Energy explained

Deemed rate contracts: what happens when your energy contract expires, and how expensive it is.

When a fixed term energy contract reaches its end date and is not actively renewed or switched, the supply does not stop. Your existing supplier continues to provide energy at a different, and substantially less favourable, rate structure. Deemed rates are typically two to three times the equivalent contracted rate.

How businesses end up on deemed rates

The most common route is simple oversight. A contract signed three years ago has quietly moved onto different rate terms. Without active contract management, the expiry can pass unnoticed.

Auto renewal clauses add another layer of complexity. Some contracts automatically roll onto a new fixed term if notice is not given within a specified window, frequently 90 to 120 days, before expiry.

What to do if you're already on a deemed rate

The immediate priority is to get off it. A new fixed contract can typically be arranged and effective within 28 days for most sites. Every day on deemed rates is a cost that a contracted rate would not incur. We have found businesses on deemed rates for over a year, entirely unaware their contract had lapsed.

If you think you may be on a deemed rate, send us your last bill and we'll tell you within 24 hours.