Global Adjustment and Your Electricity Bill
Updated: Dec 30, 2020
Mid-large sized businesses in Ontario are split into 2 electricity consumer groups as detailed below:
Customers with a peak demand greater than 5MW can opt in to be Class A
Customers with an average peak demand above 1MW up to 5MW can opt in to be Class A
Customers in certain manufacturing and industrial sectors, including greenhouses (NAICS codes starting with 31, 32, 33, or 1114), with an average monthly peak demand between 500kW and 1MW can opt in to be Class A
Customers with an average peak demand above 5MW are automatically Class A and can choose to opt out
Customers with a peak demand of 50kW up to 5MW
Based on their classification, their Global Adjustment charge is calculated differently.
What is Global Adjustment?
Global Adjustment (GA) is an additional cost that covers the cost of building new electricity infrastructure in the province, maintaining existing resources, as well as providing conservation and demand management programs.
How Does This Affect Your Electricity Bill?
For Class A customers, their GA cost is determined by their contribution to the top 5 annual demand hours. This means that the more energy used during those 5 hours, the more the customer is charged. More information and peak tracking tools here: http://www.ieso.ca/Sector-Participants/Settlements/Peak-Tracker
For Class B customers, the GA cost is added on top of their Hourly Ontario Energy Price (HOEP), often costing more than the HOEP and making up a very large portion of the monthly bill. Below is a chart illustrating the growing combined cost of HOEP and GA per year:
How Can We Help You?
As energy management experts, Mann Energy Solutions can review your building operational practices, provide a holistic view, and make recommendations to save on energy costs.
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