Please note: The entry period for Breakthrough 4 is now closed. Information on this webpage and within the Breakthrough 4 resources is provided for historical reference for existing entrants.
The next round of the Water Breakthrough Challenge will open in autumn 2024. More information will be published in the summer – sign up to our Newsletter to receive updates straight into your inbox!
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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. Individual entries to the Catalyst Stream can bid for funding from £150,000 to £2 million.
More information about the Catalyst Stream is available below:
The materials below should have been reviewed before submission, and will likely be of use now that the entry period has closed.
Entries must have been submitted online via Submittable no later than 3 January 2024 at 12 noon (GMT).
The Catalyst Stream of Breakthrough 4 uses a single-stage entry process, proportionate to the risk and value of entries being submitted.
The Catalyst Stream entry period opened on 5 September 2023 and closed on 3 January 2024 at 12 noon (GMT).
Following the closing date on 3 January 2024, entries are to be checked for eligibility and assessed.
A diverse portfolio of shortlisted entries that best meet the relevant assessment criteria will then be shared with an independent judging panel for its 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. If you are successful in winning funding, you can expect to be notified by mid-April 2024. Winners will be announced publicly in mid-May 2024.
In this round, there is approximately £10 million funding available for successful entries. Individual entries to the Catalyst Stream can bid for funding between £150,000 and £2 million. Requests for more than £2 million are available through the Transform Stream, for which this round of entries are now closed.
As such, we expect to receive entries into the competition with a total financial cost of from £165,000 to approximately £2.2 million, inclusive of the 10% mandatory financial contribution.
Areas for innovation
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.
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:
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 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.
Approach to risk
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.
Entry value and delivery costs
Entrants to the Catalyst Stream can bid for between £150,000 and £2 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 include inflation allowances and applicable taxes, which are not recoverable, reflecting the actual 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 and collaboration
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.
All eligible entries will be assessed by assessors against each of the following three assessment criteria categories, weighted equally. More details of these can be found in the Catalyst Stream Handbook (PDF, 1MB):
1. Positive impact for water customers, society, and the environment
Under this assessment category, we are looking to understand the benefits entries seek to deliver for customers, society, and the environment. Strong entries to Breakthrough 4 will 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.
2. Innovation enablers and innovative solutions
Under this assessment category, we want 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 are 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:
Lead entrant:
The lead entrant to Breakthrough 4 must be one of the licensed regional water only and water and wastewater companies or new entrant water and wastewater companies (NAVs) in England and Wales. We strongly encourage lead entrants to enter Breakthrough 4 in partnership or consortia.
For the Catalyst Stream, partners other than the lead entrant can submit the entry form on Submittable.
Funding requested:
The minimum amount of funding that can be requested from the Catalyst Stream is £150,000, and the maximum that can be requested is £2 million.
Financial requirements:
A maximum of 90% of each entry’s financial costs will be provided by funding from Breakthrough 4. Entry partners must provide the remaining 10% of the entry’s total financial costs 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 this encourages strong project management. Entry partners can 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.
Entrants need to specify the source of funds for their contributions in the entry form. We welcome any additional financial and/or non-financial contributions beyond the minimum 10% and have seen many entries do this in previous rounds. Non-financial contributions should be excluded from the total financial cost of the entry.
We are open to initiatives that have 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.
Terms & conditions:
All entry partners must agree to abide by the terms & conditions.
We have worked to ensure the entry process is as efficient and practical as possible, allowing for easy access for all water companies, particularly smaller ones.
Winning entries will be selected following the assessment process outlined below:
A. Entry Period
The Catalyst Stream opens for entries on 5 September 2023 at 12 noon (BST) and closes on 3 January 2024 at 12 noon (GMT).
We set out the questions that should be answered, along with guidance on how to complete your entry in the Catalyst Stream Entrant Handbook (PDF, 1MB).
We will ask you to register for a recording slot (Zoom call) where the entry team will record a three-minute pitch. This will aid the understanding of our assessors and judges when reviewing your entry. You must register for a recording slot no later than 5 pm (GMT) Friday 17 November 2023.
All entries must be submitted by 3 January 2024 at 12 noon (GMT) using the online entry form available via the website. Any entry partner can submit this form, but it must include the details of the lead entrant. The lead entrant will be asked to verify the entry is theirs and confirm they have accepted the terms and conditions during the eligibility screen.
The entry form is available as a downloadable Word document to help you develop and collaborate on your answers before completing the online form. If entrants wish to work on more than one draft on the online entry platform during the entry period, please contact [email protected] for assistance.
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) to administer Breakthrough 4. For more information on how we use your data, please see the privacy policy and the terms and conditions.
B. Eligibility Screening
Entrants must meet the eligibility criteria set out in the Entry Requirements section above.
When entries close, an eligibility screen will be conducted to ensure entries meet all the eligibility criteria.
For entries submitted by a partner other than the lead entrant, the lead entrant will be contacted by the delivery team to confirm the entry submitted is led by their organisation and that they agree to the terms and conditions. If no response is received from the lead entrant during the eligibility screening period, the entry may be deemed to be ineligible to proceed and removed from the competition.
C. Assessment
All eligible entries will be assessed by assessors against each of the following three assessment criteria categories:
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 the Catalyst Stream Entrant Handbook (PDF, 1MB).
A moderation meeting will be held to discuss and recommend shortlisted entries to put forward to judges. This moderation meeting will ensure that all assessors’ opinions have been captured and that 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 judges, 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.
D. Judging
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 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.
Following feedback from the trial in the previous round, Breakthrough 4 will offer the opportunity of a live Q&A session for the entrants to respond to judges’ questions as part of the entry process. Please note entrants will not be requested to pitch to the judges in this round.
Judges will ask questions relating to shortlisted entries during the judging days between 9 am and 5.30 pm (BST) on 26 or 27 March 2024. Q&A slots will be allocated to shortlisted entries no later than 19 March 2024, but where possible, we will endeavour to provide as much notice as possible.
If teams are not able to attend the live Q&A, they should notify the delivery partners at [email protected] as soon as possible, for a chance to answer the judges’ questions in writing. No other opportunities for questions and answers will be provided, with the exception of clarifying conflicting entry answers.
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 regarding the confidentiality of their entries.
F. Award
When notified, successful entries will receive a copy of their draft winner’s agreement. This winner’s agreement will be based on a standard template. Please note that this template is only provided for information purposes and may be subject to changes. Winning teams must sign these agreements no later than 5 pm (BST) on 17 May 2024 to be paid by mid-June 2024.
G. Feedback
After winners have been announced, feedback will be provided to the main contacts and the lead entrants who did not win funding, outlining why their entry was unsuccessful.
Feedback will be given against each of the three assessment criteria and, where relevant, provide guidance on areas of improvement against each of them. The feedback will not include scores provided by the assessors and the judging panel. 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 Catalyst Stream of Breakthrough 4 will be required to adhere to the full terms and conditions of participation. Please ensure you and your partners read and understood these before submitting your entry.
If your entry is selected to win, you must sign a winner’s agreement outlining arrangements for monitoring and reporting based on your specific winning entry.
In particular, the key requirements of winners will include:
Entrant Support
Please review the frequently asked questions (FAQs) if you have any questions. If you still have questions after doing so, please email us at [email protected].
On Wednesday 6 September 2023, at 11 am (BST), we hosted a live online session for potential entrants and partners to clarify their understanding of Breakthrough 4. The session covered the key information for prospective entrants:
Shortly following the session, a recording and transcript will be hosted on our Events page.
We will be running one-to-one surgery sessions for those who need support completing their entry, for example, if you require any clarification on the entry process or the terms and conditions. The surgery sessions will be run by the Breakthrough 4 delivery partners.
Recordings of the entry writing workshops we ran in previous rounds are available to all entrants on our Entrant Support page. These are intended to help you develop entry-writing skills, ensure your answers are clear, and answer the questions in line with the assessment guidance.
Reasonable adjustments and accommodations
If there are any reasonable adjustments that would support you entering, catering for any additional needs you may have, please contact [email protected].
Equity, Diversity and Inclusion (EDI)
We need to collect relevant data and evidence to monitor the impact of and promote equity, diversity and inclusion (EDI). 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 4, the Ofwat Innovation Fund or any of the winners of previous rounds, please feel free to contact us directly at [email protected] or submit your feedback or concerns anonymously. 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.
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