The global adjustment charge is chiefly used to cover the difference between the province’s market price for power and the price guaranteed to hydroelectric, natural gas, nuclear, solar and wind generators through their regulated payments or contracts with the government, as well as the cost of conservation programs. All electricity customers in Ontario pay global adjustment, which can be a separate line or included in the commodity portion of their bill.

But the August lawsuit filed by National Steel Car (NSC) believes the revenue the IESO collects for the global adjustment, from the company “and others,” should be declared “an unconstitutional tax, not a valid regulatory charge.”

The company gives numerous reasons, including that the global adjustment allegedly “redistributes wealth from the consumers of electricity in Ontario to, among others, the generators of renewable electricity.”

Manufacturer launches challenge against power fee that has cost Ontarians billions

The lawsuit argues that the global adjustment fee is an unconstitutional tax imposed to fund the Ontario government’s policy initiatives

Geoff Zochodne September 21, 2017

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