Ofwat, the financial regulator of water companies in England and Wales, has introduced a brand new “open entry” competitors for innovators as its £200m Innovation Fund evolves to encourage extra various concepts to rework water companies for purchasers, the atmosphere and society.
• adapting to local weather change and reaching internet zero emissions;
• defending and enhancing the atmosphere;
• delivering long-term operational resilience;
• and bettering the supply of companies for purchasers and society.
In its first yr, the fund awarded £63m to tasks, together with these utilizing open knowledge sources to guard clients in monetary issue. For instance, Water4All is a consortium together with knowledge options specialists, Sagacity; client credit score report company, Equifax; and main supplier of service to individuals in monetary issue, Auriga. The venture was awarded £616k to determine weak clients, use the consortiums information and knowledge to hunt and serve those that need assistance most, permitting water firms to supply help.
Simply because the fintech sector has used its expertise and experience to problem and rework the extremely regulated retail and enterprise banking sectors within the UK, Ofwat is encouraging future entries to construct buyer worth via innovation to supply higher companies, together with for weak clients.
Ofwat has unveiled how the innovation fund will evolve to satisfy buyer, environmental and business priorities within the years forward: a £38 million competitors to open in autumn 2022, the primary £4m open entry competitors to open in early 2023 – and persevering with the fund to 2030. It follows a session by the regulator on the long run course of the fund – and work to assessment the fund and innovation within the water sector.
John Russell, Senior Director, Technique, Finance and Infrastructure at Ofwat mentioned:
“We’d like larger innovation within the water sector to deal with the numerous challenges it faces. The Innovation Fund has impressed a number of collaborations between firms in and out of doors of the water sector. The ambition of the successful entries thus far demonstrates the sector’s dedication to construct a resilient water system that advantages the atmosphere and clients. Over the following three years we’ll distribute roughly £120m to extra progressive initiatives. I’m happy to announce the return of the Water Breakthrough Problem this autumn, plus a wholly new competitors open to innovators from any sector with concepts able to constructive transformation for the water business to comply with early in 2023. We’re additionally presently consulting on persevering with the fund to 2030. ”
THE WATER BREAKTHROUGH CHALLENGE RETURNS AUTUMN 2022
The Water Breakthrough Problem 3 will launch on 3 October 2022 – with an £8m Catalyst stream and a £30m Rework stream – and can run yearly. Entrants to the Catalyst stream can bid for between £500k and £2m, whereas entrants to the Rework stream can bid for between £2m and £10m.
NEW OPEN ACCESS COMPETITION COMING 2023
Launching in early 2023, the open entry competitors factor of the fund shall be a brand new initiative launched in response to the post-pilot session. In contrast to the Water Breakthrough Problem, there shall be no requirement for organisations to companion or obtain sponsorship from a water firm to enter the competitors.
It’s going to primarily goal early-stage innovation, allocating roughly £4 million in funding yearly, with as much as £500,000 out there for particular person entries.
As with different entrants to the Innovation Fund, entries to the brand new open entry competitors might want to align with a number of of Ofwat’s 4 innovation themes.
INNOVATION TO 2025 AND BEYOND
Ofwat is proposing to proceed the innovation fund till not less than March 2030. That is topic to the regulator’s session on its draft methodology for the 2024 value assessment. Over the approaching months Ofwat will work with the water sector and different innovators to take a look at how the fund may proceed to stimulate innovation as much as 2030.
FULL CONSULTATION REPORT IN AUTUMN
Ofwat expects to publish a full session resolution companion doc in autumn 2022, which can set out additional data on the headline selections. It’s going to embrace extra element on the brand new open entry competitors, which shall be developed in additional session with the water sector within the coming months.