Citizens Advice response to Ofgem’s call for input on a Future Regulation Sandbox

Citizens Advice response to Ofgem’s call for input on a Future Regulation Sandbox 122 KB

Citizens Advice welcomes the opportunity to respond to Ofgem’s consultation on the Proposal to introduce the Future Regulation Sandbox. In principle, Citizens Advice are supportive of this proposal. We address the specific questions below.

In principle we support Ofgem’s proposal, and see a regulatory sandbox as an opportunity to test innovative ideas in a controlled way, while understanding the potential impact on consumers. One of the main challenges for energy consumers, now and in the future, will be the transition to a low-carbon and digital energy system. Without support, there is a particular risk that energy consumers in vulnerable circumstances will lose out in a future energy market.

There is a risk that consumers in vulnerable circumstances or those who have a higher cost to serve are excluded from trials. Given that these groups are already at a greater risk of losing out in a future energy market, designing trials that exclude these groups risks creating regulatory structures that exacerbate this. We urge Ofgem to keep this in mind as they design the Future Regulation Sandbox.