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Water Act 2014

Water Act 2014

2014 CHAPTER 21

Commentary

Part 1.Water Industry

Chapter 4.Retail Exit: Non-Household Premises
Section 50: General directions

196.Section 50 enables exit regulations to permit the Secretary of State to publish a statement from time to time with general directions for Ofwat and the CMA. The general directions would affect functions that could be used to secure that a relevant undertaker makes an exit application.

197.The regulations might require the Secretary of State, when drafting the statement, to have regard to Ofwat’s duties under section 2(1)(b) of the WIA, the general duties of the CMA, the protection of consumers and any other matters as the Secretary of State sees fit. The regulations might also require the Secretary of State, before publishing the statement, to consult and the statement is subject to a negative resolution procedure.

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Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:

  • Why the government is proposing to intervene;
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  • The estimated costs and benefits of proposed measures.

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