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What are the options to manage volume tolerance fees on an energy contract?

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Written by jake Asbury-Sabin
Updated this week

What Are the Options to Manage Volume Tolerance Fees on an Energy Contract?

Volume tolerance fees can arise as part of energy contracts when agreed-upon usage thresholds are exceeded. If you encounter such charges, there are three standard ways to address them:

1. Renew Your Contract

You can renew your energy contract for a minimum period of 12 months on any available tariff. If you choose this option, the volume tolerance fee may be waived. This is often a preferred choice for customers looking to continue their services without incurring immediate additional fees.

2. Mid Contract Adjustment

Should you identify that the usage on the account is going to deviate from the agreed threshold with time remaining on the existing contract Jellyfish Energy can look to work with you to adjust your unit rate to offset the potential of a volume tolerance fee being applied.

This is not always applicable and is effected by a number of factors such as:

  • Time remaining on the contract (The longer the better!)

  • Current predicted deviation from the agreed contractual threshold

  • Accuracey of data held on file.

3. Pay the Volume Tolerance Fee

Finally, you may opt to simply pay the calculated volume tolerance fee for exceeding the agreed usage threshold. This choice is straightforward but may lead to higher immediate costs compared to the other options.

Choosing the Right Option

Each option has its own implications, so it is essential to evaluate them based on your specific contract terms, future energy needs, and budgetary considerations. Before making a decision, consulting with Jellyfish Energy's support team can help clarify the costs and benefits of each approach for your particular circumstances.


For more information or tailored advice, reach out to Jellyfish Energy's customer support team.

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