What we are looking for
Areas for innovation
We are looking for your ideas that address the big challenges facing the water sector – aligned with Ofwat’s five strategic innovation themes. We aim to fund a wide range of entries that will showcase a diverse mix of innovative ways of working and solutions.
We have identified a number of innovation enablers that will be particularly critical to growing the water sector’s capacity. The Fund will support initiatives that demonstrate and further strengthen these enablers, as set out in the aims of the Fund.
Entry delivery timelines
We are open to a wide range of project delivery timelines, from delivery periods of less than a year to multi-year periods which continue beyond 2025. There is no requirement for project delivery to be completed within the current asset management plan (AMP) period. We expect entries to the Catalyst Stream that are awarded funding to start within 6 months of being notified of the award.
Approach to risk
We are seeking truly innovative entries and encourage water companies to adopt an open risk appetite, supported by strong risk management with a clear plan to share learning regardless of the outcome. We recognise that some initiatives may not deliver the expected direct benefits, but by taking risks and sharing learning across the water sector, customers will stand to benefit.
Entrants should be able to recognise and respond appropriately to issues and opportunities as they arise. This may include:
- Taking decisions about how to adjust delivering if the initial benefits can no longer be realised.
- Adopting an approach of ‘early failure’.
- Thinking widely about possible benefits from their initiative.
- Considering how learning and insights from the delivery of their initiative can best provide value across the sector.
Monitoring and risk management
Entrants will be asked to provide information on their approach to risk in their entry in question 3.5.1 of the entry form.
Entrants will be responsible for:
- Managing delivery and reviewing progress against milestones
- Adapting delivery to realise the intended impact most efficiently and effectively
- Sharing significant learning and decisions with Ofwat and the delivery partners
Ofwat and the delivery partners will monitor the progress of successful entries, including seeking updates at delivery milestones. The monitoring and involvement of Ofwat and the delivery partners will be proportionate to the size and risk of initiatives. In all cases, winning entrants will be responsible for reviewing progress and deciding the best course of action for their entry to deliver its intended impact.
In exceptional circumstances, Ofwat and the delivery partners may intervene where we have serious concerns that an initiative is moving materially away from delivering on its intended impact, or there is any concern about misuse of funds.
Entry value & delivery costs
Individual entries to the Catalyst Stream of the Water Breakthrough Challenge should bid for between £100,000 to £1 million in funding.
We expect entries to demonstrate cost efficiency and good use of customer money, with a clear case for any costs included in the entry budget.
Reasonable costs are eligible to be funded, including dedicated staff time and fair associated overheads.
The budget, set out in response to Questions C and 3.4.1, should be inclusive of applicable taxes which are not recoverable, reflecting the true costs of the initiative. Where taxes are fully recoverable, such as VAT, costs should be shown net of the recoverable amount. Taxes that are not recoverable should be included, for example, customs duties payable on goods imported into the UK.
Partnerships
We particularly encourage entries that involve partnerships and collaboration between water companies, including NAVs, as well as with organisations in the water sector supply chain and beyond.
- If you are a water company (or NAVs) – you are strongly encouraged to explore opportunities for new partnerships and consortia, including by signaling opportunities for partnerships on your website and social media channels. You can partner with anyone you wish, even internationally – including other water companies, supply chain partners, new start-ups, SMEs, academia, local authorities, water companies outside of England and Wales, and water supply and/or sewerage retailers. Please note that it’s your responsibility to carry out any checks and due diligence on partners.
- If you are not a water company – the Water Breakthrough Challenge is an opportunity to reach out to one or more water companies to explore the possibility of working together. A full list of England and Wales water companies that can be contacted to explore new partnership opportunities can be found on the Find a partner page. You may also wish to register your interest in recording a pitch video for our Water Innovation Directory as a way to showcase your innovation to interested water companies.