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 Information on this webpage and within the Breakthrough 4 resources is provided for historical reference for existing entrants.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 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. In 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 ensure you have reviewed the below materials prior to submitting your entry:
The Stage 1 entry period closed on 19 October 2023 at 12:00 noon (BST).
Stage 2 opened on 16 November 2023 at 3.30pm (GMT) and closed on 10 January 2024 at 12 noon (GMT).
The Transform Stream of Breakthrough 4 uses a two-stage entry process, illustrated in the figure below.
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Stage 1 of the Transform Stream opened on 5 September 2023 at 12 noon (BST) and closed on 19 October 2023 at 12 noon (BST).
Following the closing date on 19 October 2023, stage 1 entries were checked for eligibility and underwent a screening assessment.
A diverse portfolio of entries that best meet the relevant assessment criteria were then invited to submit a stage 2 entry between 16 November 2023 at 3.30pm (GMT) and before close on 10 January 2024 at 12 noon (GMT).
Following the closing date, stage 2 entries will be assessed.
A diverse portfolio of entries that best meet the relevant assessment criteria will then be shortlisted and shared with the judging panel for review.
In this round, there will be a single, unified judging panel reviewing entries to the Catalyst and Transform Streams. The aim is to increase visibility across the streams and to ensure a streamlined approach to portfolio recommendations based on gaps in the market and various levels of innovation risk.
The judging panel will convene in March 2024. Shortlisted entries will be invited a live Q&A session with the judges during the judging days. Please note entrants will not be requested to pitch to the judges in this round.
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 below. 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.
There is approximately £30 million available in total for successful entries to the Transform Stream of the Breakthrough 4. Individual entries to the Transform Stream can bid for funding of between £2 million and £10 million.
Water companies seeking funding of between £100,000 and £2 million were invited to enter the Catalyst Stream of the Water Breakthrough Challenge on its dedicated page, which closed to 1st stage entries on 3 January 2024.
There are four eligibility criteria in the Transform Stream of Breakthrough 4, detailed below:
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.
The minimum amount of funding that can be requested from the Transform Stream is £2 million, and the maximum that can be requested is £10 million.
In exceptional circumstances, where an entry will deliver impact across the water sector in England and Wales, we are open to accepting entries requesting more than £10 million. We ask that this impact be demonstrated by having at least ten water companies in England and Wales as entry partners.
Submitting an entry requesting greater than £10 million is subject to the prior approval of Ofwat. For more information and to request approval to bid for above £10 million, you must have emailed [email protected] no later than Wednesday 4 October 2023 at 5 pm (BST).
If Ofwat approves your entry for more than £10 million, this does not in any way guarantee that your entry will be successful in winning funding. 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.
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.
All entry partners must agree to abide by the terms and conditions.
We are looking for your ideas that address the big challenges facing the water sector – guided by 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.
The strategic innovation 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 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 less than a year to multi-year periods that 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. However, we recognise that particularly 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:
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 bid for between £2 million and £10 million. Subject to certain conditions, Ofwat is open to accepting entries bidding for greater than £10 million. Please see Who can be involved above for more details.
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.
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.
Where relevant, entries that are successful will need to develop collaboration agreements with partners. The Fund strongly encourages entrants to develop collaboration agreements in advance of the project start to avoid delays if the entry is successful. You are welcome to use the template collaboration agreement available on our website.
Note: The example collaboration agreement linked above is a cross-water company effort between the legal and innovation teams of water companies including Anglian Water, Thames Water, United Utilities, Severn Trent, Affinity Water, Welsh Water, Northumbrian Water and Southern Water. This agreement is flexible and therefore it is a basis for early discussion between water companies and other project partners. It may be adapted over time. The Ofwat Innovation Fund and any of the above organisations cannot provide any legal support or advice, nor be legally liable, in the event of any issues relating to a project’s collaboration agreement.
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 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.
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.
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.
Please note a majority of the following information is for historical reference as the initial entry period is now closed.
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 easy access for all water companies, particularly smaller ones.
Information you provide in your entry at stage 1 and stage 2 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.
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 5 September 2023 at 12 noon (BST) and closes on 19 October 2023 at 12 noon (BST).
We set out the questions that should be answered, along with guidance on completing stage 1 of the entry process in the Transform Stream Entrant Handbook (PDF, 1MB). In stage 1, we are looking for a high-level narrative summary in response to these questions.
We will ask you to register for a recording slot (Zoom call) where the entry team will record a five-minute pitch. This will aid the understanding of our assessors and judges when reviewing your entry. We have extended the deadline for registering for a recording slot for the Transform Stream to Thursday 5 October 2023 at 5 pm (BST).
All entries must be submitted by 19 October 2023 at 12 noon (BST) using the stage 1 online entry form available via our website. The lead entrant will need to submit this form.
The entry form for both stages is available as a Word document on our website 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:
Entrants must meet the eligibility criteria set out in the Who can be involved section above.
When entries close, an eligibility screen will be conducted to ensure entries meet all the eligibility criteria.
During stage 1, 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 Transform Stream Entrant Handbook (PDF, 1MB).
A moderation meeting will be held to discuss and recommend entries for stage 2. 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 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 invited to stage 2, entries will receive high-level feedback (up to three bullet points) from assessors to support them in developing their stage 2 entry.
For those entries not invited to stage 2, we will provide high-level information about why the entry was unsuccessful. We aim to deliver this to entrants no later than mid-December 2023.
In exceptional circumstances, unsuccessful entrants may wish to consider entering the Catalyst Stream of Breakthrough 4. For more information, please refer to Appendix 2 of the Transform Stream Entrant Handbook (PDF, 1MB). Please note, this does not represent a recommendation from us to unsuccessful entrants in stage 1 of the Transform Stream to enter the Catalyst Stream. Entering the Catalyst Stream will not in any way guarantee that your entry will be successful in winning funding. All entries to the Catalyst Stream are subject to the same entry process, terms and conditions, and assessment.
We will open stage 2 to invited entries on 16 November 2023 at 3.30pm (GMT)* and close for entries on 10 January 2024 at 12 noon (GMT).
We set out the questions that should be answered, together with guidance on how to complete the questions, in the Transform Stream Entrant Handbook (PDF, 1MB).
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 can update their stage 1 entry form and re-record their pitch if they wish. The entry form for both stages is available as a Word document to help you develop and collaborate on your answers before completing the online form.
The stage 2 process will consist of a more detailed assessment of entries against each of the three assessment criteria categories:
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 stage 2 assessed entry questions, assessment criteria and weighting are set out in the Transform Stream Entrant Handbook (PDF, 1MBB).
A moderation meeting will be held to ensure that all opinions from the assessors are 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 assessors’ opinions 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 judges.
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.
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.
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.
Entries should expect to be notified if they have been awarded funding by mid-April 2024.
When notified, successful entries will receive a copy of their draft winner’s agreement. This winner’s agreement will be based on the template available on our website. 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.
After winners have been announced, feedback will be provided to the lead entrants who did not win funding at stage 2, 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 Transform 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:
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 will host a live online session for potential entrants and partners to clarify their understanding of Breakthrough 4. The session will cover the key information for prospective entrants:
You can register for the session here. Once the live session has happened, 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. Entrants can book a slot via Calendly.
Recordings of the entry writing workshops we ran in previous rounds are available to all entrants on our website. 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.
If there are any reasonable adjustments that would support you entering, catering for any additional needs you may have, please contact [email protected].
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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