Energy Systems Catapult welcomes the opportunity to respond to Ofgem’s Call for Input on the proposed Future Regulation Sandbox (FRS).

Key points

• We welcome this initiative overall. Unlocking and supporting energy innovation will be essential developing new approaches and improving consumer outcomes. Sandboxes can speed up the pace of regulatory changes while protecting consumers.
• While it will be important to continue to draw on “bottom up” propositions from market players, there is also need for strategic direction setting, focusing on overcoming challenging to Net Zero energy outcomes. A joined-up approach with other decision makers (especially DESNZ) should enhance prioritisation and ensure policy coherence.
• Consumer testing should be at the heart of regulatory change. Testing should allow consumer preference and acceptability to shape and refine regulatory options. Energy Systems Catapult tools, such as the Living Lab and the Whole Energy Systems Accelerator can complement the FSR, providing a suite of tools for use in different circumstances.
• New and innovative players should not be excluded from participating in trials to support regulatory change. Energy Systems Catapult could play a role in supporting match making, including of unregulated entities with those who can participate directly in trials.
• We expect there to be various valuable use-cases to trial. A systematic approach to identifying priorities for exploration will complement market-driven use-cases. We have provided examples of areas to explore. Priorities include new tariffs propositions, streamlined regs for niche market players and consideration of new data consent processes.