Offtaker of Last Resort (OLR)

What is it?

The Offtaker of Last Resort (OLR) is a government scheme that aims to promote the availability of power purchase agreements (PPA). It is intended as a last resort to help renewable generators who cannot get a PPA through the usual commercial means.

It’s part of the government’s wider programme on Electricity Market Reform.

You can find out more on this section of our site and on the Department of Energy and Climate Change website.

Who’s it for?

It’s only available to eligible renewable Investment Contract Contracts for Difference (CFD) generators. For more details, see: Information for Generators.

How does it work?

The scheme provides an alternative route to market for eligible generators by facilitating a backstop power purchase agreement (BPPA) between the generator and a licensed supplier. This is achieved through a competitive auction process – the OLR auction.

The licensed supplier will buy the electricity produced under a BPPA at a specified discount below the market reference price. This ensures the OLR route to market is a genuine ‘last resort’.

Roles and responsibilities

Ofgem

Our role is to administer the scheme on behalf of government. We’ll do this by:

  • assessing generators’ eligibility
  • running OLR auctions
  • Running a levelisation process, to ensure that the successful bidder’s costs for entering into a BPPA are shared among all licensed suppliers.

Licensed electricity suppliers

Licensed suppliers we determine to be mandatory licensed suppliers for a given OLR year must bid in all OLR auctions in that year. We will publish a list of the mandatory suppliers in this section of our site before each OLR year starts. All other licensed suppliers can bid in an OLR auction too.

All licensed suppliers are required to participate in OLR levelisation.

To find out more, see Information for Licensed Suppliers.

Need help?

If you have questions about the OLR scheme and can't find the information you need on these pages, or on DECC's website, please contact us.

Publications and updates

  • Published: 15th Dec 2016
  • Reports & plans
  • 1 Associated documents
The Offtaker of Last Report (OLR) Annual Report gives an overview of the scheme activity from 1 October 2015 to 31 March 2016.

  • Published: 1st Sep 2016
  • Guidance
  • 0 Associated documents
List of mandatory licensed suppliers for OLR year two and three.

  • Published: 1st Mar 2016
  • Guidance
  • 1 Associated documents
This document sets out the key dates and deadlines for the OLR levelisation process for the year (1 April 2016 - 31 March 2017).

  • Published: 1st Oct 2015
  • Guidance
  • 1 Associated documents
The standard terms of the contract that would be entered into between a supplier and an eligible generator under the Offtaker of Last Resort (OLR) scheme.

  • Published: 30th Sep 2015
  • Guidance
  • 1 Associated documents
This record lists the generating stations who have become ineligible to enter into a backstop power purchase agreement.

  • Published: 30th Sep 2015
  • Factsheets
  • 1 Associated documents
This factsheet will help you get the basics for the Offtaker of Last Resort (OLR) scheme for generators, licensed suppliers and interested parties. The scheme opens on 1 October 2015.

  • Published: 28th Aug 2015
  • Guidance
  • 0 Associated documents
List of mandatory licensed suppliers for the OLR year running from 1 April 2016 to 31 March 2017.