7.—(1) This article applies where, in consequence of a scheme under Schedule 2 to the Water Industry Act 1991(1) (“the scheme”) a designated person (“the transferee”) occupies a class of hereditaments which immediately before the day on which the scheme comes into force are occupied by another designated person.
(2) Where the article applies, the rateable value (as a whole) of the hereditaments mentioned in paragraph (3) (“relevant hereditaments”) as regards any day on which, in pursuance of the Central Lists Regulations, they are shown in the central list, shall be determined in accordance with paragraph (4) and (5).
(3) The relevant hereditaments are—
(a)such of the hereditaments transferred by the scheme; and
(b)any other hereditaments,
as are occupied by the transferee and shown in the central list.
(4) The rateable value (as a whole) of the relevant hereditaments shall be an amount equal to the aggregate of the amounts which, but for the scheme, and subject to paragraph (5), would have been determined under article 5 as the rateable value of the classes of hereditaments which constitute the relevant hereditaments.
(5) For the purposes of determining the recalculation factor applicable in a relevant year, article 6 shall apply as if in calculating—
(a)the amount assigned to Y, or
(b)where article 6(3) applies, the number assigned to Z,
water supplied by or to the transferee to or by another party to the scheme were ignored.