When the Global Adjustment (GA) was introduced[1] as part of the Green Energy Act in 2009, it was thought to be a benevolent force;
A strategy to wean the province from coal-based electricity generation and introduce green, sustainable alternatives such as wind and solar power in greater numbers.
And while the GA has achieved that goal, becoming the first jurisdiction in North America[2] to go coal-free, the GA has also managed to raise both prices and serious questions for many consumers.

It’s no wonder why: The IESO reports that in 2015, the Global Adjustment fee accounted for more than 70% of our electricity bills.

A Crash Course in Global Adjustment

The IESO pays energy producers for electricity based on a rate that is set out at the beginning of a contract- contracts which can sometimes be 20 to 30 years in length. Therefore, the “Contracted Rate” these producers receive will naturally differ- often significantly- from the current market value (known as the Hourly Ontario Energy Price, or HOEP) for that same electricity. The difference between the Contracted Rate and the HOEP is passed on to the consumers, as the Global Adjustment fee.

The GA charge on your electricity bill is calculated based on your electricity cost. Using less electricity, or using electricity only during low-demand periods, will lower your electricity costs, also lowering your GA. In the case of industry and commercial consumers, the Industrial Conservation Initiative (ICI), was introduced to offset some of the GA costs. The ICI allows eligible consumers to pay the GA based on their percentage contribution to the top 5 peak hours in Ontario over the last year.

Energy Storage as a Solution (ESaaS)

Constant Power’s core focus is ESaaS, a total service program that uses advanced battery storage, combined with custom-made energy management controls to reduce annual energy spend by up to 50%.

ESaaS systems use power storage batteries to store energy during low-demand periods and re-introduce this energy during peak demand. Even when the system is not in saving mode, ESaaS power storage technology controls the quality of the power being drawn off the grid. This ensures that regardless of the time of day, or season, ESaaS customers receive Uninterrupted Power Supply (UPS)- even when the traditional grid is experiencing fluctuations.

The ESaaS total service model includes design, installation, insurance, ongoing operation, maintenance, and financing for the grid storage system. This means that implementing ESaaS requires absolutely no capital outlay, or additional labour requirements. Constant Power manages the entire battery grid storage program, and in the event that an ESaaS system fails or does not operate, the customer is reimbursed for any lost savings during the down time.

Some of the benefits of ESaaS include:

  • Cost Savings
  • Uninterrupted Power Supply
  • No Additional Labour Requirements
  • No Technology Risk
  • Sell Excess Power Back to the Grid

Lower Your GA Charge Through ESaaS

ESaaS is truly among the best ways to save on electricity, and subsequently lower your GA charge. It’s a grid power storage system that will not only deliver significant cost savings, but also a significant increase in power quality. For more information on implementing an ESaaS program for your company, contact our team today!

[1] Global News, “What is the Global Adjustment Fee?”, http://globalnews.ca/news/2839995/what-is-the-global-adjustment-fee-the-mysterious-cost-ontario-hydro-customers-must-pay/

[2] Ministry of Energy, “Clean Energy in Ontario”, http://www.energy.gov.on.ca/en/ontarios-electricity-system/clean-energy-in-ontario/