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Water Industry Act 1991

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100 Calculation of “relevant deficit” for the purposes of section 99.E+W

(1)For the purposes of section 99 above the relevant deficit for any year on a public sewer is the amount (if any) by which the drainage charges payable for the use during that year of that sewer are exceeded by the annual borrowing costs of a loan of the amount required for the provision of that sewer.

(2)The annual borrowing costs of a loan of the amount required for the provision of a public sewer is the aggregate amount which would fall to be paid in any year by way of payments of interest and repayments of capital if an amount equal to so much of the costs reasonably incurred in providing that sewer as were not incurred in the provision of additional capacity had been borrowed, by the sewerage undertaker providing the sewer, on terms—

(a)requiring interest to be paid and capital to be repaid in twelve equal annual instalments; and

(b)providing for the amount of the interest to be calculated at such rate, and in accordance with such other provision, as may have been determined for the purposes of this subsection.

(3)A determination for the purposes of subsection (2) above shall be made either—

(a)by the undertaker with the approval of the Director; or

(b)in default of such a determination, by the Director.

(4)For the purposes of this section the costs reasonably incurred in providing a public sewer (“the new sewer”) shall include—

(a)the costs reasonably incurred in providing such other public sewers and such pumping stations as it is necessary to provide in consequence of the provision of the new sewer; and

(b)such proportion (if any) as is reasonable of the costs reasonably incurred in providing any such additional capacity in an earlier public sewer as falls to be used in consequence of the provision of the new sewer.

(5)In subsection (4) above the reference to an earlier public sewer, in relation to the new sewer, is a reference to any public sewer which—

(a)has been provided in the period of twelve years immediately before the provision of the new sewer; and

(b)was so provided in pursuance of a public sewer requisition.

(6)Any reference in this section to the provision of additional capacity in a public sewer provided in pursuance of a requirement under any enactment is a reference to such works carried out or other things done in connection with the provision of that sewer as are carried out or done for the purpose of enabling that sewer to be used for purposes in addition to those for which it is necessary to provide the sewer in order to comply with the requirement.

(7)Any reference in this section to the drainage charges payable for the use during any year of any sewer provided by a sewerage undertaker is a reference to so much of the aggregate of any charges payable to the sewerage undertaker in respect of services provided in the course of that year as represents charges which—

(a)have been imposed by the undertaker in relation to such of the premises connected with that sewer as are premises where there are buildings; and

(b)are reasonably attributable to the use of that sewer for the drainage for domestic sewerage purposes of those premises or to the disposal of effluent drained for any such purpose from those premises.

(8)An approval or determination given or made by the Director for the purposes of subsection (2) above—

(a)may be given or made in relation to the provision of a particular public sewer, in relation to the provision of sewers of a particular description or in relation to the provision of public sewers generally; and

(b)may be revoked at any time except in relation to a public sewer [F1in respect of which the conditions referred to in section 99(1) above have already been satisfied.]

(9)In this section “public sewer requisition” means—

(a)a requirement under section 98 above (including, by virtue of paragraph 1 of Schedule 2 to the M1Water Consolidation (Consequential Provisions) Act 1991, a requirement under section 71 of the M2Water Act 1989);

(b)a requirement under the provisions of section 16 of the M3Water Act 1973 (sewer requisitions); or

(c)a requirement under any local statutory provision corresponding to section 98 above or to any of the provisions of that section 16.

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