Out of contract & Deemed rates

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Out of contract (OOC) rates

Out of contract rates apply when an energy contract between the customer and supplier comes to an end and no new or alternative rate is put in place. When a gas or electricity contract expires, the rates for supply revert to a default charge — otherwise known as the out of contract rate.

Business energy customers will be charged the out of contract rate until a new contract is put in place, they move out of the premises or they switch to a new supplier. The default rate for out of contract energy use tends to be more expensive than rates available under contract, so we’d always recommend moving off this rate as quickly as possible.

Deemed tariff rates

Similar to out of contract rates, deemed tariff rates are charged for gas and electricity use when there was never a contract in place to begin with, for example, when a new tenant moves into an existing site. In such circumstances, the customer is charged the deemed rate by the property’s existing gas or electricity supplier.

Deemed tariff rates apply until a new contract is put in place, or until the business moves out of the premises or switches to a new supplier. Because deemed rates may be more expensive than rates available under contract, you should try to move off this rate as quickly as possible.

Find out more about the Gas Supply Deemed Contract Scheme here.

Current OOC and Deemed rates

We will always try to provide as much notice as possible before publishing new rates. However, we strongly advise that all customers on deemed and out of contract rates monitor this page regularly to ensure they are aware of the latest rates. Based on current market conditions, we expect to continue increasing these rates. As a result, they’re likely to be substantially higher than they are currently.

The last 6 months of rates can be found below. Historic rates can be found here.

Deemed Contract Rates

Switching and consumer rights

If you’re currently being charged out of contract or deemed tariff rates for your gas or electricity supply, your current supplier cannot prevent you from switching to a new supplier, or charge a termination fee for moving. Additionally, you are not required to give any form of notice in order to cancel an out of contract or deemed tariff contract.

Common Questions OOC & Deemed rates FAQs

Our FAQs provide answers to commonly asked questions about who we are, what we do, our products, and how we work.

I’m currently on a Deemed Contract – do I qualify for an EBDS discount?

If you are on a variable tariff, and want to remain on it, you will get the reduction, subject to the ‘maximum discount’.

Deemed contract rates, traditionally, are higher than the fixed contract prices we can offer customers. More information on those charges can be found here.

You may benefit from being on a fixed price contract. If you would like to discuss your contract options, please request a quote through the Request a Quote page here.

Are deemed contracts legal?

Deemed contracts are entirely legal and enforceable by energy suppliers. That said, if you can prove your energy provider has failed to properly inform you that you’re on a deemed contract, you might be able to negotiate with them.

What if you never pay deemed contract bills?

Failing to pay your energy bills when you’re on a deemed contract is the same as failing to pay on any other contract. Not paying a previous bill or not paying a regular amount towards future invoices will mean you’re in arrears with your supplier, and this should be dealt with urgently

If you don’t resolve your debts, your energy supplier may cut off your supply. However, this measure is only a last resort, and your utilities company should give you notice before this happens.

Do I have to cancel a deemed contract?

A deemed contract lasts as long as you want it to. Your deemed contract supplier is obliged to continue supplying your gas and charging you for your gas consumption and associated charges until you take one of the following actions:

  • Sign a formal supply agreement with us. You can call us on 0161 837 3390 or email cot@sefe-energy.com to request a quote.
  • Transfer the supply to an alternative supplier
  • Arrange for the supply to the site to be disconnected. Please note that we'll have to send you a monthly bill to cover your standing charge (unless you arrange for all supply cables to be completely removed).

You’ll need to continue paying the deemed rate until you move off this contract. But since deemed rates are pricier than other rates, we’d advise you to take one of the actions above and seek out a rate that your business can more realistically afford.

Is a deemed rate the same as a variable tariff?
What are your current out of contract and deemed rates?
What to do if you’re on an out of contract or deemed rate?
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