# What are deemed business energy rates?

> Quick answer · Last updated 5 July 2026

Canonical HTML: https://moneyguide.org.uk/answers/business-energy-deemed-rates/
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## In short

Deemed or out-of-contract rates apply when your business energy contract ends and you continue consuming without signing a new deal — prices are usually much higher than fixed contract rates. Ofgem requires suppliers to notify micro-businesses before rolling onto these rates and to publish default tariff information.

Deemed rates reflect wholesale market plus supplier margin without volume discount — shops can pay 30%–50% more than their expired fixed deal.

Moving premises without closing the old contract can leave you paying deemed rates on two supplies — terminate old contracts formally on vacate dates.

New occupier rules — if you take over premises, you inherit out-of-contract supply until you contract — switch within first weeks to avoid weeks of deemed pricing.

Compare renewal offer against market — retention teams may match broker quotes if challenged. See business energy explained for deemed rate escape checklist.

## Related

- [Business energy explained](https://moneyguide.org.uk/bills-utilities/business-energy-explained/)
- [Fixed vs variable business energy](https://moneyguide.org.uk/answers/business-energy-fixed-vs-variable/)

## Primary source

ofgem.gov.uk/information-consumers/energy-advice-businesses

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.