Power Platform Community Forum Thread Details

We are experiencing usage limit errors for users with baseline Microsoft 365 licenses (non-Copilot USL) when interacting with Copilot Studio agents deployed to Microsoft Teams.

Error message received:
"This agent is currently unavailable. It has reached its usage limit. Please try again later."

Environment details:
- Billing configuration: Pay-as-you-go meter linked to Azure subscription
- Full M365 Copilot licensed users: No errors observed
- Baseline M365 users: Errors occurring, appears to be quota-related
- Azure consumption to date: Approximately $11

Our questions:
1. Does the pay-as-you-go meter provide quota relief for baseline M365 users interacting with agents, or does a separate prepaid Copilot Credit pack purchase affect the quota tier?
2. The April 2026 Copilot Studio Licensing Guide states pay-as-you-go provides "no interruptions due to overages" — does this apply to generative AI message quotas, or only to capacity overages?
3. What is the correct resolution for baseline M365 users hitting usage limits in a pay-as-you-go environment?

Please advise on the correct licensing configuration to resolve these errors.

Thank you

Categories:

Building Copilot Studio chatbots in Microsoft Teams

Hi AB-21041809-0

Thank you for the detailed information — this helps narrow things down.

To address your questions:

1. Does pay-as-you-go provide quota relief for baseline M365 users?

Yes, pay-as-you-go (PAYG) is designed to handle overages for baseline M365 users. However, PAYG must be correctly configured at the environment level in Copilot Studio, not just linked at the Azure subscription level. Please verify:

In the Power Platform Admin Center, navigate to Billing > Licenses > your environment.
Confirm that the PAYG meter is actively linked to the specific environment where your agents are deployed.
Check that the billing policy is applied to that environment.

If the PAYG meter is linked to Azure but not correctly associated with the Power Platform environment, baseline users will still hit the default quota limits.

2. Does "no interruptions due to overages" apply to generative AI message quotas?

The "no interruptions" guarantee in the April 2026 licensing guide applies to message capacity overages — meaning once the included quota is exhausted, consumption continues via PAYG billing rather than blocking users. This should cover generative AI messages for baseline M365 users.

However, this only works if:

The environment is correctly linked to the PAYG billing policy.
The Azure subscription has sufficient credit/spend limit available.

Given your Azure consumption is only ~$11, it's unlikely to be a spend cap issue, which points back to a misconfiguration of the PAYG billing policy at the environment level.

3. Correct resolution steps:

Verify the PAYG billing policy is linked to the correct Power Platform environment in the Admin Center.
Confirm the agents are deployed in that same environment.
If already configured correctly, raise a support ticket with Microsoft including your Azure subscription ID and environment ID so they can verify meter association on the backend.