2020 Ontario Budget: Proposal to Reduce Global Adjustment Costs for Consumers
November 5, 2020
Today, the Provincial budget included a proposal to reduce Global Adjustment costs for all electricity consumers by shifting the funding of payments to certain non-hydro renewable energy generators (i.e., wind, solar and bioenergy) from the rate base to the tax base. As a result of this proposal, Class A and non-Regulated Price Plan (RPP) Class B customers are estimated to save about 14 and 16 per cent respectively, on average, on their electricity bills. Bills for RPP customers will remain stable.
This proposal would not require any changes to the IESO’s existing settlement processes with generators, consumers, or LDCs. The funding shift is expected to start January 1, 2021, pending approval by the Ontario Legislature.
Read more from 2020 Budget.