Global Adjustment in Ontario Explained: What It Is and Who Pays It
What the global adjustment is in Ontario, why it makes up much of the cost of power, how RPP homes pay it in their rates, and when it shows as its own line.
Key takeaways
- The global adjustment covers the cost of building and contracting Ontario's power supply that the wholesale market price does not recover.
- Homes on the Regulated Price Plan already pay the global adjustment inside their Time-of-Use, Ultra-Low Overnight or Tiered prices.
- If you are on a retail contract, the global adjustment is usually billed separately on top of your contract price.
- Large Class A customers pay based on their share of a few peak hours; almost all homes are Class B and pay per kWh.
The global adjustment in Ontario is the part of the cost of electricity supply that covers contracts and regulated payments to generators, plus the cost of provincial conservation programs, beyond what the wholesale market price pays. If you are on the Regulated Price Plan (Time-of-Use, Ultra-Low Overnight or Tiered), you already pay the global adjustment inside your per-kWh price and will not see it as a separate line.
It matters to homeowners in two situations: if you have signed a contract with an electricity retailer, and if you are trying to understand why Ontario's electricity prices are set the way they are. This guide explains both in plain terms.
What is the global adjustment on an Ontario hydro bill?
Ontario's electricity comes from a mix of nuclear, hydroelectric, natural gas, wind, solar and other sources. Most of these generators are paid under long-term contracts or regulated rates set by the province or the Ontario Energy Board (OEB), not purely by the hourly wholesale market.
The wholesale market price is often low, because a large share of Ontario's supply (nuclear and hydro) produces power at all hours. That market price alone does not cover the full contracted or regulated payments owed to generators. The difference is collected from consumers as the global adjustment (GA).
The GA typically funds:
- Regulated payments for nuclear and large hydro generation
- Contracts with gas-fired, wind, solar, bioenergy and other generators
- Older contract programs such as feed-in tariff and microFIT contracts that are still running
- Costs of provincial energy-efficiency programs delivered through Save on Energy
Because the wholesale price and the contract costs move in opposite directions, the GA changes every month. When wholesale prices are low, the GA is higher, and the other way around. The Independent Electricity System Operator (IESO) calculates and publishes the monthly figures at ieso.ca (opens in a new tab).
Note: In most months the global adjustment is the larger part of the total cost of electricity supply. That is why it is worth understanding even though RPP customers never see it on their bill.
How do RPP customers pay the global adjustment?
Most Ontario homes buy electricity on the Regulated Price Plan. The OEB sets RPP prices once a year to recover the expected total cost of supply, including a forecast of the GA, over the coming year.
| Plan | Current prices (1 Nov 2026 to 31 Oct 2027) | Does GA appear separately? |
|---|---|---|
| Time-of-Use | 9.1¢ / 14.6¢ / 18.9¢ per kWh | No, built into prices |
| Ultra-Low Overnight | 3.7¢ / 9.1¢ / 14.6¢ / 37.7¢ per kWh | No, built into prices |
| Tiered | 11.2¢ / 13.2¢ per kWh | No, built into prices |
| Retail contract (non-RPP) | Your contract price | Usually yes, as its own line |
If the actual GA over the year turns out higher or lower than forecast, the difference is tracked in a variance account and recovered or refunded through later RPP price resets. You do not receive a separate true-up.
This is one reason RPP prices can change by more than the wholesale market alone would suggest. Our guide to Ontario electricity price plans explains the Time-of-Use and Ultra-Low Overnight schedules in detail.
When does the global adjustment show up as its own line?
You will see a separate global adjustment charge if you are a non-RPP customer. For homes this usually means one of two things:
- You signed a contract with a licensed electricity retailer. You pay the retailer's fixed contract price for energy, plus the GA per kWh, plus normal delivery and regulatory charges. Many people who signed these contracts did not realize the GA would be added on top of the advertised price.
- You are on spot (wholesale) pricing. A small number of residential customers pay the hourly wholesale price plus GA. This is uncommon.
Example: why the contract price is not the whole story
Suppose a retailer offers a fixed price that looks close to the RPP average. On your bill you would see:
| Item | What it is |
|---|---|
| Retailer energy price | The contracted ¢/kWh |
| Global adjustment | A separate per-kWh charge that changes monthly |
| Delivery | Same as RPP customers in your LDC |
| Regulatory | Same as RPP customers |
| HST and Ontario Electricity Rebate | Applied to eligible accounts |
Because the GA is often several cents per kWh or more, the effective commodity price under a retail contract is frequently higher than the RPP. Retailers must show you a price comparison against the RPP before you sign; our guide to retail energy contracts in Ontario explains your rights and how to compare.
Class A vs Class B: who pays how?
The GA is shared between two classes of customers.
| Class | Who | How GA is charged |
|---|---|---|
| Class B | All homes, nearly all small businesses, many mid-sized businesses | Per kWh (built into RPP prices, or a separate line for non-RPP accounts) |
| Class A | Large industrial and commercial customers above a demand threshold set by regulation | By the customer's share of demand during the five highest system peak hours of the year |
Class A customers can reduce their share of the GA by cutting demand during the few hours when Ontario's system peaks, usually hot summer afternoons. This program is often called the Industrial Conservation Initiative. Homeowners cannot join Class A, but the existence of this program helps explain why peak-hour electricity is valuable to the system and why on-peak prices are higher.
What the global adjustment means for your decisions
For a typical RPP household the GA does not change any decision directly; it is already in your price. It is still useful context in a few situations:
- Comparing a retail contract to the RPP. Always add the GA (and check its recent monthly values on the IESO site) before comparing.
- Understanding November rate changes. When forecast GA costs rise, RPP prices tend to rise. Combined with the Ontario Electricity Rebate falling to 15.7% on 1 November 2026, this is why many bills went up this winter.
- Solar and net metering. Net metering credits are calculated at the retail commodity value on your bill. For RPP customers that already includes the GA, so credits reflect the full RPP price. One neutral note: if you are exploring solar, our solar savings calculator uses RPP prices.
- Shifting usage. The GA is spread evenly over kWh for RPP customers, but the system's peak hours are what drive long-term costs. Shifting loads away from on-peak hours, which our hydro bill estimator can model, helps both your bill and the system.
Frequently asked questions
Why don't I see a global adjustment charge on my bill?
If you are on Time-of-Use, Ultra-Low Overnight or Tiered pricing, the global adjustment is already included in your per-kWh price. Only non-RPP customers, such as those on retail contracts, see it as its own line.
Can I avoid paying the global adjustment?
Not as a residential customer. Every Class B customer pays it, either inside RPP prices or as a separate charge. The only way to reduce what you pay is to use fewer kWh.
Where can I find the current global adjustment rate?
The IESO publishes monthly global adjustment values at ieso.ca (opens in a new tab). Your bill uses the figure for the month you were billed, and the first estimate is later updated with an actual value.
Is the global adjustment the same as the Ontario Electricity Rebate?
No. The global adjustment is a cost that funds generation contracts and programs. The Ontario Electricity Rebate is a provincial credit that reduces your bill by a percentage of the pre-tax total.
About this page. Written and reviewed by the Energy Efficiency Ontario editorial team using official sources including the Ontario Energy Board, Save on Energy (IESO), Enbridge Gas and Natural Resources Canada. Figures are estimates unless attributed. Program terms change — confirm with the administrator before you buy. Our editorial standards · Report an error
Was this page helpful?
Related reading
Ontario Electricity Price Plans Explained: TOU, ULO and Tiered
Full Ontario electricity rate tables effective 1 November 2026 for Time-of-Use, Ultra-Low Overnight and Tiered plans, with worked examples on choosing a plan.
, 6 min read
Understanding Your Ontario Hydro Bill, Line by Line
What each line on an Ontario hydro bill means: electricity, delivery, regulatory charges, HST and the 15.7% Ontario Electricity Rebate, with a sample bill.
, 6 min read
Energy Retailer Contracts in Ontario: Should You Sign a Fixed-Rate Deal?
How energy retailer contracts in Ontario work, why fixed rates often cost more than the RPP or Enbridge supply, your rights and how to cancel a contract.
, 6 min read