Payments by local authorities to water authorities
3
1
Subject to article 7 below, for each relevant year each local authority (other than those referred to in articles 4 and 5 below) shall pay to the appropriate water authority the sum ascertained in accordance with the following formula:–
(A - B) × C/(C + D) - (E × F)
Where–
- A is the total amount paid to the local authority in question as council tax or water services charges for that relevant year by persons liable to pay that tax or those charges;
- B is any amount falling within the definition of A above which has been paid by a person and which–
  1. has subsequently been repaid to that person; or
  2. has subsequently been credited against a liability of that person to pay an amount which does not fall within that definition;
- C is the total amount payable as water services charges in respect of dwellings in the area of the local authority in question;
- D is the total amount payable as council tax for that relevant year in respect of dwellings in the area of the local authority in question;
- E is the number of dwellings in the area of the local authority in question in respect of which water services charges are payable for that relevant year; and
- F is–
  1. in respect of the financial year 2002–03 £4.34;
  2. in respect of the financial year 2003–04, the sum of £4.34 increased by the percentage increase between the price index for December 2001 and the price index for December 2002; and
  3. in respect of the financial year 2004–05, the sum calculated under (b) above increased by the percentage increase between the price index for December 2002 and the price index for December 2003.
2
For the purpose of the definitions of C and D in paragraph (1) above, an amount is payable as water services charges or council tax if–
a
it has been demanded by the local authority from a person appearing to that authority to be liable to pay it; and
b
it–
i
has been paid;
ii
remains payable; or
iii
has been written off by the local authority as irrecoverable.