Key answer
Deemed usually follows a move; out-of-contract usually follows an expiry
A deemed contract normally applies when a business starts using energy at premises without agreeing terms with the existing supplier. Out-of-contract rates may apply after a fixed contract ends without a new agreement. Ask the supplier to confirm the status, applicable rates, start date and how to move to a negotiated contract.
Moving into business premises
Notify the property's current supplier about the change of occupier as soon as possible, even if another supplier or broker is arranging a contract. Provide the legal business name, contact details, tenancy or completion date and opening readings with dated photographs.
Record every electricity MPAN, gas MPRN and meter serial number. The former occupier's supplier normally continues the physical supply, but the former occupier's contract does not simply become the new business's negotiated contract. Energy used before new terms begin still has to be paid for.
- Take readings on the handover date.
- Keep the lease, completion statement or other occupancy evidence.
- Tell both electricity and gas suppliers; they may be different.
- Ask for current deemed rates and written contract options.
- Check the first bill starts on the correct date and reading.
Moving out or changing occupier
Tell each supplier the final occupancy date, provide closing readings and a forwarding address, and ask for a final bill. Keep proof of the handover and meter photographs. This reduces the risk of being billed for consumption after responsibility ended.
A change of trading name, legal entity, lease or property ownership can affect the evidence a supplier requires. Do not describe an internal reorganisation as a change of tenancy without checking the contractual and legal position.
When a fixed contract expires
Read the termination, renewal and post-expiry clauses before the end date. A supplier may move the account to out-of-contract rates, an evergreen arrangement or another status described in the terms. Names vary, so compare the actual price, notice requirement and right to switch.
Ofgem says deemed and out-of-contract rates are usually more expensive than negotiated fixed-term contracts. That makes prompt action sensible, but it does not make the first replacement offer automatically suitable. Compare the total annual cost, duration, commission and variable-charge exposure.
Leave the temporary rate with a clear record
Ask the supplier for the account's current status, all applicable rates and any debt or registration issue that could delay a switch. Gather recent usage and meter details, then obtain written offers from the current supplier and alternatives. Confirm the exact start date of the selected contract.
If the supplier disputes the occupancy date or contract status, use its formal complaints process and provide evidence. Continue to submit readings and address current charges while the historic position is investigated.
Sources
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Next step
Prepare a like-for-like comparison
Use the same annual consumption and include standing charges and known fees for every offer.