In one line
If your contract has ended, or you moved in and never set one up, you are probably paying more than you need to every single day, and in most cases you can move to a fixed price without waiting for an end date.
What are out of contract rates?
When a business energy contract comes to an end and nothing new has been agreed, the supply does not switch off. The supplier keeps supplying, but on terms you did not choose. Ofgem says these rates are usually more expensive than a fixed term contract.
There are three versions of the same problem, and it helps to know which one you are on.
| What it is called | How you end up on it | What it usually means |
|---|---|---|
| Out of contract rates | Your fixed contract ended and no new contract was agreed. Some suppliers call this a variable or standard rate. | Prices set by the supplier and usually higher than a fixed contract. They can change at short notice. |
| Deemed rates | You moved into premises and used energy without setting up a contract, or your supplier went out of business. | Ofgem says deemed rates are usually higher than negotiated contract rates. |
| Rollover | Your contract renewed automatically because no notice was given and nothing new was agreed. | A new fixed term, usually 12 months, which may be on a higher rate. |
Source: Ofgem guidance for business customers. Terms vary by supplier, so always check your own contract.
It soon adds up
The difference between an out of contract rate and a fixed rate is charged on every unit you use, every day. It rarely looks dramatic on one bill. Over a year, it can be one of the largest avoidable costs in the business.
| Annual usage | Typical site | Extra a month | Extra a year |
|---|---|---|---|
| 30,000 kWh | Shop, office, small café or surgery | £375 | £4,500 |
| 100,000 kWh | Restaurant, small hotel, workshop | £1,250 | £15,000 |
| 500,000 kWh | Manufacturer, large venue, multi-site group | £6,250 | £75,000 |
Illustration only, assuming an out of contract rate 15p per kWh higher than a fixed rate. Your own gap could be smaller or larger, and standing charges can differ too.
What is it costing you?
Put in the figures from your bill. It works for electricity or gas.
The figures filled in are an example only, not a quote. Fixed prices change daily and depend on your site, so send us a bill for a real price.
Get my real fixed priceSigns you are on out of contract or deemed rates
- Your bill says soLook for words like variable, standard, deemed, out of contract or rollover next to your tariff name.
- Your unit rate jumpedThe price went up sharply without you signing anything new.
- You recently moved inNew premises, a new lease or a change of tenancy, and nobody set up a contract.
- Your end date has passedYou cannot remember renewing, or the renewal letter went unanswered.
- Your supplier changedYour supplier went out of business and your account was moved to a new one.
- No contract on fileNobody in the business can find a signed contract for the meter.
Not sure? Send us a recent bill and we will tell you what you are on. It costs nothing to check.
Who it happens to
Out of contract rates are not a sign that a business is badly run. They usually happen in the gaps, when something changes and energy is not top of the list.
- New tenants and new premises. The lease is signed, the keys are handed over, and the supply carries on in the background on deemed rates.
- Landlords and property owners. Units between tenants, common areas and landlord supplies are easy to forget.
- Businesses that missed a renewal. The supplier's renewal letter went to someone who has left, or arrived during a busy month.
- Growing and multi-site groups. Each site renews on a different date, and one or two slip through. See multi-site energy.
- Businesses buying or selling sites. A change of ownership or tenancy often leaves the supply on deemed rates until someone acts.
Landlords and empty properties: there are other options
A standard fixed contract is not always the right answer, especially if a property is empty or about to change hands. Depending on the site and the meter, we can also look at:
- Tariffs for empty or vacant properties. Some suppliers offer tariffs with no standing charge and a higher unit rate. If a building is using very little, that can cost far less than paying a daily standing charge for a building nobody is in.
- Shorter or flexible terms. Useful if you expect to re-let, sell or redevelop, so you are not tied in longer than you need.
- Contracts that allow for a change of tenancy. So the supply can move to a new tenant without an exit fee, where the supplier allows it.
- Landlord supplies that feed tenants. Where tenants are recharged from your supply, the contract and any sub-metering need to fit how the building is actually used.
Availability varies by supplier, meter type and usage. Some empty property tariffs need a smart meter. We will tell you what is actually available for your site.
Can I leave out of contract rates straight away?
In most cases, yes. On out of contract, deemed and rolling arrangements there is no fixed end date to wait for, and Ofgem's guidance says you can usually switch. A supplier can object to a switch in some situations, for example if there is an unpaid balance on the account, so it is worth checking that first.
Smaller businesses have extra protection. For microbusinesses, Ofgem requires suppliers to limit termination notice on evergreen contracts to 30 days and to acknowledge a request to end the contract within five working days. If you are on a rollover contract, the notice rules in your own contract matter, so we will check them with you. Our guide on when to renew business energy covers notice periods in more detail.
How we get you off out of contract rates
- Send us a recent bill. Or just the meter number (MPAN for electricity, MPRN for gas) and your business details. We will confirm what you are on and roughly what it is costing you.
- We check the account. With a Letter of Authority we can confirm your usage, the supplier, any notice terms and anything that could hold up a switch.
- We price it across our panel. We approach a broad panel of suppliers and set out the options side by side: fixed terms, and alternatives where they suit you better. Our fee is shown with every price.
- You choose, and we handle the switch. You sign the contract with the supplier. We chase it through until the new supply is live and check the first bill is right.
- We make sure it does not happen again. Your end date and notice date go in our renewal calendar, and we start planning the next contract well ahead.
On out of contract rates now?
Every day on the wrong rate costs money. Send us a recent bill and we will show you a fixed price and the difference it makes, free and with no obligation.
Get a fixed priceWhat we need from you
- A recent bill for each meter, or the MPAN or MPRN and supply address
- Your business name and company number, if you are a limited company
- The date you moved in, if you are a new tenant
- Any contract or renewal letter you have, even if it has expired
If you do not have everything, that is fine. A bill or a meter number is usually enough to start.
How we are paid
We are usually paid a fee built into the contract we arrange, which the supplier pays to us. We tell you what it is at quote stage, in writing, and it appears in your contract. Sometimes we agree a fixed fee with you instead. Full details are on how we are paid.
Why Energy Planner
- Independent, not tied to any supplier. We compare quotes across a broad panel of suppliers.
- Senior advice, direct. You deal with the founder, with 15 years in business energy.
- Electricity, gas, water and metering under one adviser. One person looking at the whole picture.
- Signed up to the Retail Energy Code TPI Code of Practice and a member of the Energy Ombudsman scheme. See our code of practice.
- Every size of business. From a single shop to a national manufacturer.
Questions people ask
Is an out of contract rate the same as a deemed rate?
Not quite. An out of contract rate applies when a contract you had has ended. A deemed rate applies when there was never a contract in place, for example after moving into new premises. Both are usually more expensive than a fixed contract, and both can usually be replaced with one.
Does the energy price cap protect my business?
No. The Ofgem price cap applies to household energy, not business contracts. Business prices are agreed between the business and the supplier, which is why being out of contract can cost so much.
Will I have to pay an exit fee to leave?
Usually not on an out of contract or deemed rate, because there is no fixed term to break. If you are on a rollover contract, check your contract terms. We will look at this for you before you sign anything new.
How quickly can I move to a fixed price?
Prices can usually be gathered quickly once we have a bill. After you sign, the switch itself usually takes a few weeks, and the new price applies from the start date in the contract.
Can my supplier stop me from switching?
In some cases a supplier can object, for example if there is an unpaid balance on the account. We will check this at the start so there are no surprises.
I am a landlord with an empty unit. What should I do?
Do not leave it on deemed rates. Depending on the meter and how long it is likely to stay empty, a tariff designed for vacant properties, a short fixed term or a contract that allows a change of tenancy may suit you better. Send us the details and we will set out the options.
Is it worth it for a small business?
Often more than for anyone. A small business on out of contract rates can be paying hundreds of pounds a month more than it needs to. If you are not sure, send us a bill and we will tell you honestly whether moving is worth it.
Sources: Ofgem, set up a business energy contract; Ofgem, guidance on deemed contracts. This article is general information as at October 2026, not advice on your specific circumstances. Examples and calculator results are illustrations only, not quotes. Prices, rules and supplier terms change, and outcomes depend on your own contracts and usage, so it is worth confirming the detail for your sites before making a decision.