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Business Energy Deemed Tariffs: What You Should Know

by edutechbuddy
Energy Deemed Tariffs

If an energy supplier puts you on a deemed tariff, then you need to switch business energy suppliers. A deemed energy tariff refers to a standard energy tariff that an energy supplier can place your business on when you decide to move into a new business premise without transferring the old energy plan or arranging a new energy deal in advance.

There are many other reasons why a business energy supplier can place your business on a deemed energy deal. This article discusses business energy deemed tariffs. 

A deemed energy tariff

As explained earlier, a business energy supplier can decide to place you on a deemed energy tariff contract for several reasons. One of them is if you have recently relocated your business premises and start utilizing electricity and gas without agreeing a new energy contract with the energy supplier in advance. The current energy supplier of the premises can place your business on this deemed rate contract.

energy tariff

Another reason an energy supplier can place you on a deemed energy contract is if you keep on utilizing energy after the expiry of your current energy contract. This may be because the energy deal came to an end or because you or the energy supplier terminated the contract.

If your energy contract fails to explain the energy rate you need to pay after it expires, there are good chances that the energy supplier can switch you to a deemed tariff. Because most business energy suppliers don’t provide dual fuel options, you may get a deemed electricity tariff and a gas deemed tariff once you relocate to a new business premise.

The good news is that switching to a deemed energy tariff can mean that you can still have an energy supply. Unfortunately, the deemed tariffs can be the most expensive ones on the market. This is why you should use Utility Bidder to help you switch to better energy deals right away.

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The things you should do when you are placed on a deemed tariff

If your energy supplier puts you on a deemed energy tariff, then the supplier needs to give you a copy of the energy contract or you can ask for it. The energy supplier has to make sure that they outline the major terms of the energy deal. Besides this, the energy supplier should offer you a breakdown of the fees and charges. 

deemed tariff

Also, the energy suppliers must ensure that they tell you about the other energy deals they can offer you, and make sure that the terms of their deemed tariff are properly and clearly explained. Another good thing is that the energy supplier cannot tie you to a deemed energy tariff as what happens with the formal contracts.

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This means that you can decide to terminate the energy contract at any time. If you do this, then you can move to a new business energy supplier and you won’t incur any penalties. If an energy supplier puts you on deeming rates, they can’t use a contract that you signed to stop you from switching energy suppliers.

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