Get a real electricity and gas contract
The moment you take on the premises, the incumbent supplier puts you on a "deemed" or out-of-contract rate — often the previous occupier’s supplier, at a much higher unit price than a negotiated contract.
The moment you take on the premises, the incumbent supplier puts you on a "deemed" or out-of-contract rate — often the previous occupier’s supplier, at a much higher unit price than a negotiated contract. You need to identify who is currently supplying the site, then either switch supplier or agree a fixed-term business contract before those deemed rates eat into your margin.
Deemed rates can run at double a fixed contract’s unit price with no notice period protecting you. Left unmanaged for a few months, this is one of the most common silent margin-killers in a new venue’s first year.
Covers deemed rates, using a broker, and your rights as a microbusiness.
Who this is for
Every venue taking on a new or existing commercial unit.
If you use under 100,000 kWh of electricity or 293,000 kWh of gas a year, or have fewer than 10 staff and turnover under about £1.7m, you count as a microbusiness and get extra Ofgem protections (clearer contract terms, shorter notice periods).
What you’ll hold
- New contract confirmation with start date, unit rates and standing charges
Watch out for
- Not checking the meter point (MPAN/MPRN) actually belongs to your unit — shared or mislabelled meters are common in converted buildings.
- Signing a long fixed term through a broker without checking their commission is disclosed, as required for microbusinesses.
- Leaving the switch until opening week, so you trade the first month or two on the expensive deemed rate.
Sources
- Ofgem — Guidance for microbusinesses checked 2026-09-02
- Ofgem — Energy advice for businesses checked 2026-09-02
See also
- Sort out broadband and phone
- Energy contract end date— this becomes an ongoing job once you’re open →
This is item 22 of 66 in the free UK Launch Checklist. See the whole list →