What is a deemed energy rate and why it matters to your business

When a business energy contract expires, the supplier continues to provide energy. However, because there is no agreed contract in place, they move the business onto a 'deemed rate' (sometimes called an out of contract rate).

These rates are typically significantly higher than fixed contract rates. Sometimes up to 50% more expensive. Suppliers justify this by citing the risk of buying energy on the short term market to supply a customer who could leave at any time.

The best way to avoid deemed rates is to know your contract end date and secure a new tariff before the current one expires.