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In Part 5 of the Water Industry Act 1991, in Chapter 2 (financial assistance for undertakers and licensed water suppliers), after section 154 there is inserted—
(1)If the Secretary of State considers it desirable to do so, the Secretary of State may give financial assistance for the purpose in subsection (2) to—
(a)an English undertaker, or
(b)a licensed water supplier that supplies water to premises in accordance with its retail authorisation using the supply system of an English undertaker.
(2)The purpose is that of securing the reduction of charges payable by customers in an English undertaker's area for the supply of water or the provision of sewerage services.
(3)The power in subsection (1) may be exercised in relation to all customers in an English undertaker's area or customers of a particular description.
(4)Financial assistance under subsection (1) may be given in any form and in particular may be given by way of—
(5)Financial assistance under subsection (1) may be given on such terms and conditions as the Secretary of State considers appropriate.
(6)Financial assistance under subsection (1) may be given in any manner and in particular may be given—
(a)to an English undertaker by means of an arrangement made by the Secretary of State with another English undertaker, or
(b)to a licensed water supplier by means of an arrangement made by the Secretary of State with an English undertaker that is a water undertaker.
(7)A reference in this section to a customer in an English undertaker's area is a reference to—
(a)a person liable to pay charges to the undertaker in respect of the supply of water or the provision of sewerage services, other than a licensed water supplier, or
(b)a person whose premises are supplied with water by a licensed water supplier in accordance with its retail authorisation using the undertaker's supply system.
(8)In this section a reference to the retail authorisation of a licensed water supplier is to be construed in accordance with section 17A(2).
(9)In this section “English undertaker” means a water undertaker or sewerage undertaker whose area is wholly or mainly in England.”
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