The Government of Ontario is deferring a portion of Global Adjustment (GA) charges for Industrial and commercial electricity customers that do not participate in the Regulated Price Plan (RPP), starting from April 2020. 

The Global Adjustment rate for industrial and commercial customers (Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value. The other industrial and commercial customers (Class A) will receive the same percentage reduction in Global Adjustment charges as Class B customers.

This initiative is intended to provide companies with temporary immediate relief on commercial and industrial customers monthly electricity bills in April, May and June 2020, by holding Global Adjustment rates in line with pre-COVID-19 levels. Without this emergency relief, an industrial or commercial customer (Class B) could have seen bills increase by 15 per cent or more.

The government intends to keep this emergency relief in place through the end of June 2020, subject to necessary extensions and approvals to implement this initiative.

 Will customers be expected to pay back the temporary relief at a later date?
Yes, in 2021, Class A and Class B customers would see an increase in their Global Adjustment (GA) costs over a 12-month period. The government intends to propose regulatory amendments (together with other amendments as necessary) to O.Reg.429/04 made under the Electricity Act, 1998, in May 2020. If approved, these proposed amendments would allow the Independent Electricity System Operator (IESO) to recover deferred GA charges over a 12 month period beginning in January 2021. Interest costs related to the deferral would not be recovered from customers.
 Why is this relief only being provided temporarily?
These are temporary relief measures intended to provide immediate financial support for customers when they need it the most; as they do their part to contain COVID-19 and as they prepare to help get the economy moving again.

Industrial and commercial electricity customers will automatically see this relief reflected on their bills. Customers who have already received their April 2020 bill should see an adjustment on a future bill. Please Contact Us if you have questions about your bill.