Save Money on Global Adjustment Charges
What is a Global Adjustment Charge?
The Global Adjustment (GA) charge on your electricity bill is a "catch-all" line item that covers the difference between the market price of electricity and the contract price paid to generators. Many generators, including natural gas, nuclear and renewables, have been contracted to provide electricity to the Ontario market at a price for power that is greater than the typical market price so the GA is a mechanism to account for these costs. The GA charge moves in the opposite direction to the market price of electricity so the lower the market price, the higher the GA charge.
How Can I Save Money on My Global Adjustment Charges?
For residential an small to medium commercial users ("Class B" with <1 MW peak demand) there is little you can do. The GA charge is based on your total electricity consumption so the only way to reduce the GA charge is to reduce your total electricity consumption. Energy conservation or net-metered solar installations are potential options.
Large commercial users, which have a peak demand of between 0.5 MW and 5 MW, now have an opportunity to realize large savings on their Global Adjustment charges. By opting into the Industrial Conservation Initiative program you can become "Class A" customers and pay Global Adjustment charges based on their peak demand, not total usage. By shifting your peak demand during days when the Province-wide system demand is high, you can save large amounts of money on your GA charges. A peak demand reduction of only 100 kW will save between $50,000 to $55,000 a year which scales up to $500,000 - $550,000 per MW, per year.
Large commercial users, which have a peak demand of between 0.5 MW and 5 MW, now have an opportunity to realize large savings on their Global Adjustment charges. By opting into the Industrial Conservation Initiative program you can become "Class A" customers and pay Global Adjustment charges based on their peak demand, not total usage. By shifting your peak demand during days when the Province-wide system demand is high, you can save large amounts of money on your GA charges. A peak demand reduction of only 100 kW will save between $50,000 to $55,000 a year which scales up to $500,000 - $550,000 per MW, per year.
What We DoAt VPPI we specialize in saving our clients money through the use of the best available energy storage technology. We save you money by reducing your peak energy demand without you having to scale back operations or production. VPPI will take care of all aspects and will install, own, and operate all of the equipment as well as providing a service guarantee to ensure continued savings.
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How We Do ItWe install an energy storage system custom designed for your facility. Through ongoing monitoring of your electricity usage, the battery storage system will provide power to your facility during peak periods to reduce the power you draw from the grid. During non-peak energy periods the storage system switches off and recharges so that it is ready to provide power during the next peak energy period.
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Your Benefits
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