SCHEDULES
SCHEDULE 2

Water undertakers' duties as regards water supply licensees
3
For section 66D of the Water Industry Act 1991 (determinations and agreements) there is substituted—

Agreements as to duties under sections 66A to 66C
66D
1
On the application of—
a
a water supply licensee that has made a request under sections 66A to 66C, or
b
a water undertaker to which such a request has been made,
the Authority may by order require a water undertaker to perform the duty in question under sections 66A to 66C, for such period and on such terms and conditions as may be specified in the order.
2
The Authority may make an order under subsection (1) only if—
a
in the case of an application relating to a duty under section 66A, 66AA, 66B or 66C, it appears to the Authority that the water undertaker is required to perform that duty under that section, or
b
in the case of an application relating to duties under section 66C, it appears to the Authority that both water undertakers in question are required to perform duties under that section,
and it is satisfied that the parties cannot reach agreement within a reasonable time.
3
An order under subsection (1) has effect as an agreement between—
a
the water supply licensee, and
b
the water undertaker required to perform the duty in question.
4
On the application of a party to a section 66D agreement, and if the Authority is satisfied that the parties cannot reach agreement on the variation or termination of the agreement within a reasonable time, the Authority may by order vary or terminate the agreement.
5
If an order under subsection (4) is made in relation to a section 66D agreement, the agreement—
a
has effect subject to the provision made by the order, or
b
ceases to have effect, as the case may be.
6
An order under subsection (4) may require one party to the agreement to pay compensation to the other.
7
Neither the CMA nor the Authority may exercise, in respect of an agreement for the performance of a duty under sections 66A to 66C by a water undertaker, the powers conferred by—
a
section 32 of the Competition Act 1998 (directions in relation to agreements);
b
section 35(2) of that Act (interim directions).
8
Subsection (7)(b) does not apply to the exercise of powers in respect of conduct—
a
which is connected with an agreement for the performance of a duty under sections 66A to 66C by a water undertaker, and
b
in respect of which section 35(1) of the Competition Act 1998 applies because of an investigation under section 25 of that Act relating to a suspected infringement of the Chapter 2 prohibition imposed by section 18(1) of that Act.
9
In this Chapter a reference to a section 66D agreement is a reference to—
a
an agreement for the performance of a duty under sections 66A to 66C by a water undertaker, or
b
an order deemed to be such an agreement under subsection (3), or
c
an agreement varied by order under subsection (4).
Sch. 2 para. 3 in force at 1.4.2017 by S.I. 2017/462, art. 3(i)(iii) (with arts. 6-9)