diff --git a/opm/core/wells/InjectionSpecification.cpp b/opm/core/wells/InjectionSpecification.cpp
index 09d11f60..b16e1b7b 100644
--- a/opm/core/wells/InjectionSpecification.cpp
+++ b/opm/core/wells/InjectionSpecification.cpp
@@ -34,7 +34,7 @@ namespace Opm
       BHP_limit_(-1e100),
       reinjection_fraction_target_(1),
       voidage_replacment_fraction_(1),
-      guide_rate_(1.0),
+      guide_rate_(-1.0),
       guide_rate_type_(NONE_GRT)
     {
 
diff --git a/opm/core/wells/ProductionSpecification.cpp b/opm/core/wells/ProductionSpecification.cpp
index 1bdaac30..b7b9e823 100644
--- a/opm/core/wells/ProductionSpecification.cpp
+++ b/opm/core/wells/ProductionSpecification.cpp
@@ -36,7 +36,7 @@ namespace Opm
       liquid_max_rate_(-1e100),
       reservoir_flow_max_rate_(-1e100),
       BHP_limit_(-1e100),
-      guide_rate_(1.0),
+      guide_rate_(-1.0),
       guide_rate_type_(NONE_GRT)
     {
     }
diff --git a/opm/core/wells/WellCollection.cpp b/opm/core/wells/WellCollection.cpp
index 6325fab4..fad447ae 100644
--- a/opm/core/wells/WellCollection.cpp
+++ b/opm/core/wells/WellCollection.cpp
@@ -482,4 +482,15 @@ namespace Opm
         } // end of for (int w = 0; w < nw; ++w)
     }
 
+
+    bool WellCollection::requireWellPotentials() const
+    {
+        for (const auto& well_node : leaf_nodes_) {
+            if (well_node->isGuideRateWellPotential()) {
+                return true;
+            }
+        }
+        return false;
+    }
+
 }
diff --git a/opm/core/wells/WellCollection.hpp b/opm/core/wells/WellCollection.hpp
index 846b1747..419e0f9c 100644
--- a/opm/core/wells/WellCollection.hpp
+++ b/opm/core/wells/WellCollection.hpp
@@ -155,6 +155,9 @@ namespace Opm
                                          const PhaseUsage& phase_usage,
                                          const std::vector<double>& well_potentials) const;
 
+
+        bool requireWellPotentials() const;
+
     private:
         // To account for the possibility of a forest
         std::vector<std::shared_ptr<WellsGroupInterface> > roots_;
diff --git a/opm/core/wells/WellsGroup.cpp b/opm/core/wells/WellsGroup.cpp
index a57c7ed0..a166ca77 100644
--- a/opm/core/wells/WellsGroup.cpp
+++ b/opm/core/wells/WellsGroup.cpp
@@ -921,7 +921,8 @@ namespace Opm
           self_index_(-1),
           group_control_index_(-1),
           shut_well_(true), // This is default for now
-          target_updated_(false) // This is default for now, not sure whether to use the default value
+          target_updated_(false), // This is default for now, not sure whether to use the default value
+          is_guiderate_wellpotential_(false)
     {
     }
 
@@ -1651,6 +1652,18 @@ namespace Opm
     }
 
 
+    bool WellNode::isGuideRateWellPotential() const
+    {
+        return is_guiderate_wellpotential_;
+    }
+
+
+    void WellNode::setIsGuideRateWellPotential(const bool flag)
+    {
+        is_guiderate_wellpotential_ = flag;
+    }
+
+
     bool WellNode::canProduceMore() const
     {
         return (isProducer() && !individualControl());
diff --git a/opm/core/wells/WellsGroup.hpp b/opm/core/wells/WellsGroup.hpp
index 966dc971..e18f62de 100644
--- a/opm/core/wells/WellsGroup.hpp
+++ b/opm/core/wells/WellsGroup.hpp
@@ -514,6 +514,10 @@ namespace Opm
 
         bool targetUpdated() const;
 
+        bool isGuideRateWellPotential() const;
+
+        void setIsGuideRateWellPotential(const bool flag);
+
         virtual void setTargetUpdated(const bool flag);
 
         virtual bool canProduceMore() const;
@@ -527,6 +531,10 @@ namespace Opm
         bool shut_well_;
         // TODO: used when updating well targets
         bool target_updated_;
+        // whether the guide rate is specified with well potential
+        // TODO: we have never handle the guide rates for groups, maybe this
+        // is something will go to WellsGroupInterface later
+        bool is_guiderate_wellpotential_;
     };
 
     /// Creates the WellsGroupInterface for the given well
diff --git a/opm/core/wells/WellsManager.cpp b/opm/core/wells/WellsManager.cpp
index 0c7960b5..5b67cc15 100644
--- a/opm/core/wells/WellsManager.cpp
+++ b/opm/core/wells/WellsManager.cpp
@@ -748,7 +748,7 @@ namespace Opm
             WellNode& wellnode = *well_collection_.getLeafNodes()[wix];
 
             // TODO: looks like only handling OIL phase guide rate for producers
-            if (well->getGuideRatePhase(timeStep) != GuideRate::UNDEFINED) {
+            if (well->getGuideRatePhase(timeStep) != GuideRate::UNDEFINED && well->getGuideRate(timeStep) >= 0.) {
                 if (well_data[wix].type == PRODUCER) {
                     wellnode.prodSpec().guide_rate_ = well->getGuideRate(timeStep);
                     if (well->getGuideRatePhase(timeStep) == GuideRate::OIL) {
@@ -768,6 +768,8 @@ namespace Opm
                 } else {
                     OPM_THROW(std::runtime_error, "Unknown well type " << well_data[wix].type << " for well " << well->name());
                 }
+            } else {
+                wellnode.setIsGuideRateWellPotential(true);
             }
         }
     }