Global Adjustment

Why do I have to pay the GA?

POSTED JAN. 9 BY ADMIN

What is Global Adjustment?

Global Adjustment covers the cost of building new electricity infrastructure in the province, as well as delivering Ontario’s conservation programs − ensuring that enough electricity supply will be available over the long term.

The Global Adjustment is set monthly to reflect:

  • The differences between the wholesale market price for electricity, known as Hourly Ontario Energy Price (HOEP) and:
  • Regulated rates for Ontario Power Generation’s nuclear and hydroelectric generating stations
  • Payments for building or refurbishing infrastructure such as gas-fired and renewable facilities and other nuclear, as well as the contracted rates paid to a number of generators across the province
  • The cost of delivering conservation programs

Responding to changes in the HOEP, the Global Adjustment varies from month to month − generally, when the HOEP is lower, the Global Adjustment is higher in order to cover the costs of regulated and contracted generation.

 

Source : IESO