TEM Energy Out of Contract Rates – Effective 2025

Thomas McGlynn • 7 February 2025

Avoid High Out of Contract Rates with TEM Energy

A man in a suit and tie is holding a piece of paper.

When your TEM Energy contract ends and you haven’t renewed or switched to a new supplier, you’ll automatically be placed on Out of Contract (OOC) rates. These rates are significantly higher than your previous contracted rates because your energy is no longer sourced through TEM’s renewable energy network (RED)—instead, it is purchased from the wholesale market at variable costs.


To avoid these high rates, it’s essential to renew your contract before your end date. Below, we break down the latest out of contract electricity rates and what they include.

📌 TEM Energy Out of Contract Rates

📊 Out of Contract Electricity Rates

Meter Type Unit Rate (p/kWh) Standing Charge (p/day) Additonal Charges
Non-Half Hourly (NHH) 32.68 £3.54/day Transmission Charges, CCL, Metering Costs
Half-Hourly (HH) 29.00 Site-Specific TNUoS, Capacity Charges, CCL, Excess Usage Fees

Breakdown of Additional Charges:


  • Transmission Network Use of System (TNUoS): Covers maintenance of the national grid.


  • Climate Change Levy (CCL): Government-imposed environmental tax.


  • Capacity Charge (HH Meters Only): Based on your maximum electricity demand.


  • Excess Capacity Charge: If your electricity usage exceeds the agreed limit.



  • Metering Costs: Covering maintenance and administration.

📌 Why Avoid TEM Energy’s Out of Contract Rates?


Staying on TEM Energy's Out of Contract Rates can lead to:


  1. Much Higher Costs – OOC rates are significantly higher than fixed-term contracts.

  2. No Renewable Matching – You are no longer connected to TEM’s RED network for fair, affordable pricing.

  3. Unpredictable Pricing – Charges are based on wholesale energy market fluctuations.

  4. Additional Fees – Industry and government-related fees are passed through, increasing costs.

📌How The Smart Energy Company Can Help


We specialise in helping businesses avoid excessive out-of-contract rates by securing competitive fixed-term agreements.


Here’s how we can assist:


  • Market Comparison – We compare rates from 25+ trusted suppliers to find tailored, cost-effective options.


  • Hassle-Free Switching – We handle the entire process, ensuring a smooth transition.


  • Proactive Management – Avoid rolling onto VBR again—our team monitors your contracts and market conditions.

FAQs About TEM Energy’s Out of Contract Rates

  • ❓ What happens if I don’t renew my contract with TEM Energy?

    If your contract ends and you don’t renew or switch suppliers, you will be placed on out of contract rates. These rates are significantly higher because your energy is now sourced from the wholesale market instead of TEM’s RED renewable network.

  • ❓ How do I know if I am on out of contract rates?

    You can check your latest energy bill or contact TEM Energy directly. If your bill does not show a fixed price agreement, you are likely on out of contract pricing.

  • ❓ Are out of contract rates higher than my previous rates?

    Yes. OOC rates are much higher because:


    • They are not tied to a fixed-term agreement.
    • They reflect wholesale market fluctuations.
    • Additional third-party charges (e.g., network and distribution costs) are passed through.
  • ❓ Can I switch to another supplier while on out of contract rates?

    Yes! You are not locked in—you can switch to another energy supplier at any time. However, delays in switching could mean paying higher rates for longer.

  • ❓ Why are non-half hourly (NHH) rates different from half-hourly (HH) rates?

    Half-hourly meters (HH) have more granular pricing based on actual usage, capacity, and network charges, whereas non-half hourly meters (NHH) typically have fixed pricing structures with a daily standing charge.

  • ❓ What additional charges apply to out of contract rates?

    In addition to the unit rate and standing charge, you may also have:


    • Transmission Network Use of System (TNUoS) Charges – Maintenance of the electricity grid.
    • Capacity Charges – Applied to half-hourly meters based on peak demand.
    • Climate Change Levy (CCL) – Government environmental tax.
    • Excess Capacity Charges – Fees if your usage exceeds your agreed demand.

  • ❓ How can I avoid being charged out of contract rates?

    • Renew before your contract ends to secure a new fixed-term rate.
    • Contact us to negotiate a better deal.
    • Compare rates from alternative suppliers to get a full market comparison
  • ❓ How long do out of contract rates last?

    You will stay on OOC rates until:


    ✔ You renew your contract with TEM Energy.

    ✔ You switch to another supplier.

    ✔ Your business no longer requires energy supply.

📞Take Action Today


Don't let high out-of-contract rates impact your business's bottom line. Contact The Smart Energy Company today for a free, no-obligation quote.


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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