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Part IIIE+W WATER SUPPLY

Modifications etc. (not altering text)

C1Part III: definition of "consumer" applied (01.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 176(7), 225(2).

C2Part III: definition of "water fittings" applied (01.12.1991) by Statutory Water Companies Act 1991 (c. 58, SIF 130), ss. 15(1), 17(2).

chapter IIE+W SUPPLY DUTIES

Major suppliesE+W

42 Financial conditions of compliance.E+W

(1)The conditions mentioned in section 41(1)(c) above are satisfied in relation to a requirement for the provision of a water main by a water undertaker if—

(a)such undertakings as the undertaker may have reasonably required in accordance with subsection (2) below have been given by the person or persons who have required the provision of the main; and

(b)such security as the undertaker may have reasonably required has been provided for the discharge of any obligations imposed by those undertakings on any person who, under subsection (3) below, may be required to secure his undertakings.

(2)The undertakings which a water undertaker may require for the purposes of subsection (1) above in respect of any water main are undertakings which—

[F1(a)bind the person or persons mentioned in that subsection to pay to the undertaker either (at the election of such person or persons)—

(i)in respect of each of the twelve years following the provision of the main, an amount not exceeding the relevant deficit (if any) for that year on that main; or

(ii)following provision of the main, a single amount not exceeding the discounted aggregate deficit on that main; and]

(b)in the case of undertakings binding two or more persons, bind them either jointly and severally or with liability to pay apportioned in such manner as they may agree.

(3)For the purposes of subsection (1)(b) above a person may be required to secure his undertakings in relation to the provision of a water main if—

(a)it was by virtue of section 41(2)(a) or (b) above that he required, or joined in requiring, the provision of the main; and

(b)he is not a public authority.

(4)Where for the purposes of subsection (1)(b) above any sums have been deposited with a water undertaker by way of security for the discharge of any obligation, the undertaker shall pay interest at such rate as may be determined either—

(a)by the undertaker with the approval of the Director; or

(b)in default of a determination under paragraph (a) above, by the Director,

on every sum of 50p so deposited for every three months during which it remains in the hands of the undertaker.

(5)An approval or determination given or made by the Director for the purposes of subsection (4) above—

(a)may be given or made in relation to the provision of a particular water main, in relation to the provision of mains of a particular description or in relation to the provision of water mains generally; and

(b)may be revoked at any time.

(6)Any dispute between a water undertaker and any other person as to—

(a)the undertakings or security required by the undertaker for the purposes of this section; or

(b)the amount required to be paid in pursuance of any such undertaking,

[F2may be referred to the Authority for determination under section 30A above by either party to the dispute.]

[F3(7)In this section “relevant deficit” and “discounted aggregate deficit” have the meanings given by sections 43 and 43A below, respectively.]

Textual Amendments

F1S. 42(2)(a) substituted (28.5.2004) by Water Act 2003 (c. 37), ss. 90(2)(5), 105(3); S.I. 2004/641, art. 4(a) (with art. 6, Sch. 3)

F2Words in s. 42(6) substituted (28.5.2004) by Water Act 2003 (c. 37), ss. 90(3)(5), 105(3); S.I. 2004/641, art. 4(a) (with art. 6, Sch. 3)

F3S. 42(7) substituted (28.5.2004) by Water Act 2003 (c. 37), ss. 90(4)(5), 105(3); S.I. 2004/641, art. 4(a) (with art. 6, Sch. 3)