A business energy deemed contract occurs when a business uses energy, such as gas or electricity, in new premises without having agreed on a deal.

They are typically enforced when a business moves into a new building and use energy before having signed with a supplier.

Deemed business energy contracts can also occur is an energy deal has been terminated by either the customer or the existing supplier, but the business continues to use gas and electricity.

How do deemed business energy contracts work?

Deemed business electricity contracts are applied when energy is used without a contract in place.

The supplier will set the rates for the contract, which are regulated by Ofgem but are often more expensive than a pre-arranged contract.

It is called a deemed business contract because the energy company are able to charge whatever they 'deem' reasonable for the property that the business has moved into.

Deemed business tariffs work similarly to out-of-contact contracts, but differ as customers do not choose to not have a contract. Rather, it is because they have just moved into new business premises and have not yet gone about choosing the right supplier.

You will only be charged a deemed rate until you settle on a contract with either your current supplier or a new supplier.

The sooner you do this, the less you will have to pay, so we recommend finding a tariff either before you move so you never get charged a deemed rate, or as soon as you have time after moving.