Part 1

Water industry
CHAPTER 1

Water supply licences and sewerage licences

Expansion of water supply licensing

Types of water supply licence and arrangements with water undertakers
1
1
For section 17A of the Water Industry Act 1991 there is substituted—

Water supply licences
17A
1
The Authority may grant to a person a licence in respect of the use of the supply system of a water undertaker (a “water supply licence”).
2
A water supply licence may give the holder of the licence one or more of the following authorisations and combination of authorisations—
a
a retail authorisation;
b
a wholesale authorisation;
c
a restricted retail authorisation;
d
a restricted retail authorisation and a supplementary authorisation.
3
Schedule 2A makes provision as to the authorisations (including their operation in England and Wales).
4
In the case of each of the authorisations, an authorisation to do a thing is an authorisation to do it in accordance with Chapter 2A of Part 3.
5
The Authority may exercise the power to grant a water supply licence only in accordance with a general authorisation given by the Secretary of State.
6
Before giving a general authorisation as regards the Authority, the Secretary of State must consult the Welsh Ministers.
7
References in this Act to a water supply licensee are references to a person that is the holder for the time being of a water supply licence.

Water supply licences: restrictions on grants
17AA
1
Before the Authority grants a water supply licence giving a wholesale authorisation, it must consult—
a
the Secretary of State;
b
the Chief Inspector of Drinking Water;
c
the Environment Agency;
d
the NRBW.
2
Before the Authority grants a water supply licence giving a supplementary authorisation, it must consult—
a
the Secretary of State;
b
the Chief Inspector of Drinking Water;
c
the Environment Agency;
d
the Welsh Ministers;
e
the Chief Inspector of Drinking Water for Wales if there is one;
f
the NRBW.
3
A water supply licence may not be granted to a water undertaker.
4
A water supply licence may not be granted to a person unless that person is a limited company.
5
The restriction in subsection (4) does not apply if the water supply licence gives only—
a
a retail authorisation,
b
a restricted retail authorisation, or
c
a retail authorisation and a restricted retail authorisation.
2
After Schedule 2 to the Water Industry Act 1991 there is inserted the Schedule set out in Schedule 1.
3
Schedule 2 (which amends Chapter 2A of Part 3 of the Water Industry Act 1991 which relates to water undertakers’ duties to enable operations of water supply licensees) has effect.