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Global Adjustment

If you pay the market price (called the Hourly Ontario Energy Price) or have signed a retail contract your electricity bill also includes a line for the global adjustment. The global adjustment affects the final commodity price you pay.

The IESO updates information on the Global Adjustment on a monthly basis so that consumers can get an idea of what their final electricity costs may be.

 

What is the Global Adjustment?

The Global Adjustment provides both adequate energy supply and green energy for Ontario. It accounts for differences between the market price and the rates paid to regulated and contracted generators and for conservation and demand management programs. As a result, its value may be positive or negative, depending on the fluctuation of prices in the

spot market.

 

The rate is set to reflect the difference between the market price and:

•  The regulated rates paid to Ontario Power Generation’s nuclear and hydroelectric baseload generating stations;

•  Payments made to suppliers that have been awarded contracts through the Ontario Power Authority such as new

   gas-fired facilities, renewable facilities (like wind farms) and demand response programs; and

•  Contracted rates administered by the Ontario Electricity Financial Corporation paid to existing generators.

 

Who is affected by the Global Adjustment?

This adjustment applies to business customers who pay the spot market price and customers who have signed a contract with a licensed electricity retailer. It appears as a separate line on the bill. For customers who pay the Regulated Price Plan, it is factored into the rate set by the Ontario Energy Board, and does not appear as a separate line item.

 

Does your company have a peak demand of over 5 mw?

If you have been designated a Class A consumer by your local utility or the IESO, more information about how you are charged for the Global Adjustment is found here.

 

Why does the Global Adjustment vary from month to month?

The Global Adjustment increases and decreases in response to changes in spot market prices. When the spot market price

of electricity is lower, the Global Adjustment is higher in order to cover the additional costs of energy contracts and other

regulated generation. It also changes when new projects come into service and the contract payments take effect.

 

What is the Provincial Benefit?

Effective January 1, 2011, consumers that paid the Provincial Benefit will see that term renamed the Global Adjustment due to an amended government regulation. The Provincial Benefit was a line item one electricity bills from January 1, 2005 to December 31, 2010. Monthly rate information from that period is available here.