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Moving business premises is busy enough without an energy bill catching you out, yet that is exactly when firms end up overpaying. Take on a new site and you inherit whatever energy arrangement is in place, which is almost always an expensive default rate. This guide explains how to set up gas and electricity properly when you move, and how to avoid the deemed rate trap.
In short. When you move into new premises you are automatically put on deemed rates, the most expensive there are. Take meter readings on day one, tell the existing supplier you have moved in, then agree a proper contract quickly to stop overpaying.
When you occupy premises with no energy contract of your own, the supplier already serving that meter puts you on a deemed rate. This is the default arrangement for anyone who has not signed a contract, and it exists because the supplier is carrying risk with no agreement in place. Deemed rates are typically the most expensive available, so every day you sit on one, you are overpaying. The clock starts the moment you take on the premises, which is why speed matters.
The first job in any new premises is to read the meters, before you use anything. Note the electricity reading and, if you have gas, the gas reading, along with the date and photos if you can. These readings mark the start of your responsibility, protect you from being billed for the previous occupier's usage, and give a new supplier accurate figures to quote against.
While you are at it, locate your MPAN for electricity and MPRN for gas, the references that identify each supply. You will find them on any bill left at the premises, and a supplier needs them to set up your contract.
Contact the supplier that serves the meters and tell them you are the new occupier, giving your move in date and opening readings. This puts the account in your name from the right date, on deemed rates for now. It sounds counterintuitive to register on an expensive rate, but you must be the recognised account holder before you can agree a proper contract, and it stops old debts or the previous occupier's usage landing on you.
The real saving is getting off deemed rates and onto a contract you have chosen. Because deemed rates are so expensive, this is usually the single biggest energy decision of your move.
1. Gather your details. Your MPAN and MPRN, opening readings, the move in date and your expected usage.
2. Compare quotes for a fixed term that suits you, based on realistic usage for the site.
3. Agree and sign, and the new supplier arranges the switch from deemed rates onto your contract.
✓ Opening meter readings recorded and dated on day one.
✓ The account registered in your business name from the move in date.
✓ A contract agreed quickly to end the deemed rate period.
✓ Realistic usage used for the quote, not a generic estimate.
✗ Assuming the inherited arrangement is fine, when it is almost certainly a default rate.
✗ Delaying the contract for weeks while deemed rates run.
Every day in new premises without a contract is a day on deemed rates, the most expensive energy you can buy. The single best move after taking readings is to agree a proper contract as fast as you reasonably can.
If you are moving into a newly built unit, or one with no existing connection, you may need a new connection or meter installed, which takes longer and involves the local network operator. Start this early, because lead times can be significant, and factor it into your move timeline so you are not left without power on opening day.
Gas and electricity get the attention when you move, but water follows the same logic and is just as easy to overpay on. Read the water meter on day one alongside the energy meters, and tell the water retailer serving the premises that you are the new occupier. Because the business water market is open, you can also choose your retailer rather than accepting whoever was there before, which is worth doing at the same time as your energy contracts while everything is already on your desk. Sorting all three utilities together, at the start, means you begin in your new premises on deals you have chosen rather than the expensive defaults you inherited, and you avoid discovering months later that one of them was quietly costing more than it should.
Because you are on a deemed rate, the default for anyone occupying premises without their own contract. These are typically the most expensive rates, so agree a proper contract quickly.
Take the electricity and, if present, gas meter readings on your move in date, with the date and ideally photos. They mark the start of your responsibility and give suppliers accurate figures.
The unique references for your electricity supply (MPAN) and gas supply (MPRN). You will find them on a bill at the premises, and you need them to set up a contract.
As soon as you register as the occupier and agree a contract, which can often be done within days. The sooner you do, the less you pay on the expensive default rate.
You may need a new connection or meter from the local network operator, which takes longer, so start the process early and build it into your move timeline.