What are business energy deemed rates?

Business energy deemed rates are default prices a supplier applies when a business is supplied without an agreed contract (for example, after moving into new premises or when a fixed contract ends without renewal). Deemed tariffs are typically higher than negotiated business energy rates.

When do deemed rates apply for business electricity or gas?

Deemed rates usually apply when you take over a site and energy is already flowing, when you start trading without arranging a contract, or when your business energy contract ends and you do not renew or agree new terms. You remain on deemed terms until you agree a new contract or complete a switch.

How can I avoid being put on deemed rates?

To avoid deemed rates, arrange a new business energy contract before you move in or before your current contract end date. Gather key details (MPAN/MPRN, postcode, business name, estimated usage) and secure a fixed or flexible contract in advance so there is no gap.

I’ve just moved into new premises—what should I do immediately to avoid deemed charges?

Take meter readings on the move-in date, find the current supplier (from the previous tenant, the welcome letter, or by checking your MPAN/MPRN), and contact the supplier to register your business and agree a contract as soon as possible. The faster you agree new terms, the sooner deemed rates can end.

Can I switch away from deemed rates?

Yes. You can agree a new contract with your current supplier or switch to another business energy supplier. Switching typically takes a few weeks, but you may be able to move off deemed rates earlier by agreeing an interim contract with the current supplier while the switch completes.

How long can a business stay on a deemed tariff?

A business can remain on deemed terms until a new contract is agreed or the supply is switched. Because deemed rates are often higher, it’s usually best to arrange a contract promptly to reduce ongoing costs and improve budgeting certainty.

Do I need to give notice to leave deemed rates?

Notice requirements depend on the supplier’s deemed terms and whether you enter a new contract. In many cases, you can switch or agree a new plan without long notice, but it’s important to confirm any fees, notice periods, or contract start dates with the supplier.

What information do I need to get a business energy quote and avoid deemed rates?

You’ll typically need your business address and postcode, MPAN (electricity) and/or MPRN (gas), current supplier (if known), annual consumption (kWh) or recent bills, meter type, and preferred contract length. Having these ready helps you secure a contract quickly and reduce time on deemed rates.

What’s the difference between deemed rates and out-of-contract rates?

Deemed rates usually apply when you are responsible for a supply without ever agreeing a contract at that address (commonly after moving in). Out-of-contract or rollover rates can apply when an existing contract ends and a new one isn’t agreed. Both are generally more expensive than negotiated business tariffs.

How can Energy Plus help reduce my business energy costs?

Energy Plus can help you compare business energy options and secure a suitable contract to minimise time on deemed rates and improve cost control. For the quickest support, use the contact options on https://www.energyplus.co.uk/ to request a quote or speak with the team.

How to Avoid Business Energy Deemed Rates in the UK

If your business is on deemed rates, you could be paying more than you need to. Compare whole-of-market business electricity and gas deals and switch to a contract that fits your usage, premises and risk tolerance.

Learn what deemed rates are and when they apply
See the fastest ways to move off deemed and onto a fixed or flexible contract
Get supplier-ready pricing with one simple form

Compare business energy quotes Understand deemed rates

Whole-of-market comparison support. No obligation. Switching timelines vary by supplier and meter type.

Get off deemed rates: compare whole-of-market business energy

Deemed rates usually apply when a business is taking supply without a formally agreed contract—for example, after moving into new premises, following a landlord changeover, or when an out-of-contract period begins. They can be significantly higher than negotiated rates, and the quickest fix is typically to agree a new contract with your current supplier or switch supplier.

EnergyPlus helps UK businesses compare business electricity and gas deals across the market. Share a few details and we’ll support you to find a tariff that matches your needs—whether you want price certainty with a fixed contract or flexibility with a tailored approach.

Tip: If you’ve just moved in, don’t wait for your first invoice. Deemed rates can start from your first day of occupancy. Use the form to start comparing as soon as you have your business address and postcode.

What you’ll need (if available)

Business postcode and trading name
Estimated annual usage or latest bill (helpful, not required)
Your meter type (e.g., smart meter, AMR/half-hourly) if known

Already on deemed? You can usually switch without waiting for a “cooling-off” period—business energy contracts differ from domestic. We’ll guide you based on your meter and supplier.

Why avoiding deemed rates matters

Reduce avoidable unit costs

Deemed rates are often priced higher because they’re default terms. Moving onto a negotiated tariff can reduce your p/kWh and standing charges.

Improve cashflow predictability

A fixed contract helps you plan costs across quarters, while flexible options can suit certain load profiles. Either way, you avoid surprises from default pricing.

Stay in control when moving premises

Deemed rates commonly hit during move-ins. Having a switching plan reduces the risk of paying deemed for weeks while you’re busy onboarding staff and customers.

What are deemed rates in business energy?

In UK business energy, deemed rates (sometimes called deemed contract or out-of-contract rates) are the default prices a supplier can charge when your business is consuming energy without an agreed contract in place.

Common situations where deemed applies

You move into a new business premises and start using energy before agreeing terms.
Your fixed contract ends and you don’t renew or sign a new one in time.
The previous occupant’s contract ends and supply transfers to you.
You take over a site and there’s a delay confirming responsible party and billing details.

Deemed vs fixed vs variable

Type	How it’s set	Typical fit
Deemed	Default supplier terms when no contract agreed	Short-term, not ideal for cost control
Fixed	Agreed unit rate/standing charge for a term	Budget certainty and stable forecasting
Variable	Supplier can change rates with notice	Shorter commitment, less price certainty

Note: Contract availability depends on meter type, usage patterns and supplier criteria.

How to avoid business energy deemed rates (practical UK steps)

Act early (30–90 days before contract end). If you’re approaching renewal, start comparing tariffs in advance. Many suppliers can issue renewal quotes ahead of time.
Confirm your contract end date and notice terms. Some contracts have specific notice windows. Knowing these helps you avoid rolling onto expensive default rates.
When moving in, identify the current supplier immediately. Ask the landlord/agent for the supplier details or check your first welcome letter. Provide your business details and opening meter readings.
Submit accurate opening meter reads. This reduces disputes and helps ensure you’re billed correctly from day one.
Choose the right contract type for your risk profile. Fixed is common for SMEs; some larger users may explore flexible purchasing. EnergyPlus can talk through the pros/cons for your site.
Switch or agree new terms promptly. Once a new contract is agreed, you’ll typically move away from deemed pricing based on supplier processes and industry timelines.

Important: Don’t confuse deemed rates with a standard variable tariff you’ve actively agreed to. Deemed is the default when there’s no negotiated contract in place.

Switching checklist to move off deemed rates

Use this quick checklist to reduce delays and avoid paying deemed rates longer than necessary.

Task	Why it matters	What to prepare
Confirm responsibility for the meter	Avoids billing disputes (landlord vs tenant)	Lease start date, business name, site contact
Provide opening readings	Protects you from being charged for prior usage	Photo of meter reads (date-stamped if possible)
Check meter type	Affects contract options and pricing approach	Any notes from prior bills (smart/AMR/HH)
Compare like-for-like	Avoids surprises from differing standing charges	Electricity/gas split, day/night rates if relevant
Lock in the best-fit tariff	Moves you off deemed and stabilises costs	Preferred term length, billing frequency, DD option

Moving premises? Avoid deemed from day one

If you’re taking keys to a new unit, submit your details and meter reads immediately. Even if you plan to switch, you’ll typically be supplied by the existing supplier at first—getting the admin right helps you transition smoothly and minimise time on deemed rates.

Common mistakes that keep businesses on deemed rates

Assuming the agent/landlord “handled the energy”

In many commercial lets, the tenant becomes responsible once occupancy starts. Always confirm who is named on the meter and when liability begins.

Waiting for the first bill before taking action

Billing can lag. Deemed rates can apply immediately, so delaying can mean you rack up costs before you even see the invoice.

Providing incomplete business details

Missing or mismatched details (trading name, site contact, postcode) can slow supplier processing and keep you on deemed longer.

Comparing price only

The cheapest unit rate isn’t always best if standing charges, billing method, or contract terms don’t suit your operation. Compare the full cost picture.

FAQs: deemed rates for UK business energy

Are deemed rates legal for business energy in the UK?

Yes. Suppliers can apply deemed terms when a business uses energy without agreeing a contract. Your supplier should be able to provide the deemed prices and terms that apply to your site.

How do I know if I’m on deemed rates?

Check your latest bill or welcome letter for wording such as “deemed contract”, “out of contract” or default rates. If you can’t find it, use your supplier name and MPAN/MPRN (if known) to confirm. If you’re unsure, submit the quote form and we’ll help you establish your current position.

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

In many cases, yes. Eligibility and timelines depend on the site setup, meter type and whether there are any blocks or disputes on the account. We’ll help you understand the practical switching route for your business.

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

This is common. Start by asking the landlord/agent or checking any documentation left onsite. Submit opening meter reads and your move-in date as soon as possible. You can still begin a comparison with EnergyPlus using your address and postcode.

Will I owe exit fees for leaving deemed rates?

Deemed arrangements aren’t the same as signing a fixed-term contract, but charges can vary by supplier and circumstances. The key is to agree a formal contract or switch promptly. We’ll help you check what applies to your site.

Does this apply to both business gas and electricity?

Yes. Deemed terms can apply to business electricity and business gas. If you have both fuels, you can compare options for each and decide whether to align contract end dates to simplify renewals.

Trust & social proof

“We moved into a new unit and were getting nowhere with the supplier. EnergyPlus helped us compare rates and get onto a proper contract.”

Operations Manager, UK SME

“Clear advice on deemed vs fixed. We got pricing that matched our opening hours and avoided rolling onto expensive defaults.”

Director, Retail Business

“Quick turnaround and straightforward process. The checklist helped us avoid admin delays during our relocation.”

Finance Lead, Professional Services

What “whole-of-market” means

We compare business energy tariffs across a broad range of UK suppliers and contract options, so you can choose what’s right for your site—rather than being restricted to a limited panel.

Ready to stop paying deemed rates?

Complete the form to compare whole-of-market business electricity and gas quotes. We’ll help you move onto a tariff with clearer terms and better cost control.

Fast quote support for move-ins and renewals
Options for fixed and tailored contracts
Clear guidance on the next steps to switch

Get business energy quotes

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Updated on 14 Feb 2026