(1)After section 20B of the WRA (inserted by section 29 of this Act) there is inserted—
(1)In the circumstances mentioned in subsection (2) below, the Agency may, in carrying out its functions under section 6(2) of the 1995 Act, propose to a qualifying person (within the meaning of section 40 of the Water Industry Act 1991) that he make an application under that section for a bulk supply of water from a water undertaker.
(2)The circumstances referred to in subsection (1) above are that it appears to the Agency that such a bulk supply is necessary in order to secure the proper use of water resources.
(3)The Agency shall not make such a proposal without first consulting the Water Services Regulation Authority.
(4)The Agency may include in its proposal the period for which, and terms and conditions on which, the Agency considers it appropriate that the bulk supply should be given.”
(2)In section 38 of the WRA (general consideration of applications), in subsection (3), after paragraph (b) there is inserted—
“and may have regard to any failure on the part of the applicant to make an application under section 40 of the Water Industry Act 1991 pursuant to a proposal made by the Agency under section 20C above.”.