If your business energy bill has crept up and you cannot work out why, there is a good chance you have slipped onto an out-of-contract rate. It is one of the most common reasons businesses overpay, and it almost never happens on purpose.
What an out-of-contract rate actually is
When you sign a fixed business energy contract, you agree a unit rate and a standing charge for a set period. When that period ends, your supply does not stop. Instead, unless you have agreed something new, the supplier moves your account onto a default tariff. That is the out-of-contract rate.
These rates are variable, they can change without much warning, and they are usually a good deal higher than anything you would have agreed yourself.
Why they cost so much more
It comes down to risk. A fixed contract lets the supplier buy energy ahead with some certainty. An out-of-contract arrangement is short-term and flexible, so the supplier carries more risk, and they price that risk into the rate.
The frustrating part is how the numbers stack up. Even a small difference in unit rate, multiplied across every kilowatt hour you use over a year, turns into real money. For a busy site it can run into thousands.
How businesses end up there
Three things tend to combine:
- A missed contract end date. Most owners are running a business, not watching a renewal calendar.
- Unclear communication from the supplier. The notice that your contract is ending can be easy to miss in a busy inbox.
- The hassle factor. Switching feels like effort, so it slides down the list until the bill jumps.
None of that makes you careless. It is just how these contracts are designed, and it catches plenty of sensible people out.
Reviewing is not the same as switching
This is the bit worth holding onto. Checking your contract does not commit you to anything. A review simply tells you what tariff you are actually on and what else is available. You might decide to switch, you might decide to stay. Either way you are making the call with the facts in front of you instead of drifting onto a default rate by accident.
How we handle it
Our process is deliberately simple. You send us a recent bill, we check the whole market, we explain in plain English where you stand and what your options are, you decide, and if you want to move, we sort the switch end to end.
We’re paid by the supplier when you switch, never by you. There is no cost for the review and no pressure to act on it.
When to check
It is worth a look if any of these are true:
- Your contract ended recently and you did not agree a new one
- You genuinely do not know what tariff you are on
- You have not reviewed your energy pricing in the last twelve months
What to do this week
Find your most recent bill and look for a contract end date or a line that mentions a variable or out-of-contract rate. If you spot either, or you simply cannot tell, upload it at /upload-bill/ and we will tell you exactly where you stand, for free, usually the same day.