Regulatory Sandbox: Emergent Energy Systems Ltd - 2023
Decision
Publication date
Company
Industry sector
- Supply and Retail Market
- Generation and Wholesale Market
About the Sandbox
As the Guidance explains, the Sandbox can support schemes operating in different parts of the regulated gas and electricity markets. It can enable trials (or pilots or demonstrators) that have to be done in a live energy environment, involving consumers or interacting with market rules or the physical system: the Sandbox can provide innovators with bespoke guidance, comfort and time-limited derogations (relief) from specific rules. For innovators considering market entry, the Sandbox 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.
The range of activities that can be supported and the various tools at our disposal, mean that each Sandbox we grant will be bespoke, although we can expect common use-cases to emerge.
While the Sandbox has been designed to help innovators trial or bring to market new products, services or methodologies, our mission is to support and enable innovation more widely. To that end, all applicants to the Sandbox agree to surface and share knowledge and insights that can aid in this endeavour.
As this Sandbox supported scheme completes, evaluation and insights information will be added to this page.
Emergent Energy Systems Ltd – Sandbox granted on 20 January 2023
Emergent establish and operate microgrids within residential housing developments, helping housing companies deliver cost-effective decarbonisation of their properties, while keeping bills low for residents. They recognise residents on microgrids must be able to exercise their right to switch supply and are trialling a new industry methodology to ensure that Distribution Use of System (DUoS) charges are levied appropriately where there is competition in supply on a microgrid.
Scheme name: Delivering the right to switch for residential customers on microgrids.
Scheme type: Trial.
Business model category: Local energy: microgrid.
Sandbox support provided: Temporary derogation to Distribution Network Operators (DNOs) from Licence Condition 13A.4 of the Electricity Distribution Licence, and a temporary consent to DNOs to not comply with Licence Condition 14 (Part B).
Supporting documentation: Emergent – sandbox decision letter - check if can be attached at the bottom of the page
Evaluation: Evaluation report due in May 2025.