Has your businesses moved recently? Did you open up a new location? If so you may be under a deemed contract – when you occur an out of contract rate. A deemed contract can happen for two reasons: 1. When a business relocates to a new building or property, and assumes the supplier either the previous owner was with or goes to the local utility under their terms and rates. 2. When a contract with a supplier expires and they are floating at a higher variable rate. Until a new contract is secured, the customer can be on a deemed rate set forth by the supplier/utility in question.
A deemed contract is not in the best interest of any – rates can be up to 80% higher than a negotiated contract. This can be significant – the first months after moving usage is often higher. Plus, contracts that are ending can end during a high demand season (like summer or winter), when rates are the highest.
The good news? With a deemed contract, there is no obligation to that supplier and you are likely able to shop for a better rate with little to no notice to the incumbent..
Diversegy can help you navigate the entire deemed contract process and secure rates that will benefit your business’ bottom line.