Ofgem reaches out to energy start-ups
Blog
The one thing we know about energy is that it is undergoing rapid, fundamental change.
Ofgem’s approach to the regulation of the energy market needs to remain relevant and responsive.
The team here at Ofgem are approaching this challenge head-on. We are keen to embrace and encourage different ways of doing things and different approaches.
With change comes new entrants and start-ups, who are using technology to operate in the energy market in new ways. Many of these companies bring experience from other markets and sectors.
However they have told us that they find energy regulation complex. Often we are told that it is difficult to understand the regulations, and to know how they might apply to new innovations.
As the energy regulator, it is our job is to protect the interests of both existing and future consumers. Part of doing that is to create the right environment to foster innovation. It is important that if an idea has the potential to benefit future consumers, developers have access to the right support. This is why we are launching our Innovation Link.
The Innovation Link will provide a one stop shop for fast, frank feedback on energy regulation to organisations who want to develop a new product, service or business model. This will provide businesses and individuals with a better understanding of the regulatory implications of their proposals and enable them to make more informed choices.
This new service will support anyone with an innovative business proposal that has the potential to benefit consumers.
We are primarily interested in engaging those without established access to Ofgem, who are new to the sector, or have less resources to engage with the regulatory framework.
However, we are open to providing the same support to more established players, where they are developing an innovative product, service or business model that raises regulatory questions.
Our aspiration is that the Innovation Link will allow us to identify the types of innovation that we need to take into account when developing regulation. We are keen that the Link looks at ways to support innovators, beyond giving feedback. As such, in 2017 the Link will also bring forward proposals for a ‘regulatory sandbox’ which will let innovators trial promising new products or services in a controlled regulatory environment while ensuring that the interests of the customer are met.
For me, the success of the Innovation Link will be in creating an open dialogue so we can make the market work better for commercial innovation. I can’t promise that we will be able to wave a magic wand to remove all of the perceived regulatory barriers or guarantee that regulation anticipates the next development in the market. However, by providing innovators access to an experienced team of regulators, we can start the dialogue.
If you would like to get in touch to obtain feedback on the regulatory implications of a business proposal or to understand further the services of the Innovation Link, please see our web page or email us at innovationlink@ofgem.gov.uk.
We look forward to hearing from you!