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Water Act 2014

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This is the original version (as it was originally enacted).

43Application for retail exit

This section has no associated Explanatory Notes

(1)Exit regulations about exit applications must make provision requiring a relevant undertaker to apply to the Secretary of State, and may include—

(a)provision requiring a relevant undertaker to take such steps as the regulations may specify before making an application;

(b)provision as to the form and manner in which an application is to be made and as to the contents of an application;

(c)provision about payment to the Secretary of State of a fee of an amount specified in or determined under the regulations;

(d)provision about the information that is to accompany an application;

(e)provision for the Secretary of State to require a relevant undertaker to provide such further information as the Secretary of State may require in order to make a determination;

(f)provision as to the grounds on which an application may be refused;

(g)provision for the Secretary of State to grant an application subject to conditions.

(2)Provision under subsection (1)(a) may require a relevant undertaker—

(a)to consult—

(i)its non-household customers and its other customers,

(ii)the WSRA,

(iii)the Chief Inspector of Drinking Water,

(iv)the Consumer Council for Water, and

(v)any other person specified in the regulations;

(b)to prepare and publish a report assessing the effect on non-household customers and other customers if the undertaker withdraws from the non-household retail market;

(c)to publish notice of its proposed exit application in such manner as the regulations may specify.

(3)The grounds that may be specified under subsection (1)(f) include—

(a)grounds relating to the public interest or to the interests of a section of the public;

(b)grounds relating to the interests of non-household customers or other customers;

(c)grounds relating to costs associated with a transfer of part of the relevant undertaker’s undertaking;

(d)grounds relating to the eligible licensee or licensees to which a transfer of part of the relevant undertaker’s undertaking is proposed to be made.

(4)The conditions that may be imposed under subsection (1)(g) include—

(a)conditions as to the persons who are to pay the costs associated with a transfer of a part of the relevant undertaker’s undertaking;

(b)conditions as to the application of money received by the relevant undertaker in connection with a transfer of a part of its undertaking;

(c)conditions about the relevant undertaker giving consent to modifications of the undertaker’s conditions of appointment;

(d)conditions about an eligible licensee to which a transfer of part of the relevant undertaker’s undertaking is proposed to be made giving consent to modifications of the conditions of its water supply licence or sewerage licence;

(e)conditions about the treatment of non-household customers affected by the transfer of part of the relevant undertaker’s undertaking.

(5)Exit regulations may make provision about how particular descriptions of customers and premises are affected by a relevant undertaker’s withdrawal from the non-household retail market, including in particular any of the following—

(a)premises to which the supply of water has been disconnected,

(b)premises that are to be demolished,

(c)premises that are temporarily unoccupied,

(d)premises in relation to which the owner or occupier has served notice under section 63AA of the Water Industry Act 1991 (supply by water supply licensee: domestic supply),

(e)premises in relation to which the owner or occupier has served notice under section 63AB of the Water Industry Act 1991 (supply by water supply licensee: non-domestic supply), and

(f)premises in relation to which the owner or occupier has served notice under section 110K of the Water Industry Act 1991 (provision by sewerage licensee).

(6)Provision under subsection (5) may include provision about how exit applications deal with particular descriptions of customers and premises.

(7)Exit regulations may make provision about the disclosure by a relevant undertaker of such information as the regulations may specify about—

(a)its non-household customers, and

(b)the charges payable by them (whether payable under a charges scheme under section 143 of the Water Industry Act 1991 or under an agreement).

(8)Exit regulations may specify—

(a)the persons to whom the information may be disclosed;

(b)the purposes for which it may be disclosed.

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