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After section 20 of the WRA there is inserted—
(1)The Agency may enter into and maintain such arrangements with holders of abstraction licences other than water undertakers for securing the proper management or operation of—
(a)the waters from which they have the right by virtue of their licences to abstract water; and
(b)any reservoirs, apparatus or other works which are used for the purposes of or in connection with their abstractions and which belong to them, are operated by them or are otherwise under their control,
as the Agency from time to time considers appropriate for the purpose of carrying out its functions under section 6(2) of the 1995 Act.
(2)Without prejudice to the power of the Agency and any holder of an abstraction licence to include any such provision as may be agreed between them in arrangements under this section, such arrangements may—
(a)make provision by virtue of subsection (1)(a) above with respect to the construction or installation of any reservoirs, apparatus or other works which the holder of the licence will use for the purposes of or in connection with his abstraction;
(b)contain provision requiring payments to be made by the Agency to the holder of the licence; and
(c)require the reference to and determination by the Secretary of State or the Water Services Regulation Authority of questions arising under the arrangements.
(3)The Agency shall send a copy of any arrangements entered into by it under this section to the Secretary of State.
(4)In this section, references to abstraction licences are to licences under Chapter 2 of this Part to abstract water.”
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