Understanding Deemed and Out-of-Contract Rates with D-ENERGi
When it comes to energy rates, there’s often a difference between deemed rates and out-of-contract rates. Typically, deemed rates apply when a business moves into a new property without an agreed energy contract, while out-of-contract rates are applied when an existing contract ends without renewal.
However, with D-ENERGi, the rates remain the same whether you find yourself in a new property without a contract or if your previous agreement has expired. This means that regardless of the situation, your business will be placed on the same rates if no new contract is in place.
From October 2024, these rates have been updated, and it’s important for businesses to understand the potential impact on their costs.
D-ENERGi Deemed and Out-of-Contract Rates for October 2024
Energy Type | Rate (p/kWh) | Notes |
Gas | 14.08 p/kWh | Plus a standing charge of £3.99/day, which may vary depending on site-specific factors. |
Electricity NHH | 48.79 p/kWh | Non-Half Hourly rates. Includes an additional daily charge based on site specifics. |
Electricity HH | 48.79 p/kWh | Half-Hourly rates. Subject to site-specific daily charges. |
Note: These rates are applicable as of October 2024 and remain in place until a new contract is agreed. Rates exclude VAT and are subject to the prevailing Climate Change Levy (CCL).
Why Deemed and Out-of-Contract Rates Matter for Your Business
Being placed on deemed or out-of-contract rates means that you’re likely paying higher prices than you would under a fixed-term contract. While these rates are intended to be temporary, businesses that remain on them for extended periods could face significantly increased energy bills.
Here’s what you need to consider:
Higher Costs: Deemed and out-of-contract rates are generally higher because they account for the increased risk to the supplier when no formal agreement is in place.
No Price Stability: Unlike fixed-term contracts, deemed rates can change with market conditions, leaving your business vulnerable to sudden price increases.
Impact on Budgeting: Higher and variable rates can make it challenging to budget for energy expenses, impacting your bottom line.
How to Avoid Paying Higher Rates with D-ENERGi
At Smart Energy Company, we understand that no business wants to pay more than necessary for their energy. If you find yourself on D-ENERGi’s deemed or out-of-contract rates, we can help you explore more cost-effective options.
Our Services Include:
Tailored Quotes: We work with over 20 trusted suppliers to find the best rate for your business, including those from D-ENERGi.
Expert Guidance: Our account managers will walk you through the process, ensuring you understand your options and the market conditions.
Simple Process: Just provide your latest energy bill, and we’ll handle the rest, helping you secure the most competitive rates available.
Why It’s Important to Act Quickly
The longer your business remains on D-ENERGi’s deemed or out-of-contract rates, the higher the potential costs. Even with a rate of 14.08 p/kWh for gas or 48.79 p/kWh for electricity, these rates are significantly higher—potentially more than double the current market averages. This difference can have a big impact on your energy expenses, especially when combined with the additional daily standing charges.
Locking in a fixed-term contract not only provides price stability but can also save your business from unexpected price hikes. By switching to a competitive rate, you can reduce your costs substantially. At Smart Energy Company, we provide the insights and support needed to make an informed decision that best fits your business’s needs.
Final Thoughts: Is Staying on D-ENERGi’s Deemed Rates the Right Choice for Your Business?
While D-ENERGi’s deemed and out-of-contract rates offer flexibility in the absence of a new contract, they often come at a higher price. Understanding the difference between these temporary rates and a fixed-term agreement can make a big difference in your energy budget.
Let Smart Energy Company guide you through the process of finding a more cost-effective solution, whether that means staying with D-ENERGi or exploring options from other suppliers.
0151 459 3388 | info@smart-energy.uk
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