A Sandbox trial enables organisations to trial new products, services or business models without being subject to the usual rules that might apply under the Retail Energy Code (REC). Sandbox trials are intended to help inform decisions about improvements or changes that might be beneficial, and can be a precursor to changes to the REC arrangements. Sandbox trials provide a route to Derogation from standard requirements.

Applying for a Sandbox trial

Any REC Party or Non_Party REC Service User may apply for a Sandbox trial by completing the application form accessed via the Application Forms tab on the REC Forms and Templates area of the REC Portal.

A Sandbox trial applicant will be expected to:

• Demonstrate understanding of the affected REC obligation(s)
• Provide detailed rationale for why the trial is required
• Identify likely impacted industry stakeholders
• Identify key activities and milestones to take place throughout the trial
• Indicate a requested length of the trial (maximum period being two years)

Performance Assurance Board role

Once an application form has been submitted, the Code Manager will provide the Performance Assurance Board with a report, including its recommendation on whether the application should be accepted. Following the decision of the Performance Assurance Board, the Code Manager will inform the applicant and Ofgem, including reasons for the decision and any conditions specified.

Code Manager monitoring

The Code Manager monitors ongoing Sandbox trials and conditions that are in place, and provides regular feedback to the Performance Assurance Board on how the applicant is complying with conditions. Throughout the monitoring process, the Code Manager will assess if a Sandbox trial has increased an identified Retail Risk or had a negative impact on any third parties, and report increased risks to the Performance Assurance Board. If appropriate, a revised recommendation for may be made, including additional conditions being put in place or other remedial measures introduced to mitigate the risks.

Early termination

The Code Manager may recommend to the Performance Assurance Board that a Sandbox trial is terminated early, either at the request of the applicant or if the Code Manager considers the trial poses a continued unacceptable risk to third parties despite remedial measures being put in place.

Post-trial reporting

Following the completion of the Sandbox trial period, the Code Manager will produce an assessment of the trial to determine its impact and provide a report for the Performance Assurance Board. The report will include:

• Lessons learnt and reporting that could be applied to any future Sandbox applications
• An evaluation of the impacts and cost the trial had on everyone concerned
• An assessment of whether the trial had a positive or negative impact on the achievement of the REC Objectives; and
• A recommendation on whether a REC Change Proposal may be brought forward to implement improvements to the code.

Accessing Sandbox trial details

Details of ongoing and historic Sandbox trials can be accessed via the Derogations and Sandbox area of the REC Portal (available for Portal account holders).