What is a deemed business energy contract?

A deemed contract can arise when your business uses energy at premises without agreeing a formal supply contract [S1]. Establish your account status and opening reading promptly. For a change of occupier, Ofgem says suppliers review submitted evidence within 10 working days [S3]. Expiry of a fixed contract can instead lead to out-of-contract rates. Checked October 2026.

Last checked 19 October 2026

What does a deemed contract mean for your business?

A deemed contract is a supply arrangement that can arise when your business uses energy without agreeing a formal contract, such as after moving into premises [S1], [S2]. Why it matters for your site: leaving the paperwork unresolved does not make consumption free.

Ofgem says deemed rates are usually higher than negotiated rates [S1]. Ask for the account start date, current terms, unit rate and daily standing charge. This entry covers Great Britain’s Ofgem framework; check the local position separately for Northern Ireland.

Is a deemed contract the same as out-of-contract rates?

No. Ofgem distinguishes moving in without an agreement from the out-of-contract rates some suppliers apply after a fixed term ends. Automatic renewal is another possible outcome [S1]. Read the expiry clause before labelling your account.

Use how business electricity contracts work for those shared basics. Keep business electricity price data as context, rather than treating an average price as your contractual entitlement.

How can you leave a deemed contract?

Confirm the account status, then arrange a formal supply agreement and a confirmed start date. Ofgem’s switching guidance says variable arrangements, including deemed-rate contracts, allow switching at any time [S2].

Ofgem’s consultation restates the existing licence restrictions against fixed terms, termination fees and switching notice requirements in deemed contracts [S4]. Those existing duties are distinct from its proposed guidance changes. Check disputed contractual liability with your solicitor.

For a move, follow the change-of-tenancy checklist. Ofgem says submitted occupancy documents are reviewed within 10 working days, with acceptance, explained rejection or a request for further evidence [S3]. Retain acknowledgements and chase unresolved dates. Do not assume a pending review has already corrected your bill.

Next step

After clarifying your account, prepare an installation project through the cut energy costs hub and site check, then get matched with an installer that covers your area.

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