Moving into a new home in the UK often brings a flurry of tasks, and sorting out your energy supply might not be top of the list. However, many new movers unknowingly find themselves on a "deemed contract" - an energy tariff that can quickly become an expensive oversight. Understanding what these contracts are, why they apply, and how to switch away from them is crucial for managing your household budget.
If you have just moved into a new property and found yourself on a deemed energy contract, switching to a more competitive tariff can save you money. Fuse Energy offers transparent tariffs and a straightforward switching process. Click here to get a quote and start your switch today.
A deemed energy contract is an energy supply agreement that automatically applies when you start using gas or electricity at a property without actively agreeing to a new tariff. It is a legal mechanism to ensure continuous energy supply, preventing any interruption when a property changes hands. You do not sign anything for it to apply; it simply kicks in by default when energy is consumed at a premises without a formal agreement in place.
Deemed contracts typically arise in two main scenarios:
Moving into a new property
When you move into a new home, you automatically become a customer of the existing energy supplier at that address. Until you actively choose a new supplier or tariff, you will be placed on their deemed contract. This ensures you have an uninterrupted energy supply from day one.
End of a fixed-term contract
If your fixed-term energy contract with a supplier ends, and you do not switch to a new deal or renew with your current supplier, you will usually be rolled onto their deemed contract (often referred to as a Standard Variable Tariff).
Deemed contracts are typically the most expensive tariffs available, often reflecting the supplier's standard variable rate (SVR) or a default tariff. This is because they are not designed to be competitive; rather, they serve as a safety net to ensure continuous supply. Suppliers have no incentive to offer attractive rates to customers who have not actively engaged with them, making these tariffs costly.
If you have recently moved or your fixed-term contract has ended, you are likely on a deemed contract. Here is how to confirm your supplier and tariff:
- Check your meter or previous bills: The supplier's name is usually on these.
- Contact the landlord or estate agent: They should be able to tell you who the previous supplier was.
- Use online tools to identify your supplier:
- For electricity, use National Grid's "What's My Supplier?" tool, which allows you to find your electricity supplier by postcode.
- For gas, use the "Find My Supplier" service, run by Xoserve, to identify your gas supplier.
Once you know your supplier, contact them to confirm your tariff details.
The good news is that you are not tied into a deemed contract. You can switch away from it at any time, usually without incurring exit fees.
Gather your information
Before comparing tariffs, have the following ready:
- Your current energy usage (from a recent bill or estimate).
- Your postcode.
- Your current tariff name (if known).
Compare tariffs
Use an Ofgem-accredited comparison website to compare tariffs from different suppliers. Look for deals that match your usage patterns and offer better rates than your current deemed contract.
Switch to a better deal
Once you have found a suitable tariff, you can initiate the switch. The new supplier will handle the entire process, which typically takes up to 5 working days. If your switch is delayed beyond this, you may be entitled to £40 in compensation. The 14-day cooling-off period, during which you can cancel your new energy contract, runs in parallel and does not delay your switch.
Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. If you do not have a smart meter, Fuse Energy can upgrade your non-smart meter, completely for free. This can make it easier to track spending and make informed decisions about your energy use. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.
