Your Business' Electricity bill has often been regarded as a fixed cost, with operations requiring a certain amount of energy every billing cycle. Have you taken the time to see the breakdown of your energy billing? Most people don’t realize the difference in pricing that industrial customers incur, where they are billed for their high usages during peak hours.
Over 70% of the total electricity bills issued to an industrial customer are based on only 5 hours per year. These 5 hours are Ontario’s usage peaks.
The intention of these highly-priced peak hours is to reduce Ontario’s peak usage, in the hopes of easing the load on the electrical grid. This pricing is referred to as Global Adjustment and becomes a substantial part of your operating costs.
While Ontario has a diversified energy profile, high demand during peak hours affords us less freedom with energy generation. Ontario has dealt with high levels of energy demand through the use of Natural Gas Peaker Plants, employed to supply daily variable energy to the grid. There are over 40 of these power plants, however they are virtually unused every night of the year and are barely used during Ontario’s shoulder seasons. This results in a large greenhouse gas footprint during peak hours.
Understanding the logic behind Global Adjustment allows businesses to properly combat this charge, while simultaneously reducing the requirement to burn fossil fuels during peak hours. Consider the pricing methodology; if one can reduce their usage during peak hours, they can sidestep the cost of Global Adjustment entirely. Furthermore, doing so will reduce stress on Ontario’s energy grid, meaning less generation required from Ontario’s greenhouse gas emitting Peaker Plants, reducing our footprint and encouraging a greener, healthier future.