What Is a Deemed Tariff?

A deemed tariff is an out-of-contract energy rate applied when a business uses electricity or gas at a property without agreeing to a formal contract with the supplier.

These tariffs are usually more expensive than negotiated commercial agreements.

When Deemed Rates Apply

Deemed tariffs may occur when:

• A business moves into new premises

• Contracts expire without renewal

• Supplier arrangements are incomplete

• Tenancy changes occur

Businesses are still legally required to pay for energy usage while occupying the property.

Why Businesses Compare Suppliers

Remaining on deemed tariffs for long periods may increase operational costs significantly.

Comparing suppliers can help businesses:

• Secure fixed pricing

• Improve contract visibility

• Avoid expensive default rates

• Gain budgeting stability

Understanding Commercial Energy Agreements

Businesses should review:

• Contract end dates

• Renewal notices

• Usage levels

• Procurement strategies

Proactive contract management can help reduce unnecessary costs.