Contracts and renewal
Deemed and out-of-contract business energy rates
Why are we being charged an out-of-contract or deemed rate?
A deemed contract can arise when energy is being supplied but the customer has not agreed a contract—for example after moving into premises. An out-of-contract rate may apply after a negotiated contract ends without a replacement. These rates can be higher than negotiated prices, but the correct next step depends on the site, account, meter and existing contractual position.
Written by Energy Guide editorial team · Specialist review: Pending · Source checked:
How the situation arises
A deemed arrangement commonly begins when a business starts using energy at a site without agreeing terms with the existing supplier. Out-of-contract pricing commonly follows the end of an agreed term. Supplier terminology varies, so ask which contractual basis and tariff actually applies.
Confirm identity and dates first
Before arranging a replacement, confirm the occupier or legal customer, responsibility start date, supply-point identifier, meter readings and any existing contract. A change of tenant or owner does not necessarily mean the meter or supplier changes automatically.
- Notify the supplier of the occupancy change promptly
- Retain dated opening or closing meter readings
- Check for every electricity and gas supply point
- Ask for the tariff and termination terms in writing
- Dispute incorrect responsibility periods with evidence
Treat urgency carefully
High temporary rates can justify prompt action, but urgency should not remove basic checks. Establish who can contract, what term is suitable and whether other sites should be considered before accepting a long agreement.
Sources
These sources support the explanation above. Check the linked source for current rules and eligibility.