Ontario’s Global Adjustment Charge Being Taken to Court

Ontario’s Global Adjustment charge on hydro bills has been increasing steadily over the years.  What used to be another small line item charge is now usually the largest portion of a company’s bill.  Global Adjustment was introduced to cover the difference between what customers paid for hydro vs. what it cost to supply the hydro.  An Ontario company, National Steel Car, is challenging the Global Adjustment line charge as an unconstitutional tax, claiming it is not a valid regulatory charge.

Although we are unlikely to hear a verdict any time soon in the case, which may make it to court by March of 2018, it will be an interesting topic to follow.  Ultimately, regardless of the outcome of the court battle is, Ontario’s hydro bills will have to be covered whether it is through a regulatory charge like the Global Adjustment or not.

The full article can be found at the Financial Post