Part 1

Water industry
CHAPTER 1

Water supply licences and sewerage licences

Introduction of sewerage licences

Types of sewerage licence and arrangements with sewerage undertakers
4
1
After section 17B of the Water Industry Act 1991 there is inserted—

Sewerage licences
17BA
1
The Authority may grant to a person a licence in respect of the use of the sewerage system of a sewerage undertaker whose area is wholly or mainly in England (a “sewerage licence”).
2
A sewerage licence may give the holder of the licence one or more of the following—
a
a retail authorisation;
b
a wholesale authorisation;
c
a disposal authorisation.
3
Schedule 2B makes provision as to the authorisations.
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 4.
5
The Authority may exercise the power to grant a sewerage licence only in accordance with a general authorisation given by the Secretary of State.
6
References in this Act to a sewerage licensee are references to a person that is the holder for the time being of a sewerage licence.
7
References in this Chapter to the sewerage system of a sewerage undertaker are references to the system comprising—
a
the system of public sewers, the facilities for emptying public sewers and the sewage disposal works and other facilities for dealing effectually with the contents of public sewers that the undertaker is required to provide by section 94, and
b
the lateral drains that the undertaker is required to maintain by section 94.

Sewerage licences: restrictions on grants
17BB
1
The Authority must consult the Secretary of State, the Environment Agency and the NRBW before granting a licence that gives—
a
a wholesale authorisation, or
b
a disposal authorisation.
2
A sewerage licence granted to a sewerage undertaker may not give the holder—
a
a retail authorisation, or
b
a wholesale authorisation.
3
A sewerage licence may not be granted to a person unless that person is a limited company.
4
The restriction in subsection (3) does not apply if the sewerage licence gives only a retail authorisation.
2
After Schedule 2A to the Water Industry Act 1991 (inserted by section 1) there is inserted the Schedule set out in Schedule 3.
3
Schedule 4 (which amends Part 4 of the Water Industry Act 1991 to add a Chapter 2A relating to arrangements between sewerage undertakers and sewerage licensees) has effect.