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Business energy out of contract UK: deemed rates and how to escape them fast

Out-of-contract business energy rates explained: the premium size, the 28-day escape route, and how to switch in under three weeks.

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Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 19 May 2026
Last reviewed 17 Jun 2026
✓ Fact-checked
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Out-of-contract (deemed) business energy rates apply when a fixed contract expires without a new deal in place. These rates are set by the supplier and are typically 30% to 50% higher than contracted rates. Ofgem's Business Energy Code of Practice requires suppliers to notify micro-businesses before contracts expire and to offer reasonable out-of-contract rates. Switching supplier from an out-of-contract position typically has no exit fees (Ofgem, Business Energy Code of Practice, 2026).

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The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.

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