Why might my business be on deemed rates?

You may be on deemed rates if you’ve moved into a property and inherited an existing supply, you’re using energy after your fixed contract has ended without renewing, or you haven’t formally agreed terms with the current supplier. In these cases suppliers can place you on a deemed contract until you switch or sign a new deal.

How do I get off deemed rates and onto a cheaper business energy deal?

To get off deemed rates, you typically need to agree a new contract with your current supplier or switch to a new supplier. The fastest route is to compare business energy tariffs, confirm your meter details and annual usage, and arrange a switch date. EnergyPlus can help you compare business electricity and gas options and move you onto a fixed rate contract to avoid ongoing deemed pricing.

Can I switch supplier while on a deemed contract?

In most cases, yes. Deemed contracts are usually designed to be temporary, and businesses can often switch to a new supplier (or sign a fixed deal) to replace them. If you’re unsure, check any notice requirements and confirm your site and meter details before starting the switch.

How long do deemed rates last?

Deemed rates apply until you agree a new contract with the supplier, switch to a different supplier, or the supplier moves you to another default arrangement (depending on their terms). If you’ve recently moved in, acting quickly can help reduce the time you pay deemed prices.

If I’ve just moved into new business premises, what should I do about the energy supply?

First, identify the current supplier for the property and take opening meter readings. Confirm your business details, address, and meter identifiers (MPAN for electricity and MPRN for gas). If you’re automatically on deemed rates, you can then compare fixed business energy deals and arrange a switch as soon as possible to reduce costs.

What information do I need to compare business energy rates and switch?

To compare accurately, you’ll typically need your business address and postcode, current supplier (if known), meter numbers (MPAN/MPRN), estimated annual consumption (kWh) or recent bills, and preferred contract length. Having these ready can speed up quotes and help secure a competitive fixed tariff.

Will switching disrupt my business energy supply?

No—switching supplier does not normally interrupt your electricity or gas supply. The change is administrative, and your site stays connected. You’ll simply begin being billed by the new supplier from the agreed start date.

How can EnergyPlus help me reduce costs if I’m on deemed rates?

EnergyPlus can help you understand your current position, compare business electricity and gas deals, and move you from deemed rates to a clearer, fixed contract. To start, visit https://www.energyplus.co.uk/business-energy/ and request a business energy quote or comparison based on your site and usage.

Business energy deemed rates: how to get out of contract

Q: What are business energy deemed rates?

Business energy deemed rates (also called deemed contract rates) are the default unit rates and standing charges a supplier applies when a business is supplied without agreeing a new contract—commonly after moving into new premises, continuing supply after a contract ends, or when a contract hasn’t been signed. Deemed rates are often higher than negotiated fixed deals, so comparing options quickly can reduce costs.

Q: Do deemed contracts have exit fees?

Deemed contract terms vary by supplier, but they are commonly more flexible than fixed term contracts. Some deemed arrangements may not charge exit fees, while others can include notice periods or specific conditions. Always confirm the current supplier’s deemed terms before switching.

If you’ve moved into premises, your contract ended, or you’re paying a shockingly high “default” unit rate, you may be on deemed rates. Compare whole-of-market business energy deals and switch to a fixed contract with support from EnergyPlus.co.uk.

Check whether you’re on deemed rates or out-of-contract (OOC) supply
Understand notice periods, cooling-off rules and objections
Get prices from multiple UK business suppliers (whole-of-market comparison)
Fast quote request: one form, we do the chasing

Get business energy quotes Learn about deemed rates

Whole-of-market comparison service for UK businesses. Switching timelines depend on supplier processes and any active objections.

Get out of deemed rates by switching to a fixed business contract

Deemed rates are usually the supplier’s default prices when there’s no agreed contract in place. They can apply if you’ve moved into a new business premises, your previous contract ended and you didn’t renew, or you took over a supply without signing a new deal. The quickest route off deemed rates is typically to agree a new fixed-price contract with a business energy supplier.

EnergyPlus.co.uk compares whole-of-market tariffs for UK businesses. Submit your details once and we’ll help you find options that fit your meter type, usage and contract preferences (including electricity-only, gas-only, or dual fuel where available).

When deemed rates happen most often

You moved into a unit and started trading before arranging energy
The previous tenant left and the supply stayed live
Your fixed contract ended and rolled onto a deemed/out-of-contract rate
You never signed a contract, but the site used energy

Request whole-of-market business quotes

Tell us a few details and we’ll come back with available deals to help you move off deemed rates.

First name

Surname

Work email

Telephone

Business postcode

How switching works

By submitting, you agree to be contacted about business energy quotes. We’ll use your details to progress your request and keep you updated.

Tip: If you have it, keep a recent bill or your meter numbers (MPAN for electricity / MPRN for gas). It can speed up quoting and reduce back-and-forth.

Important: This page is guidance for UK businesses and not legal advice. Contract terms vary by supplier and meter type.

What are business energy deemed rates?

A deemed contract (and its deemed rates) is a set of default terms that can apply when a business uses gas or electricity without actively agreeing a contract. In practice, this often happens during a change of tenancy, when a contract ends, or when responsibility for the supply isn’t updated quickly.

Usually higher prices

Deemed unit rates and standing charges are commonly above negotiated fixed deals because they’re the supplier’s default commercial pricing.

You’re still liable

Even if you never signed, if your business uses energy at the premises, you can be liable for charges from the date you became responsible.

Not the same as domestic rules

Business energy is regulated differently from home energy. Notice periods, objections and contract terms can be stricter.

Deemed rates vs out-of-contract rates (what’s the difference?)

Suppliers and brokers sometimes use these terms differently, but in plain English:

Scenario	What it usually means	Typical next step
Deemed contract	No active agreed contract at the premises, but energy is being consumed.	Agree a new contract and/or switch supplier.
Out of contract (OOC)	A fixed term ended and you rolled onto a default variable rate.	Renew or switch quickly to reduce costs.
Change of tenancy	You’ve taken occupancy and the supplier needs proof of responsibility and start date.	Send tenancy documents + opening meter read, then arrange a contract.

How to get out of a deemed business energy contract

In most cases, you can exit deemed rates by agreeing a new contract (with your current supplier or a new one) and completing the supplier switching process. What changes is the practical route: do you need to provide tenancy proof, deal with an objection, or correct billing dates first?

Confirm your current status: ask your supplier whether you’re on deemed, out-of-contract, or still within a fixed term. Request your current unit rate(s), standing charge and end date (if any).
Collect key site info: business name, address, postcode, meter numbers (MPAN/MPRN), opening meter reads (if you moved in), and a recent bill if available.
Resolve change-of-tenancy issues: if you’re a new occupier, provide tenancy agreement/lease start date and opening read. This helps stop you being charged for someone else’s consumption.
Compare whole-of-market contracts: fixed-term deals can give price certainty and often reduce costs vs deemed pricing. Choose term length and any preferences (e.g., green tariffs, single/dual fuel).
Start the switch: once you select a supplier/contract, the new supplier will manage the transfer process with the current supplier.
Check the final bill: verify the closing read and dates. If something looks wrong, raise it quickly with the supplier(s) and keep evidence.

If you’re still in a fixed contract: you may face termination fees for leaving early. In that case, focus on serving the correct notice and timing the switch close to contract end.

Notice periods, objections and common blockers

Notice periods (end-of-contract switching)

Business suppliers often require a written notice window before your contract end date. If you miss it, some contracts can roll over or extend on different terms.

Check your contract for the exact notice window and method (email/letter/portal).
Ask the supplier to confirm receipt of notice in writing.
Start comparing early so you can lock in rates and align your switch date.

Objections (why a switch may be blocked)

In some business cases, the current supplier can object to a switch. The reason must be valid under the industry process.

Debt on the account (often triggers an objection until resolved)
Incorrect occupancy details (e.g., wrong legal entity or move-in date)
Contract still live (switch attempted inside fixed term)
Site/meter issues needing correction (MPAN/MPRN mismatches)

What to do if your supplier says you “can’t leave”

Ask for the basis in writing

Request the contract status, start date, and the reason you can’t switch (e.g., objection reason or notice clause).

Fix the underlying issue

If it’s debt, agree a plan; if it’s occupancy, submit lease/tenancy documents; if it’s a live contract, schedule switching for end date.

Escalate sensibly

Use the supplier’s complaints process if billing dates, tenancy periods, or rates look wrong. Keep readings, emails and tenancy proof.

Moved in recently? Take photos of the meter on day one (date-stamped if possible) and send the opening read to the supplier. It’s one of the simplest ways to prevent incorrect back-billing.

Why switching away from deemed rates is worth doing

Better cost control

Fixed contracts can reduce exposure to default pricing and make budgeting simpler—especially for multi-site operators.

Clearer terms

You’ll know your unit rate, standing charge and contract length rather than relying on deemed terms that may change.

Avoid admin surprises

Sorting the contract early reduces disputes around occupancy dates, backdated bills and responsibility for previous tenants’ usage.

We’re whole-of-market

EnergyPlus.co.uk compares a wide range of UK business suppliers and contract options so you can choose based on price, term and fit for your meter.

Support for tricky cases

If you’re dealing with a new tenancy, an incorrect account setup or a blocked transfer, we’ll explain what info suppliers typically need to progress the switch.

Deemed rates: costs, billing, and where savings come from

Deemed rates can feel expensive because they’re not negotiated and can include higher unit rates and standing charges. Your actual cost depends on your meter type, consumption pattern, and tariff structure (including day/night or half-hourly settlement where applicable).

What to check on your bill

Unit rate (p/kWh) and whether it differs by time band
Standing charge (p/day)
Estimated vs actual reads (estimates can distort costs)
Billing period dates (ensure they match your occupancy)
Site and meter identifiers (MPAN/MPRN)

Where savings may come from

Moving from deemed/OOC pricing to a fixed contract rate
Choosing a term that suits your risk tolerance and cashflow planning
Aligning contract start date to avoid paying high default rates longer than necessary
Improving reads (smart/AMR/HH where appropriate) to reduce estimated billing

Quick win: If your bill is estimated, submit an up-to-date meter read (or confirm your smart/AMR reads are flowing). Accurate readings help ensure you’re not overpaying while you arrange a switch.

Common mistakes that keep businesses stuck on deemed rates

Not registering occupancy

If you’ve moved in, send your lease start date and opening read early. Delays can cause billing disputes and slow switching.

Ignoring renewal windows

Leaving it too late can push you onto OOC or deemed pricing. Set calendar reminders well before end dates.

Assuming it works like domestic switching

Business energy can involve objections, tenancy proof, and different contract rules. A structured approach saves time.

What information suppliers usually need (checklist)

Item	Why it matters	Where to find it
MPAN (electric) / MPRN (gas)	Identifies your meter/supply point for accurate quoting and switching.	On a bill, or from your current supplier.
Annual usage (kWh)	Helps suppliers price correctly, especially for larger sites/HH meters.	Bill summary, online account, or estimated from trading history.
Tenancy start date + opening read	Prevents being billed for previous occupier’s consumption.	Lease/tenancy agreement and a meter photo.
Company details	Ensures contract is issued to the correct legal entity.	Companies House record or internal documentation.

FAQs: deemed rates and business energy contracts

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

Often yes. You’ll typically need correct occupancy/account details and no active objections (e.g., debt-related). If you’re a new tenant, provide your move-in date and opening reads first.

Do deemed contracts have exit fees?

Deemed arrangements are typically different from fixed-term contracts, but terms vary. The most reliable approach is to ask your supplier for the deemed terms and any charges in writing.

What if the previous tenant left debt?

Your liability should relate to your occupancy period, but account issues can cause delays. Send proof of your move-in date and opening read, and keep all correspondence. If an objection is raised, resolve the reason provided.

How long does a business energy switch take?

Timelines vary by supplier, meter type and whether there are objections or data issues. Once the switch is agreed, suppliers manage the process and confirm the supply start date.

What if I’m in a shared building or serviced office?

Some sites are sub-metered and energy is included in rent/service charge. If you have your own MPAN/MPRN, you can usually arrange a contract. If not, check your lease to confirm responsibility.

Do you cover microbusinesses?

Yes—many suppliers offer contracts suitable for SMEs and microbusinesses. Submit your details and we’ll check what’s available for your postcode and meter setup.

Need a quick sense check? Use the quote form and tell us you’re on deemed rates. We’ll guide you on the next practical step based on your situation.

What businesses say about switching with EnergyPlus.co.uk

“We’d moved into a new unit and ended up on expensive default rates. EnergyPlus helped us understand what the supplier needed and we switched onto a fixed deal.”

Operations Manager, Retail

“Clear options and quick follow-up. They explained objections and what we had to send over to get the switch moving.”

Director, Manufacturing SME

“We missed our renewal window and rolled out of contract. EnergyPlus found alternatives and got us lined up for a better rate.”

Finance Lead, Hospitality

Trust & transparency: We’ll explain what’s available for your meter and circumstances, and what steps are needed to switch.

UK business focus: We work with SMEs and multi-site operators across England, Scotland and Wales (availability varies by supplier and meter type).

Ready to move off deemed business energy rates?

Complete the quote form and we’ll compare whole-of-market business energy contracts to help you secure a better deal. If you’ve recently moved in, mention it and we’ll outline the quickest route to a clean switch.

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You’ll keep control of the decision. No obligation to switch.

Before you submit

Have your business postcode ready
Know whether you’ve just moved in (if relevant)
Grab a recent bill if you can

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Updated on 10 Jan 2026