Test your innovations for the energy market
Blog
Pamela Taylor
Publication date
Industry sector
Supply and Retail Market
It has now been almost two months since Ofgem launched the Innovation Link, providing a service for energy innovators to receive fast, frank, feedback on the regulatory implications of their business proposals. I have been pleased with the initial response.
We have received 34 eligible requests for feedback from innovators with experience in either the energy or digital and technology sectors. There are some common themes emerging. We have met a number of new entrants to the retail market that are looking to offer customers switching services, new tariffs and products relating to energy management.
A number of requests are for information on regulatory requirements, such as routes to entering the supply market. We will publish information on our Innovation Link page to answer some of the recurring questions.
The sandbox will allow innovators to trial business propositions that will benefit consumers without incurring all of the usual regulatory requirements.
Other innovations relate to new technologies, which offer new ways to generate and store power, to help manage networks. So there is an interesting mix of questions, which we are looking forward to answering. I would certainly also encourage any innovators who could benefit from feedback to get in touch.
However, I am keen to explore whether we can do more. When we launched the Innovation Link we said we would bring forward proposals in 2017 for a ‘regulatory sandbox’. The sandbox will allow innovators to trial business propositions that will benefit consumers without incurring all of the usual regulatory requirements.
Today we have published an open letter setting out how the sandbox would work and what the eligibility criteria is for innovators to use the service.
We want to hear from innovators with new business propositions that have a realistic prospect of benefitting consumers, and about the regulatory barriers they face.
I can’t promise that we will be able to address all the regulatory barriers identified as there will be some that result from legislation or rules outside of our control. Also, this isn’t about offering subsidies or support for new technologies. Instead the focus is on how we apply the rules that we oversee.
What is crucial for me is that we support innovation that benefits consumers. It may also be necessary to build some safeguards to protect the consumers involved in the trial run by the innovator.
We will decide the best approach to addressing the regulatory barriers, whether it is through bespoke advice upon which the innovator can rely, or other means.
I am looking forward to exploring whether there is demand for this service and whether we can help. We’re particularly keen to keep talking to people who are not already involved in the energy sector, but have a new idea which could help consumers.
For example, we want to speak more to people in the digital technology sector, or in engineering. If you’re reading this and you’re not sure whether or not to contact us – please do!
Final expressions of interest need to be received by Friday 17 March 2017. If you would like to submit an expression of interest in using the Innovation Link or speak to one of the team about this, please email innovationlink@ofgem.gov.uk.
We expect to provide an update on the levels of interest and how we plan to take the sandbox forward in May 2017. Depending on the scale and scope of expressions of interest that we receive in this round, we may open further windows for innovators to express interest in the future. We will clarify this when we publish our assessment of the Innovation Link and our intentions for its future in summer 2017.
We look forward to hearing from you!