Ofwat has established a £200 million Innovation Fund 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 Challenge 1, Water Breakthrough Challenge 2, Water Breakthrough Challenge 3, Water Breakthrough Challenge 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 (the pilot competitions), 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. Alongside opening Water Breakthrough Challenge 3, Ofwat has published ‘Innovation fund – approach for 2022-25 companion decision document’, which sets out further information on the headline decisions.
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. Details will be decided later in 2023.
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.