Entries to Water Breakthrough Challenge 3 have now closed, and the winners have been announced.
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. This round, approximately £30 million is available for entries seeking funding between £2 million and £10 million. Subject to certain conditions, Ofwat is open to accepting entries bidding for greater than £10 million.
More information about the Transform Stream is available below.
Please review the below materials prior to submitting your entry:
Stage 1 entries must be submitted online via Submittable, no later than 9 November 2022 at 12:00 noon (GMT).
Other useful links to help you prepare your entry:
We will open stage 2 to invited entries at 12 noon (GMT) 8 December 2022 and will close for entries at 12:00 noon (GMT) 2 February 2023.
In exceptional circumstances where an entry will deliver impact across the water sector in England and Wales, we are open to accepting entries requesting greater than £10 million. We ask that this impact is demonstrated by having a minimum of 10 water companies in England and Wales as entry partners and is subject to the approval of Ofwat.
If your entry is approved by Ofwat, this does not in any way guarantee that your entry will be successful in winning funding, and all entries (regardless of how much funding is requested) are subject to the same entry process and terms and conditions once their entry has been accepted. For more information and to request approval to request above £10 million, you must email [email protected] no later than 5 pm GMT on Monday 31 October 2022.
The Transform Stream of Breakthrough 4 uses a two-stage entry process, illustrated in the figure below.
Stage 1 of the Transform Stream opens on 5 September 2023 at 12 noon (BST) and will close on 19 October 2023 at 12 noon (BST).
Following the closing date on 19 October 2023, stage 1 entries will be checked for eligibility and undergo a screening assessment.
A diverse portfolio of entries that best meet the relevant assessment criteria (detailed in Entry questions, assessment criteria, weighting, and guidance below) will then be invited to submit a stage 2 entry from 16 November 2023 at 12 noon (GMT). The stage 2 entry period will open for just under eight weeks, closing on 10 January 2024 at 12 noon (GMT).
Following the closing date, stage 2 entries will be assessed.
A diverse portfolio of shortlisted entries that best meet the relevant assessment criteria (detailed in Entry questions, assessment criteria, weighting, and guidance below) will then be shortlisted and shared with the judging panel for review.
The judging panel will recommend to Ofwat a diverse portfolio of entries for funding that they consider best meets the relevant assessment criteria and have the potential to deliver tangible positive benefits for customers, society, and the environment. Ofwat will then make the final decision on whether to award funding.
Further details on the selection process can be found in The entry process section below. If you are successful in winning funding, you can expect to be notified by mid-April 2024.
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 four 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.
These themes have been updated since the second round of the Water Breakthrough Challenge. We no longer explicitly reference open data or vulnerability in the themes – however, both would be implicit in theme 4 (and others), and both would easily be a means to fulfil this theme.
We have published more detailed policy statements on Ofwat’s position around Open Data and customer vulnerability since the start of the Ofwat Innovation Fund. We believe that the breadth of the broader theme allows for greater freedom in proposing improved ways of working and could deliver greater benefits.
While no longer explicitly referenced in the themes, enabling activities are still very important to drive innovation in the sector and have a key role to play in helping the Fund achieve its outcomes. We invite entries in this important area as they will support the Fund’s ambition to embed innovation practices and knowledge within water companies (and the sector) for the long term.
We have identified a number of innovation enablers that will be particularly critical to growing and sustaining the water sector’s capacity to innovate. The Fund will consider supporting initiatives that demonstrate and further strengthen these enablers, including but not limited to:
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 Transform stream 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 within their Fund entries, supported by strong risk management with a clear plan to share data and learning regardless of the outcome. We recognise that some projects 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. Entrants will be responsible for:
Ofwat and its delivery partners will monitor the progress of successful entries, including seeking updates at delivery milestones. The monitoring and involvement of Ofwat and its 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 its delivery partners may intervene if we have concerns that a project is moving materially away from delivering on its intended impact or if there are any concerns about misuse of funds.
Entrants to the Transform stream can request between £2 million and £10 million. Subject to certain conditions, Ofwat is open to accepting entries bidding for greater than £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 budget.
Reasonable 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 inflation allowances and 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.
If you are new to the water sector, you may wish to email [email protected] to get in contact with a water company about your innovative idea or solution. This central inbox is managed by an alliance of 19 UK water companies. We recommend you read their innovation strategy and prioritisation exercise, available on the Spring Website, before contacting water companies to understand their innovation priorities. A full list of England and Wales water companies that can be contacted to explore new partnership opportunities can be found on our website.
Entries will be reviewed against three assessment categories, 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, 1MB).
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 four strategic innovation themes.
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.
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 £100,000 to £1 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 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.
Winning entries will be selected following the assessment process outlined below. The two-stage entry process aims to ensure that entrants can develop proposals that have the greatest chance of being awarded funding.
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.
Please note, Ofwat has chosen to invite specific entries from the Water Breakthrough Challenge round 2 direct to Stage 2 of Breakthrough 3. 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 3.
The steps of the entry process, detailed below, are:
A. Stage 1 – screening entry period
B. Eligibility screen
C. Stage 1 assessment
D. Stage 1 Feedback
E. Stage 2 – Full entry period
F. Stage 2 Assessment
G. Judging
H. Ofwat Decision
J. Stage 2 Feedback
Stage 1 opens for entries on 3 October 2022 at 12 noon (BST) and closes on 9 November 2022 at 12 noon (GMT).
We set out the questions that should be answered, together with guidance on how to complete stage 1 of the entry process in the Entrant Handbook. In stage 1, we are looking for a high-level narrative summary in response to each of these questions.
We will ask you to register for a recording slot (Zoom call) where a five-minute pitch from the entry team will be recorded. This will be used to aid the understanding of our assessors when reviewing your entry and should be the same presentation that you would use if invited to present to judges. You will need to register for a recording slot no later than 5 pm (GMT) Friday 28 October.
All entries must be submitted by 9 November 2022 at 12 noon (GMT) using the stage 1 online entry form. The lead entrant will need to submit this form. The entry form for both stages is available as a Word document 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.
Before submitting your entry, please ensure that:
• You and your partners have read and understood the Challenge terms and conditions and privacy policy, including the Ofwat privacy policy.
• Your entry is aligned with one or more of the four Ofwat strategic innovation themes.
• You have followed good procurement principles, performed your due diligence on your partners and accept any risk and liability from going ahead with them.
• You and your entry partners have set out in your entry how a 10% minimum financial contribution will be provided for (at least 10% of total entry financial costs will be funded from sources other than the Fund).
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 3. For more information on how we use your data, please see the privacy policy and the terms and conditions.
Entrants are required to meet the eligibility criteria as set out in the Entrant Handbook.
When entries close, an eligibility screen will be conducted to ensure entries all meet the eligibility criteria.
During Stage 1, all eligible entries will be assessed by assessors against each of the following three assessment criteria categories:
1. Positive impact for water customers, society, and the environment;
2. Innovation enablers and innovative solutions;
3. Capacity, capability, and commitment to deliver.
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 Entry questions, assessment criteria, weighting, and guidance in the Entrant Handbook.
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 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.
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. We hope to deliver this to entrants no later than early February 2023.
We will open stage 2 to invited entries on 8 December 2022 at 12 noon (GMT) and will close for entries on 2 February 2023 at 12 noon (GMT).
We set out in Entry questions, assessment criteria, weighting, and guidance in the Entrant Handbook the questions that should be answered, together with guidance on how to complete the questions.
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 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 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 3. For more information on how we use your data, please see the privacy policy and the terms and conditions.
The stage 2 process will consist of a more detailed assessment of entries against each of the three assessment criteria categories:
1. Positive impact for water customers, society, and the environment; and
2. Innovation enablers and innovative solutions; and
3. Capacity, capability, and commitment to deliver.
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 are set out in 0 Stage 2 Assessed questions and assessment criteria.
A moderation meeting will be held to ensure that all opinions from the assessors are captured and that 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 shortlisted entries, in terms of entry themes, types, entrants and geographic location, is put forward to the judge.
An independent panel of judges will review the shortlisted 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.
This round, we are trialling live pitches to judges in the entry process. Entries that are shortlisted will be invited to repeat their submitted pitch recording live during the judging days between 9 am and 5.30 pm (BST) on 19 or 20 April 2023.
Following the live pitch, judges will have the opportunity to ask questions to the entry partners relating to their entries. Pitch slots to judges will be allocated to shortlisted entries no later than 18 April 2023, but where possible, we will endeavour to provide as much notice as possible.
If teams are not able to attend the live pitch, their submitted pitch recording will be shown to judges in its place. Entrants are also welcome to opt out of delivering their pitch live. No other opportunities for questions and answers will be provided, with the exception of clarifying conflicting entry answers.
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.
Entries should expect to be notified if they have been successful in being awarded funding by mid-May 2023.
Entries that are successful will receive a copy of their draft winner’s agreement when they are notified. This winner’s agreement will be based on the standard template available here. Please note this template is being provided for information purposes only at this time and may be subject to changes. Winning teams will need to sign these agreements no later than 5 pm (BST) 16 June 2023 in order to be paid by early July 2023.
After winners have been announced, feedback will be provided to the lead entrants of those entries that did not win funding at 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. Feedback will not be provided to winning entries.
All participants in the Transform stream of Breakthrough 3 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:
If you have any questions, please review the frequently asked questions. If you still have questions, please email us at [email protected].
We will be hosting two online sessions:
Once these events have happened, recordings and transcripts of all of our public events will be hosted on our events page.
Entrants are able to get one-to-one support with their entry by applying for an entry review and coaching. This support will be provided by the entrant support partner, Science Practice, for Breakthrough 3. Full details of the support available and how to sign-up are available on our Entrant Support page.
This support is intended to help you develop entry writing skills and ensure your answers are clear answer the questions in line with the assessment guidance. Science Practice cannot provide any guidance on the initiative within your entry itself and will be acting independently of assessors.
We will also be running one-to-one surgery sessions for those who need support completing their entry, for example, if you are in need of any clarification on the entry process or the terms and conditions for both streams. The surgery sessions will be run by the Breakthrough 3 delivery partners.
If there are any reasonable adjustments that would support you entering, catering for any additional needs you may have, please contact [email protected].
To monitor the impact of and promote equality, diversity and inclusion (EDI), we need to collect relevant data and evidence. For the Water Breakthrough Challenge, this means:
EDI considerations are highly encouraged where appropriate in the proposal. Entries will continue to be assessed on their merit against the assessment criteria.
If you have any feedback or concerns relating to Breakthrough 3, the Ofwat Innovation Fund or any of the winners of previous rounds, please feel free to reach out to us directly at [email protected] or submit your feedback or concerns anonymously here. We welcome and support feedback from entrants via email and via entrant surveys sent out after entering one of our competitions.
If you would prefer to contact Ofwat directly, you may do so by emailing [email protected]. Ofwat also has a range of materials available relating to whistleblowing and making a complaint.
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].
