Part 1

Water industry
CHAPTER 4

Retail exit: non-household premises

Retail exit: non-household premises
42
1
The Secretary of State may by regulations (“exit regulations”)—
a
make provision for a relevant undertaker whose area is wholly or mainly in England to apply to withdraw from the non-household retail market in relation to that area,
b
make provision about the determination of an application under paragraph (a) (an “exit application”),
c
make provision for and in connection with the transfer of so much of a relevant undertaker’s undertaking as relates to the non-household retail market to an eligible licensee or licensees, and
d
make provision about the operation of the water industry in relation to an area in respect of which an exit application has been granted (a “retail exit area”).
2
Provision under subsection (1)(a) may require a company that is a water undertaker and a sewerage undertaker to make an exit application that relates both to its functions as a water undertaker and to its functions as a sewerage undertaker, subject to such exceptions as exit regulations may specify.
3
Exit regulations may include provision for protecting customers affected by a relevant undertaker’s withdrawal from the non-household retail market.
4
For the purposes of this Chapter—
a
a reference to a water undertaker withdrawing from the non-household retail market in relation to an area is a reference to a water undertaker ceasing, in relation to that area, to exercise such functions relating to the supply of water to non-household premises as are specified in exit regulations, and
b
a reference to a sewerage undertaker withdrawing from the non-household retail market in relation to an area is a reference to a sewerage undertaker ceasing, in relation to that area, to exercise such functions relating to the provision of sewerage services in respect of non-household premises (including trade effluent functions) as are specified in exit regulations;
and a reference to the non-household retail market is to be construed accordingly.
5
Exit regulations may—
a
prohibit a water undertaker from exercising, in relation to a retail exit area, such functions relating to the supply of water to non-household premises as are specified in the regulations;
b
prohibit a sewerage undertaker from exercising, in relation to a retail exit area, such functions relating to the provision of sewerage services in respect of non-household premises (including trade effluent functions) as are specified in the regulations.