Business Energy Deemed Contract: Avoid Default Rates
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EnergyBy Aarubi editorial teamPublished 24 August 2026Updated 30 September 20264 min read

Business Energy Deemed Contract: Avoid Default Rates

Image by ZHANG FENGSHENG on Unsplash

Moving premises? A business energy deemed contract means paying default rates. Learn how to avoid it and compare better tariffs. Get started with Aarubi.

Author

Aarubi editorial team

Published

24 August 2026

Last updated

30 September 2026

Reading time

4 min read

Taking over a shop, office or restaurant does not automatically transfer the previous occupier's energy price to you. If you start using an existing supply without agreeing a contract with its supplier, a deemed contract may apply.

Act promptly, but do not let an urgent sales call rush you into an agreement. First establish who supplies the site, when your responsibility began and what charges apply. Our moving-premises energy FAQs cover the common handover questions.

Deemed is not the same as out of contract

Ofgem's contract guide distinguishes deemed arrangements from out-of-contract prices after an agreed term expires.

SituationWhat to check
New occupier using energy without an agreed contractExisting supplier, responsibility date and deemed terms
Current customer's fixed term has endedExpiry clause, out-of-contract prices or renewal arrangement
Supplier has failedOfgem's transfer instructions and the replacement supplier's terms
Meter or supply appears unregisteredRegistration and safety position with the supplier or network operator

An apparently unregistered meter does not automatically mean a Supplier of Last Resort has been appointed. Do not tamper with equipment or assume registration issues remove liability for energy used.

Make a handover record

On the date responsibility changes:

  • Photograph each meter reading and serial number.
  • Record the premises address, date and incoming legal entity.
  • Retain the lease, completion paperwork or other relevant handover evidence.
  • Contact the existing supplier and request written account-opening confirmation.
  • Ask for the applicable unit rates, standing charge and any other costs.
  • Keep correspondence and account references together.

A Meter Point Administration Number (MPAN) identifies an electricity supply point; a Meter Point Reference Number (MPRN) identifies gas. Neither is the physical meter's serial number. If the supplier is unknown, use Ofgem's supplier and network lookup guidance.

What about the previous occupier's debt?

Ask the supplier to distinguish the outgoing account from the incoming customer's responsibility. Supply clear evidence of the change and dispute incorrect dates promptly.

Buying a company's shares is different from taking a new lease through another legal entity. The same company may retain its obligations even when its owners change. Do not assume every acquisition cancels previous energy debt or contracts; seek advice where liability is disputed.

Arrange a suitable contract

Deemed prices are commonly higher than negotiated contract prices, but compare actual written quotations rather than assuming a guaranteed saving. Ask the incumbent supplier for an offer and consider alternatives using the same consumption assumptions.

Check the complete cost, contract length, broker fees and any variable charges. Read the renewal and contract checklist before agreeing.

Deemed arrangements should not be confused with a fixed-term deal's exit rules. Confirm the switch process and any objection with the suppliers; Ofgem explains business switching. Do not assume an online quote has already completed a transfer.

Check the first bill

Match the legal name, responsibility date, opening reading and charged rates against your records. Check whether readings are estimated and whether a balance belongs to an earlier period.

If an older correction appears, ask whether any microbusiness back-billing protection applies. It is not a blanket cancellation of valid unpaid bills. Our billing FAQs explain the distinction and link to Ofgem's guidance.

Can I use the previous occupier's tariff?

Do not assume so. Ask the supplier what, if anything, can transfer and obtain written agreement.

Should I ignore a bill addressed “The Occupier”?

No. Contact the supplier to establish the correct customer and dates, while disputing any charge that is not yours.

Will changing supplier disconnect the premises?

A normal supplier switch should not interrupt an active supply. A physically disconnected site needs separate reconnection arrangements.

Contact Aarubi with your handover date, recent bill if available and supply details. We can help you review suitable contract options.

Reviewed on 30 September 2026 for Great Britain. This is general information, not advice on a particular tenancy, acquisition or debt dispute.

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