What is a volume tolerance?
When you sign a contract with us, we buy enough energy to fit the predicted amount that you will use. This means you are agreeing to use a certain amount of energy. A volume tolerance is the percentage of energy that you can use that is either under or over this predicted amount, for no extra cost. If your energy use goes above or under this percentage, you will be subjected to a volume tolerance extra bill.
What is Jellyfish Energy’s volume tolerance?
At Jellyfish Energy, we have a volume tolerance of 10% for many of our products. This means that if you use less than 90% or more than 110% of the agreed contracted amount of energy, you will be subjected to additional charges. These charges will not affect your fixed unit rate - it will appear as a separate bill at the end of the year.
We do also offer products which have varied Volume tolerance thresholds
This policy is applicable to all customers, including micro-businesses, maintaining consistency in fee enforcement across different business types.
Why is volume tolerance necessary?
Volume tolerances are part of business energy contracts. It protects us, as a supplier, from under/ over buying energy.
Volume tolerance fees are designed to ensure customers adhere to their predicted energy usage, promoting a balanced energy supply system. These fees are applied when usage falls outside the agreed range in the contract.
The economic crash in 2009 meant that the predicted amount of energy, bought by suppliers worldwide, was now significantly more than what was needed. This spare energy was very expensive to sell on.
Therefore, the volume tolerances clause was created. This clause means that if your company uses over or under the predicted amount that we buy, we are protected when buying more energy or trading the amount that you have not used.
If you want to know more about volume tolerances please contact our dedicated customer service team. You can either ring them on 0345 222 3030 or email [email protected].
For more detailed information, you can refer to our official resources, including the help article titled Volume Tolerances, and our Business Terms, specifically in the section on "Maximum and Minimum Consumption."