SCHEDULES
SCHEDULE 2

Water undertakers' duties as regards water supply licensees
4
After section 66D of the Water Industry Act 1991 (as substituted by paragraph 3) there is inserted—

Codes in respect of section 66D agreements
66DA
1
The Authority may issue one or more codes in respect of section 66D agreements.
2
A code may make provision about—
a
procedures in connection with making a section 66D agreement;
b
procedures in connection with varying or terminating a section 66D agreement;
c
the terms and conditions of a section 66D agreement, including terms as to the duration of such an agreement;
d
principles for determining the terms and conditions that should or should not be incorporated into a section 66D agreement.
3
A code may make provision about the steps to be taken by the Authority in determining for the purposes of section 66D(2) whether a water undertaker is, in the particular case, required to perform a duty under sections 66A to 66C.
4
If the Authority considers that a water undertaker or a water supply licensee is not acting as required by a code, the Authority may give the undertaker or the licensee a direction to do, or not to do, a thing specified in the direction.
5
The Authority may not give a direction under subsection (4) requiring a person to enter into, vary or terminate an agreement.
6
It is the duty of a water undertaker or a water supply licensee to comply with a direction under subsection (4), and this duty is enforceable by the Authority under section 18.
7
A code may make—
a
different provision for different persons or descriptions of person;
b
different provision for different duties under sections 66A to 66C.
8
The Authority may from time to time revise a code issued under this section and issue a revised code.
9
A revised code may include provision for applying any of its revisions to section 66D agreements made before the revised code comes into effect.

Codes under section 66DA: procedure
66DB
1
Before issuing a code under section 66DA, the Authority must—
a
prepare a draft of the proposed code under section 66DA;
b
consult persons in accordance with subsections (2) to (4).
2
If the proposed code relates to section 66D agreements made with water undertakers whose areas are wholly or mainly in England, the Authority must consult the following about the proposed code—
a
the Secretary of State;
b
the Chief Inspector of Drinking Water;
c
the appropriate agency;
d
the Council;
e
any relevant undertakers likely to be affected by the proposed code;
f
any water supply licensees likely to be affected by the proposed code;
g
such other persons as the Authority thinks appropriate.
3
If the proposed code relates to section 66D agreements made with water undertakers whose areas are wholly or mainly in Wales, the Authority must consult the following about the proposed code—
a
the Welsh Ministers;
b
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;
c
the appropriate agency;
d
the Council;
e
any relevant undertakers likely to be affected by the proposed code;
f
any water supply licensees likely to be affected by the proposed code;
g
such other persons as the Authority thinks appropriate.
4
The Authority must specify the period (“the consultation period”) within which a person may make representations about the proposed code.
5
Before a code under section 66DA prepared by the Authority is issued, the Minister may direct the Authority—
a
not to issue the code, or
b
to issue the code with specified modifications.
6
Subsection (5) is subject to subsections (8) and (9).
7
In subsection (5) “the Minister” means—
a
the Secretary of State, so far as a code prepared by the Authority relates to section 66D agreements affecting only the supply systems of water undertakers whose areas are wholly or mainly in England;
b
the Welsh Ministers, so far as a code prepared by the Authority relates to section 66D agreements affecting only the supply systems of water undertakers whose areas are wholly or mainly in Wales;
c
the Secretary of State and the Welsh Ministers acting jointly, so far as a code prepared by the Authority relates to section 66D agreements not falling within paragraph (a) or (b).
8
If the power under subsection (5) is exercised to give a direction in respect of such section 66D agreements as are referred to in paragraph (a), (b) or (c) of subsection (7), it may not be exercised again in respect of such section 66D agreements as are referred to in that paragraph.
9
If the power under subsection (5) to give a direction in respect of such section 66D agreements as are referred to in paragraph (a), (b) or (c) of subsection (7) is not exercised on the first occasion on which it may be so exercised, it may not be exercised in respect of such section 66D agreements as are referred to in that paragraph on a later occasion.
10
A direction under subsection (5) must be given within the period of 28 days beginning with the day after the end of the consultation period, and a code prepared by the Authority in relation to which a direction may be given may not be issued before that period of 28 days has expired.
11
In this section “the appropriate agency” means—
a
the Environment Agency, in relation to section 66D agreements made with water undertakers whose areas are wholly in England;
b
the NRBW, in relation to section 66D agreements made with water undertakers whose areas are wholly in Wales;
c
both the Environment Agency and the NRBW, in relation to section 66D agreements made with water undertakers whose areas are partly in England and partly in Wales.
12
This section is subject to section 66DC.

Codes under section 66DA: minor or urgent revisions
66DC
1
This section applies if the Authority proposes to issue a revised code and, in the view of the Authority, the revision or each of the revisions proposed to be made is—
a
a revision for which consultation is unnecessary, or
b
a revision that it is necessary or desirable to make without delay.
2
Section 66DB does not apply to the proposed revised code.
3
Once the Authority has issued the revised code, it must give notice as soon as reasonably practicable of—
a
the issuing of the revised code, and
b
as regards each revision contained in it, whether in the view of the Authority the revision falls within paragraph (a) or (b) of subsection (1).
4
Notice under subsection (3) is to be given to such persons as the Authority considers appropriate.
5
Unless the Authority gives notice that a revision in a revised code is in the view of the Authority a revision falling within subsection (1)(a), the revision ceases to have effect at the end of the period of six months beginning with the day after that on which the revised code is issued.
Sch. 2 para. 4 in force at 1.9.2015 for specified purposes by S.I. 2015/773, art. 3(c) (with art. 5)
Sch. 2 para. 4 in force at 1.9.2015 for specified purposes by S.I. 2015/1469, art. 3(d)(i) (with art. 5(1)(3)(5))
Sch. 2 para. 4 in force at 1.4.2016 for specified purposes by S.I. 2016/465, art. 2(j)(i) (with Sch. 2)
Sch. 2 para. 4 in force at 30.3.2017 in so far as not already in force by S.I. 2017/462, art. 2(c) (with art. 10)