Out-of-contract energy rates: what they are and how to avoid them

Out-of-contract rates are the prices you pay when your fixed contract has expired and its own terms say what happens next. Deemed rates are different: they apply when there is no contract covering your supply at all.

When a fixed business energy contract ends and nothing new is agreed, your supplier keeps supplying you. What you pay from that point depends on what your contract says, and it is rarely good value.

This guide explains the difference, what happens at the end of a fixed term, the rollover rules for microbusinesses, and where to find each supplier’s published rates.

What is the difference between deemed and out-of-contract rates?

Ofgem is clear that the two “are not interchangeable”. Out-of-contract rates are the rates your contract moves you onto when it continues after the fixed term. Deemed rates apply when there is no contract, for example when you move into premises, or when your old contract ends without saying what happens next.

	Out-of-contract rates	Deemed rates
When they apply	Your fixed term has ended and your contract says what happens next	No contract covers your supply
Where the terms come from	Your original contract	The supplier’s deemed contract scheme under the Electricity Act 1989 and Gas Act 1986
Ofgem’s “not unduly onerous” rule	Does not apply	Applies
Exit fee	None for microbusinesses; check your contract otherwise	Not allowed
Notice to switch	None for microbusinesses; check your contract otherwise	Not required

Citizens Advice says out-of-contract tariffs are “usually very expensive” and that it is worth switching if you are on one. For more on deemed contracts, see our deemed contracts guide.

What happens when your fixed contract ends?

Unless you agree something new, one of three things usually happens:

1. You are rolled over onto a new fixed term. Ofgem says that if you do not change your contract before it expires, your supplier will automatically roll it over, where the contract allows.
2. You move onto a variable or out-of-contract rate, as set out in your contract.
3. You end up on deemed rates, if your contract does not say what happens at the end.

Suppliers handle this differently. Some examples from their own websites and terms:

• British Gas Business moves you to its Variable Price Plan if you do not renew.
• EDF renews small business customers onto Freedom, a variable contract with no termination fees, which it says has cheaper prices than deemed.
• Octopus Energy for Business terms say supply moves to its standard variable tariff after the end date, unless you renew or give written notice.
• npower Business Solutions and ENGIE call their out-of-contract prices “default” rates.
• TruEnergy terms (version 2.7, June 2026) ask for at least 30 days’ notice to end the agreement. Without it, you may be charged its Business Deemed Tariff or rolled onto a 12-month contract.

Microbusinesses have extra protection, which can override terms like these.

What are the rollover rules for microbusinesses?

Microbusinesses get specific protections under standard licence condition 7A of the supply licences. A microbusiness uses no more than 100,000 kWh of electricity or 293,000 kWh of gas a year, or has fewer than 10 employees and a turnover or balance sheet of no more than £2 million.

Before your contract ends

• About 60 days before your fixed term ends, your supplier must send a statement of renewal terms. It must include the prices that will apply if you do nothing, your current charges and your annual consumption.
• The statement must explain how to stop the contract being extended, with a postal and email address to write to.
• Your end date must be shown prominently on every bill.

At the end of your fixed term

• You do not have to give notice to end the contract or switch supplier. Ofgem banned termination notices for microbusiness contracts from 1 October 2022, except for evergreen (open-ended) contracts.
• Your supplier can only roll you onto a further fixed term if it sent the renewal information and you did not write to stop the extension. The new fixed term cannot be longer than 12 months.

After your contract ends

• During a rollover period, you can switch at any time without a termination fee or higher charges.
• On out-of-contract terms, you can switch at any time without a termination fee or notice.
• On an evergreen contract, the notice period cannot be longer than 30 days and there is no termination fee.

What if you are not a microbusiness?

These rules do not apply, so your contract terms decide what happens. EDF, for example, notes that small businesses on fixed contracts may still face exit fees. Check your contract for notice windows, rollover terms and what rates apply after the end date.

How do you find your supplier’s published rates?

Ofgem’s guidance on deemed contracts does not cover out-of-contract rates. So how suppliers publish them varies. Most put both sets of rates on one page, usually as PDFs.

We checked the suppliers we track in September 2026. “Not found” means we could not find the rates published, not that they do not exist. Ask the supplier directly if you cannot find yours.

Supplier	Deemed rates	Out-of-contract rates	Notes
British Gas Business	Yes	Yes	Separate PDFs for deemed and variable price plans
British Gas Lite	Not found	Yes	Variable price plans page
Corona Energy	Yes	Yes	One web page
Crown Gas & Power	Yes	Yes	PDFs
Drax Energy Solutions	Yes	Yes	Electricity only, tables updated monthly
Dyce Energy	Yes	Yes	PDFs on its useful documents page
E.ON Next (Business)	Yes	Not found	Deemed PDFs on a combined home and business page
Ecotricity	Yes	Not found	Deemed PDF headed prices from 5 September 2025
EDF	Yes	Yes	Newest deemed PDF we found was dated 1 October 2024
ENGIE	Yes	Yes	Called “default” rates; dated PDFs
Good Energy	Yes	Yes	Electricity charges only seen
Maxen Power	Yes	Yes	Electricity and gas tables
npower Business Solutions	Yes	Yes	Called “default” rates; PDFs
Octopus Energy for Business	Half-hourly only	Half-hourly only	Lookup by region, voltage and usage band; non-half-hourly business rates not clearly shown
PE Solutions	Yes	Yes	One rate for both
Ruby Energy	Yes	Yes	FAQ pages
ScottishPower Business	Yes	Yes	Links still labelled January 2025 in September 2026
SEFE Energy	Yes	Yes	PDFs
SmartestEnergy	Yes	Yes	PDFs
SSE Energy Solutions	Yes	Yes	Same variable business rates for both
TotalEnergies Gas & Power	Yes	Yes	One web page
TruEnergy	Yes	Yes	Spreadsheet; its terms apply the deemed tariff after a contract ends without notice
United Gas & Power	Yes	Yes	Banded by usage, excluding VAT and CCL
Valda Energy	Yes	Not found	Deemed tariffs from 7 August 2026
Yü Energy	Yes	Yes	PDFs

Tips for reading published rates

• Check the effective date. Some pages still show old files, so confirm the rate that applies to you with the supplier.
• Find the right band. Rates often vary by region, meter type, and how much you use.
• Check what is included. Some suppliers show rates before VAT and Climate Change Levy. Your bill will add them.
• Compare both parts. Look at the unit rate and the standing charge, not just one.

How do you avoid out-of-contract rates?

The simplest way is to agree a new contract before your current one ends. If your supplier makes a microbusiness renewal offers, at least one must be in writing and open until your fixed term ends.

1. Put your end date in the diary. It is on your bill if you are a microbusiness.
2. Start comparing early. Some suppliers quote months ahead. Our contract renewal guide explains the timings.
3. Read your renewal letter. It tells you what you will pay if you do nothing.
4. Check your notice terms if you are not a microbusiness. Missing a notice window can mean a rollover.
5. Act quickly if you are already out of contract. Get quotes and switch. Citizens Advice says switching takes up to 5 working days.

If you are already paying out-of-contract rates, you can compare business energy quotes with us and move onto a fixed or flexible deal. Our guide to fixed vs flexible contracts can help you choose.

Frequently asked questions