Water Industry Act 1991

1991 CHAPTER 56

An Act to consolidate enactments relating to the supply of water and the provision of sewerage services, with amendments to give effect to recommendations of the Law Commission.

[25th July 1991]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—X1

Editorial Information

X1 [A table showing the derivation of the provisions of this Consolidation Act will be found at the end of the Act. The table has no official status.]

Extent Information

E1 Act extends to England and Wales; for minor variations, see s. 223(3)

Modifications etc. (not altering text)

C1 Act restricted (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 15(2)(a), 225(2).

C2 Act restricted (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 18(2), 225(2).

C3 Act excluded (1.12.1991) by Statutory Water Companies Act 1991 (c. 58, SIF 130), ss. 11(2), 17(2).

C4 Act: references to a detention centre within the meaning of Part VIII of the Immigration and Asylum Act 1999 (c. 33) to be construed as references to a removal centre within the meaning of that Part (10.2.2003) by virtue of 2002 c. 41, s. 66(4); S.I. 2003/1, art. 2, Sch.

C5 Act: transfer of functions (W.) (except ss. 1, 14, 15, 17, 24(2)(d), 27(3), 32-35, 152(2), 193(3), 206(3)(e), Schs. 1, 4 and subject to entry in Sch. 1 of the amending S.I.) (1.7.1999) by S.I. 1999/672, art. 2, Sch. 1 (as amended by 2003 c. 37, s. 100(2)(4)(6)(7); S.I. 2004/2528, art. 2(s); S.I. 2006/3334, Sch.)

C6 Act: certain provisions modified (temp.) (8.3.2004) by The Water Act 2003 (Commencement No. 1 and Transitional Provisions) Order 2004 (S.I. 2004/641), art. 6, Sch. 3 para. 7

C7 Act modified (temp.) (29.3.2005) by The Water Act 2003 (Commencement No. 4, Transitional Provisions and Savings) Order 2005 (S.I. 2005/968), art. 4, Sch. 2 paras. 3, 4

C8 Act: references to the Director General of Water Services (“the Director”, “him”, “he”) have effect as references to the Water Services Regulation Authority (“the Authority”, ”it”) (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

C9 Act applied (8.8.2017) by The Wrexham Gas Fired Generating Station Order 2017 (S.I. 2017/766), Sch. 9 para. 34

C10 Act applied (Isles of Scilly) (with modifications) (1.11.2019) by The Isles of Scilly (Application of Water Legislation) Order 2019 (S.I. 2019/1259), arts. 2(1), 4 (as amended (27.3.2020) by The Isles of Scilly (Application of Water Legislation) Order 2020 (S.I. 2020/214), art. 6)

C11 Act: power to amend conferred (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), ss. 138(2)-(7), 339(2)(c)

C12 Act: power to amend conferred (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 138(2)-(7), 339(2)(c); S.I. 2024/1226, regs. 1(2), 2(1)(2) (with Sch. para. 10, 20)

Commencement Information

I1 Act wholly in force at 1.12.1991, see s. 223(2)

Part I E+W PRELIMINARY

The Director General of Water Services E+W

1 The Director General of Water Services. E+W

F1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 S. 1 repealed (1.4.2006) by Water Act 2003 (c. 37), ss. 34(4), 101(2), 105(3), Sch. 9 Pt. 2; S.I. 2005/2714, art. 4(a)(g)(i) (with Sch. para. 8)

[F2 1A Water Services Regulation Authority E+W

(1) There shall be a body corporate to be known as the Water Services Regulation Authority (in this Act referred to as “the Authority”) for the purpose of carrying out the functions conferred on or transferred to it by this Act or under or by virtue of any other enactment.

(2) The functions of the Authority are performed on behalf of the Crown.

(3) Schedule 1A to this Act shall have effect with respect to the Authority.

(4) In Welsh the Authority may be known as “Awdurdod Rheoleiddio Gwasanaethau Dŵr”.]

Textual Amendments

F2 S. 1A inserted (1.4.2006) by Water Act 2003 (c. 37), ss. 34(1), 105(3); S.I. 2005/2714, art. 4(a) (with Sch. para. 8)

General duties E+W

2 General duties with respect to water industry. E+W

(1) This section shall have effect for imposing duties on the Secretary of State and on [F3 the Authority] as to when and how they should exercise and perform [F4 the powers and duties conferred or imposed on the Secretary of State or the Authority by virtue of any of the relevant provisions.]

[F5 (2A) The Secretary of State or, as the case may be, the Authority shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner which he or it considers is best calculated—

(a) to further the consumer objective;

(b) to secure that the functions of a water undertaker and of a sewerage undertaker are properly carried out as respects every area of England and Wales;

(c) to secure that companies holding appointments under Chapter 1 of Part 2 of this Act as relevant undertakers are able (in particular, by securing reasonable returns on their capital) to finance the proper carrying out of those functions; F6 ...

(d) to secure that the activities authorised by the licence [F7 of a water supply licensee or sewerage licensee] and any statutory functions imposed on it in consequence of the licence are properly carried out [F8 ; and

(e) to further the resilience objective.]

(2B) The consumer objective mentioned in subsection (2A)(a) above is to protect the interests of consumers, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the provision of water and sewerage services.

(2C) For the purposes of subsection (2A)(a) above the Secretary of State or, as the case may be, the Authority shall have regard to the interests of—

(a) individuals who are disabled or chronically sick;

(b) individuals of pensionable age;

(c) individuals with low incomes;

(d) individuals residing in rural areas; F9 ...

(e) customers, of companies holding an appointment under Chapter 1 of Part 2 of this Act, whose premises are [F10 household premises (as defined in section 17C)] [F11 ; and

(f) customers, of companies holding an appointment under Chapter 1 of Part 2 of this Act, whose premises are below the consumption threshold and in the area of a relevant undertaker whose area is wholly or mainly in Wales,]

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.

(2D) For the purposes of subsection (2C) above, premises are [F12 below the consumption threshold if the total quantity] of water estimated to be supplied to the premises annually for the purposes of subsection (2) of section 17D below is less than the quantity specified in that subsection.

[F13 (2DA) The resilience objective mentioned in subsection (2A)(e) is—

(a) to secure the long-term resilience of water undertakers' supply systems and sewerage undertakers' sewerage systems as regards environmental pressures, population growth and changes in consumer behaviour, and

(b) to secure that undertakers take steps for the purpose of enabling them to meet, in the long term, the need for the supply of water and the provision of sewerage services to consumers,

including by promoting—

(i) appropriate long-term planning and investment by relevant undertakers, and

(ii) the taking by them of a range of measures to manage water resources in sustainable ways, and to increase efficiency in the use of water and reduce demand for water so as to reduce pressure on water resources.

(2DB) For the purposes of subsection (2DA)—

(a) the reference to water undertakers' supply systems is to be construed in accordance with section 17B;

(b) the reference to sewerage undertakers' sewerage systems is [F14 to be construed in accordance with section 17BA(7).]]

(2E) The Secretary of State and the Authority may, in exercising any of the powers and performing any of the duties mentioned in subsection (1) above, have regard to—

(a) any interests of consumers in relation to electricity conveyed by distribution systems (within the meaning of the Electricity Act 1989);

(b) any interests of consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986);

(c) any interests of consumers in relation to communications services and electronic communications apparatus (within the meaning of the Communications Act 2003),

which are affected by the exercise of that power or the performance of that duty.]

[F15 (3) Subject to subsection (2A) above, the Secretary of State or, as the case may be, the Authority shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner which he or it considers is best calculated—

(a) to promote economy and efficiency on the part of companies holding an appointment under Chapter 1 of Part 2 of this Act in the carrying out of the functions of a relevant undertaker;

(b) to secure that no undue preference is shown, and that there is no undue discrimination in the fixing by such companies of water and drainage charges;

[F16 (ba) to secure that no undue preference (including for itself) is shown, and that there is no undue discrimination, in the doing by such a company of—

(i) such things as relate to the provision of services by itself or another such company, or

(ii) such things as relate to the provision of services by a water supply licensee or a sewerage licensee;]

(c) to secure that consumers are protected as respects benefits that could be secured for them by the application in a particular manner of any of the proceeds of any disposal (whenever made) of any of such a company’s protected land or of an interest or right in or over any of that land;

(d) to ensure that consumers are also protected as respects any activities of such a company which are not attributable to the exercise of functions of a relevant undertaker, or as respects any activities of any person appearing to the Secretary of State or (as the case may be) the Authority to be connected with the company, and in particular by ensuring—

(i) that any transactions are carried out at arm’s length;

(ii) that the company, in relation to the exercise of its functions as a relevant undertaker, maintains and presents accounts in a suitable form and manner;

F17 (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) to contribute to the achievement of sustainable development.

(4) In exercising any of the powers or performing any of the duties mentioned in subsection (1) above in accordance with the preceding provisions of this section, the Secretary of State and the Authority shall have regard to the principles of best regulatory practice (including the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed).]

(5) In this section the references to water and drainage charges are references to—

(a) any charges in respect of any services provided in the course of the carrying out of the functions of a relevant undertaker; and

(b) amounts of any other description which such an undertaker is authorised by or under any enactment to require any of its customers or potential customers to pay.

[F18 (5A) In this section—

• “consumers” includes both existing and future consumers; and

• “the interests of consumers” means the interests of consumers in relation to—

  (a)

  the supply of water by means of a water undertaker’s supply system to premises either by water undertakers or by [F19 water supply licensees] acting in their capacity as such; and

  (b)

  the provision of sewerage services [F20 either by sewerage undertakers or by sewerage licensees acting in their capacity as such.]]

(6) For the purposes of this section—

[F21 (a) subject to subsection (6A) below, the reference in subsection (1) above to [F22 the relevant provisions] is a reference to the provisions [F23 contained in—

(i) Part 2 of this Act (except section 27A and Schedule 3A),

(ii) any of sections 37A to 38, 38ZA, 39, 39ZA, 39B to 39D, 40E to 40J, 42, 51CD to 51CG, 63AC to 63AF, 66B, 66CA to 66H, 66K, 66L, 66O(2), 95, 95ZA, 96, 96ZA, 99, 105ZF to 105ZI, 110F to 110J, 110L to 110O, 117E to 117O, 117R, 117S, 143B to 143E, 144ZA to 144ZF, 153, 181, 182, 185, 192A, 192B, 195, 195A and 201 to 203 below, and

(iii) any of sections 42 to 54 of the Water Act 2014.]

F24 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

F25 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F26 (6A) [F27 Subsections (2A) to (4) above and [F28 sections 2A and 2B] below] do not apply in relation to anything done by [F3 the Authority] in the exercise of functions assigned to [F3 it] by section 31(3) below (“Competition Act functions”).

(6B) [F3 The Authority] may nevertheless, when exercising any Competition Act function, have regard to any matter in respect of which a duty is imposed by any of [F29 subsections (2A) to (4) above and [F30 sections 2A and 2B] below], if it is a matter to which [F31 the CMA] could have regard when exercising that function.]

[F32 (7) The duties imposed by subsections (2A) to (4) above and [F33 sections 2A and 2B] below do not affect the obligation of the Authority or, as the case may be, the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment, by virtue of any [F34 [F35 assimilated] obligation] or otherwise).]

Textual Amendments

F3 Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

F4 Words in s. 2(1) substituted (15.7.2015 for specified purposes, 1.9.2015 for specified purposes, 1.11.2015 for specified purposes, 18.12.2015 for specified purposes, 1.4.2016 for specified purposes, 1.9.2016 for specified purposes, 1.11.2016 for specified purposes, 1.4.2017 in so far as not already in force) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(2); S.I. 2015/1469, arts. 2(f)(ii), 3(f)(ii), 4(c)(ii); S.I. 2015/1938, art. 2(g)(ii); S.I. 2016/465, arts. 2(m), 3(g)(ii), Sch. 1 para. 1(c)(iv) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16); S.I. 2016/1007, art. 2(h)(aa)(ii); S.I. 2017/462, art. 3(k)(ii)

F5 S. 2(2A)-(2E) substituted (1.4.2005) for s. 2(2) by Water Act 2003 (c. 37), ss. 39(3), 105(3); S.I. 2005/968, art. 2(f) (with savings in art. 4, Schs. 1, 2)

F6 Word in s. 2(2A)(c) omitted (14.7.2014 for specified purposes, 18.12.2015 in so far as not already in force) by virtue of Water Act 2014 (c. 21), ss. 22(2)(a), 94(2)(e); S.I. 2015/1938, art. 2(e)

F7 Words in s. 2(2A)(d) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(3); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(c)(ii) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F8 S. 2(2A)(e) and word inserted (14.7.2014 for specified purposes, 18.12.2015 in so far as not already in force) by Water Act 2014 (c. 21), ss. 22(2)(b), 94(2)(e); S.I. 2015/1938, art. 2(e)

F9 Word in s. 2(2C) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(4)(a); S.I. 2017/462, art. 3(k)(ii)

F10 Words in s. 2(2C)(e) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(4)(b); S.I. 2017/462, art. 3(k)(ii)

F11 S. 2(2C)(f) and word inserted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(4)(c); S.I. 2017/462, art. 3(k)(ii)

F12 Words in s. 2(2D) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(5); S.I. 2017/462, art. 3(k)(ii)

F13 S. 2(2DA)(2DB) inserted (14.7.2014 for specified purposes, 18.12.2015 in so far as not already in force) by Water Act 2014 (c. 21), ss. 22(3), 94(2)(e); S.I. 2015/1938, art. 2(e)

F14 Words in s. 2(2DB)(b) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(6); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(c)(ii) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F15 S. 2(3)(4) substituted (1.4.2005) by Water Act 2003 (c. 37), ss. 39(4), 105(3); S.I. 2005/968, art. 2(f) (with savings in art. 4, Schs. 1, 2)

F16 S. 2(3)(ba) inserted (1.1.2015 for W. for specified purposes, 6.4.2015 for W. for specified purposes, 1.4.2016 for E. in so far as not already in force) by Water Act 2014 (c. 21), ss. 23, 94(3); S.I. 2014/3320, art. 2(1)(a) (with art. 3); S.I. 2015/773, art. 2(3)(a) (with art. 6); S.I. 2016/465, art. 2(e) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F17 S. 2(3)(d)(iii) omitted (25.6.2013) by virtue of Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(2), Sch. 21 para. 4

F18 S. 2(5A) inserted (1.4.2005) by Water Act 2003 (c. 37), ss. 39(5), 105(3); S.I. 2005/968, art. 2(f) (with savings in art. 4, Schs. 1, 2)

F19 Words in s. 2(5A)(a) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(7)(a); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(c)(ii) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F20 Words in s. 2(5A)(b) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(7)(b); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(c)(ii) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F21 S. 2(6)(a)(b) substituted (1.4.2005) by Water Act 2003 (c. 37), ss. 39(6), 105(3); S.I. 2005/968, art. 2(f) (with savings in art. 4, Schs. 1, 2)

F22 Words in s. 2(6)(a) substituted (15.7.2015 for specified purposes, 1.9.2015 for specified purposes, 1.11.2015 for specified purposes, 18.12.2015 for specified purposes, 1.4.2016 for specified purposes, 1.9.2016 for specified purposes, 1.11.2016 for specified purposes, 1.4.2017 in so far as not already in force) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(8)(a); S.I. 2015/1469, arts. 2(f)(ii), 3(f)(ii), 4(c)(ii); S.I. 2015/1938, art. 2(g)(ii); S.I. 2016/465, arts. 2(m), 3(g)(ii), Sch. 1 para. 1(c)(iv) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16); S.I. 2016/1007, art. 2(h)(aa)(ii); S.I. 2017/462, art. 3(k)(ii)

F23 Words in s. 2(6)(a) substituted (15.7.2015 for specified purposes, 1.9.2015 for specified purposes, 1.11.2015 for specified purposes, 18.12.2015 for specified purposes, 1.4.2016 for specified purposes, 1.9.2016 for specified purposes, 1.11.2016 for specified purposes, 1.4.2017 in so far as not already in force) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(8)(b); S.I. 2015/1469, arts. 2(f)(i), 3(f)(i), 4(c)(i); S.I. 2015/1938, art. 2(g)(i); S.I. 2016/465, arts. 2(m), 3(g)(i), Sch. 1 para. 1(c)(iii) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16); S.I. 2016/1007, art. 2(h)(bb)(ii); S.I. 2017/462, art. 3(k)(ii)

F24 S. 2(6)(b) repealed (15.7.2015 for specified purposes, 1.9.2015 for specified purposes, 1.11.2015 for specified purposes, 18.12.2015 for specified purposes, 1.4.2016 for specified purposes, 1.9.2016 for specified purposes, 1.11.2016 for specified purposes, 1.4.2017 in so far as not already in force) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(8)(c); S.I. 2015/1469, arts. 2(f)(ii), 3(f)(ii), 4(c)(ii); S.I. 2015/1938, art. 2(g)(ii); S.I. 2016/465, arts. 2(m), 3(g)(ii), Sch. 1 para. 1(c)(iv) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16); S.I. 2016/1007, art. 2(h)(aa)(ii); S.I. 2017/462, art. 3(k)(ii)

F25 S. 2(6)(c) repealed (15.7.2015 for specified purposes, 1.9.2015 for specified purposes, 1.11.2015 for specified purposes, 18.12.2015 for specified purposes, 1.4.2016 for specified purposes, 1.9.2016 for specified purposes, 1.11.2016 for specified purposes, 1.4.2017 in so far as not already in force) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 3(8)(c); S.I. 2015/1469, arts. 2(f)(ii), 3(f)(ii), 4(c)(ii); S.I. 2015/1938, art. 2(g)(ii); S.I. 2016/465, arts. 2(m), 3(g)(ii), Sch. 1 para. 1(c)(iv) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16); S.I. 2016/1007, art. 2(h)(aa)(ii); S.I. 2017/462, art. 3(k)(ii)

F26 S. 2(6A)(6B) inserted (26.11.1998 for specified purposes and otherwise 1.3.2000) by 1998 c. 41, s. 54(3), Sch. 10 Pt. II para. 5(4) (with s. 73); S.I. 1998/2750, art. 2(1); S.I. 2000/344, art. 2, Sch.

F27 Words in s. 2(6A) substituted (1.4.2005) by Water Act 2003 (c. 37), ss. 39(7), 105(3); S.I. 2005/968, art. 2(f) (with savings in art. 4, Schs. 1, 2)

F28 Words in s. 2(6A) substituted (6.4.2015) by Water Act 2014 (c. 21), ss. 24(2), 94(3); S.I. 2015/773, art. 2(1)(c) (with art. 4)

F29 Words in s. 2(6B) substituted (1.4.2005) by Water Act 2003 (c. 37), ss. 39(8), 105(3); S.I. 2005/968, art. 2(f) (with savings in art. 4, Schs. 1, 2)

F30 Words in s. 2(6B) substituted (6.4.2015) by Water Act 2014 (c. 21), ss. 24(2), 94(3); S.I. 2015/773, art. 2(1)(c) (with art. 4)

F31 Words in s. 2(6B) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 74 (with art. 3)

F32 S. 2(7) added (1.4.2005) by Water Act 2003 (c. 37), ss. 39(9), 105(3); S.I. 2005/968, art. 2(f) (with savings in art. 4, Schs. 1, 2)

F33 Words in s. 2(7) substituted (6.4.2015) by Water Act 2014 (c. 21), ss. 24(2), 94(3); S.I. 2015/773, art. 2(1)(c) (with art. 4)

F34 Words in s. 2(7) substituted (31.12.2020) by The Floods and Water (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/558), regs. 1(1), 3(2); 2020 c. 1, Sch. 5 para. 1(1)

F35 Word in s. 2(7) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 30(2)(a)

Modifications etc. (not altering text)

C13 S. 2 applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), regs. 1(1)(b), 3(3) (with regs. 1(1)(c), 3(2)(5))

[F36 2A Strategic priorities and objectives: England E+W

(1) The Secretary of State may from time to time publish a statement setting out strategic priorities and objectives for the Authority in carrying out relevant functions relating wholly or mainly to England.

(2) The Authority must carry out those functions in accordance with any statement published under this section.

(3) In formulating a statement under this section, the Secretary of State—

(a) must have regard to the duties imposed on the Authority under section 2,

(b) must have regard to social and environmental matters, and

(c) may have regard to such other matters as the Secretary of State thinks fit.

(4) Before publishing a statement under this section, the Secretary of State must consult—

(a) the Authority,

(b) the Council,

(c) relevant undertakers,

(d) [F37 water supply licensees and sewerage licensees],

(e) the Environment Agency,

(f) the Welsh Ministers,

(g) the NRBW, and

(h) anyone else the Secretary of State thinks appropriate.

(5) Before publishing a statement under this section the Secretary of State must—

(a) lay a draft of the statement before Parliament, and

(b) then wait until the end of the 40-day period.

(6) The Secretary of State may not publish the statement under this section if, within the 40-day period, either House of Parliament resolves not to approve it.

(7) “The 40-day period” means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House on the same day, the later of the days on which it is laid).

(8) When calculating the 40-day period, ignore any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.

(9) In this section “relevant functions relating wholly or mainly to England” means the functions mentioned in [F38 section 2(1)] so far as they relate to appointment areas wholly or mainly in England.

(10) In subsection (9) “appointment area” means an area for which an appointment is held under Chapter 1 of Part 2.]

Textual Amendments

F36 Ss. 2A, 2B substituted for s. 2A (6.4.2015) by Water Act 2014 (c. 21), ss. 24(1), 94(3); S.I. 2015/773, art. 2(1)(c) (with art. 4)

F37 Words in s. 2A(4)(d) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 4; S.I. 2016/465, art. 2(m), Sch. 1 para. 1(d) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F38 Words in s. 2A(9) substituted (31.3.2017) by The Water Act 2014 (Consequential Amendments etc.) Order 2017 (S.I. 2017/506), arts. 1(1), 6(2)

[F36 2B Strategic priorities and objectives: Wales E+W

(1) The Welsh Ministers may from time to time publish a statement setting out strategic priorities and objectives for the Authority in carrying out relevant functions relating wholly or mainly to Wales.

(2) The Authority must carry out those functions in accordance with any statement published under this section.

(3) In formulating a statement under this section the Welsh Ministers—

(a) must have regard to the duties imposed on the Authority under section 2,

(b) must have regard to social and environmental matters, and

(c) may have regard to such other matters as the Welsh Ministers think fit.

(4) Before publishing a statement under this section, the Welsh Ministers must consult—

(a) the Authority,

(b) the Council,

(c) relevant undertakers,

(d) [F39 water supply licensees],

(e) the NRBW,

(f) the Secretary of State,

(g) the Environment Agency, and

(h) anyone else the Welsh Ministers think appropriate.

(5) Before publishing a statement under this section the Welsh Ministers must—

(a) lay a draft of the statement before the Assembly, and

(b) then wait until the end of the 40-day period.

(6) The Welsh Ministers may not publish the statement under this section if, within the 40-day period, the Assembly resolves not to approve it.

(7) “The 40-day period” means the period of 40 days beginning with the day on which the draft is laid before the Assembly.

(8) When calculating the 40-day period, ignore any period during which the Assembly is dissolved or is in recess for more than 4 days.

(9) In this section “relevant functions relating wholly or mainly to Wales” means the functions mentioned in [F40 section 2(1)] so far as they relate to appointment areas wholly or mainly in Wales.

(10) In subsection (9) “appointment area” means an area for which an appointment is held under Chapter 1 of Part 2.]

Textual Amendments

F36 Ss. 2A, 2B substituted for s. 2A (6.4.2015) by Water Act 2014 (c. 21), ss. 24(1), 94(3); S.I. 2015/773, art. 2(1)(c) (with art. 4)

F39 Words in s. 2B(4)(d) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 5; S.I. 2016/465, art. 2(m), Sch. 1 para. 1(d) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F40 Words in s. 2B(9) substituted (31.3.2017) by The Water Act 2014 (Consequential Amendments etc.) Order 2017 (S.I. 2017/506), arts. 1(1), 6(2)

3 General environmental and recreational duties. E+W

(1) It shall be the duty of each of the following, that is to say—

(a) the Secretary of State;

(b) F41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) [F42 the Authority]; and

(d) every company holding an appointment as a relevant undertaker,

in formulating or considering any proposals relating to any functions of a relevant undertaker (including, in the case of such a company, any functions which, by virtue of that appointment, are functions of the company itself) to comply with the requirements imposed in relation to the proposals by subsections (2) and (3) below.

(2) The requirements imposed by this subsection in relation to any such proposals as are mentioned in subsection (1) above are—

(a) a requirement, so far as may be consistent—

(i) with the purposes of any enactment relating to the functions of the undertaker; and

(ii) in the case of the Secretary of State and [F42 the Authority], with their duties under section 2 above,

so to exercise any power conferred with respect to the proposals on the person subject to the requirement as to further the conservation and enhancement of natural beauty and the conservation of flora, fauna and geological or physiographical features of special interest [F43 and, in the case of the exercise of such a power by a company holding an appointment as a relevant undertaker, as to further water conservation] ;

(b) a requirement to have regard to the desirability of protecting and conserving buildings, sites and objects of archaeological, architectural or historic interest; and

(c) a requirement to take into account any effect which the proposals would have on the beauty or amenity of any rural or urban area or on any such flora, fauna, features, buildings, sites or objects.

(3) The requirements imposed by this subsection in relation to any such proposals as are mentioned in subsection (1) above are, subject to the requirements imposed by subsection (2) above—

(a) a requirement to have regard to the desirability of preserving for the public any freedom of access to areas of woodland, mountains, moor, heath, down, cliff or foreshore and other places of natural beauty;

(b) a requirement to have regard to the desirability of maintaining the availability to the public of any facility for visiting or inspecting any building, site or object of archaeological, architectural or historic interest; and

(c) a requirement to take into account any effect which the proposals would have on any such freedom of access or on the availability of any such facility.

(4) Subsections (1) to (3) above shall apply so as to impose duties on [F42 the Authority] and any company holding an appointment as a relevant undertaker in relation to any proposal relating to—

(a) the functions of [F44 the Environment Agency]; F45 ...

[F46 (aa) the functions of the NRBW; or]

(b) the functions of an internal drainage board,

as they apply in relation to any proposals relating to the functions of such an undertaker; and for the purposes of this subsection the reference in subsection (2)(a) above to the functions of the undertaker shall have effect as a reference to the functions of [F47 the Environment Agency] [F48 , the NRBW,] or, as the case may be, of the internal drainage board in question.

(5) Subject to obtaining the consent of any navigation authority, harbour authority or conservancy authority before doing anything which causes navigation which is subject to the control of that authority to be obstructed or otherwise interfered with, it shall be the duty of every company holding an appointment as a relevant undertaker to take such steps as are—

(a) reasonably practicable; and

(b) consistent with the purposes of the enactments relating to the functions of the undertaker in question,

for securing, so long as that company has rights to the use of water or land associated with water, that those rights are exercised so as to ensure that the water or land is made available for recreational purposes and is so made available in the best manner.

(6) It shall be the duty of a company holding an appointment as a relevant undertaker, in determining what steps to take in performance of any duty imposed by virtue of subsection (5) above, to take into account the needs of persons who are chronically sick or disabled.

(7) The obligations under this section of a company holding an appointment as a relevant undertaker shall be enforceable under section 18 below by the Secretary of State.

(8) Nothing in this section or the following provisions of this Act shall require recreational facilities made available by a relevant undertaker to be made available free of charge.

(9) References in this section to the functions of a relevant undertaker shall be construed, without prejudice to section 156(7) below, as if those functions included the management, by a company holding an appointment as such an undertaker, of any land for the time being held by that company for any purpose whatever (whether or not connected with the carrying out of the functions of a relevant undertaker).

(10) In this section “building” includes structure.

Textual Amendments

F41 S. 3(1)(b) repealed (27.3.2002) by The Ministry of Agriculture, Fisheries and Food (Dissolution) Order 2002 (S.I. 2002/794), art. 5(2), 6, Sch. 2

F42 Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

F43 Words in s. 3(2)(a) inserted (1.4.2004) by Water Act 2003 (c. 37), ss. 82, 105(3); S.I. 2004/641, art. 3(u) (with art. 6, Sch. 3)

F44 Words in s. 3(4) substituted (1.4.1996) by 1995 c. 25, s. 120(1), Sch. 22 para. 97 (with ss. 7(6), 115, 117); S.I. 1996/186, art. 3

F45 Word in s. 3(4)(a) omitted (1.4.2013) by virtue of The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 224(2) (with Sch. 7)

F46 S. 3(4)(aa) inserted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 224(3) (with Sch. 7)

F47 Words in s. 3(4) substituted (1.4.1996) by 1995 c. 25, s. 120(1), Sch. 22 para. 97 (with ss. 7(6), 115, 117); S.I. 1996/186, art. 3

F48 Words in s. 3(4) inserted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 224(4) (with Sch. 7)

4 Environmental duties with respect to sites of special interest. E+W

(1) Where [F49 Natural England] or [F50 the NRBW] are of the opinion that any area of land in England or, as the case may be, in Wales—

(a) is of special interest by reason of its flora, fauna or geological or physiographical features; and

(b) may at any time be affected by schemes, works, operations or activities of a relevant undertaker,

[F51 Natural England or (as the case may be) [F52 the NRBW]] shall notify the fact that the land is of special interest for that reason to every relevant undertaker whose works, operations or activities may affect the land.

(2) Where a National Park authority or the Broads Authority is of the opinion that any area of land in a National Park or in the Broads—

(a) is land in relation to which the matters for the purposes of which section 3 above has effect are of particular importance; and

(b) may at any time be affected by schemes, works, operations or activities of a relevant undertaker,

the National Park authority or Broads Authority shall notify the fact that the land is such land, and the reasons why those matters are of particular importance in relation to the land, to every relevant undertaker whose works, operations or activities may affect the land.

(3) Where a relevant undertaker has received a notification under subsection (1) or (2) above with respect to any land, that undertaker shall consult the notifying body before carrying out any works, operations or activities which appear to that undertaker to be likely—

(a) to destroy or damage any of the flora, fauna, or geological or physiographical features by reason of which the land is of special interest; or

(b) significantly to prejudice anything the importance of which is one of the reasons why the matters mentioned in subsection (2) above are of particular importance in relation to that land.

(4) Subsection (3) above shall not apply in relation to anything done in an emergency where particulars of what is done and of the emergency are notified to [F53 Natural England], [F50 the NRBW], the National Park authority in question or, as the case may be, the Broads Authority as soon as practicable after that thing is done.

(5) The obligations under this section of a relevant undertaker shall be enforceable under section 18 below by the Secretary of State.

(6) In this section—

• “the Broads” has the same meaning as in the M1 Norfolk and Suffolk Broads Act 1988; F54 . . .

• F54 . . .

and section 3(9) above shall apply, as it applies in relation to that section, for construing (in accordance with section 6 below) any references in this section to a relevant undertaker.

Textual Amendments

F49 Words in s. 4(1) substituted (1.10.2006) by Natural Environment and Rural Communities Act 2006 (c. 16), ss. 105(1), 107, Sch. 11 para. 129(2)(a); S.I. 2006/2541, art. 2

F50 Words in s. 4 substituted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 225(2) (with Sch. 7)

F51 Words in s. 4(1) substituted (1.10.2006) by Natural Environment and Rural Communities Act 2006 (c. 16), ss. 105(1), 107, Sch. 11 para. 129(2)(b); S.I. 2006/2541, art. 2

F52 Words in s. 4(1) substituted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 225(3) (with Sch. 7)

F53 Words in s. 4(4) substituted (1.10.2006) by Natural Environment and Rural Communities Act 2006 (c. 16), ss. 105(1), 107, Sch. 11 para. 129(3); S.I. 2006/2541, art. 2

F54 Definition of “National Park authority” and the word “and” immediately preceding it repealed (1.4.1997) by 1995 c. 25, s. 120(3), Sch. 24 (with ss. 7(6), 115, 117); S.I. 1996/2560, art. 2, Sch.

Marginal Citations

M1 1988 c. 4.

5 Codes of practice with respect to environmental and recreational duties. E+W

(1) The Secretary of State may by order approve any code of practice issued (whether by him or by another person) for the purpose of—

(a) giving practical guidance to relevant undertakers with respect to any of the matters for the purposes of which sections 3 and 4 above have effect; and

(b) promoting what appear to him to be desirable practices by such undertakers with respect to those matters,

and may at any time by such an order approve a modification of such a code or withdraw his approval of such a code or modification.

(2) A contravention of a code of practice as for the time being approved under this section shall not of itself constitute a contravention of any requirement imposed by section 3 or 4 above or give rise to any criminal or civil liability; but the Secretary of State F55 . . . shall F56 . . . be under a duty to take into account whether there has been or is likely to be any such contravention in determining when and how he should exercise his powers in relation to any relevant undertaker by virtue of this Act, any of the other consolidation Acts or the M2 Water Act 1989.

(3) The power of the Secretary of State to make an order under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(4) The Secretary of State shall not make an order under this section unless he has first consulted—

(a) [F57 the Environment Agency] [F58 and the NRBW];

(b) [F59 Natural England] F60 ...;

(c) the Historic Buildings and Monuments Commission for England;

(d) the Sports Council and the Sports Council for Wales; and

(e) such relevant undertakers and other persons as he considers it appropriate to consult.

(5) In this section “the other consolidation Acts” means the M3 Water Resources Act 1991, F61 ... the M4 Land Drainage Act 1991 and the M5 Water Consolidation (Consequential Provisions) Act 1991.

Textual Amendments

F55 Words in s. 5(2) repealed (27.3.2002) by The Ministry of Agriculture, Fisheries and Food (Dissolution) Order 2002 (S.I. 2002/794), art. 5(2), Sch. 2 (with art. 6)

F56 Word in s. 5(2) repealed (27.3.2002) by The Ministry of Agriculture, Fisheries and Food (Dissolution) Order 2002 (S.I. 2002/794), art. 5(2), Sch. 2 (with art. 6)

F57 Words in s. 5(4)(a) substituted (1.4.1996) by 1995 c. 25, s. 120(1), Sch. 22 para. 98 (with ss. 7(6), 115, 117); S.I. 1996/186, art. 3

F58 Words in s. 5(4)(a) inserted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 226(2) (with Sch. 7)

F59 Words in s. 5(4)(b) substituted (1.10.2006) by Natural Environment and Rural Communities Act 2006 (c. 16), ss. 105(1), 107, Sch. 11 para. 130; S.I. 2006/2541, art. 2

F60 Words in s. 5(4)(b) omitted (1.4.2013) by virtue of The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 226(3) (with Sch. 7)

F61 Words in s. 5(5) omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(3)(r), Sch. 23 para. 28(4)(a)

Marginal Citations

M2 1989 c. 15.

M3 1991 c. 57.

M4 1991 c. 59.

M5 1991 c. 60.

Part II E+W APPOINTMENTMENT AND REGULATION OF UNDERTAKERS

CHAPTER I E+W APPOINTMENTS

Making of appointments E+W

6 Appointment of relevant undertakers. E+W

(1) Subject to the following provisions of this Chapter, a company may be appointed—

(a) by the Secretary of State; or

(b) with the consent of or in accordance with a general authorisation given by the Secretary of State, by [F62 the Authority],

to be the water undertaker or sewerage undertaker for any area of England and Wales.

(2) Without prejudice to the obligation of a company holding an appointment under this Chapter to comply with the conditions of its appointment, the appointment of a company to be the water undertaker or sewerage undertaker for any area shall have the effect, while the appointment remains in force—

(a) of requiring the company to perform any duty imposed by or under any enactment on an undertaker of the relevant description (that is to say, a water undertaker or, as the case may be, sewerage undertaker);

(b) of authorising the company, for the purposes of, or in connection with, the carrying out of any of the functions of an undertaker of the relevant description, to exercise any power conferred by or under any enactment on an undertaker of that description;

(c) of requiring enactments and subordinate legislation authorising or requiring anything to be done in relation to an undertaker of the relevant description to be construed as authorising or requiring that thing to be done in relation to that company; and

(d) of requiring other references in any enactment or subordinate legislation to an undertaker of the relevant description, or to the area of that undertaker, to be construed, so far as necessary for the purposes of, or in connection with, the carrying out by that company of the functions of an undertaker of that description, as references to that company or, as the case may be, to that area.

(3) The appointment of a company to be a relevant undertaker shall be by service on the company of an instrument in writing containing the appointment and describing the area for which it is made.

(4) A single instrument may contain the appointment of a company to be the sewerage undertaker for an area and the appointment of the same company to be the water undertaker for the whole or any part of that area or for an area which includes the whole or any part of that area.

(5) A company shall not be appointed to be a water undertaker [F63 or a sewerage undertaker] unless it is a limited company F64 ...

[F65 (5A) A company shall not be appointed to be a relevant undertaker if it is [F66 a water supply licensee or sewerage licensee].]

(6) As soon as practicable after making an appointment under this Chapter, the Secretary of State shall send a copy of the appointment to [F62 the Authority].

Textual Amendments

F62 Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

F63 Words in s. 6(5) inserted (26.5.2015) by Deregulation Act 2015 (c. 20), s. 115(3)(r), Sch. 23 para. 28(4)(b)(i)

F64 Words in s. 6(5) omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(3)(r), Sch. 23 para. 28(4)(b)(ii)

F65 S. 6(5A) inserted (1.12.2005) by Water Act 2003 (c. 37), ss. 101(1), 105(3), Sch. 8 para. 3; S.I. 2005/2714, art. 3(c) (with Sch. para. 8)

F66 Words in s. 6(5A) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 6; S.I. 2016/465, art. 2(m), Sch. 1 para. 1(d) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

Modifications etc. (not altering text)

C14 S. 6 applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 2 (with reg. 1(1)(c))

7 Continuity of appointments, replacement appointments etc. E+W

(1) It shall be the duty of the Secretary of State to secure that such appointments are made under this Chapter as will ensure that for every area of England and Wales there is at all times both—

(a) a company holding an appointment under this Chapter as water undertaker; and

(b) whether or not the same company in relation to the whole or any part of that area, a company holding an appointment as sewerage undertaker.

(2) Subject to the following provisions of this section—

(a) the Secretary of State; and

(b) with the consent of or in accordance with a general authorisation given by the Secretary of State[F62 the Authority],

shall have power, by notice to a company holding an appointment under this Chapter, to terminate the appointment or to vary the area to which it relates.

(3) The appointment of a company to be a water undertaker or sewerage undertaker shall not be terminated or otherwise cease to relate to or to any part of any area except with effect from the coming into force of such appointments and variations replacing that company as a relevant undertaker as secure either-

(a) that another company becomes the water undertaker or, as the case may be, sewerage undertaker for that area or part or for an area that includes that area or part; or

(b) that two or more companies each become the water undertaker or, as the case may be, sewerage undertaker for one of a number of different areas that together constitute or include that area or part.

(4) An appointment or variation replacing a company as a relevant undertaker shall not be made in relation to the whole or any part of the area to which that company’s appointment as water undertaker or, as the case may be, sewerage undertaker relates except where—

(a) that company consents to the appointment or variation;

(b) the appointment or variation relates only to parts of that area none of the premises in which is served by that [F67 company;

(bb) the appointment or variation relates only to parts of that area and the conditions mentioned in subsection (5) below are satisfied in relation to each of the premises in those parts which are served by that company; or]

(c) the appointment or variation is made in such circumstances as may be set out for the purposes of this paragraph in the conditions of that company’s appointment.

[F68 (5) The conditions are that—

[F69 (a) the premises are, or are likely to be, supplied with not less than the following quantity of water in any period of twelve months:

(i) if the area of the relevant undertaker concerned is wholly or mainly in Wales, 250 megalitres;

(ii) in all other cases, [F70 50 megalitres] ; and]

(b) the person who is the customer in relation to the premises consents in writing to the appointment or variation.

(6) The Secretary of State may, after consulting [F62 the Authority], make regulations amending subsection (5)(a) above by substituting, for the quantity of water for the time being specified there, such smaller quantity as he considers appropriate.]

Textual Amendments

F62 Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

F67 S. 7(4)(bb) and word substituted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 40(1); S.I.1992/1, art. 3, Sch. Pt. 1

F68 S. 7(5)(6) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 40(2): S.I. 1992/1, art. 3, Sch. Pt. 1

F69 S. 7(5)(a) substituted (17.8.2000) by S.I. 2000/1842, art. 2(2)

F70 Words in s. 7(5)(a)(ii) substituted (1.4.2005) by The Water and Sewerage Undertakers (Inset Appointments) Regulations 2005 (S.I. 2005/268), reg. 2(2)

8 Procedure with respect to appointments and variations. E+W

(1) An application for an appointment or variation replacing a company as a relevant undertaker shall be made in such manner as may be prescribed.

(2) Within fourteen days after making an application under this section, the applicant shall—

(a) serve notice of the application [F71 on—

(i) the existing appointee,

(ii) if the application relates to the replacement of a water undertaker whose area is wholly or mainly in England, the Chief Inspector of Drinking Water,

(iii) if the application relates to the replacement of a water undertaker whose area is wholly or mainly in Wales, the Chief Inspector of Drinking Water for Wales if there is one, or the Chief Inspector of Drinking Water if section 86(1B)(b) applies,

(iv) the appropriate agency, and

(v) every] local authority whose area includes the whole or any part of the area to which the application relates; and

(b) publish a copy of the notice in such manner as may be prescribed.

(3) Before making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State or [F62 the Authority] shall give notice—

(a) stating that [F62 it] proposes to make the appointment or variation;

(b) stating the reasons why [F62 it] proposes to make the appointment or variation; and

(c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed appointment or variation may be made.

(4) A notice under subsection (3) above shall be given—

(a) by publishing the notice in such manner as the Secretary of State or, as the case may be, [F62 the Authority] considers appropriate for bringing it to the attention of persons likely to be affected by the making of the proposed appointment or variation; and

(b) by serving a copy of the notice [F72 on—

(i) the existing appointee,

(ii) if the proposed appointment or variation would replace a water undertaker whose area is wholly or mainly in England, the Chief Inspector of Drinking Water,

(iii) if the proposed appointment or variation would replace a water undertaker whose area is wholly or mainly in Wales, the Chief Inspector of Drinking Water for Wales if there is one, or the Chief Inspector of Drinking Water if section 86(1B)(b) applies,

(iv) the appropriate agency, and

(v) every] local authority whose area includes the whole or any part of the area to which the proposed appointment or variation relates.

(5) As soon as practicable after making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State or [F62 the Authority] shall—

(a) serve a copy of the appointment or variation on the existing appointee; and

(b) serve notice of the making of the appointment or variation [F73 on—

(i) if the appointment or variation replaces a water undertaker whose area is wholly or mainly in England, the Chief Inspector of Drinking Water,

(ii) if the appointment or variation replaces a water undertaker whose area is wholly or mainly in Wales, the Chief Inspector of Drinking Water for Wales if there is one, or the Chief Inspector of Drinking Water if section 86(1B)(b) applies,

(iii) the appropriate agency, and

(iv) every] local authority whose area includes the whole or any part of the area to which the appointment or variation relates,

and as soon as practicable after exercising any power to vary the area to which an appointment under this Chapter relates, the Secretary of State shall send a copy of the variation to [F62 the Authority].

(6) In this section “the existing appointee”, in relation to an appointment or variation replacing a company as a relevant undertaker, means the company which is replaced in relation to the whole or any part of the area to which the appointment or variation relates or, where there is more than one such company, each of them.

[F74 (6A) In this section “the appropriate agency”, in relation to the replacement of a relevant undertaker, means—

(a) the Environment Agency, if the undertaker's area is wholly in England;

(b) the NRBW, if the undertaker's area is wholly in Wales;

(c) both the Environment Agency and the NRBW, if the undertaker's area is partly in England and partly in Wales.]

F75 [(7) The Secretary of State may by regulations impose such additional procedural requirements as he considers appropriate for any case where the conditions mentioned in section 7(5) above are required to be satisfied in relation to an application for an appointment or variation replacing a company as a relevant undertaker.]

Textual Amendments

F62 Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

F71 Words in s. 8(2)(a) substituted (14.7.2014) by Water Act 2014 (c. 21), ss. 13(2), 94(2)(b)

F72 Words in s. 8(4)(b) substituted (14.7.2014) by Water Act 2014 (c. 21), ss. 13(3), 94(2)(b)

F73 Words in s. 8(5)(b) substituted (14.7.2014) by Water Act 2014 (c. 21), ss. 13(4), 94(2)(b)

F74 S. 8(6A) inserted (14.7.2014) by Water Act 2014 (c. 21), ss. 13(5), 94(2)(b)

F75 S. 8(7) added (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 40(3); Competition and Service (Utilities) Act 1992 (Commencement No. 1) Order 1992 , art. 3, Sch. Pt. I

9 Duties affecting making of appointments and variations. E+W

(1) Before making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State or [F62 the Authority] shall consider any representations or objections which have been duly made in pursuance of the notice under section 8(3) above and have not been withdrawn.

(2) Before making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State shall consult [F62 the Authority].

(3) In determining whether to make an appointment or variation by virtue of section 7(4)(b) [F76 or (bb)] above in relation to any part of an area, the Secretary of State or, as the case may be, [F62 the Authority] shall have regard, in particular, to any arrangements made or expenditure incurred by the existing appointee for the purpose of enabling premises in that part of that area to be served by that appointee.

(4) It shall be the duty of the Secretary of State or, as the case may be, of [F62 the Authority]—

(a) in making an appointment or variation replacing a company as a relevant undertaker; and

(b) where [F62 it] makes such an appointment or variation, in determining what provision is to be made with respect to the fixing by the new appointee of any water or drainage charges,

to ensure, so far as may be consistent with [F62 its] duties under Part I of this Act, that the interests of the members and creditors of the existing appointee are not unfairly prejudiced as respects the terms on which the new appointee could accept transfers of property, rights and liabilities from the existing appointee.

(5) In this section—

• “existing appointee”, in relation to an appointment or variation replacing a company as a relevant undertaker in relation to any area or part of an area, means the company which is replaced by that appointment or variation;

• “new appointee”, in relation to such an appointment or variation, means the company which by virtue of the appointment or variation becomes a relevant undertaker for the area or part of an area in question;

• “water or drainage charges” means

(a) charges in respect of any services provided in the course of the carrying out of the functions of a water undertaker or sewerage undertaker; or

(b) amounts of any other description which such an undertaker is authorised by or under any enactment to require any person to pay.

Textual Amendments

F62 Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

F76 Words in s. 9(3) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 40(4); Competition and Service (Utilities) Act 1992 (Commencement No. 1) Order 1992 , art. 3, Sch. Pt.I

[F62 10 Transitional provision with respect to replacement appointments. E+W

[F77 (1)] Schedule 2 to this Act shall have effect for enabling provision to be made with respect to cases in which a company is replaced by another as a relevant undertaker by an appointment or variation under this Chapter.

[F78 (2) Subsections (3) [F79 to (4)] below apply where, by such an appointment or variation, one company (“the new undertaker”) is to replace another company as a relevant undertaker, but the appointment or variation has not come into force.

(3) The following provisions of this Act shall (except where they are inapplicable to the kind of undertaker in question) apply in relation to the new undertaker as if the appointment or variation had come into force—

(a) sections 18 to 24 and Schedule 3;

(b) sections 32 to 35;

(c) section 155 and Schedule 9;

(d) sections 156, 158 to 161 and 163 to 167 and Schedule 11;

(e) sections 168 to 171, 173, 174, 178 to 180 and Schedule 12;

(f) sections 181 to 183 and Schedule 13;

(g) sections 184 to 188 and Schedule 14;

(h) sections 189 to 192, 197 to 200, 202, 203, 206, 208, 209, 211, 212 and 217.

[F80 (3A) To the extent that charging rules issued under section 144ZA relate to charges imposed or security required by a relevant undertaker under section 185, those rules are to apply in relation to the new undertaker as if the appointment or variation had come into force.]

(4) Such of the conditions imposed on the new undertaker under section 11 below as [F62 the Authority] may specify in a written notice given by [F62 it] to the undertaker shall have effect, in relation to the operation of any provision mentioned in subsection (3) above before the appointment or variation comes into force, as if the appointment or variation had come into force.

(5) The Secretary of State may by regulations amend subsection (3) above by adding to, removing or modifying references to provisions of this Act.]

Textual Amendments

F62 Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)

F77 S. 10 renumbered as s. 10(1) (1.7.1992 ) by Competition and Service (Utilities) Act 1992 (c. 43), s.42; S.I. 1992/1, art. 3, Sch. Pt. 1

F78 S. 10(2)-(5) added (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 42; S.I.1992/1, art. 3, Sch. Pt. 1

F79 Words in s. 10(2) substituted (1.11.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 7(2); S.I. 2016/1007, art. 2(h)(iii) (with transitional provisions (22.3.2017) in S.I. 2017/462, art. 14)

F80 S. 10(3A) inserted (1.11.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 7(3); S.I. 2016/1007, art. 2(h)(iii) (with transitional provisions (22.3.2017) in S.I. 2017/462, art. 14)

Conditions of appointments E+W

11 Power to impose conditions. E+W

(1) An appointment under this Chapter may include—

(a) such conditions as appear to the Secretary of State or, as the case may be, [F62 the Authority] to be requisite or expedient having regard to the duties imposed on [F62 him or it] by Part I of this Act;

(b) conditions for the purposes of section 7(4)(c) above; and

(c) conditions requiring the rendering to the Secretary of State of a payment on the making of an appointment, or payments while such an appointment is in force, or both, of such amount or amounts as may be determined by or under the conditions.

(2) Conditions may be included by virtue of subsection (1)(a) above in an appointment under this Chapter whether or not they are connected with the supply of water, the provision of sewerage services or the exercise or performance of any power or duty conferred or imposed by or under any enactment on water undertakers or sewerage undertakers.

(3) Conditions included in an appointment under this Chapter may contain provision for the conditions to cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined by or under the conditions.

(4) Any provision included by virtue of subsection (3) above in an appointment under this Chapter shall have effect in addition to the provision made by this Chapter with respect to the modification of the conditions of an appointment.

(5) For the purposes of this Act where the same instrument contains an appointment of the same company to be both a water undertaker and a sewerage undertaker (whether or not for the same area), all the conditions included in that instrument by virtue of this section shall have effect, irrespective of their subject-matter, as conditions of both appointments.

(6) Where an instrument of appointment has been served under subsection (3) of section 6 above on any company, the coming into force of the appointment for the purposes specified in subsection (2) of that section shall not be affected by any contravention of the requirements of this Act with respect to the provision contained by way of conditions of appointment in that instrument.

(7) If the Secretary of State considers it appropriate to do so in consequence of any legal proceedings with respect to any such provision as is mentioned in subsection (6) above, he may by order made by statutory instrument direct that such conditions as may be specified in the order are to be treated as included in the appointment in question until there is an opportunity for the provision to which the proceedings relate to be replaced by virtue of any of the other provisions of this Chapter.

(8) Any sums received by the Secretary of State in consequence of the provisions of any condition of an appointment under this Chapter shall be paid into the Consolidated Fund.

12 Determinations under conditions of appointment. E+W

(1) Without prejudice to the generality of paragraph (a) of section 11(1) above, conditions included in an appointment by virtue of that paragraph may—

(a) require the appointed company to comply with any direction given by the Authority as to such matters as are specified in the appointment or are of a description so specified; and

(b) require the appointed company, except in so far as [F62 the Authority] consents to the company’s doing or not doing them, not to do or to do such things as are specified in the appointment or are of a description so specified.

(2) Without prejudice as aforesaid, such conditions may provide for the reference to and determination by—

(a) the Secretary of State or [F62 the Authority]; or

(b) on a reference by [F62 the Authority], the [F81 CMA],

of such questions arising under the appointment and of such other matters, including (in the case of references to [F82 the CMA] ) disputes as to determinations by [F62 the Authority], as are specified in the appointment or are of a description so specified.

(3) Where any question or other matter falls to be determined by the [F83 CMA] in pursuance of a provision contained in an appointment under this Chapter—

(a) it shall be the duty of [F62 the Authority], on being required to do so by the company holding that appointment, to refer that question or matter to [F84 the CMA]; and

(b) it shall be the duty of [F84 the CMA] to determine any question or other matter referred by virtue of paragraph (a) above in accordance with—

F85 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) the principles which apply, by virtue of Part I of this Act, in relation to determinations under this Chapter by [F62 the Authority].

[F86 (3A) For the purposes of subsection (3) above, where—

(a) the question or matter referred to the [F87 CMA] concerns the review of a price control imposed on the company holding the appointment; and

(b) the [F87 CMA] is to decide to what extent it is reasonable to take into account in its determination costs incurred or borne by the company in connection with the reference,

the [F87 CMA] shall also have regard to the extent to which, in its view, its determination is likely to support the company’s (rather than the Authority's) claims in relation to the question or matter referred to it.

(3B) Subsections (4) and (5) of section 14, and [F88 sections 14A and 14B], below apply to references to the [F89 CMA] under this section as they apply to references under section 14.

(3C) A report of the [F89 CMA] on a reference under this section—

(a) shall be made to the Authority; and

(b) shall include definite conclusions on the questions or other matters comprised in the reference, together with such an account of their reasons for those conclusions as, in the opinion of the [F89 CMA] , is expedient for facilitating a proper understanding of those questions or other matters and of their conclusions,

and subsections (5) and (6) of section 15 below apply to such a report as they apply to a report on a reference under section 14.]

[F90 (3D) The functions of the CMA with respect to a reference under this section are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act 2002, as applied by subsection (3B) read with section [F91 14B]).]

F92 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F92 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F81 Words in s. 12(2) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(2)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F82 Word in s. 12(2) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(2)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F83 Word in s. 12(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(3)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F84 Words in s. 12(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(3)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F85 S. 12(3)(b)(i) repealed (1.10.2004) by Water Act 2003 (c. 37), ss. 54(3), 105(3), Sch. 9 Pt. 2; S.I. 2004/2528, art. 2(h)(u) (with art. 4, Sch.)

F86 S. 12(3A)-(3C) inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 54(2), 105(3); S.I. 2004/2528, art. 2(h) (with art. 4, Sch.)

F87 Word in s. 12(3A) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F88 Words in s. 12(3B) substituted (14.7.2014) by Water Act 2014 (c. 21), s. 94(2)(s), Sch. 7 para. 8(a)

F89 Words in s. 12(3B)(3C) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(5); S.I. 2014/416, art. 2(1)(d) (with Sch.); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F90 S. 12(3D) inserted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(6); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F91 Word in s. 12(3D) substituted (14.7.2014) by Water Act 2014 (c. 21), s. 94(2)(s), Sch. 7 para. 8(b)

F92 S. 12(4)(5) repealed (1.10.2004) by Water Act 2003 (c. 37), ss. 54(3), 105(3), Sch. 9 Pt. 2; S.I. 2004/2528, art. 2(h)(u) (with art. 4, Sch.)

[F93 Modification of appointment conditions: England E+W

Textual Amendments

F93 Ss. 12A-12I and cross-heading inserted (24.1.2022) by Environment Act 2021 (c. 30), ss. 86(2), 147(3) (with s. 144); S.I. 2022/48, reg. 2(m)

12A Modification by the Authority E+W

(1) This section and sections 12B to 12I apply in relation to a company appointed under this Chapter whose area is wholly or mainly in England.

(2) The Authority may make modifications of the conditions of the company’s appointment under this Chapter.

(3) Before making any modifications under this section, the Authority must give notice—

(a) stating that it proposes to make modifications,

(b) setting out the proposed modifications and their effect,

(c) stating the reasons why it proposes to make the modifications, and

(d) specifying the time within which representations with respect to the proposed modifications may be made.

(4) That time must not be less than 42 days from the date of publication of the notice.

(5) A notice under subsection (3) must be given—

(a) by publishing the notice in a way the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the modifications, and

(b) by sending a copy of it to—

(i) each company holding an appointment under this Chapter the conditions of which the Authority proposes to modify,

(ii) any other company holding an appointment under this Chapter, any water supply licensee and any sewerage licensee, whose interests the Authority considers are likely to be materially affected by the modifications,

(iii) the Secretary of State,

(iv) any person whose functions are or include representing those within sub-paragraph (i) or (ii) in respect of interests of theirs that the Authority considers are likely to be materially affected by the modifications, and

(v) the Consumer Council for Water.

(6) The Authority must consider any representations which are duly made.

(7) If, within the time specified under subsection (3)(d), the Secretary of State directs the Authority not to make a modification, the Authority must comply with the direction.

(8) Subsections (9) to (11) apply where, having complied with subsections (3) to (6), the Authority decides to proceed with making modifications.

(9) The Authority must—

(a) publish the decision and the modifications in a way the Authority considers appropriate for bringing them to the attention of persons likely to be affected by the modifications,

(b) state the effect of the modifications,

(c) state how it has taken account of any representations duly made, and

(d) state the reason for any differences between the modifications and those set out in the notice under subsection (3).

(10) Each modification has effect from the date specified by the Authority in relation to that modification (subject to the giving of a direction under paragraph 2 of Schedule 2ZA).

(11) The date specified may not be less than 56 days from publication of the decision to make the modification (except as provided in section 12B).

12B Modification of conditions of appointment: early effective date E+W

(1) The date specified by virtue of section 12A(10) in relation to a modification under that section may be less than 56 days from the publication of the decision to make the modification if—

(a) the Authority considers it necessary or expedient for the modification to have effect before the 56 days expire, and

(b) the consultation condition is satisfied.

(2) The consultation condition is that the notice under section 12A relating to the modification—

(a) stated the date from which the Authority proposed that the modification should have effect,

(b) stated the Authority’s reasons for proposing that the modification should have effect from a date less than 56 days from the decision to modify, and

(c) explained why, in the Authority’s view, that would not have a material adverse effect on any person holding an appointment under this Chapter.

12C Modifications of conditions under section 12A: supplementary E+W

(1) This section applies where under section 12A the Authority modifies the conditions of any appointment under this Chapter.

(2) The Authority may make such incidental or consequential modifications of the conditions of any appointments as it considers necessary or expedient.

(3) The modification of a condition of an appointment has effect subject to the giving of a direction under paragraph 2 of Schedule 2ZA in relation to the decision to which the modification relates.

12D Appeal to the CMA E+W

(1) An appeal lies to the CMA against a decision by the Authority to proceed with the modification under section 12A of a condition of an appointment under this Chapter.

(2) An appeal may be brought under this section only by—

(a) a company holding an appointment under this Chapter the conditions of which the Authority has decided to modify,

(b) any other company holding an appointment under this Chapter, any water supply licensee or any sewerage licensee, whose interests are materially affected by the decision,

(c) a person whose functions are or include representing those within paragraph (a) or (b) in respect of interests of theirs which are materially affected by the decision, or

(d) the Consumer Council for Water.

(3) The permission of the CMA is required for the bringing of an appeal under this section.

(4) The CMA may refuse permission only on one of the following grounds—

(a) in relation to an appeal brought by a company, water supply licensee or sewerage licensee within subsection (2)(b), that the interests of the company or licensee are not materially affected by the decision;

(b) in relation to an appeal brought by a person within subsection (2)(c), that the interests of the person represented are not materially affected by the decision;

(c) in relation to any appeal, that the appeal is brought for reasons that are trivial or vexatious, or has no reasonable prospect of success.

12E Procedure on appeal to CMA E+W

(1) Schedule 2ZA makes provision about the procedure for appeals under section 12D.

(2) Except where specified otherwise in that Schedule, the functions of the CMA with respect to an appeal under section 12D are to be carried out by a group constituted for that purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.

12F Determination by CMA of appeal E+W

(1) This section applies to an appeal brought under section 12D.

(2) In determining an appeal, the CMA must have regard, to the same extent as is required of the Authority, to—

(a) the Authority’s duties under section 2, and

(b) the Authority’s strategic priorities and objectives as set out in a statement under section 2A.

(3) In determining the appeal the CMA—

(a) may have regard to any matter to which the Authority was not able to have regard in relation to the decision which is the subject of the appeal, but

(b) must not, in the exercise of that power, have regard to any matter to which the Authority would not have been entitled to have regard in reaching its decision had it had the opportunity of doing so.

(4) The CMA may allow the appeal only to the extent that it is satisfied that the decision appealed against was wrong on one or more of the following grounds—

(a) that the Authority failed properly to have regard to any matter mentioned in subsection (2),

(b) that the Authority failed to give appropriate weight to any matter mentioned in subsection (2),

(c) that the decision was based, wholly or partly, on an error of fact,

(d) that the modifications fail to achieve, in whole or in part, the effect stated by the Authority by virtue of section 12A(9)(b),

(e) that the Authority did not follow the procedure required by sections 12A to 12C, or

(f) that the decision was otherwise wrong in law.

(5) To the extent that the CMA does not allow the appeal, it must confirm the decision appealed against.

12G CMA’s powers on allowing an appeal E+W

(1) Where the CMA allows an appeal under section 12D to any extent, it must do one or both of the following—

(a) quash the decision (to the extent that the appeal is allowed);

(b) remit the matter back to the Authority for reconsideration and determination in accordance with any directions given by the CMA.

(2) A direction under subsection (1) must not require the Authority to do anything that it would not have power to do (apart from the direction).

(3) The Authority must comply with a direction given to it under that subsection.

12H Time limits for CMA to determine an appeal E+W

(1) The CMA must determine an appeal within the period of 4 months beginning with the permission date, unless subsection (2) applies.

(2) This subsection applies where—

(a) the CMA has received representations on the timing of the determination from a party to the appeal, and

(b) it is satisfied that there are special reasons why the determination cannot be made within the period specified in subsection (1).

(3) Where subsection (2) applies, the CMA must determine an appeal within the period specified by it, not being longer than the period of 5 months beginning with the permission date.

(4) Where subsection (2) applies, the CMA must also—

(a) inform the parties to the appeal of the time limit for determining the appeal, and

(b) publish that time limit in a way it considers appropriate to bring it to the attention of any other persons likely to be affected by the determination.

(5) References in this section to the permission date are to the date on which the CMA gave permission to bring the appeal in accordance with section 12D(3).

(6) In this section and in section 12I any reference to a party to an appeal is to be read in accordance with Schedule 2ZA.

12I Determination of appeal by CMA: supplementary E+W

(1) A determination by the CMA on an appeal—

(a) must be contained in an order made by the CMA;

(b) must set out the reasons for the determination;

(c) takes effect at the time specified in the order or determined in accordance with provision made in the order;

(d) must be notified by the CMA to the parties to the appeal;

(e) must be published by the CMA—

(i) as soon as reasonably practicable after the determination is made;

(ii) in a way the CMA considers appropriate to bring it to the attention of any person likely to be affected by it (other than a party to the appeal).

(2) The CMA may exclude from publication any information it is satisfied is—

(a) commercial information, the disclosure of which would, or in the CMA’s opinion might, significantly harm the legitimate business interests of an undertaking to which it relates, or

(b) information relating to the private affairs of an individual, the disclosure of which would, or in the CMA’s opinion might, significantly harm the individual’s interests.

(3) The Authority must take such steps as it considers requisite for it to comply with an order of the CMA under subsection (1)(a).

(4) The steps must be taken—

(a) if a time is specified in (or is to be determined in accordance with) the order, within that time;

(b) in any other case, within a reasonable time.

(5) Section 12C applies where a condition of a licence is modified in accordance with section 12G as it applies where a condition of a licence is modified under section 12A.]

[F94 Modification of appointment conditions: Wales] E+W

Textual Amendments

F94 S. 13 cross-heading substituted (24.1.2022) by Environment Act 2021 (c. 30), ss. 86(3), 147(3) (with s. 144); S.I. 2022/48, reg. 2(m)

13 Modification by agreement. E+W

[F95 (A1) This section and sections 14 to 16B apply in relation to a company appointed under this Chapter whose area is wholly or mainly in Wales.]

(1) Subject to the following provisions of this section, [F62 the Authority] may modify the conditions of a company’s appointment under this Chapter if the company consents to the modifications.

(2) Before making modifications under this section, [F62 the Authority] shall give notice—

(a) stating that [F62 it] proposes to make the modifications and setting out their effect;

(b) stating the reasons why [F62 it] proposes to make the modifications; and

(c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(3) A notice under subsection (2) above shall be given—

(a) by publishing the notice in such manner as [F62 the Authority] considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b) by serving a copy of the notice on the company and on the Secretary of State.

(4) [F62 The Authority] shall not under this section make any modifications which the Secretary of State has, within the time specified in the notice under subsection (2) above, directed [F62 the Authority] not to make.

(5) The Secretary of State shall not give a direction under subsection (4) above in relation to any modification unless—

(a) the modification is a modification of provision contained in the appointment for the purposes of section 7(4)(c) above;

(b) the modification is a modification of a provision of the appointment which relates to the disposal of, or of interests or rights in or over, a company’s protected land and is stated in the appointment to be a provision which cannot be modified; or

(c) it appears to the Secretary of State that the modification should be made, if at all, under section 16 below.

Textual Amendments

F95 S. 13(A1) inserted (24.1.2022) by Environment Act 2021 (c. 30), ss. 86(4), 147(3) (with s. 144); S.I. 2022/48, reg. 2(m)

14 Modification references to [F96 CMA]. E+W

(1) The Authority may make to the [F97 CMA] a reference which is so framed as to require [F98 the CMA] to investigate and report on the questions—

(a) whether any matters which—

(i) relate to the carrying out of any function which is a function of any company by virtue of an appointment of that company under this Chapter; and

(ii) are specified in the reference,

operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the conditions of the company’s appointment.

(2) [F62 The Authority], at any time, by notice given to the [F99 CMA] vary a reference under this section by—

(a) adding to the matters specified in the reference; or

(b) excluding from the reference some or all of the matters so specified;

and on receipt of any such notice [F100 the CMA] shall give effect to the variation.

(3) [F62 The Authority] may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the [F101 CMA] in carrying out the investigation on the reference—

(a) any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and

(b) any modifications of the conditions of any appointment mentioned in the reference or variation by which, in his opinion, those effects could be remedied or prevented.

(4) As soon as practicable after making a reference under this section or a variation of such a reference, [F62 the Authority] shall—

(a) serve a copy of the reference or variation on the company whose appointment is mentioned in the reference or variation; and

(b) publish particulars of the reference or variation in such manner as [F62 it] considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.

(5) It shall be the duty of [F62 the Authority], for the purpose of assisting the [F102 CMA] in carrying out an investigation on a reference under this section [F103 or in carrying out functions under section 16A below], to give to [F104 the CMA] —

(a) any information in his possession which relates to matters falling within the scope of the investigation [F105 or the carrying out of those functions], and which is either—

(i) requested by [F104 the CMA] for that purpose; or

(ii) information which, in [F62 its] opinion, it would be appropriate for that purpose to give to [F104 the CMA] without any such request;

and

(b) any other assistance which [F104 the CMA] may require, and which it is within [F62 its] power to give, in relation to any such matters;

and [F104 the CMA], for the purpose of carrying out any such investigation [F106 or such functions], shall take account of any information given to them for that purpose under this subsection.

(6) In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the [F107 CMA] shall have regard to the matters as respects which duties are imposed on the Secretary of State and [F62 the Authority] by Part I of this Act.

[F108 (6A) The functions of the CMA with respect to a reference under this section are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act 2002, as applied by sections 14B and 16B).]

(7) F109 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7A) F109 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) F110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8A) F110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F96 Word in s. 14 heading substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(8); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F97 Word in s. 14(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(2)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F98 Words in s. 14(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(2)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F99 Word in s. 14(2) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(3)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F100 Words in s. 14(2) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(3)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F101 Word in s. 14(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F102 Word in s. 14(5) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(5)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F103 Words in s. 14(5) inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 55(2)(a), 105(3); S.I. 2004/2528, art. 2(h) (with savings in art. 4, Sch.)

F104 Words in s. 14(5) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(5)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F105 Words in s. 14(5) inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 55(2)(b), 105(3); S.I. 2004/2528, art. 2(h) (with savings in art. 4, Sch.)

F106 Words in s. 14(5) inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 55(2)(c), 105(3); S.I. 2004/2528, art. 2(h) (with savings in art. 4, Sch.)

F107 Word in s. 14(6) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(6); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F108 S. 14(6A) inserted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 54(7); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F109 S. 14(7)(7A) repealed (20.6.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 25(4), Sch. 26; S.I. 2003/1397, art. 2(1), Sch. (with savings in art. 8)

F110 S. 14(8)(8A) repealed (1.4.2004) by Water Act 2003 (c. 37), ss. 53(3)(4), 101(2), 105(3), Sch. 9 Pt. 2; S.I. 2004/641, art. 3(k)(z)(i) (with art. 6, Sch. 3)

[F111 14A References under section 14: time limits E+W

(1) Every reference under section 14 above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.

(2) A report of the [F112 CMA] on a reference under section 14 above shall not have effect (and no action shall be taken in relation to it under section 16 below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by [F62 The Authority] under subsection (3) below.

(3) [F62 The Authority] may, if [F62 it] has received representations on the subject from the [F112 CMA] and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.

(4) No more than one extension is possible under subsection (3) above in relation to the same reference.

(5) [F62 The Authority] shall, in the case of an extension made by [F62 it] under subsection (3) above—

(a) publish that extension in such manner as [F62 it] considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it; and

(b) send a copy of what has been published by him under paragraph (a) above to the company whose appointment is mentioned in the reference.

Textual Amendments

F111 Ss. 14A, 14B inserted (20.6.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 25(5); S.I. 2003/1397, art. 2(1), Sch.

F112 Words in s. 14A(2)(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 55; S.I. 2014/416, art. 2(1)(d) (with Sch.)

14B References under section 14: powers of investigation E+W

(1) The following sections of Part 3 of the Enterprise Act 2002 shall apply, [F113 as they had effect immediately before the relevant date and] with the modifications mentioned in subsections [F114 (1A),] (2) and (3) below, for the purposes of references under section 14 above as they [F115 applied immediately before that date] for the purposes of references under that Part—

(a) section 109 (attendance of witnesses and production of documents etc.);

(b) section 110 (enforcement of powers under section 109: general);

(c) section 111 (penalties);

(d) section 112 (penalties: main procedural requirements);

(e) section 113 (payments and interest by instalments);

(f) section 114 (appeals in relation to penalties);

(g) section 115 (recovery of penalties); and

(h) section 116 (statement of policy).

[F116 (1A) Section 109 shall, in its application by virtue of subsection (1) above, have effect as if—

(a) for subsection (A1), there were substituted—

“(A1) For the purposes of this section, a permitted purpose is assisting the CMA in carrying out any functions exercisable by it in connection with a reference under section 14 of the Water Industry Act 1991.”, and

(b) subsection (8A) were omitted.]

(2) Section 110 shall, in its application by virtue of subsection (1) above, have effect as if—

(a) subsection (2) were omitted; F117 ...

[F118 (aa) after subsection (3), there were inserted—

“(3A) No penalty shall be imposed by virtue of subsection (1) or (3) if more than 4 weeks have passed since the publication of the report of the CMA on the reference concerned; but this subsection shall not apply in relation to any variation or substitution of the penalty which is permitted by virtue of this Part.”; and]

(b) in subsection (9) the words from “or section” to “section 65(3))” were omitted.

[F119 (3) Section 111(5)(b) shall, in its application by virtue of subsection (1) above, have effect as if for sub-paragraph (ii) there were substituted—

“(ii) if earlier, the day on which the report of the CMA on the reference concerned is made or, if no such report is made within the period permitted for that purpose, the latest day on which the report may be made within the permitted period.”.]

(4) Provisions of Part 3 of the Enterprise Act 2002 which [F120 , immediately before the relevant date, had] effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (1) above, have effect in relation to those sections as applied by virtue of that subsection [F121 as those provisions had effect immediately before that date].

(5) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.

[F122 (6) In this section “the relevant date” means the date on which section 143 of the Digital Markets, Competition and Consumers Act 2024 came into force.]]

Textual Amendments

F111 Ss. 14A, 14B inserted (20.6.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 25(5); S.I. 2003/1397, art. 2(1), Sch.

F113 Words in s. 14B(1) inserted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 12(2)(a); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F114 Word in s. 14B(1) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 75(2) (with art. 3, Sch. 2 para. 2)

F115 Words in s. 14B(1) substituted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 12(2)(b); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F116 S. 14B(1A) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 75(3) (with art. 3, Sch. 2 para. 2)

F117 Word in s. 14B(2)(a) omitted (1.4.2014) by virtue of The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 75(4)(a) (with art. 3, Sch. 2 para. 2)

F118 S. 14B(2)(aa) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 75(4)(b) (with art. 3, Sch. 2 para. 2)

F119 S. 14B(3) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 75(5) (with art. 3, Sch. 2 para. 2)

F120 Words in s. 14B(4) substituted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 12(3)(a); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F121 Words in s. 14B(4) inserted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 12(3)(b); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F122 S. 14B(6) inserted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 12(4); S.I. 2024/1226, regs. 1(2), 2(1)(22)

15 Reports on modification references. E+W

(1) In making a report on a reference under section 14 above, the [F123 CMA] —

(a) shall include in the report definite conclusions on the questions comprised in the reference together with such an account of their reasons for those conclusions as, in their opinion, is expedient for facilitating a proper understanding of those questions and of their conclusions;

(b) where they conclude that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have; and

(c) where they conclude that any adverse effects so specified could be remedied or prevented by modifications of the conditions of a company’s appointment under this Chapter, shall specify in the report modifications by which those effects could be remedied or prevented.

[F124 (1A) For the purposes of section 16 below, a conclusion contained in a report of the [F125 CMA] is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted [F126 by the chair of the CMA for the purpose of carrying out the functions of the CMA with respect to the reference].

(1B) If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 14 above as the conclusions of the [F127 CMA], the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing.]

F128 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F129 (3) For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the [F130 CMA] on a reference under section 14 above.

(3A) In making any report on a reference under section 14 above the [F130 CMA] must have regard to the following considerations before disclosing any information.

(3B) The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the [F130 CMA] thinks is contrary to the public interest.

(3C) The second consideration is the need to exclude from disclosure (so far as practicable)—

(a) commercial information whose disclosure the [F130 CMA] thinks might significantly harm the legitimate business interests of the undertaking to which it relates, or

(b) information relating to the private affairs of an individual whose disclosure the [F130 CMA] thinks might significantly harm the individual’s interests.

(3D) The third consideration is the extent to which the disclosure of the information mentioned in subsection (3C)(a) or (b) above is necessary for the purposes of the report.]

(4) A report of the [F131 CMA] on a reference under section 14 above shall be made to [F62 the Authority].

(5) Subject to subsection (6) below, [F62 the Authority]—

(a) shall, on receiving such a report, send a copy of it to the company to whose appointment under this Chapter the report relates and to the Secretary of State; and

(b) shall, not less than fourteen days after that copy is received by the Secretary of State, publish another copy of that report in such manner as [F62 it] considers appropriate for bringing the report to the attention of persons likely to be affected by it.

(6) If it appears to the Secretary of State that the publication of any matter in such a report would be against the public interest or the commercial interests of any person, he may, before the end of the period of fourteen days mentioned in paragraph (b) of subsection (5) above, direct [F62 the Authority] to exclude that matter from every copy of the report to be published by virtue of that paragraph; and the Director shall comply with any such direction.

Textual Amendments

F123 Word in s. 15(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 56(2); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F124 S. 15(1A)(1B) inserted (20.6.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 25(6)(a); S.I. 2003/1397, art. 2(1), Sch.

F125 Word in s. 15(1A) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 56(3)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F126 Word in s. 15(1A) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 56(3)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F127 Word in s. 15(1B) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 56(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F128 S. 15(2) repealed (1.3.2000) by 1998 c. 41, ss. 54(3), 74(3), Sch. 10 Pt. IV para. 13(4), Sch. 14 Pt. I (with s. 73); S.I. 2000/344, art. 2 Sch.

F129 S. 15(3)-(3D) substituted (20.6.2003) for s. 15(3) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 25(6)(b); S.I. 2003/1397, art. 2(1), Sch.

F130 Word in s. 15(3)-(3C) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 56(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F131 Word in s. 15(4) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 56(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)

16 Modification following report. E+W

(1) Where a report of the [F132 CMA] on a reference under section 14 above—

(a) includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest;

(b) specifies effects adverse to the public interest which those matters have or may be expected to have;

(c) includes conclusions to the effect that those effects could be remedied or prevented by modifications of the conditions of a company’s appointment under this Chapter; and

(d) specifies modifications by which those effects could be remedied or prevented,

the Authority shall, subject to the following provisions of this section, make such modifications of the conditions of that appointment as appear to [F62 it] requisite for the purpose of remedying or preventing the adverse effects specified in the report.

(2) Before making modifications under this section, [F62 the Authority] shall have regard to the modifications specified in the report.

(3) Before making modifications under this section, [F62 the Authority] shall give notice—

(a) stating that he proposes to make the modifications and setting out their effect;

(b) stating the reasons why he proposes to make the modifications; and

(c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) A notice under subsection (3) above shall be given—

(a) by publishing the notice in such manner as [F62 the Authority] considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the modifications; and

(b) by serving a copy of the notice on the company whose appointment it is proposed to modify.

[F133 (4A) After considering any representations or objections made in response to proposals set out in a notice under subsection (3) above, the Authority shall give notice to the [F134 CMA]—

(a) setting out the modifications it proposes to make to remedy or prevent the adverse effects specified in the report; and

(b) stating the reasons for making the modifications.

(4B) The Authority shall include with the notice under subsection (4A) above a copy of any representations or objections received in relation to the notice under subsection (3) above.

(4C) If the period of four weeks from the date on which the notice under subsection (4A) above is given elapses without a direction under section 16A(1)(a) below having been given to it, the Authority shall—

(a) make the modifications set out in the notice; or

(b) if a direction under section 16A(1)(b) below has been given, make the modifications which are not specified in the direction.]

(5) [F62 The Authority] shall not under this section make any modification of any provisions of a company’s appointment under this Chapter which—

(a) are contained in that appointment for the purposes of section 7(4)(c) above; or

(b) being provisions relating to the disposal of, or of interests or rights in or over, a company’s protected land, are stated in the appointment to be provisions which cannot be modified.

Textual Amendments

F132 Words in s. 16(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 57; S.I. 2014/416, art. 2(1)(d) (with Sch.)

F133 S. 16(4A)-(4C) inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 55(3), 105(3); S.I. 2004/2528, art. 2(h) (with savings in art. 4)

F134 Words in s. 16(4A) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 57; S.I. 2014/416, art. 2(1)(d) (with Sch.)

[F135 16A [F136 CMA's] power of veto following report E+W

(1) [F137 The CMA] may, within the period of four weeks after the date on which it is given a notice under section 16(4A) above, direct the Authority—

(a) not to make the modifications set out in that notice; or

(b) not to make such of the modifications as may be specified in the direction;

and the Authority shall comply with any such direction.

(2) The Secretary of State may, within the period of four weeks after the date on which the [F138 CMA] is given a notice under section 16(4A) above and on the application of the [F138 CMA], direct that the period for giving a direction under subsection (1) above (and, accordingly, the period mentioned in section 16(4C) above) shall be extended by fourteen days.

(3) The power to give a direction under subsection (1) above may only be exercised in respect of such of the modifications set out in the notice under section 16(4A)(a) above as appear to the [F138 CMA] not to be the modifications which are requisite for the purpose of remedying or preventing all or any of the adverse effects specified in the report as effects which could be remedied or prevented by modifications.

(4) If the [F138 CMA] gives a direction under subsection (1) above, it—

(a) shall give notice setting out the modifications proposed by the Authority, the terms of the direction and the reasons for giving it; and

(b) shall itself make such modifications as appear to it to be requisite for the purpose of remedying or preventing—

(i) if the direction was given under subsection (1)(a) above, the adverse effects specified in the report as effects which could be remedied or prevented by modifications;

(ii) if the direction was given under subsection (1)(b) above, such of those adverse effects as are not remedied or prevented by the modifications made by the Authority under section 16(4C)(b) above.

(5) In exercising its power under subsection (4)(b) above, the [F138 CMA] shall have regard to the matters to which the Authority is required to have regard when determining the conditions of a company’s appointment.

(6) Before making modifications under subsection (4)(b) above the [F138 CMA] shall give notice—

(a) stating that it proposes to make the modifications and setting them out;

(b) stating the reason why it proposes to make them;

(c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(7) A notice under subsection (4)(a) or (6) above shall be given—

(a) by publishing the notice in such manner as the [F138 CMA] considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the making of the modifications; and

(b) by serving a copy on the Authority and the company whose conditions of appointment it is proposed should be modified.

(8) The [F138 CMA] may not make any modification under this section which the Authority could not make under section 16 above.

(9) After making modifications under this section the [F138 CMA] shall publish a notice stating that the modifications have been made and setting them out, with the reasons for making them.

F139 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F135 Ss. 16A, 16B inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 55(4), 105(3); S.I. 2004/2528, art. 2(h) (with art. 4, Sch.)

F136 Word in s. 16A heading substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 58(5); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F137 Words in s. 16A(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 58(2); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F138 Words in s. 16A(2)-(9) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 58(3); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F139 S. 16A(10) omitted (1.4.2014) by virtue of Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 58(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)

16B [F140 CMA's] power of veto following report: supplementary E+W

(1) For the purposes of the law relating to defamation, absolute privilege attaches to any notice under subsection (4)(a), (6) or (9) of section 16A above.

(2) In giving any notice under subsection (4)(a) or (6) of section 16A above, or publishing any notice under subsection (9) of that section, the [F141 CMA] must have regard to the following considerations before disclosing any information.

(3) The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the [F141 CMA] thinks is contrary to the public interest.

(4) The second consideration is the need to exclude from disclosure (so far as practicable)—

(a) commercial information whose disclosure the [F141 CMA] thinks might significantly harm the legitimate business interests of the undertaking to which it relates; or

(b) information relating to the private affairs of an individual whose disclosure the [F141 CMA] thinks might significantly harm the individual’s interests.

(5) The third consideration is the extent to which the disclosure of the information mentioned in subsection (4)(a) or (b) above is necessary for the purposes of the notice.

(6) The following sections of Part 3 of the Enterprise Act 2002 shall apply, [F142 as they had effect immediately before the relevant date and] with the modifications mentioned in subsections [F143 (6A),] (7) and (8) below, for the purposes of any investigation by the [F144 CMA] for the purposes of the exercise of its functions under section 16A above, as they [F145 applied immediately before that date] for the purposes of any investigations on references under that Part—

(a) section 109 (attendance of witnesses and production of documents etc);

(b) section 110 (enforcement of powers under section 109: general);

(c) section 111 (penalties);

(d) section 112 (penalties: main procedural requirements);

(e) section 113 (payments and interest by instalments);

(f) section 114 (appeals in relation to penalties);

(g) section 115 (recovery of penalties); and

(h) section 116 (statement of policy).

[F146 (6A) Section 109 shall, in its application by virtue of subsection (6) above, have effect as if—

(a) for subsection (A1), there were substituted—

“(A1) For the purposes of this section, a permitted purpose is assisting the CMA in carrying out any functions exercisable by it in connection with an investigation for the purposes of the exercise of its functions under section 16A of the Water Industry Act 1991.”, and

(b) subsection (8A) were omitted.]

(7) Section 110 shall, in its application by virtue of subsection (6) above, have effect as if—

(a) subsection (2) were omitted;

[F147 (b) after subsection (3), there were inserted—

“(3A) No penalty shall be imposed by virtue of subsection (1) or (3) if more than 4 weeks have passed since the publication by the CMA of a notice under section 16A(9) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction has been given by the CMA under section 16A(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which it was possible to give such a direction within the permitted period; but this subsection shall not apply in relation to any variation or substitution of the penalty which is permitted by virtue of this Part.”; and]

(c) in subsection (9) the words from “or section” to “section 65(3))” were omitted.

(8) Section 111(5)(b) shall, in its application by virtue of subsection (6) above, have effect as if for sub-paragraph (ii) there were substituted—

(ii) if earlier, the day on which a notice is published by the [F148 CMA] under section 16A(9) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction is given by the [F148 CMA] under section 16A(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which such a direction may be given within the permitted period.

(9) Provisions of Part 3 of the Enterprise Act 2002 which [F149 , immediately before the relevant date, had] effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (6) above, have effect in relation to those sections as applied by virtue of that subsection [F150 as those provisions had effect immediately before that date].

(10) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.]

[F151 (11) In this section “the relevant date” means the date on which section 143 of the Digital Markets, Competition and Consumers Act 2024 came into force.]

Textual Amendments

F135 Ss. 16A, 16B inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 55(4), 105(3); S.I. 2004/2528, art. 2(h) (with art. 4, Sch.)

F140 Word in s. 16B heading substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 59(3); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F141 Word in ss. 16B(2)-(4) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 59(2); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F142 Words in s. 16B(6) inserted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 13(2)(a); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F143 Word in s. 16B(6) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 76(2) (with art. 3, Sch. 2 para. 2)

F144 Word in s. 16B(6) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 59(2); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F145 Words in s. 16B(6) substituted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 13(2)(b); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F146 S. 16B(6A) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 76(3) (with art. 3, Sch. 2 para. 2)

F147 S. 16B(7)(b) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 76(4) (with art. 3, Sch. 2 para. 2)

F148 Word in s. 16B(8) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 59(2); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F149 Words in s. 16B(9) substituted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 13(3)(a); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F150 Words in s. 16B(9) inserted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 13(3)(b); S.I. 2024/1226, regs. 1(2), 2(1)(22)

F151 S. 16B(11) inserted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 30 para. 13(4); S.I. 2024/1226, regs. 1(2), 2(1)(22)

[F152 Modification of appointment conditions: England and Wales] E+W

Textual Amendments

F152 S. 17 cross-heading inserted (24.1.2022) by Environment Act 2021 (c. 30), ss. 86(5), 147(3) (with s. 144); S.I. 2022/48, reg. 2(m)

17 Modification by order under other enactments. E+W

[F153 (1) Where the [F154 CMA] or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may, subject to subsection (3), also provide for the modification of the conditions of a company’s appointment under this Chapter to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order.

(2) In subsection (1) above “relevant order” means—

(a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the 2002 Act where—

(i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was carried on by a relevant undertaker; or

(ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is carried on by a relevant undertaker; or

(b) an order under section 160 or 161 of the 2002 Act where the feature, or combination of features, of the market [F155 or markets] in the United Kingdom for goods or services which prevents, restricts or distorts competition is—

(i) the structure or an aspect of the structure of a market for the supply of goods or services by a relevant undertaker; or

(ii) the conduct of a relevant undertaker or of customers of a relevant undertaker.]

(3) No modification shall be made by virtue of this section of any provisions of a company’s appointment under this Chapter which—

(a) are contained in that appointment for the purposes of section 7(4)(c) above; or

(b) being provisions relating to the disposal of, or of interests or rights in or over, a company’s protected land, are stated in the appointment to be provisions which cannot be modified.

[F156 (4) Expressions used in subsection (2) above and in Part 3 or (as the case may be) Part 4 of the 2002 Act have the same meanings in that subsection as in that Part.]

Textual Amendments

F153 S. 17(1)(2) substituted (20.6.2003 for all purposes subject to art. 3(1) of the first commencing S.I. and 29.12.2004 "for water purposes") by Enterprise Act 2002 (c. 40), s. 168(9), 279, Sch. 9 para. 7(2); S.I. 2003/1397, art. 2(1), Sch.; S.I. 2004/3233, art. 2, Sch. (with arts. 3-5)

F154 Word in s. 17(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 60; S.I. 2014/416, art. 2(1)(d) (with Sch.)

F155 Words in s. 17(2)(b) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 77 (with art. 3)

F156 S. 17(4) substituted (20.6.2003 for all purposes subject to art. 3(1) of the first commencing S.I. and 29.12.2004 "for water purposes") by Enterprise Act 2002 (c. 40), s. 168(9), 279, Sch. 9 para. 7(3); S.I. 2003/1397, art. 2(1), Sch.; S.I. 2004/3233, art. 2, Sch. (with arts. 3-5)

Modifications etc. (not altering text)

C15 S. 17(2)(a) amended (20.6.2003) by The Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 (S.I. 2003/1592), art. 16, Sch. 4 para. 10

[F157 CHAPTER 1A E+W [F158 Water supply licences and sewerage licences]

Textual Amendments

F157 Pt. 2 Ch. 1A inserted (1.4.2004 for specified provisions and purposes and 1.8.2005 for further specified provisions and purposes and 1.10.2005 for further specified provisions and 1.12.2005 otherwise) by Water Act 2003 (c. 37), ss. 56, 105(3), Sch. 4 para. 2; S.I. 2004/641, art. 3(l), Sch. 1 (with art. 6, Sch. 3); S.I. 2005/968, art. 3(b) (with savings in art. 4, Sch. 1, 2); S.I. 2005/2714, arts. 2(h), 3(a) (with Sch. para. 5)

F158 Pt. 2 Ch. 1A heading substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 9; S.I. 2016/465, art. 2(m), Sch. 1 para. 1(e) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

Modifications etc. (not altering text)

C16 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 3(1) (with reg. 1(1)(c))

C17 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 5(1) (with reg. 1(1)(c))

C18 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 4 (with reg. 1(1)(c)) (as amended (10.1.2015) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) (Amendment) Regulations 2015 (S.I. 2015/22), regs. 1(1), 3)

C19 Pt. 2 Ch. 1A modified (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 3(2) (with reg. 1(1)(c))

Granting of licences E+W

[F159 17A Water supply licences E+W

(1) The Authority may grant to a person a licence in respect of the use of the supply system of a water undertaker (a “water supply licence”).

(2) A water supply licence may give the holder of the licence one or more of the following authorisations and combination of authorisations—

(a) a retail authorisation;

(b) a wholesale authorisation;

(c) a restricted retail authorisation;

(d) a restricted retail authorisation and a supplementary authorisation.

(3) Schedule 2A makes provision as to the authorisations (including their operation in England and Wales).

(4) In the case of each of the authorisations, an authorisation to do a thing is an authorisation to do it in accordance with Chapter 2A of Part 3.

(5) The Authority may exercise the power to grant a water supply licence only in accordance with a general authorisation given by the Secretary of State.

(6) Before giving a general authorisation as regards the Authority, the Secretary of State must consult the Welsh Ministers.

(7) References in this Act to a water supply licensee are references to a person that is the holder for the time being of a water supply licence.]

Textual Amendments

F159 Ss. 17A, 17AA substituted for s. 17A (1.1.2016 for the substitution of s. 17A(2)-(6), 1.4.2016 for the substitution of s. 17A(1) for specified purposes and ss. 17A(7), 17AA(3)-(5), 1.11.2016 in so far as not already in force) by Water Act 2014 (c. 21), ss. 1(1), 94(3); S.I. 2015/1938, art. 3(a)(i) (with art. 4); S.I. 2016/465, art. 2(a)(i) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16); S.I. 2016/1007, art. 2(a) (with arts. 3, 4)

[F159 17AA Water supply licences: restrictions on grants E+W

(1) Before the Authority grants a water supply licence giving a wholesale authorisation, it must consult—

(a) the Secretary of State;

(b) the Chief Inspector of Drinking Water;

(c) the Environment Agency;

(d) the NRBW.

(2) Before the Authority grants a water supply licence giving a supplementary authorisation, it must consult—

(a) the Secretary of State;

(b) the Chief Inspector of Drinking Water;

(c) the Environment Agency;

(d) the Welsh Ministers;

(e) the Chief Inspector of Drinking Water for Wales if there is one;

(f) the NRBW.

(3) A water supply licence may not be granted to a water undertaker.

(4) A water supply licence may not be granted to a person unless that person is a limited company.

(5) The restriction in subsection (4) does not apply if the water supply licence gives only—

(a) a retail authorisation,

(b) a restricted retail authorisation, or

(c) a retail authorisation and a restricted retail authorisation.]

Textual Amendments

F159 Ss. 17A, 17AA substituted for s. 17A (1.1.2016 for the substitution of s. 17A(2)-(6), 1.4.2016 for the substitution of s. 17A(1) for specified purposes and ss. 17A(7), 17AA(3)-(5), 1.11.2016 in so far as not already in force) by Water Act 2014 (c. 21), ss. 1(1), 94(3); S.I. 2015/1938, art. 3(a)(i) (with art. 4); S.I. 2016/465, art. 2(a)(i) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16); S.I. 2016/1007, art. 2(a) (with arts. 3, 4)

17B [F160 Meaning of supply system] E+W

F161 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F161 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F161 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F161 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F162 (4A) In this Chapter, references to the supply system of a water undertaker are, in the case of an undertaker whose area is wholly or mainly in England, references to the system comprising the following—

(a) any reservoirs and other places of storage and any treatment works developed or maintained by the water undertaker for the purpose of complying with its duty under section 37, and

(b) any water mains and other pipes which it is the water undertaker's duty to develop and maintain by virtue of section 37.]

(5) In this Chapter, references to the supply system of a water undertaker are [F163 , in the case of an undertaker whose area is wholly or mainly in Wales,] to the system comprising the following—

(a) any water mains and other pipes which it is the water undertaker’s duty to develop and maintain by virtue of section 37 below and which are used for the purpose of conveying water from the undertaker’s treatment works to the premises of customers; and

(b) any water mains and other pipes which—

(i) are used by the undertaker for the purpose of conveying non-domestic water from any of its sources to the premises of customers; and

(ii) are not connected to any water mains or pipes falling within paragraph (a) above or to any water mains or other pipes connected to the treatment works mentioned in that paragraph (whether directly or indirectly),

and in sub-paragraph (i) above the reference to non-domestic water is to water supplied other than for domestic or food production purposes.

(6) In subsection (5)(a) above, the reference to treatment works is a reference to the works designated from time to time by the Secretary of State as treatment works for the purposes of this subsection.

(7) Before designating any works for the purposes of subsection (6) above, the Secretary of State shall consult the Assembly.

(8) A list of any works designated for the purposes of subsection (6) above shall be published from time to time by the Secretary of State in such manner as he considers appropriate for the purpose of bringing the designations to the attention of persons likely to be affected by them.

F164 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F160 S. 17B title substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 10(2); S.I. 2017/462, art. 3(k)(iii)

F161 S. 17B(1)-(4) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 10(3); S.I. 2017/462, art. 3(k)(iii)

F162 S. 17B(4A) inserted (1.4.2017) by Water Act 2014 (c. 21), ss. 2(2), 94(3); S.I. 2017/462, art. 3(b)

F163 Words in s. 17B(5) inserted (1.4.2017) by Water Act 2014 (c. 21), ss. 2(3), 94(3); S.I. 2017/462, art. 3(b)

F164 S. 17B(9) repealed (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 10(4); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(f) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

[F165 17BA Sewerage licences E+W

(1) The Authority may grant to a person a licence in respect of the use of the sewerage system of a sewerage undertaker whose area is wholly or mainly in England (a “sewerage licence”).

(2) A sewerage licence may give the holder of the licence one or more of the following—

(a) a retail authorisation;

(b) a wholesale authorisation;

(c) a disposal authorisation.

(3) Schedule 2B makes provision as to the authorisations.

(4) In the case of each of the authorisations, an authorisation to do a thing is an authorisation to do it in accordance with Chapter 2A of Part 4.

(5) The Authority may exercise the power to grant a sewerage licence only in accordance with a general authorisation given by the Secretary of State.

(6) References in this Act to a sewerage licensee are references to a person that is the holder for the time being of a sewerage licence.

(7) References in this Chapter to the sewerage system of a sewerage undertaker are references to the system comprising—

(a) the system of public sewers, the facilities for emptying public sewers and the sewage disposal works and other facilities for dealing effectually with the contents of public sewers that the undertaker is required to provide by section 94, and

(b) the lateral drains that the undertaker is required to maintain by section 94.

Textual Amendments

F165 Ss. 17BA, 17BB inserted (1.1.2016 for the substitution of s. 17BA(2)-(5), 1.4.2016 for the insertion of s. 17BA(1) for specified purposes and ss. 17BA(7), 17BB(2)-(4)) by Water Act 2014 (c. 21), ss. 4(1), 94(3); S.I. 2015/1938, art. 3(b)(i); S.I. 2016/465, art. 2(b)(i) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

17BB Sewerage licences: restrictions on grants E+W

(1) The Authority must consult the Secretary of State, the Environment Agency and the NRBW before granting a licence that gives—

(a) a wholesale authorisation, or

(b) a disposal authorisation.

(2) A sewerage licence granted to a sewerage undertaker may not give the holder—

(a) a retail authorisation, or

(b) a wholesale authorisation.

(3) A sewerage licence may not be granted to a person unless that person is a limited company.

(4) The restriction in subsection (3) does not apply if the sewerage licence gives only a retail authorisation.]

Textual Amendments

F165 Ss. 17BA, 17BB inserted (1.1.2016 for the substitution of s. 17BA(2)-(5), 1.4.2016 for the insertion of s. 17BA(1) for specified purposes and ss. 17BA(7), 17BB(2)-(4)) by Water Act 2014 (c. 21), ss. 4(1), 94(3); S.I. 2015/1938, art. 3(b)(i); S.I. 2016/465, art. 2(b)(i) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

17C Meaning of household premises E+W

(1) For the purposes of [F166 paragraphs 4 and 7(a) of Schedule 2A and paragraph 2 of Schedule 2B], “household premises” means premises in which, or in any part of which, a person has his home.

(2) The fact that a person has his home in, or in part of, any premises does not mean that the premises are household premises unless the principal use of the premises is as a home.

(3) The Secretary of State may by regulations make provision as to—

(a) the circumstances in which a person is or is not to be treated as having his home in, or in part of, any premises for the purposes of this section; and

(b) the factors which are, or are not, to be taken into account in determining the principal use of any premises for those purposes.

(4) The power to make regulations under subsection (3) above is exercisable by the Assembly (and not by the Secretary of State) in relation to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales.

Textual Amendments

F166 Words in s. 17C(1) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 11; S.I. 2015/1938, art. 3(f)(i)

17D The threshold requirement E+W

(1) This section applies for the purpose of construing the reference to the threshold requirement in [F167 paragraph 7(b) of Schedule 2A] in relation to the supply of water to any premises [F168 in accordance with a restricted retail authorisation].

(2) The requirement is that, at the time when the [F169 water supply licensee] first enters into an undertaking with a customer to give the supply, the total quantity of water estimated to be supplied to the premises annually pursuant to the undertaking [F170 is not less than—

(a) 5 megalitres, in the case of premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in England, and

(b) 50 megalitres, in the case of premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales].

(3) Any estimate of the quantity of water to be supplied to any premises for the purposes of subsection (2) above shall be made in accordance with guidance issued [F171 from time to time] by the Authority with the approval of [F172 the Welsh Ministers].

(4) Any guidance issued under subsection (3) above may, in particular—

(a) specify—

(i) the factors to be, and not to be, taken into account;

(ii) the assumptions to be made; and

(iii) the method of calculation to be employed,

in making estimates; and

(b) make provision as to the commencement of the annual periods by reference to which estimates are to be made.

F173 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F174 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) [F175 The Welsh Ministers] may make provision by regulations as to the circumstances in which a [F176 water supply licensee] is not, for the purposes of subsection (2) above, to be treated as entering into an undertaking with a new customer to give a supply of water to any premises F177 ....

(8) [F178 The Welsh Ministers] may by regulations amend subsection (2) above by substituting, for the quantity of water for the time being specified there, a different quantity of water F179 ....

(9) Regulations under subsection (8) above—

(a) shall include provision for the amendment made by the regulations not to apply in relation to any undertaking entered into before the date on which the regulations come into force; and

(b) may include provision for that amendment not to apply in relation to any undertaking which is proposed, but not entered into, before that date.

(10) A statutory instrument containing regulations under subsection (8) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, [F180 the Assembly].

(11) Before making regulations under subsection (8) above, [F181 the Welsh Ministers] shall consult—

(a) the Authority; and

(b) such other persons (if any) as [F182 the Welsh Ministers think] it appropriate to consult.

F183 (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F184 (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F167 Words in s. 17D(1) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(2)(a); S.I. 2015/1938, art. 3(f)(ii) (with art. 4)

F168 Words in s. 17D(1) inserted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(2)(b); S.I. 2015/1938, art. 3(f)(ii) (with art. 4)

F169 Words in s. 17D(2) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(3); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(g) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F170 Words in s. 17D(2) substituted (15.12.2011) by The Water Supply (Amendment to the Threshold Requirement) Regulations 2011 (S.I. 2011/3014), regs. 1(1), 2 (with reg. 1(2))

F171 Words in s. 17D(3) inserted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(4)(a); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F172 Words in s. 17D(3) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(4)(b); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F173 S. 17D(5) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(5); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F174 S. 17D(6) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(6); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F175 Words in s. 17D(7) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(7)(a); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F176 Words in s. 17D(7) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(7)(b); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F177 Words in s. 17D(7) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(7)(c); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F178 Words in s. 17D(8) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(8)(a); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F179 Words in s. 17D(8) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(8)(b); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F180 Words in s. 17D(10) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(9); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F181 Words in s. 17D(11) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(10)(a); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F182 Words in s. 17D(11) substituted (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(10)(b); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F183 S. 17D(12) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(11); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

F184 S. 17D(13) repealed (1.4.2017) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 12(11); S.I. 2017/462, art. 3(k)(iv) (with art. 11)

[F185 17DA Guidance E+W

The Authority must publish guidance issued from time to time under—

(a) section 17D(3),

(b) paragraph 10 of Schedule 2A, or

(c) paragraph 4 of Schedule 2B,

in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.]

Textual Amendments

F185 S. 17DA inserted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 13; S.I. 2015/1938, art. 3(f)(iv)

17E Determinations by the Authority E+W

[F186 (1) The Authority may determine, in a case referred to it by—

(a) a water supply licensee or a potential customer of a water supply licensee, or

(b) a sewerage licensee or a potential customer of a sewerage licensee,

whether a proposed supply of water to, or proposed sewerage services for, the customer would be in accordance with what is authorised by the licensee's licence.]

(2) The matters which the Authority may determine include the following matters—

(a) the extent of the premises to be supplied for the purposes of [F187 paragraph 4 or 7(a) or (b) of Schedule 2A];

[F188 (aa) the extent of the premises to be served for the purposes of paragraph 2 of Schedule 2B;]

(b) whether the premises to be supplied [F189 or served] are household premises (as defined in section 17C above); and

(c) whether the threshold requirement is satisfied in relation to the premises to be supplied (construed in accordance with section 17D above),

and also include any other matter the determination of which is relevant to those matters.

Textual Amendments

F186 S. 17E(1) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 14(2); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(h) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F187 Words in s. 17E(2)(a) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 14(3)(a); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(h) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F188 S. 17E(2)(aa) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 14(3)(b); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(h) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F189 Words in s. 17E(2)(b) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 14(3)(c); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(h) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

17F Procedure for granting water supply [F190 and sewerage] licences E+W

[F191 (1) The Authority must determine for each type of relevant application that may be made—

(a) the form and manner in which an application is to be made;

(b) the information it is to contain;

(c) the documents that are to accompany it;

(d) the fee that is to accompany it.

(1A) The fees may be different in different circumstances.

(1B) The Authority may make a new determination as to a matter referred to in subsection (1).

(1C) The Authority must publish a notice of what it has determined under subsection (1) or (1B) in such manner as it thinks appropriate for bringing the determination to the attention of those affected by the determination.

(1D) For the purposes of subsection (1) a relevant application is an application for—

(a) the grant of a water supply or sewerage licence giving a particular authorisation or combination of authorisations;

(b) the variation of a water supply or sewerage licence so that it gives—

(i) a particular authorisation only, or

(ii) a particular combination of authorisations.

(1E) A person making a relevant application must comply with such provisions of a notice published under subsection (1C) as relate to the application.]

F192 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F193 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) If F194 ... the Authority proposes to refuse [F195 a relevant application], F196 ... it shall give to the applicant a notice—

(a) stating that F196 ... it proposes to refuse the application;

(b) stating the reasons why F196 ... it proposes to refuse the application; and

(c) specifying the time within which representations or objections with respect to the proposed refusal may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

F197 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) A licence shall be in writing and, unless revoked or suspended in accordance with any condition contained in it, shall continue in force for such period as may be specified in or determined by or under the licence.

(7) F198 As soon as practicable after granting a licence or variation of a licence, ... the Authority shall serve a copy of the licence or licence as varied—

(a) on the licence holder;

(b) on the Assembly;

(c) on the Chief Inspector of Drinking Water;

(d) on the Environment Agency;

[F199 (da) on the NRBW;]

(e) on the Council;

(f) on each relevant undertaker;

[F200 (g) on each water supply licensee and sewerage licensee (other than the holder of the licence in question);]

F201 (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) F202 ... on the Secretary of State.

(8) Any sums received F203 ... by the Authority by virtue of this section shall be paid into the Consolidated Fund.

Textual Amendments

F190 Words in s. 17F title inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(2); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(i) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F191 S. 17F(1)-(1E) substituted for s. 17F(1) (1.4.2016) by Water Act 2014 (c. 21), ss. 25(2), 94(3); S.I. 2016/465, art. 2(f) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F192 S. 17F(2) repealed (14.7.2014) by Water Act 2014 (c. 21), ss. 25(3), 94(2)(f)

F193 S. 17F(3) repealed (14.7.2014) by Water Act 2014 (c. 21), ss. 25(3), 94(2)(f)

F194 Words in s. 17F(4) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(3)(a); S.I. 2015/1938, art. 3(f)(v)

F195 Words in s. 17F(4) substituted (1.4.2016) by Water Act 2014 (c. 21), ss. 25(4), 94(3); S.I. 2016/465, art. 2(f) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F196 Words in s. 17F(4) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(3)(b); S.I. 2015/1938, art. 3(f)(v)

F197 S. 17F(5) repealed (14.7.2014) by Water Act 2014 (c. 21), ss. 25(3), 94(2)(f)

F198 Words in s. 17F(7) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(4)(a); S.I. 2015/1938, art. 3(f)(v)

F199 S. 17F(7)(da) inserted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 227 (with Sch. 7)

F200 S. 17F(7)(g) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(4)(b); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(i) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F201 S. 17F(7)(h) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(4)(c); S.I. 2015/1938, art. 3(f)(v)

F202 Words in s. 17F(7)(i) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(4)(d); S.I. 2015/1938, art. 3(f)(v)

F203 Words in s. 17F(8) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 15(5); S.I. 2015/1938, art. 3(f)(v)

[F204 17FA Applications forwarded by the Water Industry Commission for Scotland E+W

(1) The Secretary of State may by regulations make provision about—

(a) treating a 2005 Act application for the grant of a water services licence under section 6 of the 2005 Act as being also an application under section 17F for the grant of a water supply licence giving only a retail authorisation or a restricted retail authorisation or both;

(b) treating a 2005 Act application for the grant of a sewerage services licence under section 6 of the 2005 Act as being also an application under section 17F for the grant of a sewerage licence giving only a retail authorisation.

(2) The regulations may in particular make provision about—

(a) the circumstances in which, and the conditions subject to which, a 2005 Act application is to be treated as an application under section 17F for a water supply or sewerage licence giving a particular authorisation or particular authorisations;

(b) the time at which an application is to be treated as having been made;

(c) the processing of an application by the Authority.

(3) Provision under subsection (2)(a) may require a 2005 Act application that is forwarded to the Authority—

(a) to contain, or to be accompanied by, such information or information of such description as is specified by the regulations;

(b) to be accompanied by such documents or documents of such descriptions as are specified by the regulations;

(c) to be accompanied by a fee, or a fee of a description, specified by the regulations.

(4) In this section and section 17FB—

• “the 2005 Act” means the Water Services etc. (Scotland) Act 2005;

• “2005 Act application” means an application under paragraph 1 of Schedule 2 to the 2005 Act.

Textual Amendments

F204 Ss. 17FA, 17FB inserted (18.12.2015 for the insertion of s. 17FA, 1.4.2016 in so far as not already in force) by Water Act 2014 (c. 21), ss. 6(2), 94(3); S.I. 2015/1938, art. 2(a)(ii); S.I. 2016/465, art. 2(c) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

17FB Applications forwarded to the Water Industry Commission for Scotland E+W

(1) If the conditions in subsection (2) are satisfied, the Authority must—

(a) forward to the Commission a copy of an application under section 17F for the grant of a water supply licence or sewerage licence, and

(b) send to the Commission such information and such fee as appear to the Authority to be required in order that the application may be treated by the Commission as a 2005 Act application for the grant of—

(i) a water services licence under section 6 of the 2005 Act, or

(ii) a sewerage services licence under section 6 of the 2005 Act, as the case may be.

(2) The conditions are that—

(a) the Authority is requested to do so by the applicant;

(b) the application under section 17F appears to the Authority to be an application that would be treated by the Commission as a 2005 Act application for the grant of—

(i) a water services licence under section 6 of the 2005 Act, or

(ii) a sewerage services licence under section 6 of the 2005 Act, as the case may be;

(c) the applicant has given the Authority—

(i) such information as is mentioned in subsection (1)(b), and

(ii) a means of sending to the Commission such fee as is mentioned in subsection (1)(b).

(3) The Authority must—

(a) forward a copy of the application, and

(b) send such information and fee as are mentioned in subsection (1)(b),

before the end of the agreed period for an application of that description.

(4) In this section—

• “the agreed period”, in relation to an application under section 17F of a particular description, means the period agreed between the Authority and the Commission as the period applying to an application of that description for the purposes of subsection (3);

• “the Commission” means the Water Industry Commission for Scotland.]

Textual Amendments

F204 Ss. 17FA, 17FB inserted (18.12.2015 for the insertion of s. 17FA, 1.4.2016 in so far as not already in force) by Water Act 2014 (c. 21), ss. 6(2), 94(3); S.I. 2015/1938, art. 2(a)(ii); S.I. 2016/465, art. 2(c) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

Licence conditions U.K.

17G [F205 Licence conditions] U.K.

(1) [F206 A licence under this Chapter] may include—

(a) such conditions as appear to F207 ... the Authority to be requisite or expedient having regard to the duties imposed on F208 ... it by Part 1 of this Act;

(b) conditions requiring the rendering to [F209 the Authority] of a payment on the grant of a [F210 licence under this Chapter], or payments while such a licence is in force, or both, of such amount or amounts as may be determined by or under the conditions.

(2) Conditions may be included by virtue of subsection (1)(a) above in a water supply licence whether or not they are connected with the supply of water or the introduction of water into a water undertaker’s supply system.

[F211 (2A) Conditions may be included by virtue of subsection (1)(a) in a sewerage licence whether or not they are connected with—

(a) effectual dealing with the contents of sewers, or

(b) the use of the sewerage system of a sewerage undertaker.]

(3) Conditions included in a [F212 licence under this Chapter] may—

(a) require the holder of the licence to comply with any direction given by a specified relevant person as to specified matters or matters which are of a specified description;

(b) require the holder of the licence to do or not to do specified things or things which are of a specified description, except in so far as a specified relevant person consents to the holder’s not doing or doing them; and

(c) provide for the reference to and determination by a specified relevant person of specified questions, or questions which are of a specified description, which arise under or in connection with the licence.

(4) For the purposes of subsection (3) above—

(a) the following are relevant persons—

(i) the Secretary of State;

(ii) the Authority;

(iii) [F213 so far as subsection (3) applies to water supply licences,] the Assembly;

(iv) the Environment Agency; F214 ...

[F215 (v) the NRBW; and]

(b) “specified” means specified in the licence in question.

(5) Conditions included in a [F216 licence under this Chapter] may contain provision for the conditions to have effect, cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined in accordance with the conditions.

(6) Any such condition as is referred to in subsection (5) above shall have effect in addition to the provision made by this Chapter with respect to the modification of the conditions of a licence.

(7) Any sums received by [F217 the Authority] by virtue of this section shall be paid into the Consolidated Fund.

Textual Amendments

F205 S. 17G title substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(2); S.I. 2015/1938, art. 3(f)(vii)

F206 Words in s. 17G(1) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(3)(a); S.I. 2015/1938, art. 3(f)(vii)

F207 Words in s. 17G(1)(a) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(3)(b); S.I. 2015/1938, art. 3(f)(vii)

F208 Words in s. 17G(1)(a) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(3)(c); S.I. 2015/1938, art. 3(f)(vii)

F209 Words in s. 17G(1)(b) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(3)(d); S.I. 2015/1938, art. 3(f)(vii)

F210 Words in s. 17G(1)(b) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(3)(e); S.I. 2015/1938, art. 3(f)(vii)

F211 S. 17G(2A) inserted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(4); S.I. 2015/1938, art. 3(f)(vii)

F212 Words in s. 17G(3) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(5); S.I. 2015/1938, art. 3(f)(vii)

F213 Words in s. 17G(4)(a)(iii) inserted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(6); S.I. 2015/1938, art. 3(f)(vii)

F214 Word in s. 17G(4)(a)(iv) omitted (1.4.2013) by virtue of The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 228(2) (with Sch. 7)

F215 S. 17G(4)(a)(v) inserted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 228(3) (with Sch. 7)

F216 Words in s. 17G(5) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(7); S.I. 2015/1938, art. 3(f)(vii)

F217 Words in s. 17G(7) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 16(8); S.I. 2015/1938, art. 3(f)(vii)

Modifications etc. (not altering text)

C20 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 4 (with reg. 1(1)(c))

17H Standard conditions of water supply licences U.K.

[F218 (1) The Secretary of State may determine the conditions that are to be the standard conditions of water supply licences granted by the Authority.

(1A) Before determining the standard conditions, the Secretary of State must consult the Welsh Ministers as regards conditions relating to a restricted retail authorisation or a supplementary authorisation.

(1B) The Secretary of State is to publish the standard conditions in such manner as the Secretary of State considers appropriate.

(2) The standard conditions may be different depending on the different authorisations or combinations of authorisations to which the conditions are to relate.

(3) The power to determine standard conditions in relation to water supply licences giving a particular authorisation or a particular combination of authorisations may be exercised only before the grant of the first licence to give that authorisation or that particular combination of authorisations (but this is without prejudice to the power to modify standard conditions in accordance with the provisions of this Chapter).]

(4) The standard conditions for the purposes of water supply licences [F219 giving any particular authorisation or combination of authorisations] may contain provision—

(a) for any standard condition included in a licence of that description not to have effect until brought into operation in such manner and in such circumstances as may be specified in or determined under the standard conditions;

(b) for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; and

(c) for any standard condition included in such a licence which is for the time being suspended to be brought back into operation in such manner and in such circumstances as may be so specified or determined.

(5) Subject to subsection (6) below, each condition which is a standard condition shall be incorporated by reference in each water supply licence (or in each such licence to which the standard condition applies).

(6) Subject to the following provisions of this section, F220 ... the Authority may, in granting a licence, exclude or modify any of the standard conditions to such extent as F221 ... it considers requisite to meet the circumstances of a particular case.

(7) Before excluding any standard conditions or making any modifications under subsection (6) above, F222 ... the Authority shall give notice—

(a) stating that F223 ... it proposes to exclude the conditions or make the modifications and setting out the effect of so doing;

(b) stating the reasons why F224 ... it proposes to exclude the conditions or make the modifications; and

(c) specifying the time (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed exclusions or modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(8) A notice under subsection (7) above shall be given—

(a) by publishing the notice in such manner as F225 ... the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the exclusions or modifications; and

(b) by serving a copy of the notice—

[F226 (i) if the notice relates to a water supply licence giving a restricted retail authorisation or a restricted retail authorisation and a supplementary authorisation, on the Welsh Ministers;]

(ii) on the Chief Inspector of Drinking Water;

F227 (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv) F228 ... on the Secretary of State.

[F229 (v) on the Water Industry Commission for Scotland.]

(9) If, within the time specified in the notice under subsection (7) above, the Secretary of State (after consulting [F230 the Welsh Ministers in a case where notice was served on them under subsection (8)(b)(i)]) directs the Authority not to exclude or modify any standard condition, the Authority shall comply with the direction.

(10) The F231 ... Authority shall not exclude any conditions, or make any modifications, under subsection (6) above unless F232 ... it is of the opinion that the exclusions or modifications are such that—

(a) the licence holder would not be unduly disadvantaged in competing with other holders of water supply licences; and

(b) no other holder of a water supply licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence).

(11) The modification under subsection (6) above of part of a standard condition shall not prevent any other part of the condition from continuing to be treated as a standard condition for the purposes of this Chapter.

Textual Amendments

F218 S. 17H(1)-(3) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(2); S.I. 2015/1938, art. 3(f)(vii)

F219 Words in s. 17H(4) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(3); S.I. 2015/1938, art. 3(f)(vii)

F220 Words in s. 17H(6) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(4)(a); S.I. 2015/1938, art. 3(f)(vii)

F221 Words in s. 17H(6) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(4)(b); S.I. 2015/1938, art. 3(f)(vii)

F222 Words in s. 17H(7) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(5)(a); S.I. 2015/1938, art. 3(f)(vii)

F223 Words in s. 17H(7)(a) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(5)(b); S.I. 2015/1938, art. 3(f)(vii)

F224 Words in s. 17H(7)(b) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(5)(c); S.I. 2015/1938, art. 3(f)(vii)

F225 Words in s. 17H(8)(a) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(6)(a); S.I. 2015/1938, art. 3(f)(vii)

F226 S. 17H(8)(b)(i) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(6)(b); S.I. 2015/1938, art. 3(f)(vii)

F227 S. 17H(8)(b)(iii) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(6)(c); S.I. 2015/1938, art. 3(f)(vii)

F228 Words in s. 17H(8)(b)(iv) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(6)(d); S.I. 2015/1938, art. 3(f)(vii)

F229 S. 17H(8)(b)(v) inserted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(6)(e); S.I. 2015/1938, art. 3(f)(vii)

F230 Words in s. 17H(9) substituted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(7); S.I. 2015/1938, art. 3(f)(vii)

F231 Words in s. 17H(10) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(8)(a); S.I. 2015/1938, art. 3(f)(vii)

F232 Words in s. 17H(10) repealed (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 17(8)(b); S.I. 2015/1938, art. 3(f)(vii)

Modifications etc. (not altering text)

C20 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 4 (with reg. 1(1)(c))

[F233 17HA Standard conditions of sewerage licences U.K.

(1) The Secretary of State may determine the conditions that are to be the standard conditions of sewerage licences granted by the Authority.

(2) The Secretary of State is to publish the standard conditions in such manner as the Secretary of State considers appropriate.

(3) The standard conditions may be different depending on the different authorisations or combinations of authorisations to which the conditions are to relate.

(4) The power to determine standard conditions in relation to sewerage licences giving a particular authorisation or a particular combination of authorisations may be exercised only before the grant of the first licence to give that authorisation or that particular combination of authorisations (but this is without prejudice to the power to modify standard conditions in accordance with the provisions of this Chapter).

(5) The standard conditions for the purposes of sewerage licences giving any particular authorisation or combination of authorisations may contain provision—

(a) for any standard condition included in a licence of that description not to have effect until brought into operation in such manner and in such circumstances as may be specified in or determined under the standard conditions;

(b) for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; and

(c) for any standard condition included in such a licence which is for the time being suspended to be brought back into operation in such manner and in such circumstances as may be so specified or determined.

(6) Subject to subsection (7), each condition which is a standard condition is to be incorporated by reference in each sewerage licence (or in each such licence to which the standard condition applies).

(7) Subject to the following provisions of this section, the Authority may, in granting a licence, exclude or modify any of the standard conditions to such extent as the Authority considers requisite to meet the circumstances of a particular case.

(8) Before excluding any standard conditions or making any modifications under subsection (7), the Authority must give notice—

(a) stating that the Authority proposes to exclude the conditions or make the modifications and setting out the effect of so doing;

(b) stating the reasons why the Authority proposes to exclude the conditions or make the modifications; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed exclusions or modifications may be made,

and the Authority must consider any representations or objections which are duly made and not withdrawn.

(9) A notice under subsection (8) must be given—

(a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the exclusions or modifications; and

(b) by serving a copy of the notice—

(i) on the Secretary of State;

(ii) on the Environment Agency;

(iii) on the NRBW;

(iv) on the Water Industry Commission for Scotland.

(10) If, within the time specified in the notice under subsection (8), the Secretary of State directs the Authority not to exclude or modify any standard condition, the Authority must comply with the direction.

(11) The Authority may not exclude any conditions, or make any modifications, under subsection (7) unless the Authority is of the opinion that the exclusions or modifications are such that—

(a) the licence holder would not be unduly disadvantaged in competing with other holders of sewerage licences; and

(b) no other holder of a sewerage licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being granted).

(12) The modification under subsection (7) of part of a standard condition is not to prevent any other part of the condition from continuing to be treated as a standard condition for the purposes of this Chapter.]

Textual Amendments

F233 S. 17HA inserted (1.1.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 18; S.I. 2015/1938, art. 3(f)(vii)

17I [F234 Modification of licences by agreement] U.K.

(1) Subject to the following provisions of this section, the Authority may modify the [F235 conditions of—

(a) a particular water supply licence, or

(b) a particular sewerage licence.]

(2) The Authority may not make any modifications under this section unless the licence holder has consented to the modifications and, in the case of standard conditions of the licence, the Authority is of the opinion that the modifications—

(a) are requisite to meet the circumstances of the particular case; and

(b) are such that—

(i) the licence holder would not be unduly disadvantaged in competing with other holders of water supply licences [F236 or, as the case may be, sewerage licences]; and

(ii) no other holder of a water supply licence [F237 or, as the case may be, a sewerage licence] would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being modified).

(3) Before making modifications under this section, the Authority shall give notice—

(a) stating that it proposes to make the modifications and setting out their effect;

(b) stating the reasons why it proposes to make the modifications; and

(c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) A notice under subsection (3) above shall be given—

(a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b) by serving a copy of the notice on—

(i) the licence holder;

(ii) the Council;

(iii) the Secretary of State;

(iv) [F238 if the notice relates to a water supply licence,] the Assembly; and

(v) the Chief Inspector of Drinking Water.

(5) If, within the period specified in the notice under subsection (3) above, the Secretary of State F239 ... directs the Authority not to make any modification, the Authority shall comply with the direction.

[F240 (5A) The Secretary of State is to consult the Welsh Ministers before giving a direction under subsection (5) in relation to a water supply licence.]

(6) The modification under this section of part of a standard condition of a licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter.

Textual Amendments

F234 S. 17I title substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 19(2); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F235 Words in s. 17I(1) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 19(3); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F236 Words in s. 17I(2)(b)(i) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 19(4)(a); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F237 Words in s. 17I(2)(b)(ii) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 19(4)(b); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F238 Words in s. 17I(4)(b)(iv) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 19(5); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F239 Words in s. 17I(5) repealed (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 19(6); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F240 S. 17I(5A) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 19(7); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

Modifications etc. (not altering text)

C20 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 4 (with reg. 1(1)(c))

17J [F241 Modification of standard conditions] U.K.

(1) Subject to the following provisions of this section, the Authority [F242 may modify—

(a) the standard conditions of water supply licences, or

(b) the standard conditions of sewerage licences.]

[F243 (1A) Modifications may relate to—

(a) standard conditions contained in all water supply licences or sewerage licences, or

(b) standard conditions contained in those water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations.]

(2) Where at any time the Authority modifies the standard conditions of [F244 water supply licences or sewerage licences] under this section the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of [F245 any licence so affected].

(3) Before making any modifications under this section, the Authority shall give notice—

(a) stating that it proposes to make the modifications and setting out their effect;

(b) stating the reasons why it proposes to make the modifications; and

(c) specifying the time (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) A notice under subsection (3) above shall be given—

(a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b) by serving a copy of the notice on—

(i) each relevant licence holder;

(ii) the Council;

(iii) the Secretary of State;

(iv) [F246 if the notice relates to a water supply licence,] the Assembly; and

(v) the Chief Inspector of Drinking Water.

(5) If, within the time specified in the notice under subsection (3) above, the Secretary of State F247 ... directs the Authority not to make any modification, the Authority shall comply with the direction.

[F248 (5A) The Secretary of State is to consult the Welsh Ministers before giving a direction under subsection (5) in relation to a water supply licence.]

(6) The Authority may not under this section make any modifications of the standard conditions of [F249 water supply licences or sewerage licences] unless—

(a) no notice of objection to those modifications is given by any relevant licence holder to the Authority within the time specified in the notice under subsection (3) above;

(b) if one or more relevant licence holders give notice of objection to the Authority within that time—

(i) the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection is less than such percentage as may be specified in an order made by statutory instrument by the Secretary of State; and

(ii) the percentage given by subsection (7) below is less than such percentage as may be so specified; or

(c) subsection (8) below applies to the case.

(7) The percentage given by this subsection is the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection, weighted according to their market share at such time and in such manner as may be specified in an order under subsection (6) above.

(8) This subsection applies where the Authority is satisfied that—

(a) the effect of the standard conditions is such as to impose a burden affecting relevant licence holders in the carrying on of activities to which the modifications relate;

(b) the modifications would remove or reduce the burden without removing any necessary protection; and

(c) the modifications are such that no holder of a water supply licence [F250 or, as the case may be, a sewerage licence] would be unduly disadvantaged in competing with other holders of such licences.

(9) An order under subsection (6) above may include such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(10) Before making an order under subsection (6) above [F251 in relation to the standard conditions of water supply licences], the Secretary of State shall consult the Assembly.

(11) A statutory instrument containing an order under subsection (6) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(12) Where the Authority modifies the standard conditions of [F252 water supply licences or sewerage licences], the Authority shall—

(a) also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in [F253 water supply licences or, as the case may be, sewerage licences] granted after that time; and

(b) publish the modifications in such manner as it considers appropriate.

[F254 Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations of authorisations.]

(13) In this section “relevant licence holder”, in relation to proposed modifications of standard conditions of [F255 water supply licences or sewerage licences or of such of those licences as grant a particular authorisation or combination of authorisations], means the holder of a licence of that description—

(a) which is to be modified under the proposals by the inclusion of any new standard condition; or

(b) which includes any standard conditions to which the proposals relate, other than standard conditions which are not in effect (by virtue of anything done under section 17H(4) above) at the time specified in the notice under subsection (3) above.

Textual Amendments

F241 S. 17J title substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(2); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F242 Words in s. 17J(1) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(3); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F243 S. 17J(1A) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(4); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F244 Words in s. 17J(2) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(5)(a); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F245 Words in s. 17J(2) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(5)(b); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F246 Words in s. 17J(4)(b)(iv) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(6); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F247 Words in s. 17J(5) repealed (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(7); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F248 S. 17J(5A) inserted (1.4.2016) by Explanatory Note 2014 (c. 21), s. 94(3), Sch. 7 para. 20(8); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F249 Words in s. 17J(6) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(9); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F250 Words in s. 17J(8)(c) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(10); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F251 Words in s. 17J(10) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(11); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F252 Words in s. 17J(12) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(12)(a); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F253 Words in s. 17J(12)(a) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(12)(b); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F254 Words in s. 17J(12) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(12)(c); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F255 Words in s. 17J(13) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 20(13); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

Modifications etc. (not altering text)

C20 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 4 (with reg. 1(1)(c))

17K [F256 Modification references to competition authority] U.K.

(1) The Authority may make to the [F257 CMA] a reference which is so framed as to require the [F258 CMA to] investigate and report on the questions—

(a) whether any matters which—

(i) relate to the carrying on of activities authorised or regulated by [F259 a particular water supply or sewerage licence]; and

(ii) are specified in the reference,

operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have, or may be expected to have, could be remedied or prevented by modifications of the conditions of the licence.

(2) The Authority may make to the Commission a reference which is so framed as to require the [F260 CMA] to investigate and report on the questions—

(a) whether any matters which—

(i) relate to the carrying on of activities authorised or regulated by [F261 water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations]; and

(ii) are specified in the reference,

operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have, or may be expected to have, could be remedied or prevented by modifications of the standard conditions of licences of that description.

(3) The Authority may, at any time, by notice given to the [F260 CMA] vary a reference under this section by—

(a) adding to the matters specified in the reference; or

(b) excluding from the reference some of the matters so specified,

and on receipt of any such notice the [F260 CMA] shall give effect to the variation.

(4) The Authority may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the [F260 CMA] in carrying out the investigation on the reference—

(a) any effects adverse to the public interest which, in its opinion, the matters specified in the reference or variation have or may be expected to have; and

(b) any modifications of the relevant conditions by which, in its opinion, those effects could be remedied or prevented.

(5) As soon as practicable after making a reference under this section or a variation of such a reference, the Authority shall—

(a) publish particulars of the reference or variation in such manner as it considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it; and

(b) serve a copy of the reference or variation on—

(i) the licence holder or, as the case may be, the relevant licence holders;

(ii) the Council;

(iii) the Secretary of State;

(iv) [F262 in a case relating to a water supply licence or licences,] the Assembly; and

(v) the Chief Inspector of Drinking Water.

(6) If, before the end of the period of twenty-eight days beginning with the day on which the Secretary of State receives the copy of the reference or variation, the Secretary of State directs the [F263 CMA]—

(a) not to proceed with the reference; or

(b) not to give effect to the variation,

the [F263 CMA] shall comply with the direction.

(7) It shall be the duty of the Authority, for the purpose of assisting the [F263 CMA] in carrying out an investigation on a reference under this section or in carrying out functions under section 17P below, to give to the [F263 CMA]—

(a) any information in the Authority’s possession which relates to matters falling within the scope of the investigation or the carrying out of those functions and which is either—

(i) requested by the [F263 CMA] for that purpose; or

(ii) information which, in the Authority’s opinion, it would be appropriate for that purpose to give to the [F263 CMA] without any such request; and

(b) any other assistance which the [F263 CMA] may require, and which it is within the Authority’s power to give, in relation to any such matters,

and the [F263 CMA], for the purpose of carrying out any such investigation or such functions, shall take account of any information given to it for that purpose under this subsection.

(8) In this section and the following provisions of this Chapter—

• “relevant conditions”—

  (a)

  in relation to a reference under subsection (1) above, means the conditions of the licence to which the reference relates; and

  (b)

  in relation to a reference under subsection (2) above, means the standard conditions of the licences to which the reference relates; and

• “relevant licence holder” means the holder of a licence to which a reference under subsection (2) above relates.

(9) In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the [F264 CMA] shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Authority by Part 1 of this Act.

[F265 (10) The functions of the CMA with respect to a reference under this section are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act 2002, as applied by sections 17M and 17Q).]

Textual Amendments

F256 S. 17K title substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 21(2); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F257 Word in s. 17K(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 61(2)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F258 Words in s. 17K(1) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 61(2)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F259 Words in s. 17K(1)(a)(i) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 21(3); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F260 Words in ss. 17K(2)-(4) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 61(3); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F261 Words in s. 17K(2)(a)(i) substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 21(4); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F262 Words in s. 17K(5)(b)(iv) inserted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 21(5); S.I. 2016/465, art. 2(m), Sch. 1 para. 1(j) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)

F263 Words in s. 17K(6)(7) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 61(3); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F264 Word in s. 17K(9) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 61(3); S.I. 2014/416, art. 2(1)(d) (with Sch.)

F265 S. 17K(10) inserted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 61(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)

Modifications etc. (not altering text)

C20 Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 4 (with reg. 1(1)(c))

C21 S. 17K applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 5(2) (with reg. 1(1)(c)) (as amended (10.1.2015) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) (Amendment) Regulations 2015 (S.I. 2015/22), regs. 1(1), 4(a))

17L References under section 17K: time limits U.K.

(1) Every reference under section 17K above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.

(2) A report of the [F266 CMA] on a reference under section 17K above shall not have effect (and no action shall be taken in relation to it under section 17O below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Authority under subsection (3) below.

(3) The Authority may, if it has received representations on the subject from the [F266 CMA] and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.

(4) No more than one extension is possible under subsection (3) above in relation to the same reference.

(5) The Authority shall, in the case of an extension made by it under subsection (3) above—

(a)</