Drax Out of Contract Rates: What Your Business Could Pay
⚡ What Happens If You Go Out of Contract with Drax?

When your fixed-term energy contract ends and you haven’t agreed a new deal or switched supplier, Drax will automatically move you onto their Out of Contract (OOC) rates — and they’re not pretty.
These rates are significantly higher than fixed tariffs and can change at any time. Drax will notify you of any changes, but until you take action, you’ll be paying elevated rates that could seriously impact your bottom line.
📉 Drax’s Out of Contract Rates (from 1st July 2025)
Profile Class | Day Rate (p/kWh) | Standing Charge (p/day) | Notes |
---|---|---|---|
1-4 (Standard Meters) | 36.57 | 200 | All units charged at Day Rate |
5-8 (Max Demand Meters) | 26.57 | 200 | Same as above |
00 (Half Hourly) | 32.00 | Varies | Additional charges for metering, data services, reactive power, and network costs |
⚠️ These rates are not fixed and may change at any time. Drax will notify you if they do — but until you agree a new contract, you’ll be paying these elevated rates.
💸 What Does That Mean for Your Business?
Let’s say your business uses 10,000 kWh per month on a Profile Class 3 meter. At 36.57p/kWh, that’s:
- £3,657/month in energy charges
- Plus £200/month in standing charges
- Total: £3,857/month — before VAT and other pass-through costs
Compare that to a fixed contract, which could be
40–60% lower, depending on your usage, location, and meter type.
🧭 Why Fixed Contracts Are Smarter
Fixed rates change daily and vary by region, meter type, and consumption. That’s why we don’t publish generic prices — we tailor every quote to your business.
At The Smart Energy Company, we:
- Monitor the market in real time
- Compare rates from 20+ suppliers
- Negotiate directly to secure the best available deal
- Handle the switch for you — with zero disruption
FAQs About Drax Variable Rates
What happens if I do nothing after my Drax contract ends?
If you don’t renew or switch, your contract will move to Drax’s Variable Rates. These are higher than fixed-term rates and less predictable, as they can change at any time.
Can I leave Drax Variable Rates without notice?
Yes, you can switch suppliers at any time while on Variable Rates without providing notice. However, you’ll need to settle any outstanding balance before switching.
What are pass-through charges, and how do they affect my bill?
Pass-through charges include DUoS, TNUoS, HHAC, and other costs incurred for maintaining the distribution and transmission networks. These charges are applied at cost and vary depending on your meter type and usage.
How can I avoid Drax Variable Rates?
Contact us before your contract ends to explore fixed-term contract options or switch to a supplier offering more competitive rates.
🤖 Meet Wattson — Your Smart Quote Assistant

Because energy pricing is complex, we’ve made getting a quote simple.
Chat with Wattson, our AI-powered assistant, to:
- Get a tailored quote based on your usage, location, and meter type
- See how much you could save compared to Drax’s out-of-contract rates
- Ask questions and get instant answers — no jargon, no pressure
💬 Click here to Chat with Wattson and take control of your energy costs in under 2 minutes.
✅ Don’t Pay Drax’s Out-of-Contract Rates
If you’re out of contract — or approaching the end of your term — now’s the time to act.
Get a free, no-obligation quote today.
We’ll benchmark your current rate, show you what’s possible, and help you lock in a fixed price that protects your bottom line.
Explore More Insights
Dive into more energy updates, market reports, and supplier insights tailored for your business