Deemed Rates Trap
The contract ended, nobody switched in time, and the rate on the bill looks brutal. Here’s what out-of-contract (deemed-style) pricing means and the practical route back to a negotiated quote.
Next step: If you use under about 50,000 kWh a year, you can get a quote in under 90 secs online — fast, no obligation. Bigger supply, half-hourly metering, or prefer chat? Use the contact page.
What Are Deemed Rates?
When a fixed deal ends and you haven’t agreed another, suppliers place you on out-of-contract (“deemed”) prices that are usually far above what you’d get from a fresh quote—how much depends on your meter, notice rules and the wider market. Start with renewal timing and bill basics so you don’t drift on these terms.
Illustrative maths only: if a unit rate moved from about 22p to about 29p on 30,000 kWh, that’s roughly £2,100 extra in commodity cost before standing charges—real deemed spreads vary widely by supplier and period. If your bill suddenly feels wrong, also scan invoice errors for bad reads.
Why Deemed Rates Are So High
Suppliers price deemed rates high for three reasons:
- Wholesale market volatility risk - they can't hedge
- No notice period - you could leave anytime
- Commercial incentive to push you towards fixed contracts
How to Escape
On deemed rates you can switch ANY TIME with zero exit fees. Get 3-5 quotes, sign the best one, new supplier takes over in 2-3 weeks.
Related Guides
Contract Renewal
Read guide →Business Energy Strategy
Read guide →Standing Charges
Read guide →Your next step: When you are ready to compare business tariffs, get a business energy quote online (typically under a minute, no obligation). Larger supply, half-hourly metering, or you prefer messaging? See the contact page.