Global Adjustment

Consumers who pay the Hourly Ontario Energy Price (HOEP), or have signed a retail contract, will see their electricity bills also include a line for the Global Adjustment. This charge accounts for the differences between the market price and the rates paid to regulated and contracted generators and for conservation and demand management programs.


A Variable Monthly Charge​

The Global Adjustment (GA) covers the cost for providing both adequate generating capacity and conservation programs for Ontario.

The GA is calculated based on the difference between the Hourly Ontario Electricity Price (HOEP) and:
  • Regulated rates to Ontario Power Generation nuclear and baseload hydroelectric generating stations

  • Contracts with the Ontario Power Authority such as new gas-fired facilities, renewable facilities, and nuclear refurbishments

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

It also includes the cost of delivering conservation programs in the province and the payments made to participants under contracts with the OPA for demand response programs.

The Global Adjustment varies from month to month, responding to changes in both the Hourly Ontario Electricity Price (HOEP) and contract terms. Generally speaking, when the HOEP is lower, then the GA is higher in order to cover the additional costs mentioned above. The GA also changes when new projects come into service, contract payments take effect or as a result of ​​changes in demand.

The charge shows on bills in different ways, depending on the type of customer:


Class B​ Market Participants and Customers

Customers with a peak demand over 50 kilowatts and under five megawatts - known as Class B customers - pay the wholesale electricity price and the Global Adjustment rate.

Class B LDC consumers are billed by a local distribution company (LDC) and pay the global adjustment based on either the 1st Estimate, 2nd Estimate or Actual Global Adjustment rate. Which rate they are charged depends largely on their billing cycle and does not affect the overall amount they pay for the Global Adjustment over time.

Class B IESO market participants are charged the Global Adjustment based on the Actual GA rate at the end of each month.

Learn more

Learn more about the difference between the 1st Estimate, 2nd Estimate and Actual Global Adjustment Rates and how they impact your bill.


Retail Contract Class B Customers

For more information on retail contracts, visit the Ontario Energy Board.

Residential and business customers who have a retail contract pay a price for electricity as negotiated with their retailer, plus the Global Adjustment as a separate line item. As with Class B LDC Customers, retail contract customers may see one of the three variations of the Global Adjustment on their bill.


Class A Customers

For the Peak Tracker, base and adjustment period dates, associated coincident peaks, and other tools see Class A customers.

The GA rate for Class A customers (those with an average hourly peak demand of 5MW or higher) varies individually depending on their energy use during coincident peak hours. For example, if an organization is on average responsible for one per cent of electricity demand during the five highest coincident peaks of the year, then their rate represents one per cent of all Global Adjustment costs. This price structure has worked to reduce summer peaks by at least 800 MW - a result of these consumers reducing their peak energy use in order to lower costs.

Class A eligibility has recently expanded to include customers with a peak demand greater than 3 MW but less than or equal to 5 MW. Read more on Changes to Class A Eligibility.

Learn more


Regulated Price Plan (RPP) Class B Customers (i.e. residential and small business)

Regulated Price Plan (RPP) customers pay an electricity rate set by the Ontario Energy Board. The commodity charge on these bills combines both the market price for electricity and the Global Adjustment. Visit the Pricing webpage for more details.


Actual Global Adjustment Components

The three values below represent the main components of the Global Adjustment​ used by the IESO to calculate the monthly Global Adjustment rate:​  

  • GA-OEFC-NUG (M$) - Contracts administered by the Ontario Electricity Financial Corporation with existing generation facilities

  • GA-OPG (M$) - Ontario Power Generation nuclear and baseload hydroelectric generating stations

  • GA-OPA (M$) - Contracts with the Ontario Power Authority for new gas-fired generation, renewable facilities, nuclear refurbishments,

    demand response as well as conservation programs.

 

2014JanFebMarAprMayJunJulAugSeptOctNovDec
GA-OEFC-NUG (M$)87.841.734.662.462.354.358.5     
GA-OPG (M$)-66.3-138.1-152.688.7173.2137178.2     
GA-OPA (M$)139.2245.9116.1369.6467.9435.6435.6     
Total GA (M$)160.7149.5-1.9520.7703.4626.9672.3     

For historical Global Adjustment values, see the Global Adjustment Archive.

*GA-OPA  (M$) and Total GA (M$) for March were adjusted on May 20, 2014 based on updated information. Contact IESO Customer Relations at 1.888.448.7777 for further details.  


Global Adjustment Costs by Customer Class

Total Global Adjustment costs are divided between Class A and all remaining, or Class B, customers. Class A customers pay a rate based on their proportion of energy use during the five established coincident peaks. The remaining costs are recovered from all Class B. The breakdown between the two groups is shown below.

 
2014JanFebMarAprMayJunJulAugSeptOctNovDec
Class A Total (M$)16.715.5-0.254.273.165.164.8     
Class B (all remaining customers) Total (M$)144134-1.7466.5630.3561.8607.5     

For historical Global Adjustment values, see the Global Adjustment Archive.

*Class A and B Total (M$) for March were adjusted on May 20, 2014 based on updated information. Contact IESO Customer Relations at 1.888.448.7777 for further details.


Monthly Class B Global Adjustment Rate

The Actual Class B global adjustment rate for a given month is based on electricity demand and GA costs for that month. They are posted on the tenth business day of the following month.​

2014JanFebMarAprMayJunJulAugSeptOctNovDec
Actual Class B (all remaining customers) Rate ($/MWh) 12.6113.30-0.2751.9871.9660.2562.56
2013JanFebMarAprMayJunJulAugSeptOctNovDec
Actual Class B (all remaining customers) Rate ($/MWh) 49.9948.1449.2658.5967.5970.4350.8962.4566.5563.1278.5550.68

For historical Global Adjustment values, see the Global Adjustment Archive.  ​​​​​