Frequently Asked Questions
Why do I see the Global Adjustment on my bill and my neighbour does not?
All electricity customers in Ontario pay for Global Adjustment. Residential and small customers being billed by an LDC using time-of-use (TOU) rates have GA costs embedded within those TOU prices. The Ontario Energy Board reviews TOU prices and tiered rates every six months. Residential and small customers who have signed a retail contract will see the GA cost as a separate line item on their bill. When you sign a retail contract, it covers the commodity portion of electricity. You will also be charged GA based on your consumption. Your retailer can provide more information about your contract.
What variation of the GA do I see on my bill?
Your LDC will be able to tell you which variation of the GA they bill on. If the rate on the IESO website is different than the rate on your bill, your LDC can provide more information (e.g. your billing period spans more than one calendar month).
My billing from month-to-month is uneven. Why does it vary?
GA costs change from month-to-month depending on trends in the real-time electricity market, the addition of new contracts that contribute to total GA costs and true-ups that account for differences between estimated and actual GA costs. Customers billed by their LDC on the 1st Estimate will see more swings from month to month (see chart below). The 1st Estimate is based on the best information available when it is calculated.
Can I forecast GA costs?
GA costs change from month-to-month depending on trends in the real-time electricity market, the addition of new contracts that contribute to total GA costs and true-ups that account for differences between estimated and actual GA costs. Because of these factors, the IESO cannot forecast future GA costs. I’m a Class A customer.
How does that impact my Global Adjustment?
Class A consumers are assessed their portion of GA costs based on the percentage that their peak demand contributes to the top five Ontario system peaks. For example, if a Class A consumer is assessed to be responsible for one per cent of Ontario’s peak demand for the five highest hours of the base period, they will be charged for one per cent of the total GA costs through the subsequent billing period. Class A consumers receive an annual notification from their utility with their percentage of peak demand, called the peak demand factor.