Offtaker of Last Resort (OLR): Information for suppliers

Getting the basics

The Offtaker of Last Resort (OLR) is a government scheme that aims to help eligible generators when they cannot obtain a power purchase agreement (PPA) through normal commercial avenues. It provides the generator with an option of entering into a backstop power purchase agreement (BPPA).

We administer the scheme by assessing a generator’s eligibility and then running a competitive auction. All licensed suppliers will be invited to participate in an OLR auction.

Electricity generated under a backstop power purchase agreement (BPPA) will be sold to the supplier at a specified discount below the market reference price.

The scheme is only available to generators who have an Investment Contract or a Contracts for Difference (CFD) contract.

Your responsibilities

If we determine you’re a mandatory licenced supplier for a given OLR year, you must bid in all OLR auctions in that year. We will publish a list of our determinations in this section of our site before each OLR year starts.

All other licensed suppliers can bid in an OLR auction too.

The scheme’s designed so that a generator can enter into a BPPA quickly. Therefore, statutory deadlines will apply to everyone involved in the OLR process.

All licensed suppliers are required to participate in OLR levelisation. This process ensures that the successful bidder’s costs for entering into a BPPA are shared among all licensed suppliers in proportion to their market share of electricity supply.

Our OLR: Essential Guide for Suppliers explains how an OLR auction will be run and what you must do to participate. It also covers OLR levelisation.

Need help?

If you have questions about your obligations under the OLR scheme and can't find the information you need on these pages, please contact us.

Publications and updates

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

  • 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 essential guide is for all licensed suppliers, to help you understand your obligations under the Offtaker of Last Resort scheme.

  • Published: 30th Sep 2015
  • Guidance
  • 1 Associated documents
This handbook is for suppliers who are required to, or wish to, bid in an Offtaker of Last Resort (OLR) auction.

  • Published: 30th Sep 2015
  • Guidance
  • 1 Associated documents
This template must be used by a supplier if they believe that there is an error or omission in a generator’s Project Information for the Offtaker of Last Resort scheme and they wish to bring this to our attention.

  • Published: 29th Jun 2015
  • Closed: 10th Aug 2015
  • Consultations & responses, Guidance
  • 3 Associated documents
We have consulted on our guidance for suppliers which details how we will administer the Offtaker of Last Resort (OLR) scheme from 1 October 2015.