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 Transform Stream aims to spark ambitious innovation and enable new approaches and ways of working, equipping the water sector to address the big challenges facing the sector, driving far-reaching and long-lasting benefits to customers, society and the environment across England and Wales now and into the future. Stage 1 entries to the Transform Stream closed on 16 November 2021.
Approximately £34 million is available for entries seeking funding of between £1 million – £10 million per entry. Water companies interested in bidding for funding of between £100,000 – £1 million can read more about the Catalyst 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.
More information about the Transform Stream is available below.
Please review the below materials prior to submitting your entry:
The Transform Stream of the Water Breakthrough Challenge follows a two-stage entry process that aims to ensure that entrants can develop proposals that have the greatest chance of being awarded funding.
Stage 1 entries open: 9am (BST) on 11 October 2021
Programme webinar: 1.30pm (BST) 13 October 2021 (watch the recording here)
‘Writing a strong entry’ workshop: 10.30am (BST) 22 October 2021 (review content here)
Stage 1 entries close: 12 noon (GMT) on 16 November 2021
Stage 2 entries open: 9am (GMT) on 15 December 2021
Stage 2 entries close: 12 noon (GMT) on 8 February 2022
Judging Panel Meeting: 28-29 March 2022
Winners announced: By late April 2022
There is approximately £34 million available in total for successful entries to the Transform Stream of the Water Breakthrough Challenge. Individual entries to the Transform Stream can bid for funding of between £1 million and £10 million.
Water companies seeking funding of between £100,000 and £1 million can read about the Catalyst Stream of the Water Breakthrough Challenge on its dedicated page.
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 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 initiative delivery timelines, from delivery periods of less than a year to multi-year periods which continue beyond 2025. There is no requirement for delivery to be completed within the current asset management plan (AMP) period.
We expect entries to the Transform stream of the Water Breakthrough Challenge that are awarded funding to start within six months of being notified of the award, but we recognise that especially complex entries may require a longer mobilisation period.
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 outcome. We recognise that some initiatives will not deliver the expected direct benefits, but by taking risks and sharing learning across the water sector, customers will stand to benefit.
While delivering initiatives, 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.
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 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 Transform Stream of the Water Breakthrough Challenge can bid for between £1 million and £10 million.
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 entry delivery costs are eligible to be funded, including dedicated staff time and fair associated overheads.
The budget, set out in the entry form, should be inclusive of applicable taxes which are not recoverable, reflecting the true costs to the project. 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, as set out below. A full breakdown of the assessment criteria, and how they are weighted at each stage, is available in the Transform Stream Entrant handbook (PDF, 2.7MB).
1. Positive impact for water customers, society and the environment
Under this assessment category, we will be looking to understand the benefits entries seek to deliver for customers, society, and the environment. Strong entries to Breakthrough 2 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 (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 eligibility criteria in the Transform stream of Breakthrough 2, detailed below:
The lead entrant to Breakthrough 2 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 £1 million and £10 million. Refer to ‘Entry value & delivery costs’ in ‘What we are looking for‘.
If you are seeking funding of between £1 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 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 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 entry.
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 two-stage entry process aims to ensure that entrants can develop proposals that have the greatest chance of being awarded funding.
Please note, Ofwat has chosen to invite specific entries from the first round of the Water Breakthrough Challenge direct to Stage 2 of Breakthrough 2. Reasons for this are set out in Ofwat’s decision document for the Water Breakthrough Challenge. This approach will not disadvantage any other entries as there is no limit on the number of entries that may progress to Stage 2 of Breakthrough 2.
The steps of the entry process are detailed below:
A. Stage 1 – Screening entry period
Stage 1 opened for entries on Monday 11 October 2021 at 9 am (BST) and will close on Tuesday 16 November at 12 noon (GMT).
Entries must be submitted online by the lead entrant 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.
At stage 1, we are looking for a high-level narrative summary in response to each of these questions. Guidance on how to complete stage 1 of the entry process is provided in section 5.3.3 of the Transform Stream Entrant handbook (PDF, 2.7MB).
We will ask you to register for a recording slot (Zoom call) where a four-minute pitch from the entry team will be recorded. This will be used to aid the understanding of our judges and assessors when assessing your entry. You will need to register for a recording slot no later than Friday 5 November 2021 at 5 pm (GMT).
Before submitting your entry, please ensure that:
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 screen
Entrants are required to meet the eligibility. When entries close, an eligibility screen will be conducted to ensure entries all meet the eligibility criteria.
C. Stage 1 assessment
During Stage 1, all eligible entries will be assessed by assessors against each of the following three assessment criteria:
Assessors will assess and score answers to all assessed entry questions against set assessment criteria. Scoring will be between 1 and 5 (5 being the highest). These scores are then weighted. The assessed entry questions, assessment criteria and weighting is set out in section 5.2.3 of the Transform Stream Entrant Handbook (PDF, 2.7MB).
A moderation meeting will be held to discuss and recommend entries to put forward to stage 2. 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, in making its decision on whether to put forward an entry to stage 2, Ofwat will also consider the opinions of the assessors and will seek to ensure that a diverse portfolio of entries, in terms of entry themes, types, entrants and geographic location. Entrants should note that there is no guarantee of funding even if the entry reaches stage 2.
D. Stage 1 feedback
Feedback will be provided to the lead entrant for all entries. For those being invited to stage 2, entries will receive up to three points of feedback from assessors to support them in developing their stage 2 entry. It is up to entrants to determine if they want to take this feedback into account.
For those entries which are not being invited to stage 2, we will provide high-level information about why the entry has not been successful.
E. Stage 2 – Full entry period
We will open stage 2 to invited entries on Wednesday 15 December 2021 at 09:00 (GMT) and will close for entries on Tuesday 8 February at 12 noon (GMT).
We set out the questions that should be answered, together with guidance on how to complete the questions in section 5.2.5 of the Transform Stream Entrant Handbook (PDF, 2.7MB).
The entry must be submitted via the online entry form. At stage 2, we will be looking for a fuller, evidenced and referenced narrative, as well as the completion of our entry costs and delivery plan template. Entrants will be able to update their stage 1 entry form and re-record their pitch if they wish. The entry form for both stages is available here as a Word document (DOCX, 137KB) to help you to develop and collaborate on your answers ahead of completing the online form.
Entries invited directly to stage 2 will need to complete the full entry form, including stage 1 and stage 2 questions.
Information you provide in your entry may be shared with our partners (including our 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 Breakthrough 2 privacy policy and the terms and conditions.
F. Stage 2 Assessment
The stage 2 process will consist of a more detailed assessment of entries against each of the three assessment criteria:
Assessors will review and score answers to all assessed stage 1 and stage 2 entry questions against set assessment criteria. Scoring will be between 1 and 5 (5 being the highest). These scores are then weighted. The assessed entry questions, assessment criteria and weighting is set out in section 5.2.5 of the Transform Stream Entrant Handbook (PDF, 2.7MB).
A moderation meeting will be held. 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, types, entrants and geographic location, is put forward to the judges.
G. Judging
An independent panel of judges will review the entries put forward through the Stage 2 assessment. The judging panel will review the entries individually, scoring the entries using the same criteria as the stage 2 assessors. The judging panel will then convene to discuss entries and recommend to Ofwat which entries they agree best meet the assessment criteria and offer a diverse portfolio for funding.
H. 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.
I. Award
Entries should expect to be notified if they have been successful in being awarded funding by the end of April 2022.
J. Stage 2 feedback
After winners have been announced, feedback will be provided to the lead entrants of those entries that went through to stage 2, outlining why their entry has not been successful.
Feedback will be given against each of the three assessment criteria and, where relevant, 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, scoring forms only a part of the overall assessment process.
All participants in the Transform 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 that 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 Transform Stream, please review the Transform Stream Entrant Handbook (PDF, 2.7MB) 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].
