Deemed Contract
A default supply arrangement that takes effect when a non-domestic customer occupies premises without an active contract; typically priced well above tendered rates.
A deemed contract is the default supply arrangement that arises automatically under UK energy regulation when a non-domestic customer occupies premises and consumes electricity or gas without an active contract in place. The most common trigger is a change of tenancy, lease assignment, or operator handover where the meter is not formally novated and a fresh contract is not signed.
Key features:
- The supplier is the existing supplier on the meter (whoever the predecessor was using).
- Pricing is at the supplier's published deemed rate, which is not capped in the non-domestic market and is routinely well above tendered prices — often two to three times higher.
- The arrangement has no fixed term; the customer can sign a new contract with any supplier and exit at any time.
The most consequential point in any non-domestic utility procurement is the prompt termination of any deemed period through formal change-of-tenancy and a fresh contract signature. Where deemed billing has run for an extended period before discovery, the back-billing rules and microbusiness protections may limit how much the supplier can recover, but the protections only apply where they are formally asserted. Establishing the deemed-rate position is the first item of any audit on a recently acquired site.
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Rollover Contract
A renewal contract that takes effect automatically at the end of an initial fixed term; subject to specific notification rules under Ofgem licence conditions.
Read definitionBack-Billing
The Standard Licence Condition rule that limits how far back a supplier can charge for previously unbilled energy; typically 12 months for microbusiness and domestic supplies.
Read definitionMicrobusiness
An Ofgem-defined customer category with specific contractual and complaint protections; eligibility set by employee, financial or energy-use thresholds.
Read definitionMeter Point Administration Number
MPANThe 13-digit number that uniquely identifies a UK electricity supply point on the central industry database.
Read definitionMeter Point Reference Number
MPRNThe 6-to-10-digit number that uniquely identifies a UK gas supply point on the central industry database.
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