What do volume tolerance and excess or shortfall mean?
A volume tolerance defines a contractually agreed range around a reference volume. Excess and shortfall are deviations from this reference. Their consequences depend on the specific pricing and billing rules.
The reference period, assessment level and calculation method matter. A tolerance per supply point may work differently from one across an entire portfolio. It also matters whether only the volume outside the range or another defined quantity is repriced. There is no universal tolerance range for all contracts.
AT A GLANCE
ReferenceContractual planned volume
TolerancePermitted range
ConsequenceValuation of the deviation
NeoBid’s own overview.
PROPERTY PRACTICE
What does this mean for your portfolio?
Refurbishment, vacancy or a new heat pump may cause demand to differ substantially from forecasts. Compare such scenarios with the offer before signing. Check notification duties, subsequent adjustment options and the valuation of unused or additional energy. Tolerance should reflect how predictable the portfolio actually is.
An example.
Our own calculation example: an agreed reference volume of 1,000 MWh with an illustrative range of 90–110 per cent gives limits of 900 and 1,100 MWh. At 1,150 MWh, 50 MWh lies above the limit. This does not yet determine how that volume is billed.
The ten per cent tolerance is illustrative, not a market rule. The contract determines the financial consequences.
WHAT MATTERS
Three questions for your portfolio.
01
Which reference volume and period apply?
02
Does the tolerance apply per property or across the portfolio?
03
How are deviations valued and reported?
Make the distinction clear ↗
A volume tolerance does not promise that every time period and load profile is covered at the same price. Read volume and profile risks separately.
Sources reviewed: 18 September 2026 · Editorial team: NeoBid
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