The Intertie Offer Guarantee (IOG) was introduced in 2002 to ensure importers receive at least their offer price if real-time prices fall below that level, supporting continued participation and reliable energy supply. In the renewed market, import transactions can be settled on day-ahead prices. Importers continue to be eligible for an IOG in real-time. The Ontario Energy Board Market Surveillance Panel (MSP) requested that the IESO assess whether IOGs are providing commensurate improvements in reliability and recommended the IESO review the benefits and costs of continuing the real time IOG post the renewed market. As part of the IESO’s assessment, the IESO determined that IOG payments are being issued when the reliability need is not present in real-time. As a result, The IESO is proposing to implement an amendment to the design of the Intertie Offer Guarantee (IOG) to improve wholesale market efficiency.
Throughout this Engagement, stakeholders, specifically traders, will have an opportunity to share perspectives with the IESO on the proposed amendment.
