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Out-of-Contract Energy Rates Explained (And How to Escape Them)

Out-of-contract and deemed rates are the most expensive electricity a UK business can buy. Here is how they happen and how quickly you can get off them.

25 July 2026 6 min read

Deemed, rollover and out-of-contract are not the same

A deemed rate applies when you occupy premises and consume energy without any agreed contract — commonly after moving in. A rollover happens when a fixed contract expires and the supplier automatically extends it. An out-of-contract rate applies when a fixed deal ends and no new one is signed. All three are priced for the supplier's risk, not your benefit.

What you can do today

Deemed and out-of-contract customers are generally free to leave on short notice — often 28 days or less. That is the single fastest saving available to most businesses, and it usually requires nothing more than a recent bill and a signed letter of authority.

  • Find your MPAN or MPRN on the bill
  • Confirm your current rate and any outstanding balance
  • Get whole-of-market quotes before agreeing a supplier's retention offer

Prevent it happening again

Diarise the contract end date and the notice deadline the day you sign. Better still, have a broker hold those dates for you and start the review process automatically. The businesses that never pay out-of-contract rates are simply the ones with a reminder system.

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