What Happens When a Business Energy Contract Ends?

Out-of-contract rates

If nothing is agreed by the end date, many suppliers move the account onto an 'out-of-contract' rate. These are set by the supplier, reviewed periodically, and are typically significantly higher than anything you'd be offered as a negotiated renewal or new contract.

Deemed rates

A deemed contract applies where a business is consuming energy with no contract in place at all — for example, moving into new premises without formally arranging supply, or where a fixed term lapses without any agreement in place. Deemed rates carry no negotiation and are consistently the most expensive way to buy commercial energy.

How to avoid drifting onto either

The fix is straightforward and doesn't require specialist knowledge — just a diary reminder and a decision point:

• Know your exact contract end date for every site
• Request renewal quotes from 6 months out
• Make a decision before the end date, even if the decision is to switch supplier
• If you inherit a site with no known contract status, check the current rate type on the next bill