What is global adjustment?
Originally introduced in 2005 as the Provincial Benefit, the Global Adjustment can be a credit or a charge to the customer to account for the difference between the spot price of electricity and the rates paid to various regulated and non-regulated generators across Ontario.
The Global Adjustment covers the costs for providing both adequate generating capacity and Conservation & Demand Management (CDM) programs across the province. This includes: non-utility generator contracts, regulated nuclear generation, Renewable Energy Standard Offer Programs (RESOP), Feed-In Tariff programs, Independent Electricity System Operators (IESO - formerly Ontario Power Authority or OPA) contract adjustments and other programs.
If customers buy electricity under the Regulated Price Plan, an estimate of the Global Adjustment is already built into the stable price for electricity set by the Ontario Energy Board (OEB).
If customers buy from an electricity retailer, the Global Adjustment is not included in the contract price offered by the retailer, so on their bill, the Global Adjustment is displayed as a separate line item and is a volumetric charge based on their energy consumption (in kWh).
For each consumer whose electricity is not measured by an interval meter, this price will be determined by a Weighted Average Global Adjustment (WAGA) based on the first Estimate of Global Adjustment and Hydro One’s Network System Load Shape. The Global Adjustment is calculated on a loss-adjusted kWh basis, meaning that the rate will be displayed in cents per kWh on customer bills, as well as the consumption in kWh.
If a customer has a consumption of >250,000 kWh, then they would pay the Weighted Average Hourly Spot Price combined with the Global Adjustment on their electricity bills.
Calculating the Global Adjustment
To verify the impact the Global Adjustment has on your bill, non-interval-metered customers can view the WAGA used for their bill calculation by downloading the file (see below) that matches the specific Bill Cycle shown at the top of your bill. Then use the formula below to calculate the potential impact:
Global Adjustment = (NUG + OPG + IESO) - HOEP
- NUG = Payments to Non-Utility Generators administered by the Ontario Electricity Financial Corporation.
- OPG = Payments made to Ontario Power Generation for nuclear and base load hydroelectric generation.
- IESO = Payments for the Independent Electricity System Operators' (formerly Ontario Power Authority) contracted generators and CDM programs.
- HOEP = Hourly Ontario Electricity Market Price.
This formula means that the higher the market price of electricity, the lower the Global Adjustment will be.
For More Information
Learn more about the Global Adjustment from the IESO's website. Questions? Email our Customer Communications Centre at CustomerCommunications@HydroOne.com.