Ofgem introduced an initiative (Innovation Link) in 2016 to promote innovation through what is known as a regulatory sandbox. This allows innovators to trial new products, services and business models in a real-world environment without having to comply with all the industry obligations.
So far, the regulatory sandbox has covered obligations controlled by Ofgem based on four eligibility criteria:
- Consumer benefit;
- Background research; and
- The need for support.
If innovators are not licenced and are seeking derogation, then they will need to work with a licensed business for the duration of the sandbox.
Further guidance on applying for an Innovation Sandbox Derogation can be found here.
The DCUSA Innovation Sandbox Application Form can also be downloaded by using the following link.