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Network companies and third parties involved in the Network Innovation Competition (NIC) have called for more flexible rules on intellectual property (IP).
In submissions to an Ofgem consultation, third parties have cited rules awarding network operators the rights to key IP from innovation projects as a major barrier to their participation in the scheme.
Greater involvement by third parties has been put forward as a key method of improving the funding schemes, with the Energy Technologies Institute even calling for third parties to be allowed to bid directly for funding.
EA Technology, project lead on Scottish and Southern Energy Power Distribution’s Low Carbon Networks Fund project My Electric Avenue, said the rules currently prevent third parties from “extracting any future revenue whatsoever” from the project after it finishes.
The rules ensure maximum benefit to tax payers from the funding, but EA Technology said they also “perversely incentivise project partners to reduce foreground IP”, severely limiting the benefits.
The rules are also limiting the number of projects being put forward for both the NIC and Network Innovation Allowance (NIA), other third parties told Ofgem.
Despite being the beneficiary of the rules, networks are also calling for change. Both sides are calling for more flexibility on the rules, with the Energy Networks Association (ENA) proposing that at the start of the project the party responsible for “holding, registering and maximising IP should be identified”, rather than defaulting to the network operator automatically.
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