Global Adjustment - What is it?

You may look at your utility bill and realize that much of it means nothing to you. While the electricity industry in Ontario is complicated, bills shouldn't be.

Many legacy costs associated with building out the electricity infrastructure and generating capacity in the province are passed down to customers directly on their electricity bills. Unfortunately it takes more than a quick google search to really understand what it all means, where your money goes, what you're getting for it and what control you may (or may not) have over these various costs. The largest and most ambiguously named cost is the 'Global Adjustment' - or 'GA' of short. It can make up 40-60% of your total hydro bill!

It's important to know what this cost is, and what you can do about it. The IESO's definition of GA is: "The Global Adjustment (GA) covers the cost for providing both adequate generating capacity and conservation programs for Ontario." their website also states, "This charge accounts for the differences between the market price and the rates paid to regulated and contracted generators and for conservation and demand management programs." So the GA is a variable cost. This cost is variable in a few ways - Class A customers have lots of flexibility in controlling this cost. Using load shedding and curtailment or using an alternative source of electricity, you can reduce this cost by a significant amount.

If you're interested in learning more about reducing your Global Adjustment cost, read more here.

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Contact us for more information about our energy saving services
Direct: 416.640.2401
Toll free: +1 866.434.2999

90 Centurian Dr. Unit 1C

Markham, ON L3R 8C1

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