Electricity FAQ
What is the Global Adjustment?
This
charge covers the following costs: building new electricty
infrastructure in the province, paying regulated rates to electricty
suppliers under contract, as well as, paying the costs associated with
delivering the province's energy efficiency and conservation programs.
In general, The GA is lower when the Hourly Ontario Energy Price (HOEP) is high, and vice-versa.
Who are Class A and Class B customers with respect to the Global Adjustment?
All electricity customers in Ontario pay the Global Adjustment as either Class A or Class B customers.
Class A Customers
Class A customers are medium to large
businesses that are able to participate in the Industrial Conservation
Initiative (ICI). The GA paid by each of these customers is based on
its share of total demand during Ontario's top five peak demand hours.
For example, if a Class A customer is responsible for 2 percent of
Ontario's peak demand, they will be billed for two percent of the
province's total GA costs.
Class B Customers
Most electricity customers in Ontario are Class B. Once the
amount of the Global Adjustment billed to Class A customers has been
settled, the remainder is passed on to Class B customers.
For residencial customers and most small businesses, the Global Adjustment is included in time-of-use or tiered rates.
For medium-sized businesses, as well as customers
on retail contracts, the GA appears as a separate line item on their
electriicity bill
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