Entries for the second round of the Water Breakthrough Challenge (‘Breakthrough 2’) opened on 11 October 2021, with two streams of funding available for innovative initiatives which deliver benefits for customers, society and the environment.
The Catalyst Stream aims to encourage new ways of working that go beyond business-as-usual innovation practices in the water sector, in particular, increasing and improving collaboration and building partnerships from within and outside the water sector. Entries to the Catalyst Stream closed on 8 December 2021.
Approximately £5 million is available for entries seeking funding between £150,000 – £2 million. Water companies interested in bidding for funding of between £2 million – £10 million can read more about the Transform Stream of the Water Breakthrough Challenge on its dedicated page.
Both streams of the Water Breakthrough Challenge are open to entries from water companies in England & Wales, including NAVs, but they can partner or form a group with any organisation to enter.
After consulting with the sector, we are testing a relaxed IPR policy for part of the Catalyst Stream. Under this change, owners of background IPR will be able to charge a licence fee at a fair, reasonable and non-discriminatory rate, where this is required to deliver the benefit of the foreground IPR. Read more about this new position in our terms and conditions and FAQs.
More information about the Catalyst Stream is available below.
Please review the below materials prior to submitting your entry:
The Catalyst stream of the Water Breakthrough Challenge uses a streamlined, single-stage entry process, proportional to the risk and value of the entries being submitted.
Entries open: 9am (BST) on 11 October 2021
Programme webinar: 1.30pm (BST) 13 October 2021
‘Writing a strong entry’ workshop: 10.30am (BST) 22 October 2021 (review content here)
Entries close: 12 noon (GMT) on 8 December 2021
Judging panel meeting: 22-23 February 2022 (TBC)
Winners announced: By mid-March 2022
There is approximately £5 million available in total for successful entries the Catalyst Stream of Breakthrough 2. Individual entries can bid for funding of between £150,000 and £2 million.
Water companies seeking funding of between £2 million and £10 million can read about the Transform Stream of the Water Breakthrough Challenge on its dedicated page.
Up to half of the available funding (i.e £2.5 million) will be provided to entries under the new IPR policy.
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.
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.
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:
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:
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.
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.
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.
Entries will be reviewed against three assessment criteria, all weighted equally. A full breakdown of the assessment criteria, including assessment guidance and how they relate to questions in the entry form is available in the Catalyst Stream Entrant handbook (PDF, 1MB).
1. Positive impact for water customers, society and the environment
Under this assessment category, we will be looking to understand the benefits your entry seeks to deliver for customers, society, and the environment.
Strong entries will be seeking to address a well evidenced, important need or opportunity in the water sector in England and Wales for water customers, society and/or the environment that aligns with one or more of Ofwat’s five strategic innovation themes.
2. Innovation enablers and innovative solutions
Under this assessment category, we will be looking to understand what is novel about the proposed approach and solution, and how it could deliver a positive sector-wide innovation legacy.
Strong entries will demonstrate how the proposed entry goes beyond the entrant’s business-as-usual approach to innovation and how it may draw inspiration and/or talent from other sectors. This is both in terms of what the entrant proposes to deliver and how they propose to deliver it. This is both in terms of what the entrant proposes to deliver (innovative solutions) and how they propose to deliver it (innovation enablers).
Innovation enablers are the innovative approaches the entry is proposing, which may include how entrants are working internally and externally with collaborators within and outside of the water sector for the benefit of water customers in England and Wales. Entries could include testing new ideas; adapting ideas or practices that have established themselves in other sectors; or adopting proven approaches that haven’t been tried at scale.
3. Capacity, capability, and commitment to deliver
Under this assessment category, we will be looking for a clear narrative demonstrating strong evidence that the proposed entry is feasible and that appropriate resources and governance will be in place for its delivery.
There are four main categories of eligibility criteria to the Catalyst Stream of the Water Breakthrough Challenge, detailed below:
The lead entrant must be one of the licensed water companies or NAVs in England or Wales, but they can partner or form a group with any organisation to enter.
Similar to our previous competitions, for Breakthrough 2 we are restricting direct access to water companies (including NAVS). However, we strongly encourage partnerships with non-water companies. To help build new connections in the water sector, we are hosting pitch videos from innovative suppliers interested in working with water companies on our Water Innovation Directory.
We have committed to keeping eligibility under review and are exploring ways to create more opportunities for innovators and other stakeholders within and outside the water sector in future competitions.
Entries should seek funding of between £150,000 to £2 million. Refer to ‘Entry value & delivery costs’ in ‘What we are looking for‘.
If you are seeking funding of between £2 million and £10 million, you may be eligible for the Transform Stream of the Water Breakthrough Challenge.
Only 90% of each entry’s financial costs will be provided by funding from Breakthrough 2. The remaining 10% must be provided by entry partners as a mandatory 10% financial contribution. We do not consider that customers should bear all the risk of initiatives funded through the competition and believe that this also encourages strong project management. Entry partners have the flexibility to decide how the remaining 10% is funded, as long as it is not funded by charges to water customers in England and Wales. There is no requirement for this contribution to be shared equally between partners. Entry partners may also consider how they could bring funding from other sources.
In the entry form, in Question C and 3.4, entrants need to specify the source of funds for their contributions. We welcome any additional financial and/or non-financial contributions beyond the minimum 10%. Non-financial contributions should be excluded from the total financial cost of the project.
We are open to initiatives that have successfully secured additional external public or private funding. Entrants must confirm that there is no duplicative or double funding and that they are not restricted by their current funding source when applying for additional and alternative funding through this Fund.
All entry partners must agree to abide by the terms and conditions.
We have worked to ensure the entry process is as efficient and practical as possible, allowing for ease of access for all water companies, in particular smaller companies.
The steps of the entry process are detailed below:
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A. Entry period
Entries to both streams of Breakthrough 2 opened at 9am (BST) on Monday 11th October 2021. Entries to the Catalyst Stream will close at 12 (noon) (GMT) on Wednesday 8th December 2021.
Entries must be submitted online via Submittable. An editable version of the entry form can also be downloaded (DOCX, 137KB) to help you to develop and collaborate on your answers ahead of completing the online form.
If entrants wish to work on more than one draft on the online entry form during the entry period, please contact [email protected] for assistance.
Information you provide in your entry may be shared with our partners (including the judges and any due diligence providers) for the purpose of administering Breakthrough 2. For more information on how we use your data, please see the privacy policy and the terms and conditions.
B. Eligibility screening
Entrants are required to meet the eligibility criteria (see ‘Who can be involved’). When entries close, an eligibility screening will be conducted to ensure entries all meet the eligibility criteria.
C. Assessment
All eligible entries will be assessed by assessors against each of the following three assessment criteria (refer to ‘Assessment criteria’):
Assessors will analyse and score all assessed entry questions against the set assessment criteria. Scoring will be between 1 and 5 (5 being the highest). These scores are weighted equally across all questions. The assessed entry questions, assessment criteria and weighting are set out in sections 5.4 and 5.5 of the Catalyst Stream Entrant handbook (PDF, 1MB).
A moderation meeting will be held to discuss and recommend entries to put forward to the judges. This moderation meeting will ensure that all assessors opinions have been captured and a consistent view on the merits of each entry is provided. Whilst scoring will form part of this process, Ofwat will consider the opinions of the assessors, and will also seek to ensure that a diverse portfolio of entries, in terms of entry themes and types of projects, are put forward for review by the judges.
D. Judging
An independent panel of judges will review the entries put forward following the assessment process. The judging panel will review the entries individually, assessing the entries using the same criteria as the assessors. The judging panel will then convene to discuss entries and provide a recommendation to Ofwat which entries they agree best meet the assessment criteria and offer a diverse portfolio for funding.
E. Ofwat Decision
Ofwat will make the final decision on which entries should receive funding. In making its decision, Ofwat will consider the views of assessors and judges on which entries best meet the assessment criteria and offer a diverse portfolio for funding.
Ofwat intends to publish this decision and its reasons for awarding funding. Ofwat will take account of entrants’ preferences in relation to the confidentiality of their entries.
F. Award
Entries should expect to be notified if they have been successful in being awarded funding by mid- March 2022.
G. Feedback
After the winners have been announced, high-level feedback will be provided to all lead entrants outlining why their entry has not been successful. Feedback will be given against each of the three assessment criteria and, where appropriate, provide guidance on areas of improvement against each of them. Scores provided by the assessors and the judging panel will not be included in the feedback. As mentioned above, the scoring forms only a part of the overall assessment process.
All participants in the Catalyst Stream of Breakthrough 2 will be required to adhere to the full terms and conditions of participation. Please ensure that you and your partners have read and understood these before submitting your entry.
If your entry is selected to win, you will be required to sign a further agreement which will outline arrangements for monitoring and reporting based on your specific winning entry.
In particular, the key requirements of winners will include:
We will be providing a range of support options for entrants to Breakthrough 2, summarised below – you can read more on the ‘Entrant support’ page.
If you have any questions about the Catalyst Stream, please review the Catalyst Stream Entrant handbook (PDF, 1MB) and frequently asked questions. If you still have questions, please email us at [email protected].
Reasonable adjustments and accommodations
We are committed to enabling a diverse range of entrants to enter the Challenge. If there are any reasonable adjustments that would support you to enter, catering for any additional needs you may have, please contact [email protected].
