Innovative technologies and business models in the national electricity market can bring big benefits to consumers. But new concepts can sometimes be inconsistent with the existing regulatory framework. 

The AEMC is seeking stakeholder feedback on a new approach that would relax regulation for trials of new technologies and business models. This could help entrepreneurial energy providers demonstrate the value of innovative business models, products and services in a "regulatory sandbox" before broader changes to regulation are explored.  

A regulatory sandbox is a framework within which participants can trial innovative concepts in the market under relaxed regulatory requirements at a smaller scale, on a time-limited basis and with appropriate safeguards in place.

The consultation paper seeks stakeholder feedback on how to best facilitate innovative projects offering benefits to customers while managing any risks. It also seeks feedback on the need for formal regulatory sandbox arrangements to support this. 

Submissions close on 31 January 2019 and the Commission will provide interim advice to the COAG Energy Council in February 2019.

This consultation is being conducted as part of the 2019 Electricity network economic regulatory framework review. The Commission is building on the findings of our 2018 Electricity network economic regulatory framework review, a recommendation of the Finkel review and previous work done by state, territory and commonwealth officials. 

If the need for sandbox arrangements is established the AEMC’s advice on the design of these arrangements will be consulted on and included in the 2019 Electricity network economic regulatory framework review final report.

Media: Prudence Anderson, Communication Director, 0404 821 935 or (02) 8296 7817