Part 2

New regulatory arrangements, etc

Objectives of regulation of water industry

Guidance to Authority on social and environmental matters
40
After section 2 of the WIA there is inserted—

Guidance on social and environmental matters
2A
1
Guidance may be issued from time to time—
a
by the Assembly, with respect to appointment areas which are wholly or mainly in Wales; and
b
by the Secretary of State, with respect to other appointment areas,
about the making by the Authority of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance.
2
In formulating guidance, the Secretary of State and the Assembly shall, where practicable, have regard to the costs and benefits which may be expected to result from the guidance.
3
The Authority shall, in exercising and performing the powers and duties mentioned in section 2(1) above (subject to section 2(6) above), have regard to any guidance issued under this section.
4
Before issuing guidance under this section the Secretary of State and the Assembly shall consult—
a
the Authority;
b
the Council;
c
in the case of the Secretary of State, the Assembly and vice versa;
d
relevant undertakers;
e
licensed water suppliers; and
f
such other persons as the Secretary of State or the Assembly considers it appropriate to consult in relation to the guidance.
5
A draft of any guidance proposed to be issued by the Secretary of State under this section shall be laid before each House of Parliament.
6
Guidance shall not be issued by the Secretary of State under this section until after the period of forty days beginning with—
a
the day on which the draft is laid before each House of Parliament; or
b
if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days.
7
If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it.
8
In reckoning any period of forty days for the purposes of subsection (6) or (7) above, no account shall be taken of any time during which—
a
Parliament is dissolved or prorogued; or
b
both Houses are adjourned for more than four days.
9
The Secretary of State and the Assembly shall arrange for any guidance issued by him or it under this section to be published in such manner as he or it considers appropriate.
10
In this section, an “appointment area” is an area for which an appointment is held under Chapter 1 of Part 2 of this Act.
S. 40 in force at 1.4.2005 by S.I. 2005/968, art. 2(g)