(1)Chapter 1 of Part 3 of the Water Industry Act 1991 (water supply) is amended as follows.
(2)In section 37A(3) (water resources management plans: preparation and review), at the end insert—
“(and see also section 37AA).”
(3)After that section insert—
(1)The Secretary of State may give a direction about the basis on which a water resources management plan for England is to be prepared.
(2)A direction under this section may be given only where the Secretary of State considers it appropriate to do so with a view to securing that a water undertaker is able to meet the need for the supply of water to consumers in particular circumstances.
(3)A direction under this section may, in particular, require a plan to be prepared on the basis of a specified assumption, including—
(a)an assumption as to whether, and how often, specified circumstances are likely to arise;
(b)an assumption that a specified power would or would not be exercised by the water undertaker or another person in specified circumstances.
(4)Before giving a direction under this section, the Secretary of State must consult—
(a)the Authority,
(b)the Welsh Ministers,
(c)each water undertaker to which the direction would apply,
(d)the Environment Agency,
(e)the NRBW, and
(f)such other persons as the Secretary of State considers appropriate.
(5)In this section—
“specified” means specified in a direction under this section;
“water resources management plan for England” means a water resources management plan prepared by a water undertaker whose area is wholly or mainly in England.”
(4)In section 37D(1) (water resources management plans: directions), after “37A” insert “ , 37AA ”.