Act
Proposal to Make a Regulation under the Electricity Act to Amend O. Reg. 429/04
Regulation Number(s):
Instrument Type:
Act
Bill or Act:
Electricity Act, 1998
Summary of Proposal:
The global adjustment is an existing cost recovery mechanism that enables contracted or regulated electricity generation costs and other system costs that are not recovered from wholesale market revenues to be recovered from all Ontario electricity consumers.
The global adjustment was introduced in 2005 to ensure that new generators had sufficient revenue certainty to warrant investment in Ontario’s electricity system. Since that time global adjustment has been successful in delivering stable prices as well as ensuring that capacity is in place to deliver a reliable supply of energy.
For consumers on the Ontario Energy Board’s Regulated Price Plan, global adjustment is included in the “Electricity” charge. For all other consumers who purchase directly from the wholesale market, or have signed a contract with an electricity retailer, global adjustment is shown as a separate line item on their electricity bill (currently labelled “Provincial Benefit”).
The global adjustment was introduced in 2005 to ensure that new generators had sufficient revenue certainty to warrant investment in Ontario’s electricity system. Since that time global adjustment has been successful in delivering stable prices as well as ensuring that capacity is in place to deliver a reliable supply of energy.
For consumers on the Ontario Energy Board’s Regulated Price Plan, global adjustment is included in the “Electricity” charge. For all other consumers who purchase directly from the wholesale market, or have signed a contract with an electricity retailer, global adjustment is shown as a separate line item on their electricity bill (currently labelled “Provincial Benefit”).
Further Information:
Link to Environmental Registry
Proposal Number:
10-MEI004
Posting Date:
August 27, 2010
Comments Due Date:
October 11, 2010