Back to glossary
Out-of-Contract Rates
Key takeaways
Out-of-contract rates are the prices you pay when your contract ends and your contract already says what happens next.
They’re different from deemed rates, which apply when energy is used without an agreed contract (or the contract doesn’t set out what happens after it ends).
They’re often higher than negotiated deals, so it’s usually worth acting before your end date.
What are out-of-contract rates?
Ofgem describes out-of-contract rates as the rates you pay if your contract says what will happen when it comes to an end, and it highlights they’re different to a deemed contract.
In plain English: your contract expires, you don’t renew or switch in time, and the “next steps” pricing kicks in because it was written into the contract.
Out-of-contract vs deemed rates (why the difference matters)
This matters because the rules and language suppliers use can vary.
- Out-of-contract rates: your contract includes post-end pricing terms.
- Deemed rates: you’re supplied without an agreed contract, or your old contract ends without saying what happens next.
How to avoid out-of-contract rates
- Note your contract end date now.
- Ask your supplier (or broker) for renewal terms early.
- If you’re switching, start the process in good time so you’re not rushed into a poor decision.
