Independent generators to be given ‘innovative’ routes to market

Baroness Verma has confirmed plans to develop an “offtaker of last resort” mechanism to help give independent renewable generators a route to the electricity market.

In the report stage of the Energy Bill in the House of Lords, Baroness Verma said the government hopes to have the “offtaker of last resort” in place, subject to consultation, “from early next year with the intention for the scheme to be established by the time the first Contracts for Difference are signed in autumn 2014”.

The amendment would enable the government to establish a scheme obliging suppliers to purchase electricity from independent renewable generators under specified conditions if they were unable to agree their own commercial terms.

Baroness Verma added: “The offtaker of last resort mechanism will enable independent renewable electricity generators to use new and different routes into the energy market and end their dependence on established players to sell their power.

“This will bring more competition and innovation into the market and enable independent generators to compete on a level playing field.”