Ontario's electricity system operator (IESO) released the final July global adjustment figures yesterday. July is the first month of new global adjustment "Peak Demand Factors" for participants in the Industrial Conservation Initiative (ICI), and therefore it's the month that gives an idea how severe the cost shifting from the Class A consumers participating in the ICI to the other consumers in Ontario (Class B).
"To B." - Ontario electricity rate designer.
Collectively class A consumers share of the global adjustment costs shrunk to 16.7% from 17.7%, which had shrunk from 19.2% the previous adjustment period. From July 2019 thru June 2020 the shrunk share for Class A meant $215 million more transferred to Class B consumers - or the taxpayer that subsidize them - and that will increase by about $150 million a year for the next 2 years due to the Ford government's decision to suspend the requirement to reduce consumption during peak periods during the current adjustment period.
Some good news from the global adjustment reporting is Class A consumption is continuing to recover since sharply dropping towards the end of March
On another positive note, both class A and Class B commodity rates (the market cost plus the global adjustment cost) averaged about the same as they had in July 2019.
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| Graphic explained here |
Rates being considerably lower during period of higher consumption in Ontario is an indicator we are generally oversupplied.
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