British Gas Business puts you on deemed rates if you use its energy without a plan, for example after moving in. If instead your fixed contract ends without a new one, British Gas usually moves you onto a Variable Price Plan. Neither has a fixed term, and British Gas says deemed rates are usually higher than its contract plans.
British Gas deemed and out-of-contract rates
What British Gas calls them: out-of-contract plans, which come in two types:
- Deemed rates, which may apply if you've moved into premises it supplies and haven't agreed a plan. British Gas says they have "no fixed term" and that you're "not tied into a contract".
- Variable Price Plans, which British Gas usually moves you onto if your fixed-term contract has ended and you haven't agreed a new one. It says it only uses Standard Variable Rates in exceptional circumstances.
Where British Gas publishes its rates: on its deemed rates page (opens in a new tab), which links to its business electricity and business gas deemed rates. Variable Price Plans are covered on its out-of-contract plans page (opens in a new tab).
British Gas Lite customers: the British Gas Lite website now takes you to British Gas's own site, which lists Lite as an online-only, fixed-price product. If your bill says British Gas Lite and you think you're out of contract, ask British Gas which rates you're on.
How to move off them: British Gas says you can "switch to a fixed energy plan at any time". You can ask British Gas for a quote, or get quotes from other suppliers. If you've just moved in, tell British Gas about the move first so your account is set up correctly.
Are you on them?
Have a look at your latest bill. You're probably on deemed or out-of-contract rates if:
- it says "deemed", "out of contract", "variable" or "default";
- it shows no contract end date, or one that has passed;
- you moved into the premises and never agreed a contract;
- your rates went up sharply around the date your contract was due to end.
Our guide to deemed and out-of-contract rates explains the difference between the two, and your rights.
On British Gas deemed or out-of-contract rates? Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation. You don't need a bill to start.
What the rules say
Ofgem, the energy regulator, requires suppliers to take all reasonable steps to make sure their deemed contract terms aren't "unduly onerous", and to keep their deemed rates easy to find. Deemed rates can still cost more than a contract, because your supplier can't buy your energy in advance.
There's no fixed term on deemed rates, so you can move onto a contract whenever you're ready. If you're a microbusiness on out-of-contract rates, you don't have to give notice or pay a termination fee to leave them. Larger businesses should check their old contract for a notice period. For a microbusiness on a rolling (evergreen) contract, the notice can't be longer than 30 days.
You can usually move onto a new contract at any time, so it's worth comparing business electricity and gas prices.
Ready to get off deemed rates? Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation. You don't need a bill to start.
Questions about British Gas deemed rates
What are British Gas out-of-contract rates?
British Gas calls them out-of-contract plans. If your fixed-term contract ends without a new one, it usually moves you onto its Variable Price Plan, and only uses Standard Variable Rates in exceptional circumstances. If you've moved in and haven't agreed a plan, deemed rates may apply instead.
Are British Gas deemed rates higher than a contract?
British Gas says they're usually higher than its agreed contract plans. Deemed rates are designed to keep your supply running until you choose a plan.
What's the difference between British Gas deemed rates and a Variable Price Plan?
Deemed rates may apply when you've moved in and haven't agreed a plan for the premises, whereas British Gas usually moves you onto a Variable Price Plan when your fixed-term contract has ended without a new one.
Can I switch supplier while I'm on deemed rates?
Yes. Deemed rates have no fixed term, so you can agree a contract with your current supplier or switch to another one. You'll stay on deemed rates until the switch goes through, which can take a few weeks.
Are deemed rates the same as out-of-contract rates?
Not always. Deemed rates apply when you use energy with no contract in place, such as after moving in, while out-of-contract rates apply when your contract ends without a new one. Some suppliers charge the same for both.
Sources
- British Gas, deemed rates page (opens in a new tab)
- British Gas, out-of-contract plans page (opens in a new tab)
- British Gas, British Gas Lite page (opens in a new tab)
- British Gas, Variable Price Plans page (opens in a new tab)
- Ofgem, guidance on deemed contracts
- Ofgem, get a business energy contract
- Ofgem, electricity supply standard licence conditions: condition 7A, including leaving out-of-contract rates without notice or a termination fee (7A.13B).
Energybench isn't connected with British Gas. This page is based on British Gas' own published information and Ofgem's rules.