What is Ontario's Global Adjustment?

GA is essentially the difference between the average hourly price (spot market price) and the rates (per kilowatt hour) that have been guaranteed to regulated and contracted generators for providing adequate generating capacity to the province. 

The generators who receive guaranteed pricing through this adjustment mechanism – which include the Ontario Power Generation’s (OPG’s) prescribed assets and the Ontario Power Authority (OPA) contracted generation – generate a substantial amount of the province’s power supply, therefore the GA can have a significant impact on energy supply costs for many Ontario businesses.

For businesses, the GA may come as a credit or a charge, depending on whether the market price of electricity is higher or lower than the fixed rates paid to these generators. As a result, the Hourly Ontario Energy Price (HOEP) and the GA have an inverse relationship:  

• Higher HOEP prices will likely result in the GA being a lower charge or a credit 

• Lower HOEP prices will likely result in the GA being a charge to customers 

The GA is paid by or credited to all consumers, but may be invoiced differently, depending on the specific energy supplier. For customers on Regulated Rate Plan (RRP), the GA is included in the rate calculation and not identified separately. For customers paying the average hourly price, as well as those receiving their supply from a retail supplier, the GA is passed through as a line item on their bill, separate from their supply charges.

To learn more about how to manage your cost risk associated with the Global Adjustment and energy price, please check out our PowerAssure two-pager. 

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