Part 1

Water industry
CHAPTER 5

Miscellaneous

Consumer redress
54
1
The Water Services Regulation Authority may modify the conditions of—
a
a pre-commencement appointment of a water or sewerage undertaker, or
b
a pre-commencement water supply licence,
so as to include conditions relating to the provision of a consumer redress scheme.
2
In subsection (1)—
a
“pre-commencement appointment of a water or sewerage undertaker” means an appointment of a company under Chapter 1 of Part 2 of the Water Industry Act 1991 to be a water or sewerage undertaker which is made before the day on which this section comes into force, and
b
“pre-commencement water supply licence” means a licence under Chapter 1A of Part 2 of the Water Industry Act 1991 granted before that day.
3
In this section, “consumer redress scheme” means a scheme or other arrangements for unresolved complaints to be investigated and determined by an independent person.
4
The conditions that may under subsection (1) be included in an appointment or licence include in particular conditions requiring the company holding the appointment or the person holding the licence—
a
to secure the provision of a consumer redress scheme, or
b
to secure the provision of a consumer redress scheme which is of a description specified in the conditions or which meets requirements so specified.
5
Where under subsection (1) the Authority modifies conditions of an appointment or licence, it may make such incidental or consequential modifications of other conditions of the appointment or, as the case may be, other conditions of the licence as it considers necessary or expedient.
6
The power of the Authority under subsection (1) to modify the conditions of an appointment or licence may not be exercised after the end of the period of two years beginning with the day on which this section comes into force.
7
Before making a modification under this section the Authority must consult—
a
the company holding the appointment or the person holding the licence;
b
the Secretary of State;
c
the Welsh Ministers;
d
the Consumer Council for Water;
e
such other persons as the Authority thinks it appropriate to consult.
8
The Minister may direct the Authority not to make a modification that it proposes to make under this section; and the Authority must comply with such a direction.
9
In subsection (8) “the Minister” means—
a
the Secretary of State, in relation to—
i
a water or sewerage undertaker whose area is wholly or mainly in England;
ii
a person who holds a licence under Chapter 1A of Part 2 of the Water Industry Act 1991;
b
the Welsh Ministers, in relation to a water or sewerage undertaker whose area is wholly or mainly in Wales.