Ofgem is progressing plans for a 12-month technical sandbox to support the safe and responsible use of artificial intelligence in the energy sector.
The regulator says the proposed sandbox would provide a controlled digital environment where energy companies can test AI tools. It would also help Ofgem develop its approach to regulating the technology while protecting customers.
Testing AI in a controlled environment
Ofgem published a call for input on the proposed sandbox in July 2025, before confirming its decision to proceed with the pilot in January 2026. Both exercises are listed as closed on the regulator’s artificial intelligence information page.
The regulator is also inviting energy licensees to submit proposals to its AI Regulatory Laboratory on a rolling basis. The informal, discussion-based sessions are intended to help participants test hypothetical or real AI applications against Ofgem’s existing guidance and wider regulatory framework.
Participants can use the laboratory to examine potential risks and impacts, and discuss regulatory implications with an independent panel of AI and regulatory experts. Ofgem says the facility is aimed at energy sector licensees, market participants, operators of essential services and their innovation partners.
Focus on assurance and ethics
Ofgem has separately sought views on the role of AI assurance in the energy sector, including how systems should be tested, evaluated and governed. The call for input was published on 17 June 2026 and is marked as closed.
The regulator says AI could create efficiencies for bill payers, suppliers and the wider energy sector by improving the planning, management and real-time operation of the energy system. It also highlights potential challenges and risks, and has published guidance on ethical AI use in the sector.