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In force since 2026-10-31, as the publisher states.
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Water Industry Act 1991 1991 c. 56 An Act to consolidate enactments relating to the supply of water and the provision of sewerage services, with amendments to give effect to recommendations of the Law Commission. [25th July 1991] Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Propose a change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) There shall be a body corporate to be known as the Water Services Regulation Authority (in this Act referred to as “the Authority”) for the purpose of carrying out the functions conferred on or transferred to it by this Act or under or by virtue of any other enactment. (2) The functions of the Authority are performed on behalf of the Crown. (3) Schedule 1A to this Act shall have effect with respect to the Authority. (4) In Welsh the Authority may be known as “Awdurdod Rheoleiddio Gwasanaethau Dŵr”.
Propose a change(1) This section shall have effect for imposing duties on the Secretary of State and on the Authority as to when and how they should exercise and perform the powers and duties conferred or imposed on the Secretary of State or the Authority by virtue of any of the relevant provisions. (2A) The Secretary of State or, as the case may be, the Authority shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner which he or it considers is best calculated— (a) to further the consumer objective; (b) to secure that the functions of a water undertaker and of a sewerage undertaker are properly carried out as respects every area of England and Wales; (c) to secure that companies holding appointments under Chapter 1 of Part 2 of this Act as relevant undertakers are able (in particular, by securing reasonable returns on their capital) to finance the proper carrying out of those functions; ... (d) to secure that the activities authorised by the licence of a water supply licensee or sewerage licensee and any statutory functions imposed on it in consequence of the licence are properly carried out ; and (e) to further the resilience objective. (2B) The consumer objective mentioned in subsection (2A)(a) above is to protect the interests of consumers, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the provision of water and sewerage services. (2C) For the purposes of subsection (2A)(a) above the Secretary of State or, as the case may be, the Authority shall have regard to the interests of— (a) individuals who are disabled or chronically sick; (b) individuals of pensionable age; (c) individuals with low incomes; (d) individuals residing in rural areas; ... (e) customers, of companies holding an appointment under Chapter 1 of Part 2 of this Act, whose premises are household premises (as defined in section 17C) ; and (f) customers, of companies holding an appointment under Chapter 1 of Part 2 of this Act, whose premises are below the consumption threshold and in the area of a relevant undertaker whose area is wholly or mainly in Wales, but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer. (2D) For the purposes of subsection (2C) above, premises are below the consumption threshold if the total quantity of water estimated to be supplied to the premises annually for the purposes of subsection (2) of section 17D below is less than the quantity specified in that subsection. (2DA) The resilience objective mentioned in subsection (2A)(e) is— (a) to secure the long-term resilience of water undertakers' supply systems and sewerage undertakers' sewerage systems as regards environmental pressures, population growth and changes in consumer behaviour, and (b) to secure that undertakers take steps for the purpose of enabling them to meet, in the long term, the need for the supply of water and the provision of sewerage services to consumers, including by promoting— (i) appropriate long-term planning and investment by relevant undertakers, and (ii) the taking by them of a range of measures to manage water resources in sustainable ways, and to increase efficiency in the use of water and reduce demand for water so as to reduce pressure on water resources. (2DB) For the purposes of subsection (2DA)— (a) the reference to water undertakers' supply systems is to be construed in accordance with section 17B; (b) the reference to sewerage undertakers' sewerage systems is to be construed in accordance with section 17BA(7). (2E) The Secretary of State and the Authority may, in exercising any of the powers and performing any of the duties mentioned in subsection (1) above, have regard to— (a) any interests of consumers in relation to electricity conveyed by distribution systems (within the meaning of the Electricity Act 1989); (b) any interests of consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986); (c) any interests of consumers in relation to communications services and electronic communications apparatus (within the meaning of the Communications Act 2003), which are affected by the exercise of that power or the performance of that duty. (3) Subject to subsection (2A) above, the Secretary of State or, as the case may be, the Authority shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner which he or it considers is best calculated— (a) to promote economy and efficiency on the part of companies holding an appointment under Chapter 1 of Part 2 of this Act in the carrying out of the functions of a relevant undertaker; (b) to secure that no undue preference is shown, and that there is no undue discrimination in the fixing by such companies of water and drainage charges; (ba) to secure that no undue preference (including for itself) is shown, and that there is no undue discrimination, in the doing by such a company of— (i) such things as relate to the provision of services by itself or another such company, or (ii) such things as relate to the provision of services by a water supply licensee or a sewerage licensee; (c) to secure that consumers are protected as respects benefits that could be secured for them by the application in a particular manner of any of the proceeds of any disposal (whenever made) of any of such a company’s protected land or of an interest or right in or over any of that land; (d) to ensure that consumers are also protected as respects any activities of such a company which are not attributable to the exercise of functions of a relevant undertaker, or as respects any activities of any person appearing to the Secretary of State or (as the case may be) the Authority to be connected with the company, and in particular by ensuring— (i) that any transactions are carried out at arm’s length; (ii) that the company, in relation to the exercise of its functions as a relevant undertaker, maintains and presents accounts in a suitable form and manner; (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (e) to contribute to the achievement of sustainable development. (4) In exercising any of the powers or performing any of the duties mentioned in subsection (1) above in accordance with the preceding provisions of this section, the Secretary of State and the Authority shall have regard to the principles of best regulatory practice (including the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed). (5) In this section the references to water and drainage charges are references to— (a) any charges in respect of any services provided in the course of the carrying out of the functions of a relevant undertaker; and (b) amounts of any other description which such an undertaker is authorised by or under any enactment to require any of its customers or potential customers to pay. (5A) In this section— “consumers” includes both existing and future consumers; and “the interests of consumers” means the interests of consumers in relation to— the supply of water by means of a water undertaker’s supply system to premises either by water undertakers or by water supply licensees acting in their capacity as such; and the provision of sewerage services either by sewerage undertakers or by sewerage licensees acting in their capacity as such. (6) For the purposes of this section— (a) subject to subsection (6A) below, the reference in subsection (1) above to the relevant provisions is a reference to the provisions contained in— (i) Part 2 of this Act (except section 27A and Schedule 3A), (ii) any of sections 37A to 38, 38ZA, 39, 39ZA, 39B to 39D, 40E to 40J, 42, 51CD to 51CG, 63AC to 63AF, 66B, 66CA to 66H, 66K, 66L, 66O(2), 95, 95ZA, 96, 96ZA, 99, 105ZF to 105ZI, 110F to 110J, 110L to 110O, 117E to 117O, 117R, 117S, 143B to 143E, 144ZA to 144ZF, 153, 181, 182, 185, 192A, 192B, 195, 195A and 201 to 203 below, and (iii) any of sections 42 to 54 of the Water Act 2014. (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6A) Subsections (2A) to (4) above and sections 2A and 2B below do not apply in relation to anything done by the Authority in the exercise of functions assigned to it by section 31(3) below (“Competition Act functions”). (6B) The Authority may nevertheless, when exercising any Competition Act function, have regard to any matter in respect of which a duty is imposed by any of subsections (2A) to (4) above and sections 2A and 2B below, if it is a matter to which the CMA could have regard when exercising that function. (7) The duties imposed by subsections (2A) to (4) above and sections 2A and 2B below do not affect the obligation of the Authority or, as the case may be, the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment, by virtue of any assimilated obligation or otherwise).
Propose a change(1) The Secretary of State may from time to time publish a statement setting out strategic priorities and objectives for the Authority in carrying out relevant functions relating wholly or mainly to England. (2) The Authority must carry out those functions in accordance with any statement published under this section. (3) In formulating a statement under this section, the Secretary of State— (a) must have regard to the duties imposed on the Authority under section 2, (b) must have regard to social and environmental matters, and (c) may have regard to such other matters as the Secretary of State thinks fit. (4) Before publishing a statement under this section, the Secretary of State must consult— (a) the Authority, (b) the Council, (c) relevant undertakers, (d) water supply licensees and sewerage licensees, (e) the Environment Agency, (f) the Welsh Ministers, (g) the NRBW, and (h) anyone else the Secretary of State thinks appropriate. (5) Before publishing a statement under this section the Secretary of State must— (a) lay a draft of the statement before Parliament, and (b) then wait until the end of the 40-day period. (6) The Secretary of State may not publish the statement under this section if, within the 40-day period, either House of Parliament resolves not to approve it. (7) “The 40-day period” means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House on the same day, the later of the days on which it is laid). (8) When calculating the 40-day period, ignore any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days. (9) In this section “relevant functions relating wholly or mainly to England” means the functions mentioned in section 2(1) so far as they relate to appointment areas wholly or mainly in England. (10) In subsection (9) “appointment area” means an area for which an appointment is held under Chapter 1 of Part 2.
Propose a change(1) The Welsh Ministers may from time to time publish a statement setting out strategic priorities and objectives for the Authority in carrying out relevant functions relating wholly or mainly to Wales. (2) The Authority must carry out those functions in accordance with any statement published under this section. (3) In formulating a statement under this section the Welsh Ministers— (a) must have regard to the duties imposed on the Authority under section 2, (b) must have regard to social and environmental matters, and (c) may have regard to such other matters as the Welsh Ministers think fit. (4) Before publishing a statement under this section, the Welsh Ministers must consult— (a) the Authority, (b) the Council, (c) relevant undertakers, (d) water supply licensees, (e) the NRBW, (f) the Secretary of State, (g) the Environment Agency, and (h) anyone else the Welsh Ministers think appropriate. (5) Before publishing a statement under this section the Welsh Ministers must— (a) lay a draft of the statement before the Assembly, and (b) then wait until the end of the 40-day period. (6) The Welsh Ministers may not publish the statement under this section if, within the 40-day period, the Assembly resolves not to approve it. (7) “The 40-day period” means the period of 40 days beginning with the day on which the draft is laid before the Assembly. (8) When calculating the 40-day period, ignore any period during which the Assembly is dissolved or is in recess for more than 4 days. (9) In this section “relevant functions relating wholly or mainly to Wales” means the functions mentioned in section 2(1) so far as they relate to appointment areas wholly or mainly in Wales. (10) In subsection (9) “appointment area” means an area for which an appointment is held under Chapter 1 of Part 2.
Propose a change(1) It shall be the duty of each of the following, that is to say— (a) the Secretary of State; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) the Authority; and (d) every company holding an appointment as a relevant undertaker, in formulating or considering any proposals relating to any functions of a relevant undertaker (including, in the case of such a company, any functions which, by virtue of that appointment, are functions of the company itself) to comply with the requirements imposed in relation to the proposals by subsections (2) and (3) below. (2) The requirements imposed by this subsection in relation to any such proposals as are mentioned in subsection (1) above are— (a) a requirement, so far as may be consistent— (i) with the purposes of any enactment relating to the functions of the undertaker; and (ii) in the case of the Secretary of State and the Authority, with their duties under section 2 above, so to exercise any power conferred with respect to the proposals on the person subject to the requirement as to further the conservation and enhancement of natural beauty and the conservation of flora, fauna and geological or physiographical features of special interest and, in the case of the exercise of such a power by a company holding an appointment as a relevant undertaker, as to further water conservation ; (b) a requirement to have regard to the desirability of protecting and conserving buildings, sites and objects of archaeological, architectural or historic interest; and (c) a requirement to take into account any effect which the proposals would have on the beauty or amenity of any rural or urban area or on any such flora, fauna, features, buildings, sites or objects. (3) The requirements imposed by this subsection in relation to any such proposals as are mentioned in subsection (1) above are, subject to the requirements imposed by subsection (2) above— (a) a requirement to have regard to the desirability of preserving for the public any freedom of access to areas of woodland, mountains, moor, heath, down, cliff or foreshore and other places of natural beauty; (b) a requirement to have regard to the desirability of maintaining the availability to the public of any facility for visiting or inspecting any building, site or object of archaeological, architectural or historic interest; and (c) a requirement to take into account any effect which the proposals would have on any such freedom of access or on the availability of any such facility. (4) Subsections (1) to (3) above shall apply so as to impose duties on the Authority and any company holding an appointment as a relevant undertaker in relation to any proposal relating to— (a) the functions of the Environment Agency; ... (aa) the functions of the NRBW; or (b) the functions of an internal drainage board, as they apply in relation to any proposals relating to the functions of such an undertaker; and for the purposes of this subsection the reference in subsection (2)(a) above to the functions of the undertaker shall have effect as a reference to the functions of the Environment Agency , the NRBW, or, as the case may be, of the internal drainage board in question. (5) Subject to obtaining the consent of any navigation authority, harbour authority or conservancy authority before doing anything which causes navigation which is subject to the control of that authority to be obstructed or otherwise interfered with, it shall be the duty of every company holding an appointment as a relevant undertaker to take such steps as are— (a) reasonably practicable; and (b) consistent with the purposes of the enactments relating to the functions of the undertaker in question, for securing, so long as that company has rights to the use of water or land associated with water, that those rights are exercised so as to ensure that the water or land is made available for recreational purposes and is so made available in the best manner. (6) It shall be the duty of a company holding an appointment as a relevant undertaker, in determining what steps to take in performance of any duty imposed by virtue of subsection (5) above, to take into account the needs of persons who are chronically sick or disabled. (7) The obligations under this section of a company holding an appointment as a relevant undertaker shall be enforceable under section 18 below by the Secretary of State. (8) Nothing in this section or the following provisions of this Act shall require recreational facilities made available by a relevant undertaker to be made available free of charge. (9) References in this section to the functions of a relevant undertaker shall be construed, without prejudice to section 156(7) below, as if those functions included the management, by a company holding an appointment as such an undertaker, of any land for the time being held by that company for any purpose whatever (whether or not connected with the carrying out of the functions of a relevant undertaker). (10) In this section “building” includes structure.
Propose a change(1) Where Natural England or the NRBW are of the opinion that any area of land in England or, as the case may be, in Wales— (a) is of special interest by reason of its flora, fauna or geological or physiographical features; and (b) may at any time be affected by schemes, works, operations or activities of a relevant undertaker, Natural England or (as the case may be) the NRBW shall notify the fact that the land is of special interest for that reason to every relevant undertaker whose works, operations or activities may affect the land. (2) Where a National Park authority or the Broads Authority is of the opinion that any area of land in a National Park or in the Broads— (a) is land in relation to which the matters for the purposes of which section 3 above has effect are of particular importance; and (b) may at any time be affected by schemes, works, operations or activities of a relevant undertaker, the National Park authority or Broads Authority shall notify the fact that the land is such land, and the reasons why those matters are of particular importance in relation to the land, to every relevant undertaker whose works, operations or activities may affect the land. (3) Where a relevant undertaker has received a notification under subsection (1) or (2) above with respect to any land, that undertaker shall consult the notifying body before carrying out any works, operations or activities which appear to that undertaker to be likely— (a) to destroy or damage any of the flora, fauna, or geological or physiographical features by reason of which the land is of special interest; or (b) significantly to prejudice anything the importance of which is one of the reasons why the matters mentioned in subsection (2) above are of particular importance in relation to that land. (4) Subsection (3) above shall not apply in relation to anything done in an emergency where particulars of what is done and of the emergency are notified to Natural England, the NRBW, the National Park authority in question or, as the case may be, the Broads Authority as soon as practicable after that thing is done. (5) The obligations under this section of a relevant undertaker shall be enforceable under section 18 below by the Secretary of State. (6) In this section— “the Broads” has the same meaning as in the Norfolk and Suffolk Broads Act 1988; . . . . . . and section 3(9) above shall apply, as it applies in relation to that section, for construing (in accordance with section 6 below) any references in this section to a relevant undertaker.
Propose a change(1) The Secretary of State may by order approve any code of practice issued (whether by him or by another person) for the purpose of— (a) giving practical guidance to relevant undertakers with respect to any of the matters for the purposes of which sections 3 and 4 above have effect; and (b) promoting what appear to him to be desirable practices by such undertakers with respect to those matters, and may at any time by such an order approve a modification of such a code or withdraw his approval of such a code or modification. (2) A contravention of a code of practice as for the time being approved under this section shall not of itself constitute a contravention of any requirement imposed by section 3 or 4 above or give rise to any criminal or civil liability; but the Secretary of State . . . shall . . . be under a duty to take into account whether there has been or is likely to be any such contravention in determining when and how he should exercise his powers in relation to any relevant undertaker by virtue of this Act, any of the other consolidation Acts or the Water Act 1989. (3) The power of the Secretary of State to make an order under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. (4) The Secretary of State shall not make an order under this section unless he has first consulted— (a) the Environment Agency and the NRBW; (b) Natural England ...; (c) the Historic Buildings and Monuments Commission for England; (d) the Sports Council and the Sports Council for Wales; and (e) such relevant undertakers and other persons as he considers it appropriate to consult. (5) In this section “the other consolidation Acts” means the Water Resources Act 1991, ... the Land Drainage Act 1991 and the Water Consolidation (Consequential Provisions) Act 1991.
Propose a change(1) Subject to the following provisions of this Chapter, a company may be appointed— (a) by the Secretary of State; or (b) with the consent of or in accordance with a general authorisation given by the Secretary of State, by the Authority, to be the water undertaker or sewerage undertaker for any area of England and Wales. (2) Without prejudice to the obligation of a company holding an appointment under this Chapter to comply with the conditions of its appointment, the appointment of a company to be the water undertaker or sewerage undertaker for any area shall have the effect, while the appointment remains in force— (a) of requiring the company to perform any duty imposed by or under any enactment on an undertaker of the relevant description (that is to say, a water undertaker or, as the case may be, sewerage undertaker); (b) of authorising the company, for the purposes of, or in connection with, the carrying out of any of the functions of an undertaker of the relevant description, to exercise any power conferred by or under any enactment on an undertaker of that description; (c) of requiring enactments and subordinate legislation authorising or requiring anything to be done in relation to an undertaker of the relevant description to be construed as authorising or requiring that thing to be done in relation to that company; and (d) of requiring other references in any enactment or subordinate legislation to an undertaker of the relevant description, or to the area of that undertaker, to be construed, so far as necessary for the purposes of, or in connection with, the carrying out by that company of the functions of an undertaker of that description, as references to that company or, as the case may be, to that area. (3) The appointment of a company to be a relevant undertaker shall be by service on the company of an instrument in writing containing the appointment and describing the area for which it is made. (4) A single instrument may contain the appointment of a company to be the sewerage undertaker for an area and the appointment of the same company to be the water undertaker for the whole or any part of that area or for an area which includes the whole or any part of that area. (5) A company shall not be appointed to be a water undertaker or a sewerage undertaker unless it is a limited company ... (5A) A company shall not be appointed to be a relevant undertaker if it is a water supply licensee or sewerage licensee. (6) As soon as practicable after making an appointment under this Chapter, the Secretary of State shall send a copy of the appointment to the Authority.
Propose a change(1) It shall be the duty of the Secretary of State to secure that such appointments are made under this Chapter as will ensure that for every area of England and Wales there is at all times both— (a) a company holding an appointment under this Chapter as water undertaker; and (b) whether or not the same company in relation to the whole or any part of that area, a company holding an appointment as sewerage undertaker. (2) Subject to the following provisions of this section— (a) the Secretary of State; and (b) with the consent of or in accordance with a general authorisation given by the Secretary of Statethe Authority, shall have power, by notice to a company holding an appointment under this Chapter, to terminate the appointment or to vary the area to which it relates. (3) The appointment of a company to be a water undertaker or sewerage undertaker shall not be terminated or otherwise cease to relate to or to any part of any area except with effect from the coming into force of such appointments and variations replacing that company as a relevant undertaker as secure either- (a) that another company becomes the water undertaker or, as the case may be, sewerage undertaker for that area or part or for an area that includes that area or part; or (b) that two or more companies each become the water undertaker or, as the case may be, sewerage undertaker for one of a number of different areas that together constitute or include that area or part. (4) An appointment or variation replacing a company as a relevant undertaker shall not be made in relation to the whole or any part of the area to which that company’s appointment as water undertaker or, as the case may be, sewerage undertaker relates except where— (a) that company consents to the appointment or variation; (b) the appointment or variation relates only to parts of that area none of the premises in which is served by that company; (bb) the appointment or variation relates only to parts of that area and the conditions mentioned in subsection (5) below are satisfied in relation to each of the premises in those parts which are served by that company; or (c) the appointment or variation is made in such circumstances as may be set out for the purposes of this paragraph in the conditions of that company’s appointment. (5) The conditions are that— (a) the premises are, or are likely to be, supplied with not less than the following quantity of water in any period of twelve months: (i) if the area of the relevant undertaker concerned is wholly or mainly in Wales, 250 megalitres; (ii) in all other cases, 50 megalitres ; and (b) the person who is the customer in relation to the premises consents in writing to the appointment or variation. (6) The Secretary of State may, after consulting the Authority, make regulations amending subsection (5)(a) above by substituting, for the quantity of water for the time being specified there, such smaller quantity as he considers appropriate.
Propose a change(1) An application for an appointment or variation replacing a company as a relevant undertaker shall be made in such manner as may be prescribed. (2) Within fourteen days after making an application under this section, the applicant shall— (a) serve notice of the application on— (i) the existing appointee, (ii) if the application relates to the replacement of a water undertaker whose area is wholly or mainly in England, the Chief Inspector of Drinking Water, (iii) if the application relates to the replacement of a water undertaker whose area is wholly or mainly in Wales, the Chief Inspector of Drinking Water for Wales if there is one, or the Chief Inspector of Drinking Water if section 86(1B)(b) applies, (iv) the appropriate agency, and (v) every local authority whose area includes the whole or any part of the area to which the application relates; and (b) publish a copy of the notice in such manner as may be prescribed. (3) Before making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State or the Authority shall give notice— (a) stating that it proposes to make the appointment or variation; (b) stating the reasons why it proposes to make the appointment or variation; and (c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed appointment or variation may be made. (4) A notice under subsection (3) above shall be given— (a) by publishing the notice in such manner as the Secretary of State or, as the case may be, the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the making of the proposed appointment or variation; and (b) by serving a copy of the notice on— (i) the existing appointee, (ii) if the proposed appointment or variation would replace a water undertaker whose area is wholly or mainly in England, the Chief Inspector of Drinking Water, (iii) if the proposed appointment or variation would replace a water undertaker whose area is wholly or mainly in Wales, the Chief Inspector of Drinking Water for Wales if there is one, or the Chief Inspector of Drinking Water if section 86(1B)(b) applies, (iv) the appropriate agency, and (v) every local authority whose area includes the whole or any part of the area to which the proposed appointment or variation relates. (5) As soon as practicable after making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State or the Authority shall— (a) serve a copy of the appointment or variation on the existing appointee; and (b) serve notice of the making of the appointment or variation on— (i) if the appointment or variation replaces a water undertaker whose area is wholly or mainly in England, the Chief Inspector of Drinking Water, (ii) if the appointment or variation replaces a water undertaker whose area is wholly or mainly in Wales, the Chief Inspector of Drinking Water for Wales if there is one, or the Chief Inspector of Drinking Water if section 86(1B)(b) applies, (iii) the appropriate agency, and (iv) every local authority whose area includes the whole or any part of the area to which the appointment or variation relates, and as soon as practicable after exercising any power to vary the area to which an appointment under this Chapter relates, the Secretary of State shall send a copy of the variation to the Authority. (6) In this section “the existing appointee”, in relation to an appointment or variation replacing a company as a relevant undertaker, means the company which is replaced in relation to the whole or any part of the area to which the appointment or variation relates or, where there is more than one such company, each of them. (6A) In this section “the appropriate agency”, in relation to the replacement of a relevant undertaker, means— (a) the Environment Agency, if the undertaker's area is wholly in England; (b) the NRBW, if the undertaker's area is wholly in Wales; (c) both the Environment Agency and the NRBW, if the undertaker's area is partly in England and partly in Wales. (7) The Secretary of State may by regulations impose such additional procedural requirements as he considers appropriate for any case where the conditions mentioned in section 7(5) above are required to be satisfied in relation to an application for an appointment or variation replacing a company as a relevant undertaker.
Propose a change(1) Before making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State or the Authority shall consider any representations or objections which have been duly made in pursuance of the notice under section 8(3) above and have not been withdrawn. (2) Before making an appointment or variation replacing a company as a relevant undertaker, the Secretary of State shall consult the Authority. (3) In determining whether to make an appointment or variation by virtue of section 7(4)(b) or (bb) above in relation to any part of an area, the Secretary of State or, as the case may be, the Authority shall have regard, in particular, to any arrangements made or expenditure incurred by the existing appointee for the purpose of enabling premises in that part of that area to be served by that appointee. (4) It shall be the duty of the Secretary of State or, as the case may be, of the Authority— (a) in making an appointment or variation replacing a company as a relevant undertaker; and (b) where it makes such an appointment or variation, in determining what provision is to be made with respect to the fixing by the new appointee of any water or drainage charges, to ensure, so far as may be consistent with its duties under Part I of this Act, that the interests of the members and creditors of the existing appointee are not unfairly prejudiced as respects the terms on which the new appointee could accept transfers of property, rights and liabilities from the existing appointee. (5) In this section— “existing appointee”, in relation to an appointment or variation replacing a company as a relevant undertaker in relation to any area or part of an area, means the company which is replaced by that appointment or variation; “new appointee”, in relation to such an appointment or variation, means the company which by virtue of the appointment or variation becomes a relevant undertaker for the area or part of an area in question; “water or drainage charges” means (a) charges in respect of any services provided in the course of the carrying out of the functions of a water undertaker or sewerage undertaker; or (b) amounts of any other description which such an undertaker is authorised by or under any enactment to require any person to pay.
Propose a change(1) Schedule 2 to this Act shall have effect for enabling provision to be made with respect to cases in which a company is replaced by another as a relevant undertaker by an appointment or variation under this Chapter. (2) Subsections (3) to (4) below apply where, by such an appointment or variation, one company (“the new undertaker”) is to replace another company as a relevant undertaker, but the appointment or variation has not come into force. (3) The following provisions of this Act shall (except where they are inapplicable to the kind of undertaker in question) apply in relation to the new undertaker as if the appointment or variation had come into force— (a) sections 18 to 24 and Schedule 3; (b) sections 32 to 35; (c) section 155 and Schedule 9; (d) sections 156, 158 to 161 and 163 to 167 and Schedule 11; (e) sections 168 to 171, 173, 174, 178 to 180 and Schedule 12; (f) sections 181 to 183 and Schedule 13; (g) sections 184 to 188 and Schedule 14; (h) sections 189 to 192, 197 to 200, 202, 203, 206, 208, 209, 211, 212 and 217. (3A) To the extent that charging rules issued under section 144ZA relate to charges imposed or security required by a relevant undertaker under section 185, those rules are to apply in relation to the new undertaker as if the appointment or variation had come into force. (4) Such of the conditions imposed on the new undertaker under section 11 below as the Authority may specify in a written notice given by it to the undertaker shall have effect, in relation to the operation of any provision mentioned in subsection (3) above before the appointment or variation comes into force, as if the appointment or variation had come into force. (5) The Secretary of State may by regulations amend subsection (3) above by adding to, removing or modifying references to provisions of this Act.
Propose a change(1) An appointment under this Chapter may include— (a) such conditions as appear to the Secretary of State or, as the case may be, the Authority to be requisite or expedient having regard to the duties imposed on him or it by Part I of this Act; (b) conditions for the purposes of section 7(4)(c) above; and (c) conditions requiring the rendering to the Secretary of State of a payment on the making of an appointment, or payments while such an appointment is in force, or both, of such amount or amounts as may be determined by or under the conditions. (2) Conditions may be included by virtue of subsection (1)(a) above in an appointment under this Chapter whether or not they are connected with the supply of water, the provision of sewerage services or the exercise or performance of any power or duty conferred or imposed by or under any enactment on water undertakers or sewerage undertakers. (3) Conditions included in an appointment under this Chapter may contain provision for the conditions to cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined by or under the conditions. (4) Any provision included by virtue of subsection (3) above in an appointment under this Chapter shall have effect in addition to the provision made by this Chapter with respect to the modification of the conditions of an appointment. (5) For the purposes of this Act where the same instrument contains an appointment of the same company to be both a water undertaker and a sewerage undertaker (whether or not for the same area), all the conditions included in that instrument by virtue of this section shall have effect, irrespective of their subject-matter, as conditions of both appointments. (6) Where an instrument of appointment has been served under subsection (3) of section 6 above on any company, the coming into force of the appointment for the purposes specified in subsection (2) of that section shall not be affected by any contravention of the requirements of this Act with respect to the provision contained by way of conditions of appointment in that instrument. (7) If the Secretary of State considers it appropriate to do so in consequence of any legal proceedings with respect to any such provision as is mentioned in subsection (6) above, he may by order made by statutory instrument direct that such conditions as may be specified in the order are to be treated as included in the appointment in question until there is an opportunity for the provision to which the proceedings relate to be replaced by virtue of any of the other provisions of this Chapter. (8) Any sums received by the Secretary of State in consequence of the provisions of any condition of an appointment under this Chapter shall be paid into the Consolidated Fund.
Propose a change(1) Without prejudice to the generality of paragraph (a) of section 11(1) above, conditions included in an appointment by virtue of that paragraph may— (a) require the appointed company to comply with any direction given by the Authority as to such matters as are specified in the appointment or are of a description so specified; and (b) require the appointed company, except in so far as the Authority consents to the company’s doing or not doing them, not to do or to do such things as are specified in the appointment or are of a description so specified. (2) Without prejudice as aforesaid, such conditions may provide for the reference to and determination by— (a) the Secretary of State or the Authority; or (b) on a reference by the Authority, the CMA, of such questions arising under the appointment and of such other matters, including (in the case of references to the CMA ) disputes as to determinations by the Authority, as are specified in the appointment or are of a description so specified. (3) Where any question or other matter falls to be determined by the CMA in pursuance of a provision contained in an appointment under this Chapter— (a) it shall be the duty of the Authority, on being required to do so by the company holding that appointment, to refer that question or matter to the CMA; and (b) it shall be the duty of the CMA to determine any question or other matter referred by virtue of paragraph (a) above in accordance with— (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (ii) the principles which apply, by virtue of Part I of this Act, in relation to determinations under this Chapter by the Authority. (3A) For the purposes of subsection (3) above, where— (a) the question or matter referred to the CMA concerns the review of a price control imposed on the company holding the appointment; and (b) the CMA is to decide to what extent it is reasonable to take into account in its determination costs incurred or borne by the company in connection with the reference, the CMA shall also have regard to the extent to which, in its view, its determination is likely to support the company’s (rather than the Authority's) claims in relation to the question or matter referred to it. (3B) Subsections (4) and (5) of section 14, and sections 14A and 14B, below apply to references to the CMA under this section as they apply to references under section 14. (3C) A report of the CMA on a reference under this section— (a) shall be made to the Authority; and (b) shall include definite conclusions on the questions or other matters comprised in the reference, together with such an account of their reasons for those conclusions as, in the opinion of the CMA , is expedient for facilitating a proper understanding of those questions or other matters and of their conclusions, and subsections (5) and (6) of section 15 below apply to such a report as they apply to a report on a reference under section 14. (3D) The functions of the CMA with respect to a reference under this section are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act 2002, as applied by subsection (3B) read with section 14B). (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) This section and sections 12B to 12I apply in relation to a company appointed under this Chapter whose area is wholly or mainly in England. (2) The Authority may make modifications of the conditions of the company’s appointment under this Chapter. (3) Before making any modifications under this section, the Authority must give notice— (a) stating that it proposes to make modifications, (b) setting out the proposed modifications and their effect, (c) stating the reasons why it proposes to make the modifications, and (d) specifying the time within which representations with respect to the proposed modifications may be made. (4) That time must not be less than 42 days from the date of publication of the notice. (5) A notice under subsection (3) must be given— (a) by publishing the notice in a way the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the modifications, and (b) by sending a copy of it to— (i) each company holding an appointment under this Chapter the conditions of which the Authority proposes to modify, (ii) any other company holding an appointment under this Chapter, any water supply licensee and any sewerage licensee, whose interests the Authority considers are likely to be materially affected by the modifications, (iii) the Secretary of State, (iv) any person whose functions are or include representing those within sub-paragraph (i) or (ii) in respect of interests of theirs that the Authority considers are likely to be materially affected by the modifications, and (v) the Consumer Council for Water. (6) The Authority must consider any representations which are duly made. (7) If, within the time specified under subsection (3)(d), the Secretary of State directs the Authority not to make a modification, the Authority must comply with the direction. (8) Subsections (9) to (11) apply where, having complied with subsections (3) to (6), the Authority decides to proceed with making modifications. (9) The Authority must— (a) publish the decision and the modifications in a way the Authority considers appropriate for bringing them to the attention of persons likely to be affected by the modifications, (b) state the effect of the modifications, (c) state how it has taken account of any representations duly made, and (d) state the reason for any differences between the modifications and those set out in the notice under subsection (3). (10) Each modification has effect from the date specified by the Authority in relation to that modification (subject to the giving of a direction under paragraph 2 of Schedule 2ZA). (11) The date specified may not be less than 56 days from publication of the decision to make the modification (except as provided in section 12B).
Propose a change(1) The date specified by virtue of section 12A(10) in relation to a modification under that section may be less than 56 days from the publication of the decision to make the modification if— (a) the Authority considers it necessary or expedient for the modification to have effect before the 56 days expire, and (b) the consultation condition is satisfied. (2) The consultation condition is that the notice under section 12A relating to the modification— (a) stated the date from which the Authority proposed that the modification should have effect, (b) stated the Authority’s reasons for proposing that the modification should have effect from a date less than 56 days from the decision to modify, and (c) explained why, in the Authority’s view, that would not have a material adverse effect on any person holding an appointment under this Chapter.
Propose a change(1) This section applies where under section 12A the Authority modifies the conditions of any appointment under this Chapter. (2) The Authority may make such incidental or consequential modifications of the conditions of any appointments as it considers necessary or expedient. (3) The modification of a condition of an appointment has effect subject to the giving of a direction under paragraph 2 of Schedule 2ZA in relation to the decision to which the modification relates.
Propose a change(1) An appeal lies to the CMA against a decision by the Authority to proceed with the modification under section 12A of a condition of an appointment under this Chapter. (2) An appeal may be brought under this section only by— (a) a company holding an appointment under this Chapter the conditions of which the Authority has decided to modify, (b) any other company holding an appointment under this Chapter, any water supply licensee or any sewerage licensee, whose interests are materially affected by the decision, (c) a person whose functions are or include representing those within paragraph (a) or (b) in respect of interests of theirs which are materially affected by the decision, or (d) the Consumer Council for Water. (3) The permission of the CMA is required for the bringing of an appeal under this section. (4) The CMA may refuse permission only on one of the following grounds— (a) in relation to an appeal brought by a company, water supply licensee or sewerage licensee within subsection (2)(b), that the interests of the company or licensee are not materially affected by the decision; (b) in relation to an appeal brought by a person within subsection (2)(c), that the interests of the person represented are not materially affected by the decision; (c) in relation to any appeal, that the appeal is brought for reasons that are trivial or vexatious, or has no reasonable prospect of success.
Propose a change(1) Schedule 2ZA makes provision about the procedure for appeals under section 12D. (2) Except where specified otherwise in that Schedule, the functions of the CMA with respect to an appeal under section 12D are to be carried out by a group constituted for that purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.
Propose a change(1) This section applies to an appeal brought under section 12D. (2) In determining an appeal, the CMA must have regard, to the same extent as is required of the Authority, to— (a) the Authority’s duties under section 2, and (b) the Authority’s strategic priorities and objectives as set out in a statement under section 2A. (3) In determining the appeal the CMA— (a) may have regard to any matter to which the Authority was not able to have regard in relation to the decision which is the subject of the appeal, but (b) must not, in the exercise of that power, have regard to any matter to which the Authority would not have been entitled to have regard in reaching its decision had it had the opportunity of doing so. (4) The CMA may allow the appeal only to the extent that it is satisfied that the decision appealed against was wrong on one or more of the following grounds— (a) that the Authority failed properly to have regard to any matter mentioned in subsection (2), (b) that the Authority failed to give appropriate weight to any matter mentioned in subsection (2), (c) that the decision was based, wholly or partly, on an error of fact, (d) that the modifications fail to achieve, in whole or in part, the effect stated by the Authority by virtue of section 12A(9)(b), (e) that the Authority did not follow the procedure required by sections 12A to 12C, or (f) that the decision was otherwise wrong in law. (5) To the extent that the CMA does not allow the appeal, it must confirm the decision appealed against.
Propose a change(1) Where the CMA allows an appeal under section 12D to any extent, it must do one or both of the following— (a) quash the decision (to the extent that the appeal is allowed); (b) remit the matter back to the Authority for reconsideration and determination in accordance with any directions given by the CMA. (2) A direction under subsection (1) must not require the Authority to do anything that it would not have power to do (apart from the direction). (3) The Authority must comply with a direction given to it under that subsection.
Propose a change(1) The CMA must determine an appeal within the period of 4 months beginning with the permission date, unless subsection (2) applies. (2) This subsection applies where— (a) the CMA has received representations on the timing of the determination from a party to the appeal, and (b) it is satisfied that there are special reasons why the determination cannot be made within the period specified in subsection (1). (3) Where subsection (2) applies, the CMA must determine an appeal within the period specified by it, not being longer than the period of 5 months beginning with the permission date. (4) Where subsection (2) applies, the CMA must also— (a) inform the parties to the appeal of the time limit for determining the appeal, and (b) publish that time limit in a way it considers appropriate to bring it to the attention of any other persons likely to be affected by the determination. (5) References in this section to the permission date are to the date on which the CMA gave permission to bring the appeal in accordance with section 12D(3). (6) In this section and in section 12I any reference to a party to an appeal is to be read in accordance with Schedule 2ZA.
Propose a change(1) A determination by the CMA on an appeal— (a) must be contained in an order made by the CMA; (b) must set out the reasons for the determination; (c) takes effect at the time specified in the order or determined in accordance with provision made in the order; (d) must be notified by the CMA to the parties to the appeal; (e) must be published by the CMA— (i) as soon as reasonably practicable after the determination is made; (ii) in a way the CMA considers appropriate to bring it to the attention of any person likely to be affected by it (other than a party to the appeal). (2) The CMA may exclude from publication any information it is satisfied is— (a) commercial information, the disclosure of which would, or in the CMA’s opinion might, significantly harm the legitimate business interests of an undertaking to which it relates, or (b) information relating to the private affairs of an individual, the disclosure of which would, or in the CMA’s opinion might, significantly harm the individual’s interests. (3) The Authority must take such steps as it considers requisite for it to comply with an order of the CMA under subsection (1)(a). (4) The steps must be taken— (a) if a time is specified in (or is to be determined in accordance with) the order, within that time; (b) in any other case, within a reasonable time. (5) Section 12C applies where a condition of a licence is modified in accordance with section 12G as it applies where a condition of a licence is modified under section 12A.
Propose a change(1) This section applies in relation to a company appointed under this Chapter whose area is wholly or mainly in England. (2) The Secretary of State may make modifications of the conditions of the company’s appointment so that they include conditions requiring or enabling the company— (a) to modify the charges it imposes on any persons to whom it provides services in the course of carrying out its functions so as to raise such amounts as may be determined by or under the conditions, and (b) to pay the amounts so raised to the Secretary of State for the purpose of making good any SAO loss. (3) In subsection (2) “SAO loss” means so much of any loss or expense— (a) which is incurred by the Secretary of State (whether before or after the coming into force of this section) in the giving of relevant financial assistance, and (b) which the Secretary of State does not expect (apart from the exercise of the powers under this section) to recover. (4) In subsection (3) “relevant financial assistance” means financial assistance of any description given under section 153 in connection with a special administration order made in respect of— (a) the company whose appointment is modified, or (b) any other company which holds or held an appointment under this Chapter and whose area is or was wholly or mainly in England. (5) Sums received by the Secretary of State by virtue of this section must be paid into the Consolidated Fund. (6) A condition of appointment included under subsection (2)(b) may require amounts to be held on trust pending their payment to the Secretary of State. (7) The reference in subsection (3)(a) to loss or expense incurred in the giving of relevant financial assistance includes loss or expense incurred as a result of, or otherwise in connection with, the giving of the assistance. (8) The power of the Secretary of State to modify under this section the conditions of a company’s appointment includes power to make such incidental or consequential modifications of the conditions of any appointments under this Chapter as the Secretary of State considers necessary or expedient.
Propose a change(1) Before making any modifications under section 12J, the Secretary of State must give notice— (a) stating that the Secretary of State proposes to make the modifications, (b) setting out the proposed modifications and their effect, (c) stating the reasons why the Secretary of State proposes to make the modifications, and (d) specifying the time within which representations with respect to the proposed modifications may be made. (2) That time must not be less than 42 days from the date of publication of the notice. (3) A notice under subsection (1) must be given— (a) by publishing the notice in a way the Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by the modifications, and (b) by sending a copy of it to— (i) each company holding an appointment under this Chapter the conditions of which the Secretary of State proposes to modify, (ii) any other company holding an appointment under this Chapter, any water supply licensee and any sewerage licensee, whose interests the Secretary of State considers are likely to be materially affected by the modifications, (iii) the Authority, (iv) any person whose functions are or include representing those within sub-paragraph (i) or (ii) in respect of interests of theirs that the Secretary of State considers are likely to be materially affected by the modifications, and (v) the Council. (4) The Secretary of State must consider any representations which are duly made. (5) If after complying with subsections (1) to (4) the Secretary of State decides to proceed with making the modifications, the Secretary of State must— (a) publish the decision and the modifications in a way the Secretary of State considers appropriate for bringing them to the attention of persons likely to be affected by the modifications, (b) state the effect of the modifications, (c) state how the Secretary of State has taken account of any representations duly made, and (d) state the reason for any differences between the modifications and those set out in the notice under subsection (1). (6) Each modification has effect from the date specified by the Secretary of State in relation to that modification. (7) The date specified may not be less than 56 days from publication of the decision to make the modification, unless— (a) the Secretary of State considers it necessary or expedient for the modification to have effect before the 56 days expire, and (b) the consultation condition is satisfied. (8) The consultation condition is that the notice under subsection (1) relating to the modification stated— (a) the date from which the Secretary of State proposed that the modification should have effect, (b) the Secretary of State’s reasons for proposing that the modification should have effect from a date less than 56 days from the decision to modify, and (c) why, in the Secretary of State’s view, that would not have a material adverse effect on any person holding an appointment under this Chapter.
Propose a change(A1) This section and sections 14 to 16B apply in relation to a company appointed under this Chapter whose area is wholly or mainly in Wales. (1) Subject to the following provisions of this section, the Authority may modify the conditions of a company’s appointment under this Chapter if the company consents to the modifications. (2) Before making modifications under this section, the Authority shall give notice— (a) stating that it proposes to make the modifications and setting out their effect; (b) stating the reasons why it proposes to make the modifications; and (c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made, and shall consider any representations or objections which are duly made and not withdrawn. (3) A notice under subsection (2) above shall be given— (a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and (b) by serving a copy of the notice on the company and on the Secretary of State. (4) The Authority shall not under this section make any modifications which the Secretary of State has, within the time specified in the notice under subsection (2) above, directed the Authority not to make. (5) The Secretary of State shall not give a direction under subsection (4) above in relation to any modification unless— (a) the modification is a modification of provision contained in the appointment for the purposes of section 7(4)(c) above; (b) the modification is a modification of a provision of the appointment which relates to the disposal of, or of interests or rights in or over, a company’s protected land and is stated in the appointment to be a provision which cannot be modified; or (c) it appears to the Secretary of State that the modification should be made, if at all, under section 16 below.
Propose a change(1) The Authority may make to the CMA a reference which is so framed as to require the CMA to investigate and report on the questions— (a) whether any matters which— (i) relate to the carrying out of any function which is a function of any company by virtue of an appointment of that company under this Chapter; and (ii) are specified in the reference, operate, or may be expected to operate, against the public interest; and (b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the conditions of the company’s appointment. (2) The Authority, at any time, by notice given to the CMA vary a reference under this section by— (a) adding to the matters specified in the reference; or (b) excluding from the reference some or all of the matters so specified; and on receipt of any such notice the CMA shall give effect to the variation. (3) The Authority may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the CMA in carrying out the investigation on the reference— (a) any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and (b) any modifications of the conditions of any appointment mentioned in the reference or variation by which, in his opinion, those effects could be remedied or prevented. (4) As soon as practicable after making a reference under this section or a variation of such a reference, the Authority shall— (a) serve a copy of the reference or variation on the company whose appointment is mentioned in the reference or variation; and (b) publish particulars of the reference or variation in such manner as it considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it. (5) It shall be the duty of the Authority, for the purpose of assisting the CMA in carrying out an investigation on a reference under this section or in carrying out functions under section 16A below, to give to the CMA — (a) any information in his possession which relates to matters falling within the scope of the investigation or the carrying out of those functions, and which is either— (i) requested by the CMA for that purpose; or (ii) information which, in its opinion, it would be appropriate for that purpose to give to the CMA without any such request; and (b) any other assistance which the CMA may require, and which it is within its power to give, in relation to any such matters; and the CMA, for the purpose of carrying out any such investigation or such functions, shall take account of any information given to them for that purpose under this subsection. (6) In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the CMA shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Authority by Part I of this Act. (6A) The functions of the CMA with respect to a reference under this section are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act 2002, as applied by sections 14B and 16B). (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) Every reference under section 14 above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made. (2) A report of the CMA on a reference under section 14 above shall not have effect (and no action shall be taken in relation to it under section 16 below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by The Authority under subsection (3) below. (3) The Authority may, if it has received representations on the subject from the CMA and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months. (4) No more than one extension is possible under subsection (3) above in relation to the same reference. (5) The Authority shall, in the case of an extension made by it under subsection (3) above— (a) publish that extension in such manner as it considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it; and (b) send a copy of what has been published by him under paragraph (a) above to the company whose appointment is mentioned in the reference.
Propose a change(1) The following sections of Part 3 of the Enterprise Act 2002 shall apply, as they had effect immediately before the relevant date and with the modifications mentioned in subsections (1A), (2) and (3) below, for the purposes of references under section 14 above as they applied immediately before that date for the purposes of references under that Part— (a) section 109 (attendance of witnesses and production of documents etc.); (b) section 110 (enforcement of powers under section 109: general); (c) section 111 (penalties); (d) section 112 (penalties: main procedural requirements); (e) section 113 (payments and interest by instalments); (f) section 114 (appeals in relation to penalties); (g) section 115 (recovery of penalties); and (h) section 116 (statement of policy). (1A) Section 109 shall, in its application by virtue of subsection (1) above, have effect as if— (a) for subsection (A1), there were substituted— (A1) For the purposes of this section, a permitted purpose is assisting the CMA in carrying out any functions exercisable by it in connection with a reference under section 14 of the Water Industry Act 1991. , and (b) subsection (8A) were omitted. (2) Section 110 shall, in its application by virtue of subsection (1) above, have effect as if— (a) subsection (2) were omitted; ... (aa) after subsection (3), there were inserted— (3A) No penalty shall be imposed by virtue of subsection (1) or (3) if more than 4 weeks have passed since the publication of the report of the CMA on the reference concerned; but this subsection shall not apply in relation to any variation or substitution of the penalty which is permitted by virtue of this Part. ; and (b) in subsection (9) the words from “or section” to “section 65(3))” were omitted. (3) Section 111(5)(b) shall, in its application by virtue of subsection (1) above, have effect as if for sub-paragraph (ii) there were substituted— (ii) if earlier, the day on which the report of the CMA on the reference concerned is made or, if no such report is made within the period permitted for that purpose, the latest day on which the report may be made within the permitted period. . (4) Provisions of Part 3 of the Enterprise Act 2002 which , immediately before the relevant date, had effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (1) above, have effect in relation to those sections as applied by virtue of that subsection as those provisions had effect immediately before that date. (5) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection. (6) In this section “the relevant date” means the date on which section 143 of the Digital Markets, Competition and Consumers Act 2024 came into force.
Propose a change(1) In making a report on a reference under section 14 above, the CMA — (a) shall include in the report definite conclusions on the questions comprised in the reference together with such an account of their reasons for those conclusions as, in their opinion, is expedient for facilitating a proper understanding of those questions and of their conclusions; (b) where they conclude that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have; and (c) where they conclude that any adverse effects so specified could be remedied or prevented by modifications of the conditions of a company’s appointment under this Chapter, shall specify in the report modifications by which those effects could be remedied or prevented. (1A) For the purposes of section 16 below, a conclusion contained in a report of the CMA is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted by the chair of the CMA for the purpose of carrying out the functions of the CMA with respect to the reference. (1B) If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 14 above as the conclusions of the CMA, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the CMA on a reference under section 14 above. (3A) In making any report on a reference under section 14 above the CMA must have regard to the following considerations before disclosing any information. (3B) The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the CMA thinks is contrary to the public interest. (3C) The second consideration is the need to exclude from disclosure (so far as practicable)— (a) commercial information whose disclosure the CMA thinks might significantly harm the legitimate business interests of the undertaking to which it relates, or (b) information relating to the private affairs of an individual whose disclosure the CMA thinks might significantly harm the individual’s interests. (3D) The third consideration is the extent to which the disclosure of the information mentioned in subsection (3C)(a) or (b) above is necessary for the purposes of the report. (4) A report of the CMA on a reference under section 14 above shall be made to the Authority. (5) Subject to subsection (6) below, the Authority— (a) shall, on receiving such a report, send a copy of it to the company to whose appointment under this Chapter the report relates and to the Secretary of State; and (b) shall, not less than fourteen days after that copy is received by the Secretary of State, publish another copy of that report in such manner as it considers appropriate for bringing the report to the attention of persons likely to be affected by it. (6) If it appears to the Secretary of State that the publication of any matter in such a report would be against the public interest or the commercial interests of any person, he may, before the end of the period of fourteen days mentioned in paragraph (b) of subsection (5) above, direct the Authority to exclude that matter from every copy of the report to be published by virtue of that paragraph; and the Director shall comply with any such direction.
Propose a change(1) Where a report of the CMA on a reference under section 14 above— (a) includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest; (b) specifies effects adverse to the public interest which those matters have or may be expected to have; (c) includes conclusions to the effect that those effects could be remedied or prevented by modifications of the conditions of a company’s appointment under this Chapter; and (d) specifies modifications by which those effects could be remedied or prevented, the Authority shall, subject to the following provisions of this section, make such modifications of the conditions of that appointment as appear to it requisite for the purpose of remedying or preventing the adverse effects specified in the report. (2) Before making modifications under this section, the Authority shall have regard to the modifications specified in the report. (3) Before making modifications under this section, the Authority shall give notice— (a) stating that he proposes to make the modifications and setting out their effect; (b) stating the reasons why he proposes to make the modifications; and (c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made, and shall consider any representations or objections which are duly made and not withdrawn. (4) A notice under subsection (3) above shall be given— (a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the modifications; and (b) by serving a copy of the notice on the company whose appointment it is proposed to modify. (4A) After considering any representations or objections made in response to proposals set out in a notice under subsection (3) above, the Authority shall give notice to the CMA— (a) setting out the modifications it proposes to make to remedy or prevent the adverse effects specified in the report; and (b) stating the reasons for making the modifications. (4B) The Authority shall include with the notice under subsection (4A) above a copy of any representations or objections received in relation to the notice under subsection (3) above. (4C) If the period of four weeks from the date on which the notice under subsection (4A) above is given elapses without a direction under section 16A(1)(a) below having been given to it, the Authority shall— (a) make the modifications set out in the notice; or (b) if a direction under section 16A(1)(b) below has been given, make the modifications which are not specified in the direction. (5) The Authority shall not under this section make any modification of any provisions of a company’s appointment under this Chapter which— (a) are contained in that appointment for the purposes of section 7(4)(c) above; or (b) being provisions relating to the disposal of, or of interests or rights in or over, a company’s protected land, are stated in the appointment to be provisions which cannot be modified.
Propose a change(1) The CMA may, within the period of four weeks after the date on which it is given a notice under section 16(4A) above, direct the Authority— (a) not to make the modifications set out in that notice; or (b) not to make such of the modifications as may be specified in the direction; and the Authority shall comply with any such direction. (2) The Secretary of State may, within the period of four weeks after the date on which the CMA is given a notice under section 16(4A) above and on the application of the CMA, direct that the period for giving a direction under subsection (1) above (and, accordingly, the period mentioned in section 16(4C) above) shall be extended by fourteen days. (3) The power to give a direction under subsection (1) above may only be exercised in respect of such of the modifications set out in the notice under section 16(4A)(a) above as appear to the CMA not to be the modifications which are requisite for the purpose of remedying or preventing all or any of the adverse effects specified in the report as effects which could be remedied or prevented by modifications. (4) If the CMA gives a direction under subsection (1) above, it— (a) shall give notice setting out the modifications proposed by the Authority, the terms of the direction and the reasons for giving it; and (b) shall itself make such modifications as appear to it to be requisite for the purpose of remedying or preventing— (i) if the direction was given under subsection (1)(a) above, the adverse effects specified in the report as effects which could be remedied or prevented by modifications; (ii) if the direction was given under subsection (1)(b) above, such of those adverse effects as are not remedied or prevented by the modifications made by the Authority under section 16(4C)(b) above. (5) In exercising its power under subsection (4)(b) above, the CMA shall have regard to the matters to which the Authority is required to have regard when determining the conditions of a company’s appointment. (6) Before making modifications under subsection (4)(b) above the CMA shall give notice— (a) stating that it proposes to make the modifications and setting them out; (b) stating the reason why it proposes to make them; (c) specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made, and shall consider any representations or objections which are duly made and not withdrawn. (7) A notice under subsection (4)(a) or (6) above shall be given— (a) by publishing the notice in such manner as the CMA considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the making of the modifications; and (b) by serving a copy on the Authority and the company whose conditions of appointment it is proposed should be modified. (8) The CMA may not make any modification under this section which the Authority could not make under section 16 above. (9) After making modifications under this section the CMA shall publish a notice stating that the modifications have been made and setting them out, with the reasons for making them. (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) For the purposes of the law relating to defamation, absolute privilege attaches to any notice under subsection (4)(a), (6) or (9) of section 16A above. (2) In giving any notice under subsection (4)(a) or (6) of section 16A above, or publishing any notice under subsection (9) of that section, the CMA must have regard to the following considerations before disclosing any information. (3) The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the CMA thinks is contrary to the public interest. (4) The second consideration is the need to exclude from disclosure (so far as practicable)— (a) commercial information whose disclosure the CMA thinks might significantly harm the legitimate business interests of the undertaking to which it relates; or (b) information relating to the private affairs of an individual whose disclosure the CMA thinks might significantly harm the individual’s interests. (5) The third consideration is the extent to which the disclosure of the information mentioned in subsection (4)(a) or (b) above is necessary for the purposes of the notice. (6) The following sections of Part 3 of the Enterprise Act 2002 shall apply, as they had effect immediately before the relevant date and with the modifications mentioned in subsections (6A), (7) and (8) below, for the purposes of any investigation by the CMA for the purposes of the exercise of its functions under section 16A above, as they applied immediately before that date for the purposes of any investigations on references under that Part— (a) section 109 (attendance of witnesses and production of documents etc); (b) section 110 (enforcement of powers under section 109: general); (c) section 111 (penalties); (d) section 112 (penalties: main procedural requirements); (e) section 113 (payments and interest by instalments); (f) section 114 (appeals in relation to penalties); (g) section 115 (recovery of penalties); and (h) section 116 (statement of policy). (6A) Section 109 shall, in its application by virtue of subsection (6) above, have effect as if— (a) for subsection (A1), there were substituted— (A1) For the purposes of this section, a permitted purpose is assisting the CMA in carrying out any functions exercisable by it in connection with an investigation for the purposes of the exercise of its functions under section 16A of the Water Industry Act 1991. , and (b) subsection (8A) were omitted. (7) Section 110 shall, in its application by virtue of subsection (6) above, have effect as if— (a) subsection (2) were omitted; (b) after subsection (3), there were inserted— (3A) No penalty shall be imposed by virtue of subsection (1) or (3) if more than 4 weeks have passed since the publication by the CMA of a notice under section 16A(9) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction has been given by the CMA under section 16A(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which it was possible to give such a direction within the permitted period; but this subsection shall not apply in relation to any variation or substitution of the penalty which is permitted by virtue of this Part. ; and (c) in subsection (9) the words from “or section” to “section 65(3))” were omitted. (8) Section 111(5)(b) shall, in its application by virtue of subsection (6) above, have effect as if for sub-paragraph (ii) there were substituted— (ii) if earlier, the day on which a notice is published by the CMA under section 16A(9) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction is given by the CMA under section 16A(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which such a direction may be given within the permitted period. (9) Provisions of Part 3 of the Enterprise Act 2002 which , immediately before the relevant date, had effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (6) above, have effect in relation to those sections as applied by virtue of that subsection as those provisions had effect immediately before that date. (10) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection. (11) In this section “the relevant date” means the date on which section 143 of the Digital Markets, Competition and Consumers Act 2024 came into force.
Propose a change(1) This section applies in relation to a company appointed under this Chapter whose area is wholly or mainly in Wales. (2) The Welsh Ministers may make modifications of the conditions of the company’s appointment so that they include conditions requiring or enabling the company— (a) to modify the charges it imposes on any persons to whom it provides services in the course of carrying out its functions so as to raise such amounts as may be determined by or under the conditions, and (b) to pay the amounts so raised to the Welsh Ministers for the purpose of making good any SAO loss. (3) In subsection (2) “SAO loss” means so much of any loss or expense— (a) which is incurred by the Welsh Ministers (whether before or after the coming into force of this section) in the giving of relevant financial assistance, and (b) which the Welsh Ministers do not expect (apart from the exercise of the powers under this section) to recover. (4) In subsection (3) “relevant financial assistance” means financial assistance of any description given under section 153 in connection with a special administration order made in respect of— (a) the company whose appointment is modified, or (b) any other company which holds or held an appointment under this Chapter and whose area is or was wholly or mainly in Wales. (5) A condition of appointment included under subsection (2)(b) may require amounts to be held on trust pending their payment to the Welsh Ministers. (6) The reference in subsection (3)(a) to loss or expense incurred in the giving of relevant financial assistance includes loss or expense incurred as a result of, or otherwise in connection with, the giving of the assistance. (7) The power of the Welsh Ministers to modify under this section the conditions of a company’s appointment includes power to make such incidental or consequential modifications of the conditions of any appointments under this Chapter as the Welsh Ministers consider necessary or expedient.
Propose a change(1) Before making any modifications under section 16C, the Welsh Ministers must give notice— (a) stating that they propose to make the modifications, (b) setting out the proposed modifications and their effect, (c) stating the reasons why they propose to make the modifications, and (d) specifying the time within which representations with respect to the proposed modifications may be made. (2) That time must not be less than 42 days from the date of publication of the notice. (3) A notice under subsection (1) must be given— (a) by publishing the notice in a way the Welsh Ministers consider appropriate for bringing it to the attention of persons likely to be affected by the modifications, and (b) by sending a copy of it to— (i) each company holding an appointment under this Chapter the conditions of which the Welsh Ministers propose to modify, (ii) any other company holding an appointment under this Chapter, any water supply licensee and any sewerage licensee, whose interests the Welsh Ministers consider are likely to be materially affected by the modifications, (iii) the Authority, (iv) any person whose functions are or include representing those within sub-paragraph (i) or (ii) in respect of interests of theirs that the Welsh Ministers consider are likely to be materially affected by the modifications, and (v) the Council. (4) The Welsh Ministers must consider any representations which are duly made. (5) If after complying with subsections (1) to (4) the Welsh Ministers decide to proceed with making the modifications, the Welsh Ministers must— (a) publish the decision and the modifications in a way they consider appropriate for bringing them to the attention of persons likely to be affected by the modifications, (b) state the effect of the modifications, (c) state how the Welsh Ministers have taken account of any representations duly made, and (d) state the reason for any differences between the modifications and those set out in the notice under subsection (1). (6) Each modification has effect from the date specified by the Welsh Ministers in relation to that modification. (7) The date specified may not be less than 56 days from publication of the decision to make the modification, unless— (a) the Welsh Ministers consider it necessary or expedient for the modification to have effect before the 56 days expire, and (b) the consultation condition is satisfied. (8) The consultation condition is that the notice under subsection (1) relating to the modification stated— (a) the date from which the Welsh Ministers proposed that the modification should have effect, (b) the Welsh Ministers’ reasons for proposing that the modification should have effect from a date less than 56 days from the decision to modify, and (c) why, in the Welsh Ministers’ view, that would not have a material adverse effect on any person holding an appointment under this Chapter.
Propose a change(1) Where the CMA or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may, subject to subsection (3), also provide for the modification of the conditions of a company’s appointment under this Chapter to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In subsection (1) above “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the 2002 Act where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was carried on by a relevant undertaker; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is carried on by a relevant undertaker; or (b) an order under section 160 or 161 of the 2002 Act where the feature, or combination of features, of the market or markets in the United Kingdom for goods or services which prevents, restricts or distorts competition is— (i) the structure or an aspect of the structure of a market for the supply of goods or services by a relevant undertaker; or (ii) the conduct of a relevant undertaker or of customers of a relevant undertaker. (3) No modification shall be made by virtue of this section of any provisions of a company’s appointment under this Chapter which— (a) are contained in that appointment for the purposes of section 7(4)(c) above; or (b) being provisions relating to the disposal of, or of interests or rights in or over, a company’s protected land, are stated in the appointment to be provisions which cannot be modified. (4) Expressions used in subsection (2) above and in Part 3 or (as the case may be) Part 4 of the 2002 Act have the same meanings in that subsection as in that Part.
Propose a change(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.
Propose a change(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.
Propose a change