BSC Sandbox Procedure

The BSC Sandbox enables limited pre-competitive trials of potentially innovative products or services in a live market environment. It achieves this by allowing BSC Parties to participate in the BSC Trading Arrangements with certain obligations removed or altered (a derogation).

The details of the alteration will be specific to the BSC Party involved and include a number of limitations, including on time.

Latest document

The purpose of this document is to set out the process that the BSC Panel, BSCCo and applicants should follow with respect of Sandbox applications in accordance with Section H of the BSC.

Main users of the procedure

  • Sandbox Applicants
  • BSC Parties
  • BSCCo (ELEXON)
  • the BSC Panel

Overview of procedure

Applications for the BSC Sandbox must set out the BSC Obligations the Sandbox Applicant is seeking to change, what benefit that will bring, and how long is needed for the trial. An applicant does not need to be a BSC Party to apply to the Sandbox, but would need to accede to the BSC before any trial commences.

Derogations can be applied for by all BSC Parties and non-parties with innovative ideas, excepting BSCCo or any related company. While a non-party can be granted derogation from aspects of the BSC, that derogation will have no effect until they have acceded to the BSC. Once acceded, the recipient of the derogation will be subject to all BSC Obligations except those from which they have received derogation.

Each derogation granted is in effect a time-bound project to trial an innovative product or service. Following the expiration of the derogation, projects must transition to BAU either by becoming fully compliant with the BSC or by raising and implementing a Modification to make the alterations permanent and open to all BSC Parties.

BSC Sandbox Applications must be raised to the Authority, who will consider whether to forward the Application to BSCCo for progression under this Procedure. This enables the Authority to coordinate applications which have an impact on more than one Code, or on both Codes and Licenses.

BSCCo will then assist in processing the request for consideration by the BSC Panel. BSCCo will also act as a critical friend to Sandbox Applicants prior to submissions. The BSC Panel will make a recommendation on whether or not to grant a derogation (and whether any conditions should be applied) to the Authority.

The Authority will then consider the recommendation and make a decision on whether or not to grant a derogation.

The BSC Sandbox application is not a way of evading the rules of the BSC, and all applications will be assessed against the eligibility criteria set out in this document, the foremost of which is how the Sandbox application would better facilitate the Applicable BSC Objectives.

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