The Energy Regulation Sandbox can help innovators trial or bring to market new products, services, business models and methodologies without some of the usual rules applying. The Sandbox has 4 tools in its arsenal. For trials, we can provide bespoke guidance, comfort (shared risk) and time-limited derogations (relief) from specific rules. For market entry, we can confirm (not an endorsement) that an activity is permissible, and, where a rule is blocking an innovation, potentially remove this by way of a derogation:
- Bespoke guidance on interpreting regulations and how they might apply to an innovator’s specific trial circumstances.
- Comfort about our approach to compliance and enforcement for the purposes of a trial.
- Confirmation that a proposition is permissible.
- Formal relief (a derogation) from a specific rule (from a licence or code) that an innovator is not able to comply with.
Many of the barriers innovators encountered reside in the detailed codes owned and operated by industry. Two of the electricity codes, the Balancing and Settlement Code (BSC) and the Distribution Connection Use of System Agreement (DCUSA), have responded to this and developed sandbox derogation capabilities for pre-commercial trials. These tools are part of the Energy Regulatory Sandbox and can be accessed via an application to Ofgem. Other Code Administrators are considering sandbox flexibilities; we will update our resources as new codes come on-line.
Making an application
Unlike the original sandbox, innovators can access the service when they need it rather than fit into strict windows deadlines. We expect anyone seeking support through the new Sandbox will have a sufficiently mature proposition, are able to set-out what support they require, and are ready to progress within a reasonable timeframe. Our experience is that many innovators need feedback instead of, or in advance of, sandbox support, so we encourage you to use our feedback service if you are finding it too difficult to provide the information requested in the sandbox application form
The Energy Regulation Sandbox Guidance Notes setting out the detail of what’s on offer (and what’s not), who can access it, how to apply, entry criteria and other key information. To apply, please fill out the application form attached to the page.
Regulatory Sandbox Repository
See the Sandbox Repository pages for information about the Sandbox applications we’ve received and granted. As Sandbox supported schemes complete, evaluation and insights information will be added.
Sandbox Navigator & FAQ
Last month we launched the refreshed Energy Regulation Sandbox. In response to requests, we’re today publishing a short introductory companion to the main guidance so that innovators can make a quicker call on whether the sandbox might be for them. We’ve also published the first compilation of Frequently Asked Questions, which we intend to update on at least a quarterly basis.
