Regulatory sandboxing and trial waivers

Victoria’s new regulatory sandboxing framework enabling innovators to trial new products and services in the energy market commenced on 1 June 2022.

New provisions in the Electricity Industry Act 2000, the Gas Industry Act 2001 and the Essential Services Commission Act 2001 provide the commission new powers to grant a time-limited trial waiver to innovators who sell, supply, generate or transmit electricity, or sell or supply gas. This will allow the trialling of innovative technologies, approaches, business models, products and services in the Victorian energy market, in a controlled setting, and help inform whether permanent changes to particular energy rules would benefit Victorian consumers.

Trial waivers operate alongside licences and licence exemptions as a distinct authorisation category that enables entry into Victoria’s energy market.

To support the regulatory sandboxing framework, we have developed a Trial Project Guideline to provide Victoria-specific guidance to innovators on the requirements to operate a project in Victoria. The Trial Project Guideline sets out our proposed approach, information and process requirements that we will consider for trial waiver applications and how decisions on trial waiver applications will be made.

Consultation

We consulted on our draft decision and draft Trial Project from 19 April to 17 May 2022. We received three submissions, available in the resources tab. Submissions covered a number of topics, including:

• mandatory membership with the Energy and Water Ombudsman (Victoria) for all trial waiver holders
• information requirements for dispute resolution
• the timeframe to determine trial waiver applications
• consultation trial waiver applications
• monitoring and reporting
• confidential information
• extension of trial waivers.
  

Feedback on the national regulatory sandboxing framework

The Australian Energy Regulator consulted with stakeholders on its draft Trial Projects Guidelines to support the development of a national regulatory sandboxing framework. We have had regard to the Australian Energy Regulator’s draft guidelines in developing our guideline and sought to achieve consistency where possible and appropriate.

We released our final decision and Trial Project Guideline on 29 June 2022. You can also read our media release about this report.

Trial Project Guideline

Before applying for a trial waiver, you should read the commission’s Trial Project Guideline which outlines our approach, information and process requirements and how decisions on trial waiver applications will be made.

Supplementary information for trial waiver applications

This document provides general information to assist trial waiver applicants with preparing their application. This document should be read in conjunction with the commission’s Trial Project Guideline.

Trial waiver application information requirements

We have developed a trial waiver application form for innovators to help them understand the information we require for a trial waiver application in Victoria. Applications must be made through the trial waiver portal on the Energy Innovation Toolkit website.

Lodging your enquiry or trial waiver application

If you are ready to submit an enquiry or apply for a Victorian trial waiver, visit the Energy Innovation Toolkit website and follow the prompts to access the Innovation Enquiry Service and the Victorian trial waiver portal.

Contacting us

You can also contact us at regulatorysandbox@esc.vic.gov.au if you have any queries about the commission’s new regulatory sandbox and trial waiver powers.

Register of trial waivers

Resources