Deemed business rates- what do they mean?
When you move into a property, and there is no legal agreement for electricity or gas charges, then a deemed contract comes handy. The suppliers make their charges outlined on their website as their standard charges.
A deemed contract rate is a fixed rate and is much higher than the rate than the normal contracts you could have signed for. However, the problem of the business deemed contract arises at the fault when you move into a property. Hence, it is advisable to be organized and have the proper knowledge to avoid such unnecessary costs
What is the difference between deemed rates and contract rates?
The energy rate you are charged in a deemed contract is significantly lower than the standard contract rates. The reason behind that is you can’t establish an energy contract until you become a registered tenant. Hence, the suppliers take advantage of you not having the ability to have a contract in place before then.
You need to pay for the electricity and gas charges only after your contract comes to an end or has been terminated until you get a new contract.
How can I be affected by the deemed rates?
After comparing the deemed rates of the suppliers, we found a huge difference in their charges.
We noted that the smaller companies offer the lowest deemed rates to the tenants as NPower deemed rates will be lower as compared to British gas deemed rates because NPower is smaller electricity supplier than the British gas. However, if you find the contracted rates lower than the deemed rates, then it is worth considering the industry’s lower rates.
The research is conducted to mark the difference between the two charges shows the value in calculating the combined cost. One of the energy provider Gazprom is the perfect example of that. When you have a look at their standing charges, you will find it to be the highest, but their unit charge is the lowest among all they work out at one of the lowest rates for gas and electricity supply.
You need to think carefully and be considerate about how quickly you need to decide or act based on the prices as they would depend dramatically on the supplier registered with your new premises.
How to know the amount of electricity or gas I consume?
To know your electricity or gas consumption check the bill’s second left-hand side box, which will provide you the details of the amount of kWh you used during a specific period. This information will help you understand what time of the year you use the most energy and help you curb down the additional usage.
How can I avoid it?
All you need to do is be organized and know everything. Don’t leave it for the last moment after you have moved to the new premises to find out which supplier your property is registered with. If you do so, you will face using unnecessary charges. So, get everything ready before you move into your new house and find the earliest date to sign the contract with the energy provider.
So, be smart and attentive to avoid the payment of unnecessary energy charges.