The earlier you make the switch, the more you’ll save.

By: Tilo McAlister


The ever-rising utility costs in Ontario have been raising concerns among the province’s hydro customers for quite some time.

With the removal of the debt retirement fund and the addition of Global Adjustment fees to our bills, new strategies are needed in order to manage our electrical consumption.

What’s our current solution?

Prime Power is an excellent alternative to local distribution companies, and involves supplying electricity to the consumer via on-site power generation. With modern natural gas generators, consumers can take advantage of Ontario's stable natural gas prices. On-site power generation also allows high usage customers to use electricity during the day without fear of fluctuating electricity rates and large Global Adjustment fees.

Aside from customers who have entered a retail contract, grid-connected consumers in Ontario pay the Hourly Ontario Energy Price (HOEP). This price is regulated by the Independent Electricity Systems Operator (IESO), and the HOEP changes every hour, every day. (Information regarding how this price is calculated can be found on the IESOs website).

In addition to the HOEP, consumers pay a Global Adjustment (GA) fee. This fee, as defined on the IESO's website, "covers the cost of building new electricity infrastructure in the province, as well as delivering Ontario's conservation programs".

In 2018, Ontario electricity consumers paid between $786M to $1.15B monthly in GA fees, contributing as much as 80% of a given utility bill. The way that this fee is calculated and passed on to consumers depends on electricity usage and a classification system. For more information on determining which classification you are and determining how your GA fees are calculated, see this article.

Consumers who generate their own electricity are freed from these Global Adjustment and time of use rates. With the installation of on-site, Prime Power generation, your facility can experience truly significant savings in utility costs.

If you would like to learn more about how switching to Prime Power can benefit you, don’t hesitate to contact T&T Power Group for a feasibility study. We’d be happy to help!

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