How to avoid business energy deemed rates when moving

Moving into new premises? Deemed rates can apply from day one if you don’t agree a contract in time. Here’s how to take control before (and after) your move, with a simple timeline, realistic examples, and a quote form if you want help.

  • Check who supplies the new site and what deemed tariff you’re on
  • Secure a contract early (or switch promptly after you take over)
  • Give accurate opening readings and proof of occupancy to avoid billing disputes
Get business energy quotes See the moving checklist

Guidance for UK businesses. Prices and terms vary by supplier, meter type and credit status. Last updated: April 2026.

Fast answer: how to avoid deemed rates when you move

In most cases, you avoid (or minimise) business energy deemed rates by arranging your supply as early as possible and acting quickly when you take over the premises:

Before you move

  • Ask the landlord/agent for the current supplier and meter details.
  • Get a quote for the new address based on meter type and usage.
  • Confirm whether you’re taking on the existing contract or starting fresh.

On the day you take over

  • Take opening meter readings (photo evidence helps).
  • Tell the supplier your move-in date and request the deemed rates in writing.
  • Start the switch/contract process immediately if you don’t want to stay.

Within the first 7–14 days

  • Provide proof of occupancy if requested (lease, completion statement).
  • Choose a fixed contract if suitable; confirm unit rate, standing charge, and contract start date.
  • Check for deemed termination notice rules on the supplier’s website.
Key caveat: Deemed rates aren’t “illegal” — they’re the default when a business is consuming energy without agreeing a contract. Your aim is to reduce time on deemed supply and avoid billing errors (wrong start date, wrong reads, wrong occupier).

Moving timeline: what to do (and when)

Use this as a practical checklist. If you only do three things: identify the current supplier, take opening readings, and agree a contract quickly.

  1. 2–6 weeks before: ask for MPAN (electricity) / MPRN (gas), meter type (smart, AMR/half-hourly, standard), and recent bills if available.
  2. 2–4 weeks before: request quotes for the new site. If you know your annual kWh, use it; if not, estimate from similar premises.
  3. 1–2 weeks before: confirm responsibilities in the lease (who supplies what, any sub-meters, landlord recharges, or inclusive rent arrangements).
  4. Move-in day: photograph meter serial numbers and readings; record date/time; keep a copy with your tenancy paperwork.
  5. Day 1–3: contact the existing supplier to open the account and ask for deemed rates and standing charges in writing.
  6. Day 1–14: agree a contract or initiate a switch. Confirm contract start date and whether there are any notice requirements to leave deemed supply.
  7. First bill: check opening reads, dates, and that you’re not being billed for pre-occupancy usage. Dispute promptly if incorrect.
Tip for multi-site moves: create a simple spreadsheet with site address, MPAN/MPRN, meter serial, move-in date, opening read, supplier contact, and contract status. It prevents expensive admin mistakes.

Get help securing a contract (and reduce time on deemed)

If you share a few details, we’ll compare whole-of-market options for your new premises and come back with available tariffs. This is designed to be trust-led: no inflated promises, just clear rates and next steps.

We’ll send quotes and any supplier questions here.

Optional, but speeds up move-in issues (reads, dates, meter queries).

Used to identify the meter(s) and available tariffs in your area.

We’ll ask for meter details next (MPAN/MPRN) if needed. No obligation.

When deemed is most likely: taking keys before you’ve agreed a tariff, delayed handover dates, unclear responsibility in the lease, or when the previous occupier didn’t close their account cleanly.

Your options at a new business premises (and how they affect deemed rates)

You typically have three practical routes. The best choice depends on certainty (how long you’ll stay), your meter type, and whether you can pass credit checks quickly.

Option What it means Best for Watch-outs
Agree a new fixed contract You sign a business tariff (often 1–3 years) with agreed rates and terms. Most SMEs moving into a long-term unit (shop, office, warehouse). Early exit fees may apply; ensure the contract start date aligns with your occupancy date.
Temporary stay on deemed (short period) You’re supplied automatically by the existing supplier until you agree terms. Very short occupancy, or while you gather meter data. Rates can be higher; notice requirements vary; billing disputes often happen if move-in date/reads are wrong.
Take over an existing contract Sometimes you can inherit terms (more common in certain lease arrangements), or you may be required to use a landlord’s chosen supply setup. Serviced offices, complex sites with landlord supply, or where a contract is embedded in occupancy terms. You may have limited switching rights; check for sub-metering and recharges (you may not control the supplier directly).

Decision checklist (quick)

This usually suits you if:
  • You’ll stay at least 6–12 months
  • You can provide basic business details quickly (company name, occupancy date, contact info)
  • You want predictable cashflow (fixed unit rates/standing charges)
Be careful / consider alternatives if:
  • You’re on a short-term licence or pop-up unit (exit fees could outweigh benefits)
  • The site has a landlord supply arrangement or sub-meter (you may not be the account holder)
  • The meter is half-hourly and your usage profile is uncertain (quotes can vary more)

Two realistic moving scenarios (with numbers)

These are illustrative estimates to show why acting quickly matters. Assumptions are stated; your rates will vary by supplier, region, credit status, meter type, and wholesale market conditions.

Scenario A: small office move (electricity only)

  • Usage: 6,000 kWh/year (˜ 500 kWh/month)
  • Deemed unit rate (example): 45p/kWh, standing charge 80p/day
  • Fixed contract rate (example): 28p/kWh, standing charge 55p/day
  • If you stay on deemed for 30 days: deemed est. £(500×0.45)+£(30×0.80)=£225+£24=£249
  • If fixed from day 1: fixed est. £(500×0.28)+£(30×0.55)=£140+£16.50=£156.50
  • Indicative difference for the month: ~£92.50

Assumes single-rate electricity meter and stable usage. VAT position varies by business and usage (not included).

Scenario B: café move (electricity + gas)

  • Usage: electric 18,000 kWh/year (˜ 1,500 kWh/month), gas 30,000 kWh/year (˜ 2,500 kWh/month)
  • Deemed examples: electric 48p/kWh + 95p/day; gas 15p/kWh + 75p/day
  • Fixed examples: electric 32p/kWh + 65p/day; gas 8p/kWh + 55p/day
  • 60 days on deemed: electric £(3,000×0.48)+£(60×0.95)=£1,440+£57=£1,497; gas £(5,000×0.15)+£(60×0.75)=£750+£45=£795; total ~£2,292
  • 60 days on fixed: electric £(3,000×0.32)+£(60×0.65)=£960+£39=£999; gas £(5,000×0.08)+£(60×0.55)=£400+£33=£433; total ~£1,432
  • Indicative difference for 60 days: ~£860

Assumes non-half-hourly meters and steady trading. If your meter is half-hourly, unit rates and pass-through charges may apply and quotes can be more complex.

Important: Deemed and contract prices can change, and suppliers structure standing charges differently. Use the scenarios to understand the mechanics, not as a promise of savings.

Costs, exclusions and common pitfalls (what catches businesses out)

Most problems aren’t about “forgetting to switch” — they’re admin issues that cause you to be billed on the wrong dates, the wrong reads, or the wrong account. Here are the most frequent issues we see during moves.

1) No opening meter read (or no photo)

If the supplier estimates your opening read, you risk paying for energy used by the previous occupier. Always take a clear photo showing the reading and the meter serial number.

2) Confusion over who the account holder is

In serviced offices, markets, industrial estates and some retail units, the landlord or managing agent may control supply and recharge you. If you’re not the bill payer, you may not be able to switch.

3) Lease start date vs. access date mismatch

If you get keys early for fit-out, you may still be responsible for energy. Confirm in writing when you become liable and when the previous occupier closes their account.

4) Half-hourly / AMR meters and “pass-through” charges

Some business meters have more complex charging structures. Ask whether your quote includes or passes through costs such as DUoS, TNUoS and capacity-related charges (varies by supplier/product).

5) You sign the wrong start date

If a contract starts before you take legal occupation, you may be billed while you can’t access the site. Always cross-check the contract start date against your lease/licence.

6) Assuming “no one can cut you off” means “no action needed”

Energy will usually keep flowing on deemed supply, but the price and terms may not be favourable. The cost risk is often bigger than the disruption risk.

Worth knowing: If you believe you’ve been billed for a period when you weren’t responsible, raise it quickly and keep evidence (lease dates, completion docs, meter photos, and any emails with the agent/landlord).

FAQs on deemed rates when moving premises

What are business energy deemed rates?

Deemed rates (or a deemed contract) usually apply when a business is using gas or electricity at premises without having agreed a contract with the supplier. It’s the default supply arrangement, and the supplier sets the prices and terms for that deemed tariff.

Can I stop deemed rates before I move in?

Often you can line up a contract in advance, but the exact process depends on whether you can confirm occupancy dates, identify the meter(s), and whether the current supplier requires you to first be the registered occupier. Even if you can’t finalise it early, getting quotes ready reduces time spent on deemed after move-in.

How do I find out who supplies my new premises?

Start with the letting agent/landlord or ask for a copy of a recent bill. You can also use industry lookup services: for electricity MPAN-related information, see the guidance and links on Ofgem’s site. If you have the meter serial number and address, suppliers can often help identify the supply.

Do deemed rates apply to smart meters and half-hourly meters?

Yes. Deemed supply can apply regardless of meter type. With half-hourly (HH) electricity meters, billing can be more complex and some contracts include additional pass-through charges. If you’re unsure what meter you have, check the meter itself, the bill, or ask the supplier to confirm.

Can I be charged for energy used before my move-in date?

You shouldn’t be billed for periods when you weren’t responsible for the premises, but disputes can happen if move-in dates or meter reads are wrong. Protect yourself with dated meter photos and written confirmation of occupancy dates (lease, licence, completion statement). If billed incorrectly, raise a dispute promptly.

Is there a “cooling-off period” for business energy contracts?

Business energy contracts don’t always have the same cooling-off protections as domestic contracts. Terms vary by supplier and contract type, so check the paperwork carefully (especially start dates, termination clauses and any broker/third-party terms).

What if my landlord says I must use their supplier?

If you’re not the named account holder (for example, you’re sub-metered and recharged), you may have limited control. Ask for clarity on what you’re paying (unit rates, standing charges, admin fees) and whether you can become the direct account holder. If you are the direct bill payer, you can usually choose your supplier, but lease terms can complicate this.

How quickly can I switch away from deemed supply?

Timescales vary. In straightforward cases, you can agree a contract quickly, but supplier processes and meter types can affect the timeline. Some deemed arrangements may have notice requirements before new contracted rates apply. Ask the existing supplier to confirm how to end deemed supply and what dates they’ll accept for a new contract.

If you’re stuck: Citizens Advice has practical guidance on dealing with energy problems and complaints routes for small businesses.

Trust, methodology and sources

Page ownership

How we assess this (our approach)

This guide is based on common UK supplier processes during change-of-occupancy, plus established regulatory and consumer guidance. We focus on actions that reduce:

  • Time on deemed supply (where rates may be higher)
  • Billing disputes (incorrect move-in dates, reads, occupier details)
  • Contract friction (missing MPAN/MPRN, meter type uncertainty, credit checks)

The rate examples in the scenarios are illustrative and not a quote. They use simple monthly kWh allocations (annual kWh ÷ 12) and show costs as: (kWh × unit rate) + (days × standing charge). Real bills may include other components depending on product and meter setup.

Limitations: We don’t account here for every possible non-commodity cost (for example, some HH arrangements, capacity, or bespoke pass-through structures), nor do we model seasonal usage patterns. Always validate the full tariff terms before signing.

Sources (UK)

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Updated on 5 Apr 2026