., CCL, capacity charges, pass-through items, bespoke portfolio arrangements).
VAT treatment varies by business type and usage. Most businesses pay 20% VAT; some uses can qualify for reduced rates.
Switching timelines vary by supplier and situation; complex metering and disputed occupancy can extend timelines.
Eligibility for microbusiness protections depends on Ofgem criteria; always confirm with your supplier if you believe you qualify.

Sources (UK)

We link to high-authority UK sources for general principles. Supplier-specific deemed rates and terms can change; always confirm current rates directly with your supplier.

Ready to move your business off deemed rates?

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Note: If you’re dealing with a new tenancy, incorrect opening reads, or you’re unsure who the supplier is, include that context when we contact you—those details can speed things up.

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Updated on 8 Mar 2026