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Written question asked by Gareth Snell (Labour) on Tuesday, 21 April 2026, in the House of Commons. It was due for an answer on Thursday, 23 April 2026. It was answered by Chris McDonald (Labour) on Wednesday, 29 April 2026 on behalf of the Department for Energy Security and Net Zero.

Business: Energy

Question

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.

Answer

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.

Secondary information

Type
Written question
Reference
128795
Session
2024-26
Transferred
Yes
Subjects
Contracts Business Fees and charges Energy
Link
View this Written question on www.parliament.uk