The Global Adjustment (GA) is a monthly adjustment that ensures the commodity price paid for electricity on the wholesale market (spot market price) more accurately reflects the cost to produce this electricity.
The GA accounts for differences between the spot market price and the rates paid to regulated and contracted generators as well as conservation and demand management programs. As a result, its value may be positive or negative, depending on whether the market price is lower or higher than the fixed rates.
All electricity consumers pay the GA.
- Small business and residential customers who pay for electricity on the Regulated Pricing Plan (RPP) have the GA costs factored into the RPP rates.
- Small business and residential customers on a retail contract who have opted out of the RPP have GA as a separate line item on their bill.
- Customers with a peak demand of over 50 kilowatts have GA as a separate line item on their bill.
NEW! Under Ontario’s Fair Hydro Plan, for eligible customers, a portion of the GA has been re-financed with the costs of clean energy investments spread out over a longer period of time. According to the government, this ensures that the costs of these investments are allocated fairly among current and future ratepayers. The reduction associated with GA refinancing is applied to non-RPP customers in the form of a credit, effective July 1, 2017. The GA credit appears as a separate line item on the bill. Any customer receiving the 8% rebate will also benefit from the GA reduction.
All rates are posted to the Independent Electricity System Operator’s website.