Although clients understand the aggregate cost of their electricity, they do not understand what various line items such as Global Adjustment, HOEP, Debt Retirement Charge, and Regulated Price Plan actually mean.

The HOEP is the average price paid to electricity generators in each hour determined by the Independent Electricity System Operator (IESO). The IESO operates a real-time market, where the electricity is generated as needed. On an hourly basis, generators bid into the market to cover demand forecasted by the IESO. The IESO accepts bids first at the lowest price available and then stacks up the higher priced offers until enough supply has been purchased to meet customer demands. The last bid accepted is referred to as the market clearing price and is the price paid to all generators for that one hour time period. It is important to note that this electricity bidding system is not under a true deregulated market since many generators are contracted to receive a predetermined rate for the electricity. The HOEP does not reflect the true cost of electricity due to the fact that the contracted rate for these generators are often higher than the market clearing price for that hour.

The Global Adjustment (GA) is what makes up for the discrepancy in these two prices thus making the HOEP combined with the GA an accurate representation for the true cost of electricity in Ontario.  From July 2014 to June 2015, the annual weighted average HOEP has decreased by 43% from the previous year, while the GA has increased by 56%. The overall effect is a net annual increase of 13% to the cost of power in Ontario.  

We provide no cost and no obligation energy audits to help you develop an electricity procurement plan that protects your bottom line.

Components of our free no obligation are:

• No Obligation Energy Audit
• Obtain Historical Usage for all of your accounts
• Consolidate and Analyze Consumption - Load Profiling
• Current Coat and Rate Audit