Ever moved into a new space and switched the lights on? Great! But did you know, just by doing that, you might have entered into something called a deemed contract. It makes you startled at once and you keep scratching your head not knowing how you got into this contract. A deemed contract is sneaky and you need to be aware of it before you get shifted on one. This simple piece of information can save you from energy supply hassle!
Let’s talk about what that is, how it happens, and how you can avoid it.
What Exactly is a Deemed Contract?
A deemed contract is a type of agreement between you and the energy supplier of the space you are using. But here is the catch: you didn’t actually sign it. It comes into effect when you start using gas or electricity in a property without agreeing to a new contract.
Sounds a bit sneaky, right? But it is a legal procedure in the UK.
| What is a Deemed Tariff?
A deemed tariff is the default energy rate you are charged when you use gas or electricity without having an agreed contract with the supplier, usually after moving into a new property or when a fixed contract ends. |
How Does a Deemed Contract Happen?
It is more common than you think. Here are some everyday reasons:
- You have just moved into a new space and started using energy without setting up a contract with the energy supplier.
- Your fixed energy contract ended, and you didn’t sign up for a new one.
- You inherited a property and didn’t contact the energy supplier.
- Your landlord didn’t tell you which energy contract is active.
In short, you are using the energy, so the supplier assumes you have agreed, even though you haven’t. (As you are unaware or maybe just lazy, well you have to stay acknowledged. Right?)
| Did You Know?
As of 2025, a number of UK businesses are currently on deemed energy contracts. Most don’t even realise it. |
Why Deemed Contracts Are Not Good for You
Let’s be real. Deemed contracts are almost never in your favour. Here’s why:
- You pay more. They usually charge higher rates than regular deals.
- No discounts or perks. You miss out on savings available on fixed deals.
- Uncertain bills. You can’t plan your monthly energy costs easily.
- No choice. You didn’t pick the supplier, you just got stuck with one.
It is like paying full price at a shop when you could’ve had a discount.
How to Avoid a Deemed Contract
Luckily, it is easy to avoid getting caught in one. Here is what to do:
Contact the Supplier
The moment you move in a space, call the energy supplier. Give them your meter readings and ask what tariff you are on.
Compare Deals
Use price comparison websites. Look around for the best energy supplier. You don’t have to stick with the current supplier if you wish to switch energy supplier.
Switch Quickly
Once you pick a supplier of your choice, switch right away. It is simple and hassle-free as your current supplier handles it all in case you want to switch.
Check Your Bills
If your energy bill seems too high or confusing, you might already be on a deemed contract. Time to act!
| What If I Don’t Do Anything?
If you ignore it, you will likely pay more every month. Over time, that adds up to hundreds of pounds in extra charges. (And you surely don’t want to pay more unless you are richie rich!) |
Take Control of Your Energy
Deemed contracts feel a bit like hidden surprises. But once you know how they work, they are easy to avoid.
Don’t let yourself get stuck in a situation you didn’t even sign for. Act fast, talk to your energy supplier, and always pick the energy contract that works best for you.
