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.
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.
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.