What Are Deemed Rates? A Complete Guide for Businesses
If your business has recently moved into a property supplied by Stadia Utilities, or if you are using energy without a signed agreement, you may be on a deemed contract and paying deemed rates.
While deemed contracts ensure your supply remains live, these default tariffs are almost always significantly more expensive than negotiated fixed-term contracts.
What is a Deemed Contract and When Does it Apply?
A deemed contract is a legal agreement created automatically between you and your supplier under specific circumstances where gas or electricity is being consumed at a property, but no formal, written contract has ever been signed.
The most common scenarios for being on deemed rates are:
- New Occupancy (Change of Tenancy): Moving into a new business premises – you start using the energy supplied but have not yet agreed upon a fixed contract with a supplier.
- No Prior Agreement: Your site has been supplied, but a formal contract was never put in place for any reason.
Important Distinction
Deemed rates are designed to be temporary and exist to fulfil our regulatory obligation as a supplier to keep your lights and heating on, but they are not intended to be a long-term solution.
Why Are Deemed Rates More Expensive?
Deemed rates are standard, default tariffs that are set at a higher price than our negotiated contracts for several reasons:
- Higher Supplier Risk: When a customer is on a deemed contract, the supplier has no long-term commitment or guaranteed usage data, meaning the risk and administrative cost to supply that site is higher.
- Uncertainty of Usage: Without a fixed contract, the supplier must purchase energy on the wholesale market to cover your consumption without a predictable volume commitment.
- Third-Party Costs: The rate must cover all associated third-party charges, such as distribution, transmission (TNUoS), and metering costs, often without the benefit of volume discounts.
By operating on a deemed rate contract, this could be costing your business significantly more money every day.
How to Move Off Deemed Rates
You are not locked into a deemed contract, and you are able to switch to a fixed-term contract with Stadia Utilities or any other supplier without giving notice or including termination fees. To begin saving money, the next step is to secure a fixed contract.
To start saving money, your immediate next step is to secure a fixed contract.
Your Action Plan
- Check Your Bill: Review your most recent bill. If you see a reference to ‘Deemed Rates’ or if you have never signed a contract, you are paying the default tariff.
- Contact Our Team: Call the Stadia Utilities team on 0333 0058 853. We can quickly assess your business needs and provide you with a competitive fixed-rate quote.
- Switch and Save: By signing a formal agreement, you will lock in a rate that provides stability, predictability, and substantial savings compared to the costly deemed rates.
Don’t let your business continue paying premium rates. Take control of your energy costs now. We are committed to helping your business secure the most cost-effective solution for your energy needs.
Need to View the Current Rates?
As per our license obligations, Stadia Utilities publishes its full deemed rates, which may include standing charges, unit rates (p/kWh), and capacity charges, on our website.
You can view our Deemed Rates here.
Please note: Published rates are subject to change based on market volatility. The quickest way to secure a stable rate is to sign a fixed-term contract.
