Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the prevalence of deemed rates being charged to businesses without fixed-term energy contracts.

Ofgem data, as of 31 March, shows that around 10–12% of businesses are on deemed contracts: Managing business energy costs in an uncertain market | Ofgem.

Under Ofgem’s regulations suppliers must take all reasonable steps to ensure the terms of deemed contracts are not “unduly onerous”, including where revenue derived from deemed contracts significantly exceeds the supplier’s costs.

The Government is working closely with Ofgem on reforms to strengthen protections and transparency in the non-domestic energy market, including the role of intermediaries. Businesses should check contract end dates, discuss renewal terms early, and compare offers to avoid being placed on out-of-contract rates, and secure good value contracts.