Deemed Tariff Rates

If you’re in the process of moving your business to new premises, you may have come across out of contract (OOC) or deemed tariff rates on your most recent energy bill. These rates apply to gas contracts, and usually come into play when an energy contract expires, or when a business moves to new premises and no suitable arrangements are in place for using energy at the new premises.

Out of contract (OOC) rates apply when;

• An energy contract between the customer and supplier comes to an end, and no new or alternative rate is put in place.
• An energy contract was never entered into by the current occupier and/or owner.

Business energy customers will be charged at the out of contract rate until;

• A new contract is put in place, they move out of the premises.
• Switch to a new supplier.

The default rate for out of contract energy use are more expensive than our rates available under contract, so we’d always recommend contacting us as soon as possible to agree contractual terms. 

The rates that apply to deemed customers include:

• A daily standing charge (£/day) to cover third party distribution charges, metering costs and administration costs.
• An unit rate (pence/KWh) applied to each actual or estimated unit of gas supplied. 
• All prices quoted exclude VAT and CCL. Our deemed rates are subject to change.

Microbusiness Deemed & OOC Rates:

The daily standing charge that we charge a microbusiness for its gas supply while on a deemed & OOC rate will depend on the volume of gas that the business consumes each year. This consumption is known as the annual quantity (AQ) and is measured in kilowatt hours (KWh). Please note that your AQ can change and we’ll always use the most recent AQ to determine deemed & OOC rates. Please contact us to check your AQ should you wish. 

The table below shows the rates for each band of micro business customer.

* this includes a daily administration charge.

If your AQ is higher than 293,071 (the band 5 upper threshold) please contact us for a site-specific daily standing charge.

Non-microbusiness Deemed Rates

* The deemed rates are charged pursuant to circumstances described under the Gas Act 1986 Schedule 2b Paragraph 8.

For more information on Deemed Contracts read our useful information sheet, available on our website at https://www.nationalgas.org.uk Please also see Ofgem for more guidance on deemed contracts, and when these may apply.