Introduction
Many UK businesses unknowingly pay inflated energy bills because they miss renewal deadlines. The result? They get placed on out-of-contract (OOC) or deemed rates — some of the most expensive tariffs on the market.

What Are Out-of-Contract Rates?
When a contract ends without a renewal or switch, suppliers automatically move the business to default rates. These are intended as temporary measures but are significantly higher than market rates.

Why They’re So Expensive
Suppliers use OOC rates to cover risk, as they have no guarantee of how long a business will stay. These tariffs can be 50–80% higher than fixed contracts.

The Impact on Businesses
For SMEs with tight margins, rolling onto OOC rates can cost thousands annually. For energy-intensive industries, it can run into six-figure losses.

How to Avoid Them

• Track renewal dates carefully.

• Review market options 6–12 months before expiry.

• Work with a broker who manages timelines and ensures continuity.

Conclusion
Out-of-contract rates are avoidable. With proactive management, businesses can protect themselves from unnecessary costs.