Ofwat consults on £100m Water Efficiency Fund

Ofwat has set out its early thinking and called openly for views by 22 September on the new £100m Water Efficiency Fund set to be introduced at PR24 and to be operational by April 2025.

The consultation covered:

• aims and objectives – Ofwat wants to “stimulate a transformative, sustained and measurable reduction in water demand nationally, using a range of water efficiency approaches”;

• targeting – areas might include behaviour change, targeted interventions based on better understanding of water use, and technological interventions – moreover, Ofwat looked to alternatives including targeting the fund by residential / business demand, over time or geographically;

• eligibility and scope – how to balance industry with external expertise, and the desired characteristics of supported initiatives, including impact, timing and delivery, innovation, collaboration, evaluation and legacy; and

• implementation – discussion areas included learnings from the innovation fund, governance, customer protection, and balancing competition and collaboration;

The consultation will be the first of two. Ofwat plans to launch a more detailed proposal based on responses in early 2024. Its final approach to the fund will be set out in summer 2024.

• Separately, Ofwat confirmed the fourth round of its Water Breakthrough Challenge innovation fund competition will open on 5 September. £40m is up for grabs, with the focus to be on generating and sharing knowledge and rolling out successful innovations.