What is Global Adjustment?
The Global Adjustment (previously the Provincial Benefit) rate is set and adjusted to support Ontario's generating capacity and to cover the cost of conservation programs in Ontario. Each month the IESO calculates the Global Adjustment rate. Its value varies month-to-month, and may be positive or negative depending on the fluctuation of prices in the spot market. If the market price for electricity falls, the Global adjustment generally goes up (and vice-versa). The rate is set to reflect the differences between the market price and:
- The regulated rate paid to Ontario Power Generation's baseload generating stations (nuclear, hydroelectric, thermal)
- Payments made to suppliers contracted by the Ontario Power Authority (“OPA”). These include new gas-fired facilities, renewable facilities (like wind and solar farms) and demand response programs; and
- Contracted rates paid to Non-Utility Generators (“NUGs”)
- The cost of delivering conservation programs in the province.
An explanation document has been produced by the IESO with some frequently asked questions which may be helpful to you.
Visit the ieso website for even more information.