Ofgem is inviting innovators to trial business opportunities that will benefit consumers without incurring all the usual regulatory requirements.
Those deemed eligible will receive bespoke guidance to help address regulatory barriers.
Dubbed ‘regulatory sandbox’, it is expected to further develop an understanding of new business models and the potential benefits to consumers and in the longer term, help adapt the regulatory framework to the future developments in the energy sector.
To be eligible, businesses must offer “genuine innovation”, benefit consumers and must demonstrate what regulatory barrier currently exists that impedes the firm trialling the new proposition.
They must also set out the timescales for the trial and how they expect to achieve it.
Ofgem will only be able to remove regulatory barriers which it enforces and not those that arise from primary legislation or are enforced by others.
All sandbox support will be time limited.
Final expressions of interest must be submitted by 17th March.
It follows Ofgem’s launch of the ‘Innovation Link’ which is aimed at helping businesses make informed choices when developing new products and services.