The Water Act 2003 (Commencement No. 2, Transitional Provisions and Savings) Order 2004

Explanatory Note

(This note is not part of the Order)

This Order brings into force certain provisions of the Water Act 2003, and makes transitional provision and savings in respect of some of those provisions.

The provisions of Part 1 of the Act brought into force on 1st October 2004 relate to the recovery of compensation from new holders of abstraction licences (section 26), water resources management arrangements between the Environment Agency and water undertakers (section 29) and between the Environment Agency and any other abstractor (sections 28 and 29) and proposals for bulk supply arrangements (section 31).

The provisions in Part 2 of the Act brought into force on 1st October 2004 relate to the new regulatory arrangements for the water industry. They introduce forward work programmes and revised reporting for the Water Services Regulation Authority (section 38), and new reporting arrangements on links between directors' pay and standards of performance in the water industry (section 50). Provisions are brought into force relating to the new financial penalties regime that will be established under the Water Industry Act 1991 (section 48), enforcement under sections 18 and 20 of that Act (section 49) and references to the Competition Commission under that Act (sections 54 and 55). The offence of supplying water unfit for human consumption is also extended so as to apply to certain persons in addition to the water undertaker (employees and self-employed persons involved in the supply of water) (section 101(1) and Schedule 8).

The provisions in Part 3 of the Act brought into force on 1st October 2004:

(a) extend the powers of the Water Services Regulation Authority when making orders in relation to charges for the resale of water and sewerage services (section 59);

(b) enable the Secretary of State to make subordinate legislation in relation to the preparation of drought plans (section 62 and 63);

(c) in relation to the Reservoirs Act 1975, provide that the Environment Agency shall be the enforcement authority in England and Wales (section 74); make provision in relation to the service of documents (section 76) and offences (section 79); make provision in England for the preparation of flood plans for large raised reservoirs (section 77), including provision in relation to such plans in connection with national security (section 78), and for crown application (section 80);

(d) clarify the definition of “controlled waters” (section 86); and

(e) relate to the procedure for the transfer of discharge consents (section 87).

Sections 74(1) and 76 extend to Scotland.

The provision brought into force on 29th December 2004 amends a provision of Water Industry Act 1991 inserted by section 70(1) of the Enterprise Act 2002, which will be brought into force on the same day in relation to water industry mergers.