No measurement is perfectly absolute. To correctly evaluate a reading, one must know the error, tolerance, and uncertainty of the measurement system.
Error
It is the difference between the instrument reading and the actual or reference value.
Tolerance
It is the permissible limit within which the deviation is considered acceptable.
Uncertainty
It expresses the range within which the actual value is expected to lie with a specific confidence level.
Practical significance
In commercial metering or energy balancing, even a small systematic deviation can create a significant difference over long periods.

