Alectra utilities

The wholesale price of electricity is determined in the real-time market administered by the Independent Electricity System Operator (IESO). All electricity consumers in Ontario pay the wholesale price, also referred to as the commodity price, except for those who have entered into a retail contract. The IESO calculates the hourly Ontario energy price, which is charged to large consumers that participate in the market, as well as local distribution companies who recover it from the subset of customers that pay the market price.

The Global Adjustment applies to customers who pay the Hourly Ontario Energy Price (HOEP) or who have a retail energy contract for electricity supply. The Global Adjustment accounts for differences between the HOEP and the rates paid to regulated and contracted generators. It also includes the cost to deliver conservation and demand management programs. Alectra Utilities collects this charge, without mark-up, and pays this amount directly to the Independent Electricity System Operator (IESO). All customers in Ontario pay Global Adjustment. Customers that participate in the Industrial Conservation Initiative (ICI), referred to as Class A customers, pay based on an annual determination of their coincident peak demand. All other customers in Ontario pay a share of Global Adjustment through the Class B Global Adjustment rate. The Global Adjustment appears as a separate line item on the electricity bill.

You can sign a contract with an energy retailer for your electricity supply. Energy retailers are private companies and are not associated with Alectra Utilities, the Ontario Energy Board, the government or any government program. However, the Ontario Energy Board licenses energy retailers and plays a role to ensure they follow the laws and rules that protect consumers from unfair or misleading business practices. For additional information, visit our Retail Energy Contract page.