Energy Manager

News Utilities
Low electricity demand during COVID necessitates Global Adjustment relief


May 4, 2020
By Anthony Capkun


Topics

May 4, 2020 – Through an emergency order passed May 1, the Ontario government is taking steps to defer a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan for the period starting from April 2020.

This relief will prevent a marked increase in Global Adjustment charges due to the low electricity demand caused by the COVID-19 outbreak. Without this emergency order, the provincial government says a small industrial or commercial consumer (e.g. Class B) could have seen bills increase by 15% or more. This emergency order will hold GA rates in line with pre-COVID-19 levels.

This initiative aims to provide companies with temporary relief on their monthly electricity bills in April, May and June 2020.

The current plan is to keep this emergency order in place until May 31, 2020, and subsequent regulatory amendments would, if approved, provide for the deferral of these charges for June 2020 as well.

Advertisment

“This [emergency order] would provide immediate financial support for more than 50,000 companies when they need it most [..] as they prepare to help get our economy moving again,” said Greg Rickford, Minister of Energy, Northern Development and Mines.

The GA rate for smaller industrial and commercial consumers has been set at $115/MWh. Large industrial and commercial consumers (Class A) will receive the same percentage reduction in GA charges as Class B consumers.

Subject to the approval of subsequent amendments, deferred costs would be recovered over a 12-month period beginning January 2021.