Ofwat’s emerging strategy: Driving transformational innovation in the sector

OFWAT has issued a consultation that asks how innovation can and should be part of the transformational change in the water sector.

OFWAT believe that the adoption of innovative approaches is key to delivering long-term resilience and great customer service at an affordable price, and the sector will need to step up and increase innovation in order meet the strategic challenges it faces in a cost-effective and sustainable way.

Click here to view the OFWAT document

There are eight questions that OFWAT asks:

1. What are the main barriers to innovation in the sector and why?

2. Do you think that the financial support cited in section three is required to stimulate innovation in the sector? If so, what do you believe is the appropriate amount of funding and why?

3. Do you agree that our proposed draft principles for additional financial support will effectively safeguard the interests of customers?

4. What are your views on the collectively funded innovation competition model which we describe in section three? What other key considerations not highlighted should we take into account in designing/ implementing the competition?

5. What are your views on the end-of-period innovation roll-out reward we describe in section three? What other key considerations not highlighted (e.g. whether it should be collectively funded or individually funded) should we take into account in designing/ implementing the reward?

6. What other potential alternative mechanisms for funding/ rewarding innovation not discussed do you think we should be considering? Which financial support mechanism or combination of mechanisms should we introduce and why? What would be an appropriate split of available funding/ reward?

7. Do you think the potential industry activities discussed in section four could help drive innovation? Are there
other activities not identified which you think the industry should be considering?

8. Do you think the proposals in section five will help drive innovation? (Where changes to the regulators functions are discussed) Are there other activities not identified which you think Ofwat should be considering?

These questions reflect those already asked in the HM Treasury Consultation issued towards the end of 2018, which Future Water Association responded to.

The deadline date for comments is 20th September and we will be reflecting your views in two ways:
• A formal written response to the consultation; and
• A meeting of members directly with OFWAT in early September.

The Future Water Association response to the HM Treasury Consultation can be found below, along with the notes from our meeting earlier in the year with OFWAT, where a number of the questions were discussed.

HM Treasury Consultation

Innovation Hub meeting – OFWAT Feb 2019 Notes

If you would like to help the Association draft a response to the consultation,

contact us at admin@futurewaterassociation.com