BSC Sandbox application process
2 years maximum for the Trial Period. You should apply for the shortest possible amount of time that you need to test your innovation.
An extra Transition Period, by the end of which you must either transition back to full BSC compliance or have progressed a permanent change to the BSC rules. You should plan to do this in the shortest time possible.
Contact you to discuss next steps. We may ask you for further information to help our assessment.
Identify whether we need to co-ordinate with other industry code sandbox processes.
Assess your application against the BSC Sandbox eligibility criteria, including whether it:
Is similar to any other existing BSC derogations.
Is likely to be affected/constrained by any upcoming changes to the BSC rules.
Meets one or more Applicable BSC Objectives3 (e.g. has benefits to system operation, competition and/or BSC efficiency).
Creates any risks to BSC settlement accuracy. We’ll consider if any risks can be mitigated through monitoring and/or by applying conditions. This will involve us seeking a view from the BSC’s Performance Assurance Board.
Has any impacts on BSC Parties. This will include us consulting BSC Parties and other interested parties.
Involves any administration costs to Elexon or our service providers, e.g. to undertake manual workarounds or specific assurance activities. This will involve us carrying out impact assessments.
Represents the minimum scope and shortest period needed for your trial.
Includes a robust plan to transition back to full BSC compliance when your requested derogation ends, or if your trial fails.
Means that you need to report progress to us on a quarterly/annual basis or some other frequency.
Present this information to the BSC Panel. The Panel will recommend whether Ofgem should approve your BSC derogation. This may involve recommending that Ofgem applies conditions to your derogation, to mitigate any BSC risk or impact. Possible conditions could include placing limits on your trial’s scope or duration.
Submit all of the above information and the Panel’s recommendation to Ofgem for decision.
If your trial’s successful, and you want to make it a permanent arrangement, you’ll need to propose an enduring change to the BSC rules that’s available to all BSC Parties. This means raising a BSC Modification Proposal. Your derogation may be extended by an extra Transition Period while the Modification’s progressed, although this can’t exceed the overall 3-year time limit on derogations.
If a Modification isn’t implemented by the end of your Trial Period or any extra Transition Period, then (unless there are exceptional circumstances and subject to the overall 3-year limit) the derogation will expire and you’ll be expected to be fully compliant with all BSC rules.
If your trial’s not successful, you can exit early – otherwise the derogation will expire at the end of the Derogation Period. You’ll then be expected to be fully BSC-compliant. If you no longer want to be a BSC Party, your exit planning could include starting the process of withdrawing from the BSC (but if your derogation’s expired, you’ll still need to be BSC-compliant until this withdrawal process completes).
You’re in breach of the derogation or its conditions; or
Circumstances have changed materially since your derogation was approved, meaning that it no longer meets the BSC Sandbox eligibility criteria.
You can find the high-level rules in BSC Section H10 and more detailed information in the BSC Sandbox Procedure: https://www.elexon.co.uk/bsc-and-codes/
You can find Ofgem’s ERS guidance and application form on its Innovation Link webpage: https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/innovation-link-share-your-energy-ideas
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3 Set out in Standard Condition C3 of the Transmission Licence. The BSC Panel and Ofgem use these objectives to assess applications for temporary BSC derogations as well as permanent changes to the BSC rules.