Business Energy Deemed Rates October 2026

Last updated: Friday 9 October 2026 (Europe/London).
By: Switch Editorial Team, Switch Squid Ltd

---

Business energy deemed rates are the default prices a supplier charges when your business uses gas or electricity without a signed contract, usually after moving into premises. As of 9 October 2026, British Gas charges 41.95p/kWh for electricity and 13.09p/kWh for gas on deemed terms, against indicative contracted averages of about 27p/kWh and 8.50p/kWh for a small business. Deemed rates are not covered by the household price cap, and you can usually leave them by agreeing a contract. SwitchSquid sets out each supplier’s published deemed rates and how to move off them; we may be paid by suppliers if you buy through our business energy form.

What are deemed rates?

A deemed contract starts automatically when a business takes gas or electricity at a site without agreeing a supply contract. The most common reason is moving into premises and using the energy before you sign anything. British Gas describes deemed rates as default prices that apply when you move into premises it supplies but have not agreed a contract, and says they are usually higher than its agreed contract plans.

Your supply does not stop on deemed rates. What changes is the price: suppliers set deemed rates for customers they know little about, with no agreed term, so the unit rate and standing charge are usually well above a negotiated fixed price. Ofgem’s guidance on deemed contracts expects suppliers’ deemed terms not to be unduly onerous, but that does not make them cheap.

Deemed rates are close to out-of-contract rates, which apply when a fixed contract finishes and nothing new is agreed. Some suppliers use different names and prices for each. Shell Energy, for example, publishes separate deemed and “extended supply” rates. Our guide to out-of-contract business energy rates covers that situation.

Deemed rates by supplier, October 2026

These figures come from each supplier’s own published deemed rate page or schedule, checked on 9 October 2026. They are for standard small-business meters, exclude VAT and Climate Change Levy, and can change with notice. Larger, half-hourly and high-voltage sites have different schedules.

Supplier	Electricity deemed rate	Gas deemed rate	Applies from	Source
British Gas	41.95p/kWh plus 214.94p a day (whole current meters)	13.09p/kWh plus 182.99p a day (sites under 73,200kWh a year)	1 October 2026	Electricity schedule, gas schedule
EDF	46.192p/kWh plus a daily charge set by region and charging band, from 404.10p to 1,178.32p a day (non-half-hourly)	15.293p/kWh plus 1,128.04p a day	1 October 2026	Electricity schedule, gas schedule
TotalEnergies	42.91p/kWh single rate (day 45.94p, night 31.95p) plus a daily charge worked out for your site	12.98p/kWh plus 256p a day	Current rates on its deemed rates page	TotalEnergies deemed rates
Shell Energy	31.143p/kWh plus 192p a day (smart or advanced meter) or 280p a day (traditional meter), with network charges passed through on top	7.991p/kWh plus 452p a day (up to 73,200kWh a year)	1 October 2026	Shell Energy deemed and extended supply rates

Read the standing charge as closely as the unit rate. EDF’s gas standing charge of 1,128.04p a day is about £4,117 a year before you use any gas, while British Gas charges 182.99p a day, about £668 a year. Shell’s deemed electricity price looks lower, but it excludes distribution and transmission charges, which are added at the network’s rate, so the total is higher than the unit rate alone suggests. If your supplier is not listed, ask it for its current deemed schedule in writing.

How much more do deemed rates cost?

To see the gap, compare a deemed bill with an indicative contracted price. WeSave’s October 2026 averages for two-year business contracts, based on market data reviewed on 5 October 2026, are 27.00p/kWh and 92.80p a day for electricity and 8.50p/kWh and 54.23p a day for gas, for a small business using 5,000 to 14,999kWh a year. These are averages, not a quote.

Example site	British Gas deemed	Indicative contracted average	Difference a year
Electricity, 12,000kWh a year	£5,034.00 units + £784.53 standing = £5,818.53	£3,240.00 units + £338.72 standing = £3,578.72	About £2,240
Gas, 10,000kWh a year	£1,309.00 units + £667.91 standing = £1,976.91	£850.00 units + £197.94 standing = £1,047.94	About £929

Both examples exclude VAT and Climate Change Levy. Every month on deemed rates at this size costs roughly £187 more on electricity and £77 more on gas than the contracted average. Use your own bill to rebuild the sum, because your rates and usage will differ.

Are business energy rates capped?

No. Ofgem’s price cap, £1,723 a year for a typical household paying by Direct Debit from 1 October to 31 December 2026, applies to domestic tariffs only. There is no equivalent cap on business electricity or gas, including deemed rates. Ofgem’s rules do require suppliers to set deemed terms that are not unduly onerous and to give microbusinesses clear information about their prices, but the supplier still sets the rate.

That is why a business can stay on a deemed tariff for months without noticing. Check the first bill after you move in and look for the words deemed, default or out of contract.

How to tell if you are on deemed rates

• Your bill or online account says deemed, default, out of contract or extended supply.
• You moved into the premises and have not signed a contract in your business’s name.
• Your fixed contract finished and nothing new was agreed.
• The unit rate or standing charge is far higher than a fresh contracted quote for the same usage.

How to leave deemed rates

1. Take meter readings on the day you move in and photograph them, for both electricity and gas.
2. Tell the current supplier you have moved in and give your business details. British Gas says this is the first step to moving off its deemed rates.
3. Ask for the deemed rates in writing if they are not on your bill, including the standing charge.
4. Collect your supply details: MPAN for electricity, MPRN for gas, meter type and expected yearly kWh.
5. Compare contracted quotes from the current supplier and others. Compare the total yearly cost, including standing charges.
6. Agree a contract and note the start date. Keep paying deemed bills until the new contract begins.

A switch can take a few weeks, so start as soon as you know you are on deemed terms. Our guide to change of tenancy business energy explains what to do when you move premises.

Electricity and gas: what is different

Electricity. Deemed electricity schedules often vary by meter type and by the Targeted Charging Review band that sets your standing charge. British Gas uses one unit rate for whole current meters and a standing charge of 214.94p a day. EDF sets its daily charge by region and band. Half-hourly and high-voltage sites have separate prices and may face capacity charges as well.

Gas. Deemed gas prices usually depend on how much gas the site uses a year. British Gas and Shell both draw a line at 73,200kWh a year. Above that, British Gas charges 8.49p/kWh with a standing charge of 844.84p a day. Our guide to business gas standing charges explains how much of a small site’s bill the daily charge can be.

Before you sign a new contract

Moving off deemed rates quickly saves money, but take a few minutes to check the contract. Ofgem’s advice on getting a business energy contract suggests asking whether broker fees or commissions are included in the price. Check the contract length, the notice period and what happens when the term ends, so you do not end up on out-of-contract rates later.

If you are a microbusiness, your supplier must give you the main terms of the contract before you agree, and some contracts offer a cooling-off period. Ask if you are unsure what applies to you.

FAQ

What are deemed rates for business energy?

Deemed rates are the default prices a supplier charges when a business uses gas or electricity at a site without a signed contract. They usually apply after moving into premises. They are normally much higher than a negotiated contract, so most businesses move off them as soon as possible.

What are British Gas deemed rates now?

From 1 October 2026, British Gas charges 41.95p/kWh plus 214.94p a day for electricity on whole current meters. Gas on sites using under 73,200kWh a year is 13.09p/kWh plus 182.99p a day. Both exclude VAT and Climate Change Levy.

Are business energy deemed rates capped?

No. The Ofgem price cap applies only to household tariffs, so there is no cap on business electricity or gas, including deemed rates. Ofgem does expect suppliers’ deemed terms not to be unduly onerous, but the supplier still sets the price.

What are EDF’s deemed rates for electricity and gas?

From 1 October 2026, EDF’s non-half-hourly deemed electricity is 46.192p/kWh plus a daily charge that depends on your region and charging band, from 404.10p to 1,178.32p a day. EDF’s deemed gas is 15.293p/kWh plus 1,128.04p a day. Prices exclude VAT and Climate Change Levy.

How do I get off deemed rates?

Tell the supplier you have moved in, then compare contracted quotes and agree a contract for your site. You will need your meter numbers and an estimate of yearly usage. Keep paying the deemed bills until the new contract starts.

Is there an exit fee to leave deemed rates?

A deemed contract has no fixed term, so you are not tied in the way you are on a fixed contract. British Gas says you are not tied into a contract on deemed rates. Check with your supplier if you are unsure what applies.

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

Deemed rates usually apply when you start using energy at a site without any contract. Out-of-contract rates apply when a fixed contract finishes and no new one is agreed. Both are usually expensive, and some suppliers publish different prices for each.

Related: Business electricity standing charge UK explains why business standing charges are high and when a zero standing charge tariff can help.