Out-of-contract energy cost calculator

Why out-of-contract rates cost more

When a fixed business energy contract ends and you haven't agreed a new one, or the supplier hasn't rolled you onto a new fixed term, you usually move onto the supplier's out-of-contract rates. If you move into premises and use energy without agreeing a contract, you're on a deemed contract. Both are typically priced well above negotiated fixed contracts, with higher standing charges too, because the supplier hasn't bought energy ahead for you.

How to read the result

The calculator spreads your annual usage evenly across the months you enter and compares the out-of-contract unit rate and standing charge with a contract quote. It shows costs before the Climate Change Levy and VAT, which apply to both options in the same way. Find your current rates on your latest bill or your supplier's out-of-contract or deemed tariff page.

What you can do

• You can usually leave without a fee. Ofgem rules mean suppliers can't charge you a termination fee for leaving an out-of-contract or deemed arrangement.
• Ask your current supplier for a contract quote as well as comparing others — sometimes the fastest fix is a new fixed deal with the supplier you already have.
• Check your meter details. You will need your MPAN (electricity) or MPRN (gas) and recent usage for accurate quotes.

For the full picture, read business energy contracts and moving premises and deemed contracts.

Rollovers and renewals

Not every expired contract ends up on out-of-contract rates. Some suppliers roll a business onto a new fixed term if you don't respond to a renewal letter. For microbusinesses, Ofgem rules limit a rollover to 12 months and require the supplier to send renewal terms first, but the rolled-over price is rarely the best available. Put your contract end date in the diary and start comparing a few months before it.