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Bandwidth: Bandwidth refers to a range of energy usage, such as +/- 10% of the contract volume. Bandwidth allows a price to remain fixed even if the usage varies from the historic consumption. Bandwidth shifts price risk to the supplier but increases the cost of the fixed price contract. A contract without a bandwidth provision would have any energy usage under or over the monthly contract volume reconciled, at the current market price. Under-usage creates a credit to the customer, while over-usage results in an additional charge. This reply is a service of Beacon Energy Soloutions....your energy guide.

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2w ago

Bandwidth in energy sales contracts refers to the range within which the actual energy usage of a customer is allowed to fluctuate without incurring penalties. It helps protect customers from additional charges for minor variations in energy consumption.

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