Why are out-of-contract rates more expensive?

Out of contract rates are more expensive because you haven't laid out how long you plan to purchase energy from your supplier. Suppliers buy their supply from wholesalers in advance and use the terms of businesses' contracts to draw up how much they'll need to buy. If suppliers see that half of their customers are on these rates, they will be unsure on how much they need to buy in advance. This is one of the main reasons these rates are more expensive.  We manage our customer energy contracts so they don't fall about of contract.  Out of contract energy rates can be up to 45% more than those on a contract.