Business Energy Contracts Explained: Fixed vs Variable, and What to Check Before You Sign
Not all business energy contracts work the same way. Here's the difference between fixed and variable rates, and the terms worth reading…
Read moreAugust 24, 2026
If your business gas contract has quietly rolled past its end date, you’re probably now on what’s called a deemed or out-of-contract rate — and it’s almost certainly costing you more than you realise.
Most fixed-term business gas contracts include a renewal window, typically opening one to six months before the contract ends, during which you can agree new terms or switch supplier. Miss it, and most suppliers automatically move you onto a default rate the moment your fixed term expires.
These default rates are not price-capped the way domestic energy is, and they’re often two to three times higher than a negotiated business rate. The frustrating part is that this happens silently — there’s no dramatic bill spike notification, just a steadily worse deal that’s easy to miss if nobody’s watching the renewal date.
The good news is that being on an out-of-contract rate doesn’t lock you in — if anything, it’s usually easier and faster to switch away from a deemed rate than mid-way through a fixed term, since there’s no early exit consideration to negotiate.
Start by checking your most recent bill for the rate you’re currently being charged, then get a market comparison. In most cases, moving to a new fixed contract will bring your rate down significantly, often within a few weeks of starting the process.
The simplest fix is having someone track your renewal date for you. We flag every client’s contract end date well ahead of time and come back with a market comparison before the window closes — so a rollover onto a deemed rate simply doesn’t happen on our watch.
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