For the full process, see our guide on how to switch electricity supplier.
What are deemed rates?
Deemed rates are the default tariffs you are put on when you use electricity without an agreed contract — for example when you move into new premises and haven’t yet signed with a supplier, or when your contract has ended and you haven’t switched or renewed. They are set by the supplier and are typically much higher than negotiated fixed rates.
Out-of-contract rates
"Out-of-contract" means your fixed term has ended. If you don’t switch or agree a new contract, you may stay on a variable or default tariff — often similar to deemed rates — which can rise and usually costs more than a competitive fixed deal.
Rollover contracts
Some contracts have a rollover clause: when your fixed term ends, you are automatically moved onto a new contract (e.g. 12 months) at the supplier’s current rates. Those rates are rarely the best on the market, and you can get locked in again. Checking your contract and switching in your renewal window avoids this.
The cost reality
Deemed and out-of-contract rates can be 20–50% (or more) higher than fixed rates you could get by comparing. For a business, that can mean hundreds or thousands of pounds in extra cost over a year. Escaping is simple: compare and switch to a new fixed contract.
Deemed rate pain calculator
See the cost of doing nothing: enter your usage and deemed (or out-of-contract) rates, and optionally a typical fixed rate you could get, to see how much you pay by staying put. Full tool on its own page: Deemed rate pain calculator.
Deemed rate pain calculator
See the cost of doing nothing — what you pay on deemed/out-of-contract rates vs switching to a competitive fixed deal.
Compare to a fixed rate (optional)
Add a typical fixed rate you could get by comparing — e.g. from a quote or comparison site — to see how much you lose by doing nothing.
Enter a fixed unit rate and standing charge above to see how much you could save by switching.
How to escape
- Use a comparison service to see current fixed rates for your usage and area.
- Switch to a new supplier or new contract with your existing one.
- If you’re in a rollover, check when your renewal window opens and switch before it closes.
Next step: Compare electricity suppliers and switch to a better deal.
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