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Deemed Business Rates

October 12, 2020

When you’re running a business, finding the best energy supplier to meet your gas and electricity requirements is essential. If you’ve just launched your company and moved into new premises, you may find that you’re on a deemed business rate. But what does this mean, and how can it affect your bills?

What Is A Deemed Business Rate?

When you move into new premises with no formal energy arrangement in place you’ll find yourself on a deemed business rate contract. You’ll already be using a gas or electricity supply as soon as you move in, and this will be charged at a standard rate until you switch to another deal. These rates are outlined clearly on the existing provider’s website. As you can imagine, deemed contract rates are higher than those which you’ll agree to when you sign up to a contract. This is why you need to be organised so you can avoid any unnecessary excess costs.

How Is A Deemed Business Rate Different To An Out of Contract Rate?

Although deemed contract rates are higher than most cheap deals that you’ll be able to negotiate for your business they are much cheaper than an out of contract rate. Usually, this is because it isn’t possible to make a contract for your energy supply until you’re the legally registered tenant. You will pay these rates between the time that the contract has been terminated or has come to an end and a new contract has been put in place.

How will this affect your business? In short, it will mean that you’ll pay much higher charges. However, there are differences between the deemed rates charged by different energy suppliers. In many cases, smaller companies actually offer lower deemed rates than their better known competitors and this makes them a more attractive prospect if you’re looking to make a switch.

What Can I Do Next?

It’s important to make sure that you’re organised when it comes to taking action on deemed contract rates. For a start, you shouldn’t leave it too long after you’ve moved into your business premises before you find out which energy provider the property is currently with. Those who wait could end up facing huge and unnecessary charges. Whenever possible, it’s best to try to have everything in place before moving into your premises and to find out how early you’re able to set up your contract so that you can save as much as possible. If you’re smart and organised, you’ll be able to ensure your business saves as much as possible.

If you’re ready to change energy supplier for your business it’s time to contact SwitchPal today. Simply complete your details in our online form and you can start to compare the options open to your company. We’re here to make it quick and easy to get a cheap energy deal and to find the best supplier to suit your business’ needs so get in touch today.

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