What Is a Deemed Contract with an Energy Supplier

A deemed contract with an energy supplier is a type of contract that comes into effect when a customer moves into a property that is already supplied by a utility company, but he or she does not sign a new energy contract. Default contracts, also known as deemed contracts, often result in customers being charged higher rates for their gas and electricity than those on fixed-rate contracts.

Deemed contracts can also occur when a customer`s supplier goes out of business or when a customer is transferred from one supplier to another without his or her consent. This can happen when a customer`s supplier fails to notify them of expiring energy contracts or renewals.

It is important to note that the terms of deemed energy contracts are set by the supplier and are often more expensive than standard energy tariffs. Customers who are on deemed contracts should be aware of their rights and obligations under the contract.

To avoid the automatic switch to a deemed contract, customers should inform their new supplier as soon as they move in and sign up for a new contract as quickly as possible. If a customer finds themselves on a deemed contract, they should contact their supplier to negotiate a better deal or move to a different supplier.

In conclusion, deemed contracts can be a costly outcome for energy customers who do not take the necessary steps to sign up for a new energy contract. It is important for customers to be aware of these contracts, their terms, and their options for avoiding them. By doing so, they can ensure that they are getting the best energy rates possible and can avoid paying unnecessary expenses for their gas and electricity supplies.