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Enterprise Act 2002

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This is the original version (as it was originally enacted).

Water Industry Act 1991 (c. 56)

This section has no associated Explanatory Notes

25(1)The Water Industry Act 1991 is amended as follows.

(2)In section 2 (general duties with respect to water industry), in subsection (6B), for “the Director General of Fair Trading” there is substituted “the Office of Fair Trading (in this Act referred to as “the OFT”)”.

(3)In section 12(5) (determinations under conditions of appointment) for “the 1973 Act” there is substituted “the Enterprise Act 2002”.

(4)In section 14 (conditions of appointment: modification references to Commission), subsections (7) and (7A) shall cease to have effect.

(5)After section 14 there is inserted—

14AReferences under section 14: time limits

(1)Every reference under section 14 above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.

(2)A report of the Competition Commission on a reference under section 14 above shall not have effect (and no action shall be taken in relation to it under section 16 below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Director under subsection (3) below.

(3)The Director may, if he has received representations on the subject from the Competition Commission and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.

(4)No more than one extension is possible under subsection (3) above in relation to the same reference.

(5)The Director shall, in the case of an extension made by him under subsection (3) above—

(a)publish that extension in such manner as he considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it; and

(b)send a copy of what has been published by him under paragraph (a) above to the company whose appointment is mentioned in the reference.

14BReferences under section 14: powers of investigation

(1)The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (2) and (3) below, for the purposes of references under section 14 above as they apply for the purposes of references under that Part—

(a)section 109 (attendance of witnesses and production of documents etc.);

(b)section 110 (enforcement of powers under section 109: general);

(c)section 111 (penalties);

(d)section 112 (penalties: main procedural requirements);

(e)section 113 (payments and interest by instalments);

(f)section 114 (appeals in relation to penalties);

(g)section 115 (recovery of penalties); and

(h)section 116 (statement of policy).

(2)Section 110 shall, in its application by virtue of subsection (1) above, have effect as if—

(a)subsection (2) were omitted; and

(b)in subsection (9) the words from “or section” to “section 65(3))” were omitted.

(3)Section 111(5)(b)(ii) shall, in its application by virtue of subsection (1) above, have effect as if—

(a)for the words “published (or, in the case of a report under section 50 or 65, given)” there were substituted “made”;

(b)for the words “published (or given)”, in both places where they appear, there were substituted “made”; and

(c)the words “by this Part” were omitted.

(4)Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (1) above, have effect in relation to those sections as applied by virtue of that subsection.

(5)Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.

(6)In section 15 (reports on modification references)—

(a)after subsection (1) there is inserted—

(1A)For the purposes of section 16 below, a conclusion contained in a report of the Competition Commission is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted in connection with the reference concerned in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.

(1B)If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 14 above as the conclusions of the Competition Commission, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing.;

(b)for subsection (3) there is substituted—

(3)For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the Competition Commission on a reference under section 14 above.

(3A)In making any report on a reference under section 14 above the Competition Commission must have regard to the following considerations before disclosing any information.

(3B)The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the Competition Commission thinks is contrary to the public interest.

(3C)The second consideration is the need to exclude from disclosure (so far as practicable)—

(a)commercial information whose disclosure the Competition Commission thinks might significantly harm the legitimate business interests of the undertaking to which it relates, or

(b)information relating to the private affairs of an individual whose disclosure the Competition Commission thinks might significantly harm the individual’s interests.

(3D)The third consideration is the extent to which the disclosure of the information mentioned in subsection (3C)(a) or (b) above is necessary for the purposes of the report.

(7)In section 27 (general duty of Director to keep matters under review), in subsection (4)—

(a)for “the Director General of Fair Trading” there is substituted “the OFT”;

(b)for “that Director” there is substituted “the OFT”.

(8)In section 31 (functions of Director with respect to competition)—

(a)subsection (1) shall cease to have effect;

(b)in subsection (3), for “the Director General of Fair Trading, the functions of that Director” there is substituted “the OFT, the functions of the OFT”;

(c)in subsection (4A), for “the Director General of Fair Trading” there is substituted “the OFT”;

(d)in subsection (8), for “the Director General of Fair Trading” there is substituted “the OFT”.

(9)In section 201 (publication of certain information and advice), at the end there is inserted—

(4)The OFT shall consult the Director before publishing under section 6 of the Enterprise Act 2002 any information or advice which may be published by the Director under subsection (2) of this section.

(10)In section 206 (restriction on disclosure of information), in subsection (9A)—

(a)for “the Director General of Fair Trading” there is substituted “the OFT”;

(b)for “sections 55 and 56 of that Act (disclosure)” there is substituted “Part 9 of the Enterprise Act 2002 (Information)”.

(11)In section 219 (general interpretation), in subsection (1), after the definition of “notice” there is inserted—

“the OFT” means the Office of Fair Trading;.

(12)In Part 1 of Schedule 15 (disclosure of information)—

(a)in Part 1, for the entry relating to the Director General of Fair Trading there is substituted—

The OFT.;

(b)in Part 2, after the entry relating to Part I of the Transport Act 2000, there is inserted—

The Enterprise Act 2002.

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