Question

To ask Her Majesty's Government when they expect the first Contracts for Difference auction to take place; when they expect the Offtaker of Last Resort to be operational; whether those dates have changed from the dates given to Parliament during the passage of the Energy Act 2013; and if so, why.

The policy design of the Offtaker of Last Resort (OLR) is at an advanced stage, and the detail of the proposals has been recently consulted on. We are on track to deliver the final policy and introduce enabling regulations ahead of first allocation of Contracts for Difference (CfD) expected in October 2014, with regulations on schedule to be in place when the first CfDs are signed towards the end of 2014 or in early 2015. Consequently, CfD applicants will have a high degree of clarity about the arrangements for OLR, in advance of the first auctions. This is consistent with the commitments about the timing of the OLR given to Parliament during the passage of the Energy Act 2013.