Drax Out of Contract Rates: Avoid High Costs and Save Today

Thomas McGlynn • 3 December 2024

Avoid High Variable Rates: A Guide to Drax’s Out of Contract Options

If your business’s fixed-term energy contract with Drax has ended and you haven’t renewed or switched to another supplier, you’ll automatically move onto their Variable Rates. These rates, while ensuring continuity of supply, are typically higher than fixed-term tariffs and can change at any time, making them less predictable and more expensive.



In this blog, we’ll break down Drax’s current Variable Rates, explain their implications for your business, and show you how The Smart Energy Company can help you secure a better deal.

What Are Drax's Variable Rates?


Drax applies Variable Rates to customers whose contracts have moved out of the fixed period. These rates include:


  • A Day Rate (p/kWh) applied to all energy consumed.


  • A Standing Charge (p/day) to cover the costs of metering, distribution, and administration.


  • Pass-Through Charges for Half Hourly meters, such as DUoS (Distribution Use of System) and TNUoS (Transmission Network Use of System) fees.


Variable Rates are not fixed and may change at any time. Drax will continue to charge these rates until you either renew your contract or switch to another supplier.


Drax Variable Rates - Effective 1st October 2024

Non-Half-Hourly Meters (Profile Classes 1 - 8)

Rate Type Price
Day Rate 36.78 p/kWh
Standing Charge 300 p/day

Half-Hourly Meters (Profile Class 00)

Rate Type Price
Day Rate 28.76
Standing Charge Passed through at current rates based on meter type.
Additional Charges Metering, DA, DC, HHAC, and Reactive Power costs at actual rates.

The Impact of Drax Variable Rates on Your Business


Remaining on Drax Variable Rates can lead to significant financial and operational challenges:


  • Higher Costs:
  • Rates of 36.78 p/kWh for non-half hourly meters and 28.76 p/kWh for half hourly meters are typically higher than fixed-term rates, increasing your energy bills.


  • Budget Uncertainty:
  • Variable Rates can change without notice, making it difficult to plan and manage your energy budget effectively.


  • Missed Savings:
  • Fixed-term contracts offer more competitive rates and greater cost stability, helping your business save in the long term.

How The Smart Energy Company Can Help


At The Smart Energy Company, we help businesses like yours avoid excessive out of contract rates by securing the best deals in the market.


Here’s how we assist:


  • Comprehensive Market Comparison:
  • We compare rates across 25+ trusted suppliers to find the most competitive options for your business.


  • Seamless Transition:
  • From contract negotiation to supplier switching, we handle everything for you.


  • Cost-Saving Expertise:
  • Our tailored solutions ensure you secure the best rates for your energy usage.


  • Proactive Contract Management:
  • Never risk rolling onto out of contract rates again—our team ensures you’re always on the best plan.

Why You Should Act Quickly


If you’re being charged Out of Contract rates, it’s important to act quickly to minimise costs. By working with The Smart Energy Company, you can secure a better deal through:


  • Full Market Comparison:
  • We compare rates across 25+ trusted suppliers to find the most competitive options for your business.


  • Hassle-Free Switching:
  • We handle all the paperwork and liaise with suppliers to ensure a seamless transition.


  • Tailored Solutions:
  • Our experts help you choose a contract that matches your energy needs and budget.


FAQs About Drax Variable Rates


  • What happens if I do nothing after my Drax contract ends?

    If you don’t renew or switch, your contract will move to Drax’s Variable Rates. These are higher than fixed-term rates and less predictable, as they can change at any time.


  • Can I leave Drax Variable Rates without notice?

    Yes, you can switch suppliers at any time while on Variable Rates without providing notice. However, you’ll need to settle any outstanding balance before switching.

  • What are pass-through charges, and how do they affect my bill?

    Pass-through charges include DUoS, TNUoS, HHAC, and other costs incurred for maintaining the distribution and transmission networks. These charges are applied at cost and vary depending on your meter type and usage.

  • How can I avoid Drax Variable Rates?

    Contact us before your contract ends to explore fixed-term contract options or switch to a supplier offering more competitive rates.

Act Now to Avoid High Variable Rates


Don’t let Drax’s high Variable Rates impact your business’s bottom line. Upload your latest bill today, and let The Smart Energy Company help you find a better deal.


Contact us today for a free, no-obligation quote:


Call us: 0151 459 3388

Email us: info@smart-energy.uk

Get a quote online:

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