Part 1THE CONSUMER ADVOCACY BODIES

Abolition of consumer bodies

33 Supplementary provision about transfer and abolition orders

(1)

This section applies where the Consumer Council for Water has been designated for abolition under section 31.

(2)

In this section “ payment conditions ” means—

(a)

in the case of an appointment under Chapter 1 of Part 2 of the Water Industry Act 1991 (c. 56), conditions included in the appointment by virtue of section 11(1)(c) of that Act, and

(b)

in the case of a water supply licence under Chapter 1A of that Part, conditions included in the licence by virtue of section 17G(1)(b) of that Act.

(3)

The payment conditions of such an appointment or licence may (without prejudice to the generality of sections 11(1)(c) and 17G(1)(b) of that Act) require the payment by the company holding the appointment or licence of sums relating to any of the expenses mentioned in subsection (4).

(4)

Those expenses are—

(a)

the appropriate proportion of the expenses of F1Citizens Advice (other than those expenses within paragraph (b) and F2 any expenses which relate to taking on functions transferred from the Consumer Council for Water );

(b)

any expenses of F3Citizens Advice , the Secretary of State or the Consumer Council for Water which relate to a transfer scheme made in respect of the Consumer Council for Water under section 35(2)(a) or (7);

(c)

the expenses of the Secretary of State which relate to the abolition of the Consumer Council for Water;

(d)

the expenses of F4Citizens Advice expanding F5 a qualifying consumer advice scheme to enable it to cater for water consumers;

(e)

the appropriate proportion of the expenses of F6Citizens Advice on, or in connection with, the support of F7 a qualifying consumer advice scheme .

(5)

The “appropriate proportion” of any relevant expenses means such proportion of the expenses as the Secretary of State considers is reasonable having regard to—

(a)

in the case of expenses within subsection (4)(a), the functions exercisable by F8Citizens Advice in relation to water consumers;

(b)

in the case of expenses within subsection (4)(e), the functions under F9a qualifying consumer advice scheme which are exercisable in relation to water consumers.

(6)

The Authority may, in accordance with this section, modify any payment conditions where it considers it necessary or expedient to do so in consequence of, or of preparations for—

(a)

the abolition of the Consumer Council for Water, or

(b)

a transfer order or abolition order under section 32.

(7)

The Authority may, in accordance with this section, make such incidental or consequential modifications of the other conditions which are included in—

(a)

an appointment under Chapter 1 of Part 2 of the Water Industry Act 1991 (c. 56), or

(b)

a water supply licence under Chapter 1A of that Part,

as it considers necessary or expedient in consequence of, or of preparations for, an event mentioned in subsection (6)(a) or (b).

(8)

Before modifying under subsection (6) or (7) the conditions included in an appointment or licence, the Authority must consult the company holding the appointment or licence.

(9)

The Secretary of State may, after consulting the Welsh Ministers, give directions to the Authority for the purpose of securing that sums relating to any of the expenses mentioned in subsection (4) are included in the sums payable by virtue of payment conditions; and the Authority must comply with any such direction.

F10(9A)

For the purposes of this section a qualifying public consumer advice scheme is a scheme that is supported by Citizens Advice or Citizens Advice Scotland , or by them jointly, in a manner that the Office of Fair Trading is prohibited from supporting by section 8A of the Enterprise Act 2002.

(10)

In this section—

“ the Authority ” means the Water Services Regulation Authority;

F11...

“ water consumers ” means consumers in relation to services provided by a water undertaker, a sewerage undertaker F12, a water supply licensee or a sewerage licensee , in F13the undertaker's or licensee's capacity as such.