When your business energy contract ends, it’s important you arrange a new contract so you are not paying above and beyond for your business energy!
WHAT ARE DEEMED RATES AND HOW CAN I AVOID THEM?
Dual energy deemed rates (or out of contract tariffs) apply when you either move premises and haven’t agreed a contract with a supplier, or if your utility contract has come to an end.
These prices are put in place so that businesses and homes are not without energy or water; however, they are around 80% higher than negotiated plan tariffs so they are definitely worth avoiding.
Around 10% of micro-businesses are on deemed tariffs, but with significant savings to be made for people who are ‘out of contract’, it’s worth signing an energy contract as soon as possible.
HOW MUCH ARE DUAL ENERGY DEEMED RATES?
Deemed rates are normally much higher than prices charged when in contract. In fact, some companies can even charge around 80% more to customers who have reached the end of their contract.
WHY WILL MY BUSINESS BE PUT ON DEEMED RATES?
Usually, a business customer and energy supplier will agree a contract that outlines the price that the customer will be charged. This will be charged per kWh (electricity and gas) or m³ (water) that the customer uses.
There are a few reasons why you might be put on deemed rates:
- You’ve recently moved premises
- If you have recently moved business property it is unlikely that you have an energy contract in place. In this situation you will be put on deemed rates by the supplier that previously supplied the premises.
- Your contract has come to an end
- You may also be put on deemed rates if your energy contract has come to an end, and you have not renewed or switched supplier.
- You haven’t switched supplier
- Sometimes businesses give their energy supplier notice that they will be switching to a new supplier once their current contract is over. Sometimes businesses then forget to switch to the new supplier. In this circumstance deemed rates will apply from the day the current contract ends, up until the new supplier takes over.
Here at Yü Energy, we aim to avoid our customers going on deemed rates by proactively calling them towards the end of the contract to agree the new rates.
WHAT ARE MY RIGHTS IF I’M PLACED ON DEEMED RATES?
The good news is that you do have rights that your energy supplier must adhere to when you’re placed on out-of-contract prices. They are obliged to:
- Provide you with a full copy of the contract on demand, and take all reasonable steps to outline the Principal Terms of the deal, as well as a full breakdown of fees and charges
- Make sure the terms of the deemed tariff are easy to understand
- Provide you with a copy of your full contract if you request it
- Tell you of any alternative deals available
While you’re on deemed rates the supplier can’t prevent you, at any time, from switching to another supplier at any notice and you will not be charged for termination of the deemed tariff.
HOW CAN I SWITCH FROM DEEMED RATES?
It’s very easy to switch onto a new energy contract, so it’s recommended that you switch as soon as possible. Deemed tariffs don’t have a switching window, you can switch at any time!
The process of switching is simple. We’ve put together a guide on how to switch your energy supplier so you can find out exactly what’s involved in the process.
Ideally you should switch as soon as possible. Sometimes it can take 3-5 weeks for a new energy supplier to register the supply of your property, and you will still be charged deemed rates during this time.
If we didn’t manage to make contact with you to agree new rates, we are always on hand to help you find the best solution for your business. Give us a call today on 0115 975 8258.