Ofwat’s £200 million Innovation Fund aims to grow the water sector’s capacity to innovate, enabling it to better meet the evolving needs of customers, society and the environment. It is encouraging new ways of working that go beyond business-as-usual innovation practices in the water industry, in particular, increasing and improving collaboration and building partnerships from within and outside the water sector. The Innovation in Water Challenge, Water Breakthrough Challenges 1-4, and Water Discovery Challenge were delivered by challenge prize experts Challenge Works in partnership with Arup and Isle Utilities. Following the first three of these, Ofwat received 40 submissions in response to its consultation about the future direction of the Fund.
In July 2022 Ofwat set out its headline decisions on the approach we will take for the Innovation Fund for 2022-25. Ofwat consulted on its proposal to extend the Innovation Fund beyond 2025 in ‘Creating tomorrow, together: consulting on our methodology for PR24’ and will now consider extending the Fund. Ofwat consulted on its proposals for the innovation fund beyond 2025 in ‘Ofwat innovation fund consultation – approach for 2025-30’, including doubling the size of the fund to £400million for 2025-30. The consultation closed on 30 April 2024. Ofwat will announce its final decisions later in 2024.
The Innovation Fund forms part of Ofwat’s approach to innovation in the water sector. Ofwat with the Environment Agency and Drinking Water Inspectorate also runs StreamLine, a joint service for innovators and businesses to get informal regulatory advice.