Thomas McGlynn • 19 November 2025

Npower: Out of Contract (Default) Rates - October 2025 Update

Npower Out of Contract Rates - Business Energy 2025
πŸ’Ό Default & Deemed Rates | Variable Pricing

Npower Out of Contract Rates October 2025

Default and deemed charges explained

When your Npower contract expires, you'll move to their Default or Deemed rates depending on your circumstances. Default rates apply to most businesses, while Deemed rates are for specific situations. Both rate types are higher than competitive market rates.

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πŸ“Š Complex Structure
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Npower Default vs Deemed Rates

Default rates apply when your fixed contract expires and you haven't switched - these are Npower's standard out-of-contract rates. Deemed rates are slightly lower emergency rates for specific circumstances like failed supplier transfers or billing disputes. Both are significantly more expensive than competitive fixed-rate contracts available in the market.

⚑ Current Npower Out of Contract Rates

πŸ“… Current Rates — Effective from 1st October 2025

⚠️ Default Rates - Premium Pricing

These are Npower's penalty rates applied when contracts expire. Default rates are significantly more expensive than Deemed rates and are designed to encourage businesses to sign new contracts or switch suppliers.

πŸ”₯ Gas Default Rates (Non-Microbusiness)

Band Annual Consumption Unit Rate Standing Charge vs Deemed
Band 1 0 - 73,200 kWh 18.418p per kWh £1.246 per day +5.00p/kWh
Band 2 73,201 - 732,000 kWh 17.005p per kWh £7.739 per day +5.00p/kWh
Band 3 >732,000 kWh 16.824p per kWh £26.079 per day +5.00p/kWh

⚑ Electricity Default Rates (Non-Microbusiness)

Non Half-Hourly
Meter Type Unit Rate Standing Charge Notes
All Time Units 41.621p per kWh £2.5976 per day Includes all network charges, levies & MOP/DA/DC costs
Half-Hourly (Time-of-Use Pricing)
Time Period Unit Rate Range Standing Charge Capacity Charge
Night (00:30 - 07:30) 38.511-39.545p per kWh £18.26-23.06 per day 7.493-7.797p per kVA/day
Non-Business Day 45.768-47.102p per kWh
Nov-Mar Business Day 53.502-55.163p per kWh
Apr-Oct Business Day 42.750-43.953p per kWh

All rates exclude CCL and VAT. Half-Hourly rates include all network charges, levies, and system costs but exclude MOP/DA/DC charges. Microbusiness rates are slightly higher for some bands.

Download Complete Rate Schedules

Get the full Npower rate schedules including all bands, voltage levels, and microbusiness rates.

πŸ“₯ Gas Deemed & Default Rates πŸ“₯ Electricity Default Rates

πŸ“‹ Key Takeaways

  • Default rates are significantly higher — Gas default rates are about 5p/kWh more than deemed rates
  • Complex time-of-use pricing — Half-hourly electricity rates vary dramatically by time and season
  • High standing charges for large gas users — Band 3 customers pay over £260/day in standing charges
  • All-inclusive electricity rates — NHH rates include all network charges and levies (except CCL)
  • No price protection — Rates can change, leaving businesses exposed to market volatility

Premium Pricing Alert

Npower's Default rates are designed to be expensive - they're penalty rates to encourage businesses to sign new contracts or switch suppliers. Gas default rates are about 37% higher than deemed rates, and electricity rates at 41.621p/kWh are well above current market levels. Most businesses can save significantly by switching to competitive fixed-rate contracts.

πŸ’° Calculate Your Npower Out of Contract Costs

Estimate your annual cost on Npower's Default rates. We'll calculate based on the appropriate gas band or electricity meter type. Includes all levies and VAT.

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πŸ‘† Enter your consumption above to calculate

πŸš€ What You Should Do Next

1

Check Your Current Rate Type

Contact Npower to confirm whether you're on Default or Deemed rates. Default rates are significantly more expensive.

2

Calculate Total Annual Cost

Factor in all charges including the high standing charges for gas customers. Band 3 gas customers face over £9,500 annually in standing charges alone.

3

Compare Market Alternatives

Get quotes from competitive suppliers. Fixed-rate contracts often provide significant savings compared to Npower's variable out-of-contract rates.

4

Switch Without Penalties

Being on out-of-contract rates means no exit fees. You can switch immediately to secure better rates and price certainty.

Don't Pay Premium Prices

Npower's Default rates are designed to be expensive. Compare your options and see how much you could save with competitive fixed-rate contracts.

❓ Frequently Asked Questions

What's the difference between Npower's Default and Deemed rates?

Default rates apply when your contract expires and are Npower's standard out-of-contract charges. Deemed rates are emergency rates for specific circumstances like failed switches or billing disputes. Default rates are significantly higher - for gas, they're about 5p/kWh more expensive than deemed rates. Both are much higher than competitive market rates.

Why are Npower's gas standing charges so high for large users?

Npower uses a tiered structure where Band 3 gas customers (>732,000 kWh annually) pay £26.079 per day in standing charges - that's over £9,500 per year in fixed daily costs alone. This structure makes Npower particularly expensive for high-consumption businesses and is why many large gas users switch to suppliers with more reasonable standing charge structures.

Are Npower's electricity rates all-inclusive?

For Non Half-Hourly electricity, yes - the 41.621p/kWh rate includes network charges (DUoS/TNUoS), environmental levies (RO/FIT/CfD), and meter services (MOP/DA/DC). Only CCL and VAT are additional. Half-Hourly rates also include most charges but exclude MOP/DA/DC services which are billed separately.

Can I switch suppliers while on Npower's out-of-contract rates?

Yes, being on out-of-contract rates means you're not bound by a fixed-term agreement and can switch suppliers immediately without exit fees or penalties. This flexibility is one of the few advantages of being on these rates. Most businesses find significant savings by switching to competitive fixed-rate contracts.

How do Npower's rates compare to market averages?

Npower's out-of-contract rates are significantly above market averages. Electricity at 41.621p/kWh and gas default rates of 16.824-18.418p/kWh are premium prices designed to encourage customers to switch or renew contracts. Most competitive suppliers offer fixed rates 15-30% lower than these levels.

How much does Smart Energy Company charge for switching services?

Our service is completely free to you. We're paid commission by energy suppliers, which is fully disclosed in your contract. We often access better wholesale rates than suppliers offer to direct customers, meaning you can get lower prices through us even with our commission included. We also handle all the paperwork and switching process for you.

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