Business energy deemed rates explained
Deemed rates are the expensive default prices a supplier applies when you use energy without an agreed contract. They are some of the highest rates in the market, and thousands of businesses sit on them without realising.
Deemed and out of contract rates
A deemed rate applies when you are using energy at a property with no formal contract in place, most often after moving into new premises without arranging supply first. An out of contract rate is the default variable price a supplier drops you onto when a fixed deal ends and nothing new is agreed. Neither is a penalty as such, but both are priced high because the supplier is carrying the risk, and both are far dearer than a deal you could have signed.
The gap is large. Where a fixed contract might sit around 26p a unit, out of contract electricity can be nearer 38p and deemed rates higher still. Across a year that difference turns into thousands of pounds for even a small business.
For a business using 15,000 units a year, a fixed deal near 26p is roughly £3,900, out of contract near 38p is roughly £5,700, and deemed rates near 43p are roughly £6,450. Figures are illustrative only for 2026 and vary by supplier, usage and location.
How businesses end up on them
A missed renewal
Miss the window before your fixed deal ends and you roll straight onto out of contract rates.
A new premises
Move in and start using energy before arranging supply and you are on deemed rates from day one.
Nobody checking
These rates never send an alert. Without someone watching, a business can sit on them for months.
How OptiFlow Watch helps
We spot them fast
Watch reads your bills and flags deemed and out of contract rates straight away, so you are not paying them a day longer than you have to.
We move you onto a real deal
We compare the market and switch you onto a proper contract, which is usually where the biggest savings are.
We watch every renewal
We track your end dates so you never drift back onto default rates again.
Guaranteed saving
For a flat £49.99 a month, we guarantee a saving against your real bills or it is not worth your while.
More from OptiFlow Watch
Get off deemed rates and save
OptiFlow Watch finds the best price and guarantees a saving, for £49.99 a month.