(1) There shall be a body corporate to be known as the Consumer Council for Water (in this Act referred to as “the Council”) for the purpose of carrying out the functions of the Council under this Act.
(2) In Welsh the Council may be known as “Cyngor Defnyddwyr Dŵr”.
(3) The Council shall not be regarded as a servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.
(4) The Council shall establish such committees of the Council—
(a) as the Assembly may direct, for relevant undertakers whose areas are wholly or mainly in Wales; and
(b) as the Secretary of State may direct, for other relevant undertakers.
(5) A direction under subsection (4) above may provide for the allocation of each relevant undertaker to a committee specified in the direction.
(6) The power to give a direction under subsection (4) above may not be exercised after the end of the period of six months beginning with the commencement of section 35 of the Water Act 2003.
(7) After the end of the period mentioned in subsection (6) above the Council may (subject to paragraph 11 of Schedule 3A to this Act)—
(a) establish such committees for relevant undertakers as it considers appropriate; or
(b) alter the allocation of a relevant undertaker to a committee established under this section.
(8) The Council shall ensure that each relevant undertaker is allocated to a committee established under this section.
(9) A committee established under this section is referred to in this Act as a “regional committee”.
(10) The purposes of a regional committee shall be—
(a) the provision of advice and information to the Council on consumer matters affecting the areas of the relevant undertakers allocated to that committee;
(b) such other purposes as the Council may determine.
(11) The provisions of Schedule 3A to this Act (which makes further provision about the Council and regional committees) shall have effect.
(12) The Council shall exercise and perform its powers and duties in the manner which it considers is best calculated to contribute to the achievement of sustainable development.
(13) In this Chapter—
“consumers” includes both existing and future consumers;
“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; and
“consumer matter” means any matter connected with the interests of consumers.
27B Co-operation between Council and other authorities
(1) This section imposes duties on—
(a) the Authority and the Council;
(b) the Council and the Secretary of State; and
(c) the Council and the Assembly.
(2) It shall be the duty of the bodies mentioned in each paragraph of subsection (1) above to make arrangements with a view to securing—
(a) co-operation and the exchange of information between them; and
(b) the consistent treatment of matters which affect both of them.
(3) As soon as practicable after agreement is reached on any arrangements required by this section, the parties shall prepare a memorandum setting them out.
(4) Arrangements under this section shall be kept under review by the parties.
(5) As soon as practicable after agreement is reached on any changes to arrangements under this section, the parties shall revise their memorandum.
(6) Parties to arrangements required by this section shall send a copy of their memorandum, and any revised memorandum, to each other person mentioned in subsection (1) above who is not a party to the arrangements set out in the memorandum (or revised memorandum).
(7) The Secretary of State shall lay a copy of every memorandum or revised memorandum under this section before each House of Parliament.
(1) In considering the interests of consumers, the Council 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.
(2) For the purposes of subsection (1) 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 above is less than the quantity specified in that subsection.
The Council shall have the function of obtaining and keeping under review—
(a) information about consumer matters (including matters affecting consumers in different areas); and
(b) information about the views of consumers on such matters (including the views of consumers in different areas).
27E Provision of advice and information to public authorities
(1) The Council shall have the function of—
(a) making proposals, or providing advice and information, about consumer matters (including matters affecting consumers in different areas); and
(b) representing the views of consumers on such matters (including the views of consumers in different areas),
to public authorities, companies holding an appointment under Chapter 1 of this Part, water supply licensees, sewerage licensees and other persons whose activities may affect the interests of consumers.
(2) Subject to subsection (7) below, information which relates to the affairs of any particular individual or body of persons (corporate or unincorporate) shall not be disclosed in the exercise of the Council’s function under this section unless one or more of paragraphs (a) to (c) of subsection (3) below applies to the information.
(3) Information relating to a particular individual or body may be disclosed if—
(a) the individual or body has consented to the disclosure;
(b) it is information that is available to the public from some other source; or
(c) it is not information the disclosure of which would or might, in the opinion of the Council, seriously and prejudicially affect the interests of the individual or body.
(4) Before deciding to disclose any information relating to a particular individual or body in pursuance of subsection (3)(c) above, the Council shall—
(a) consult that individual or body; and
(b) have regard to any opinion expressed by the Authority as to the application of subsection (3)(c) above to the information or as to the desirability or otherwise of its disclosure;
and paragraph (b) applies whether the opinion is given in relation to the information itself or to information of a description which applies to that information.
(5) Subject to subsection (7) below, the Council shall not in the exercise of its function under this section disclose any information which it considers relates to any matter which is, or is likely to be, the subject of criminal proceedings.
(6) In considering whether information relates to any matter as mentioned in subsection (5) above, the Council shall have regard to any opinion expressed (whether in relation to the information itself or to information of a description which applies to that information) by the Secretary of State, the Assembly or the Director of Public Prosecutions.
(7) Subsections (2) to (5) above do not apply to a disclosure of information which is made to the Authority, the Secretary of State, the Assembly, the CMA or any other public authority.
(8) The disclosure by the Council of information in the exercise of its function under this section does not contravene section 206 below (restriction on disclosure of information).
(1) The Council has the function of providing information to consumers about consumer matters in such form as appears to the Council to be most useful to the recipients.
(2) That function may be exercised by—
(a) publishing information in any manner the Council thinks appropriate for the purpose of bringing it to the attention of those likely to be interested; or
(b) furnishing information to any consumer (whether in response to a request or otherwise).
(3) Information may only be disclosed in the exercise of that function if it is information that is available to members of the public from some other source.
(4) The Council shall maintain at least one office in each of England and Wales at which consumers may apply for information.
27G Power to publish information and advice about consumer matters
(1) If it appears to the Council that the publication of any advice and information about consumer matters (including information about the views of consumers on such matters) would promote the interests of consumers, the Council may publish that advice or information in such manner as it thinks fit.
(2) Information which relates to the affairs of any particular individual or body of persons (corporate or unincorporate) shall not be published in the exercise of the Council’s function under this section unless one or more of paragraphs (a) to (c) of subsection (3) below applies to the information.
(3) Information relating to a particular individual or body may be published if—
(a) the individual or body has consented to the publication;
(b) it is information that is available to the public from some other source; or
(c) it is not information the publication of which would or might, in the opinion of the Council, seriously and prejudicially affect the interests of the individual or body.
(4) Before deciding to publish any information relating to a particular individual or body in pursuance of subsection (3)(c) above, the Council shall—
(a) consult that individual or body; and
(b) have regard to any opinion expressed by the Authority as to the application of subsection (3)(c) above to the information or as to the desirability or otherwise of its publication;
and paragraph (b) applies whether the opinion is given in relation to the information itself or to information of a description which applies to that information.
(5) The Council shall not in the exercise of its function under this section publish any information which it considers relates to any matter which is, or is likely to be, the subject of criminal proceedings.
(6) In considering whether information relates to any matter as mentioned in subsection (5) above, the Council shall have regard to any opinion expressed (whether in relation to the information itself or to information of a description which applies to that information) by the Secretary of State, the Assembly or the Director of Public Prosecutions.
(7) The publication of information under this section does not contravene section 206 below (restriction on disclosure of information).
(1) The Council may direct—
(a) the Authority;
(b) a company holding an appointment under Chapter 1 of this Part; ...
(c) a water supply licensee, or,
(d) a sewerage licensee,
to supply to it, in such form as it may reasonably specify, such information specified or described in the direction as it may require for the purpose of exercising its functions.
(2) A body or person to whom a direction under this section is given shall, if the information specified or described in the direction is in its possession, comply with the direction as soon as reasonably practicable.
(3) Before giving a direction under this section and in specifying the form in which any information is to be supplied, the Council shall have regard to the desirability of minimising the costs, or any other detriment, to the body or person to whom the direction is given.
(4) If a body or person to whom a direction under this section is given fails to comply with the direction the body or person shall, if so required by the Council, give notice to the Council of the reasons for the failure.
(1) Subject to the following provisions of this section, the Council may publish a notice given to it under section 27H(4) above.
(2) Information which relates to the affairs of any particular individual or body of persons (corporate or unincorporate) shall not be published under subsection (1) above unless one or more of paragraphs (a) to (c) of subsection (3) below applies to the information.
(3) Information relating to a particular individual or body may be published if—
(a) that individual or body has consented to the publication;
(b) it is information that is available to the public from some other source; or
(c) it is not information the publication of which would or might, in the opinion of the Council, seriously and prejudicially affect the interests of the individual or body.
(4) Before deciding to publish any information relating to a particular individual or body in pursuance of subsection (3)(c) above, the Council shall—
(a) consult that individual or body; and
(b) have regard to any opinion expressed by the Authority as to the application of subsection (3)(c) above to the information or as to the desirability or otherwise of its publication;
and paragraph (b) applies whether the opinion is given in relation to the information itself or to information of a description which applies to that information.
(5) The Council shall not in the exercise of its function under this section publish any information which it considers relates to any matter which is, or is likely to be, the subject of criminal proceedings.
(6) In considering whether information relates to any matter as mentioned in subsection (5) above, the Council shall have regard to any opinion expressed (whether in relation to the information itself or to information of a description which applies to that information) by the Secretary of State, the Assembly or the Director of Public Prosecutions.
(7) The publication by the Council of information under this section does not contravene section 206 below (restriction on disclosure of information).
(1) Any of—
(a) the Authority;
(b) the Secretary of State; or
(c) the Assembly,
may direct the Council to supply to him or it, in such form as he or it may reasonably specify, such information specified or described in the direction as he or it may require for the purpose of exercising his or its functions.
(2) The Council shall, if the information specified or described in the direction is in its possession, comply with a direction under this section as soon as reasonably practicable.
(3) Where the Council fails to comply with a direction given under subsection (1) above it must give to the person who gave the direction notice of its reason for the failure, and that person may publish that notice in such manner as he considers appropriate.
(4) A person publishing a notice under this section shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where he considers that publication of that matter would or might seriously and prejudicially affect the interests of that individual or body.
(1) The Secretary of State may make regulations prescribing—
(a) descriptions of information which a person to whom a direction is given under section 27H or 27J above may refuse to supply; or
(b) circumstances in which such a person may refuse to comply with a direction given under either of those sections.
(2) The Council may, if no person is prescribed for the purpose under subsection (3) below, refer a failure by a company holding an appointment , a water supply licensee or a sewerage licensee to comply with a direction under section 27H above to the Authority.
(3) The Secretary of State may make regulations for the purpose of enabling a failure to comply with a direction under section 27H or 27J above to be referred by the person who gave the direction to such person (other than the Authority) as may be prescribed by the regulations.
(4) A person to whom such a failure is referred (whether under subsection (2) above or regulations under subsection (3) above) shall—
(a) consider any representations made by either party;
(b) determine whether the person failing to comply with the direction is entitled to refuse to do so, and, if not, order him to comply with the direction; and
(c) give notice of his determination and any order under paragraph (b), with reasons, to both parties.
(5) The duty of a company holding an appointment , a water supply licensee and a sewerage licensee to comply with an order under this section shall be enforceable by the Authority under section 18 above.
(6) A notice under subsection (4) above may be published by either party to the reference.
(7) Subsections (2) to (7) of section 27I above apply to the publication of a notice under this section as they apply to the publication of a notice given to the Council under section 27H(4) above.
(1) This section applies to a complaint which any person (“the complainant”) has against a relevant undertaker , a water supply licensee or a sewerage licensee in relation to any matter connected with the functions of that undertaker or the services provided by that water supply licensee or that sewerage licensee.
(2) Where a complaint to which this section applies (other than one appearing to the Council to be frivolous or vexatious) is referred to the Council by or on behalf of the complainant, the Council shall (subject to subsections (3) and (8) below) investigate the complaint for the purpose of determining whether it is appropriate to take any action under subsection (9) below.
(3) Where it appears to the Council that the complaint is one the Authority would be required to investigate under section 181 below, the Council shall, instead of investigating the matter to which it relates, refer the complaint to the Authority.
(4) Where it appears to the Council that the complaint relates to a matter in respect of which a function under section 18 or 22A above is or may be exercisable by any person, the Council shall (unless it considers that that person already has notice of the matter) refer the matter to that person.
(5) Where it appears to the Council that the complaint relates to a matter which constitutes or might constitute an offence, the Council shall refer the matter—
(a) to the Assembly, if the matter relates to a relevant undertaker whose area is wholly or mainly in Wales or to services provided—
(i) by a water supply licensee using the supply system of a water undertaker whose area is wholly or mainly in Wales, or
(ii) by a sewerage licensee using the supply system of a sewerage undertaker whose area is wholly or mainly in Wales; or
(b) to the Secretary of State, in any other case.
(6) Where it appears to the Council that the complaint relates to a matter which constitutes a dispute of a kind which can be referred to the Authority for determination under any provision of this Act, the Council shall, if the complainant consents, refer the matter to the Authority.
(7) A referral under subsection (6) above shall have effect for the purposes of section 30A below as if it were a referral by the complainant of a dispute for determination by the Authority.
(8) The Council is not required to investigate any matter if it appears to the Council that—
(a) it is unlikely that the complaint could be resolved by action taken by the relevant undertaker , the water supply licensee or the sewerage licensee;
(b) the relevant undertaker , the water supply licensee or the sewerage licensee has not been given a reasonable opportunity to deal with the complaint; or
(c) in a case mentioned in subsection (4) or (5) above or (where the complainant does not consent to the matter being referred to the Authority) subsection (6) above, it is inappropriate to do so.
(9) Where it appears to the Council to be appropriate to do so with a view to assisting in reaching a satisfactory resolution of a complaint referred to it under this section, the Council shall make representations on behalf of the complainant to the relevant undertaker , the water supply licensee or the sewerage licensee about anything to which the complaint relates.
(10) After investigating a complaint the Council may make a report to the Authority, the Secretary of State or the Assembly.
(11) A report under subsection (10) above may include information about—
(a) any representations made by the Council under subsection (9) above; and
(b) the response of the relevant undertaker or the licensed water supplier to the complaint or any such representations.
(12) No report under subsection (10) above or information about a complaint referred to the Council under this section, from which the complainant may be identified, shall be published or disclosed by the Council, the Authority, the Secretary of State or the Assembly in the exercise of any power under this Act without the consent of the complainant.
(13) Where a representation made to the Authority, the Secretary of State or the Assembly about any matter (other than a representation appearing to the person to whom it is made to be frivolous or vexatious) appears to that person—
(a) to be about a matter which is or amounts to a complaint to which this section applies (other than one which, in the case of the Authority, it is its duty to investigate under section 181 below); and
(b) to have been made by or on behalf of the complainant,
that person shall refer the matter to the Council.
(1) The Council may investigate any matter (not being a matter which it is its duty to investigate under this Part) which appears to it to be a matter relating to the interests of consumers.
(2) Before undertaking an investigation under this section the Council shall consult the Authority, the Secretary of State and the Assembly.
(3) Where the Council has investigated a matter under this section it may make a report on that matter to the Authority, the Secretary of State, the CMA, the Assembly or any other public authority whose functions appear to the Council to be exercisable in relation to that matter.
(4) Subject to subsection (5) below, the Council may—
(a) send a report on any matter investigated under this section to any person who appears to the Council to have an interest in that matter; and
(b) publish any such report in such manner as the Council thinks appropriate.
(5) Information which relates to the affairs of any particular individual or body of persons (corporate or unincorporate)—
(a) shall not be included in a report which is to be sent to any person under subsection (4)(a) above, unless one or more of paragraphs (a) to (c) of subsection (6) below applies; and
(b) shall be excluded from any such report which is to be published under subsection (4)(b) above, unless one or more of paragraphs (a) to (c) of subsection (7) below applies.
(6) Information relating to a particular individual or body may be included in a report to be sent under subsection (4)(a) above if—
(a) that individual or body has consented to the disclosure;
(b) it is information that is available to the public from some other source; or
(c) it is not information the disclosure of which would or might, in the opinion of the Council, seriously and prejudicially affect the interests of that individual or body.
(7) Information relating to a particular individual or body may be included in a report to be published under subsection (4)(b) above if—
(a) that individual or body has consented to the publication;
(b) it is information that is available to the public from some other source; or
(c) it is not information the publication of which would or might, in the opinion of the Council, seriously and prejudicially affect the interests of that individual or body.
(8) Before deciding to include in such a report any information relating to a particular individual or body in pursuance of subsection (6)(c) or (7)(c) above, the Council shall—
(a) consult that individual or body; and
(b) have regard to any opinion expressed by the Authority as to the application of subsection (6)(c) or (7)(c) above to the information or as to the desirability or otherwise of its inclusion in the report;
and paragraph (b) applies whether the opinion is given in relation to the information itself or to information of a description which applies to that information.
(9) The Council shall not include in any report to be sent under subsection (4)(a) above or published under subsection (4)(b) above any information which it considers relates to any matter which is, or is likely to be, the subject of criminal proceedings.
(10) In considering whether information relates to any matter as mentioned in subsection (9) above, the Council shall have regard to any opinion expressed (whether in relation to the information itself or to information of a description which applies to that information) by the Secretary of State, the Assembly or the Director of Public Prosecutions.
(1) It shall be the duty of the Authority to consult the Council in relation to the exercise of each of its functions, except where—
(a) the Council has indicated to the Authority (whether specifically or generally) that it does not wish to be consulted; or
(b) the Authority considers that it would be clearly inappropriate to consult the Council.
(2) That duty is in addition to any duty on the Authority to consult the Council which is provided for elsewhere.
Where the Authority is required by any provision of this Act to publish a notice or any other document, it shall send a copy of the document to the Council.
(1) In this section “relevant dispute” means a dispute which, by virtue of any provision of this Act, may be referred to the Authority for determination under this section.
(2) The practice and procedure to be followed in connection with the reference to the Authority of any relevant dispute shall be such as it considers appropriate.
(3) Where the Authority determines any dispute under this section it shall give its reasons for reaching its decision with respect to the dispute.
(4) On making a determination under this section the Authority may include such incidental, supplemental and consequential provision (including provision requiring either party to pay a sum in respect of the costs or expenses incurred by the Authority) as it considers appropriate.
(5) A determination under this section—
(a) shall be final; and
(b) shall be enforceable as if it were a judgment of the county court, in so far as it includes such provision as to costs or expenses as is mentioned in subsection (4) above.
(6) The Authority shall not determine any relevant dispute which is the subject of proceedings before, or with respect to which judgment has been given by, any court.
(7) In including in any determination under this section any provision as to costs or expenses, the Authority shall have regard to the conduct and means of the parties and any other relevant circumstances.
31 Functions of Authority with respect to competition.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The functions to which subsection (2A) below applies shall be concurrent functions of the Authority and the CMA.
(2A) This subsection applies to the functions of the CMA under Part 4 of the 2002 Act (other than sections 166 , 167C 171 and 174E) so far as those functions—
(a) are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and
(b) relate to commercial activities connected with the supply of water or the provision of sewerage services.
(3) The Authority shall be entitled to exercise, concurrently with the CMA, the functions of the CMA under the provisions of Part 1 of the Competition Act 1998 (other than sections 31D(1) to (6) , 35C, 38(1) to (6) , 40B(1) to (4) and 51), so far as relating to —
(a) agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,
(b) conduct of the kind mentioned in section 18(1) of that Act, or
(c) transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act),
which relate to commercial activities connected with the supply of water or securing a supply of water or with the provision or securing of sewerage services.
(4) So far as necessary for the purposes of, or in connection with, subsections (2) and (2A) above—
(a) references in Part 4 of the 2002 Act to the CMA (including references in provisions of that Act applied by that Part) shall be construed as including references to the Authority (except in sections 166 , 167C , 171 and 174E of that Act and in any other provision of that Act where the context otherwise requires);
(b) references in that Part to section 5 of the 2002 Act are to be construed as including references to section 27(1) and (2) of this Act.
(4ZA) Section 130A of the 2002 Act is to have effect in its application in relation to the Authority by virtue of subsections (2) and (2A)—
(a) as if for subsection (1) of that section there were substituted—
(1) Where the Water Services Regulation Authority—
(a) is proposing to carry out its functions under section 27(1) and (2) of the Water Industry Act 1991 in relation to a matter for the purposes mentioned in subsection (2), and
(b) considers that the matter is one in respect of which it would be appropriate for the Authority to exercise its powers under section 174 (investigation) in connection with deciding whether to make a reference under section 131,
the Authority must publish a notice under this section (referred to in this Part as a “market study notice”).
, and
(b) as if in subsection (2)(a) of that section, for “the acquisition or supply of goods or services of one or more than one description in the United Kingdom” there were substituted “commercial activities connected with the supply of water or the provision of sewerage services (within the meaning given by section 219(1) of the Water Industry Act 1991)”.
(4A) So far as necessary for the purposes of, or in connection with, the provisions of subsection (3) above, references in Part I of the Competition Act 1998 (including references in provisions of the Enterprise Act 2002 applied by that Part) to the CMA are to be read as including a reference to the Authority (except in sections 31D(1) to (6) , 35C, 38(1) to (6) , 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act and in any other provision of that Act where the context otherwise requires).
(5) Before the CMA or the Authority first exercises in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above, that person shall consult the other.
(6) Neither the CMA nor the Authority shall exercise in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above if functions which are so exercisable have been exercised in relation to that matter by the other.
(7) It shall be the duty of the Authority, for the purpose of assisting a CMA group in carrying out an investigation on a market investigation reference made by the Authority (under section 131 of the 2002 Act) by virtue of subsection (2) . . . above, to give to the group —
(a) any information which is in its possession and which relates to matters falling within the scope of the investigation, and which is either requested by the group for that purpose or is information which in its opinion it would be appropriate for that purpose to give to the group without any such request; and
(b) any other assistance which the group may require, and which it is within its power to give, in relation to any such matters;
and the group shall, for the purposes of carrying out any such investigation, take into account any information given to them for that purpose under this subsection.
(7A) In subsection (7) “CMA group” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.
(8) If any question arises as to whether subsection (2) or (3) above . . . applies to any particular case, that question shall be referred to and determined by the Secretary of State; and no objection shall be taken to anything done under—
(a) Part 4 of the 2002 Act; or
(b) Part I of the Competition Act 1998 (other than sections 31D(1) to (6) , 35C, 38(1) to (6) , 40B(1) to (4) and 51),
by or in relation to the Authority on the ground that it should have been done by or in relation to the CMA .
(8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) In making any decision, or otherwise taking action, for the purposes of any of its functions that—
(a) by virtue of this section, are functions exercisable concurrently with the CMA, and
(b) in the case of functions under the Competition Act 1998, are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,
the Authority must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.
32 Duty to refer merger of water or sewerage undertakings.
Subject to sections 33 and 33A below, it shall be the duty of the CMA to make a reference to its chair for the constitution of a group under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 if the CMA believes that it is or may be the case—
(a) that arrangements are in progress which, if carried into effect, will result in a merger of any two or more water enterprises; or
(b) that such a merger has taken place otherwise than as a result of the carrying into effect of arrangements that have been the subject of a reference by virtue of paragraph (a) above.
33 Exclusion of small mergers from duty to make reference.
(1) The CMA shall not make a merger reference under section 32 above in respect of any actual or prospective merger of two or more water enterprises if it appears to the CMA —
(a) that the value of the turnover of the water enterprise being taken over does not exceed or, as the case may be, would not exceed £10 million; or
(b) that the only water enterprises already belonging to the person making the take over are enterprises each of which has a turnover the value of which does not exceed or, as the case may be, would not exceed £10 million.
(2) For the purposes of subsection (1)(a) above, the value of the turnover of the water enterprise being taken over shall be determined by taking the total value of the turnover of the water enterprises ceasing to be distinct enterprises and deducting—
(a) the turnover of any water enterprise continuing to be carried on under the same ownership and control; or
(b) if there is no water enterprise continuing to be carried on under the same ownership and control, the turnover which, of all the turnovers concerned, is the turnover of the highest value.
(3) For the purposes of subsection (1)(b) above—
(a) every water enterprise ceasing to be a distinct enterprise and whose turnover is to be deducted by virtue of subsection (2)(a) or (b) above shall be treated as a water enterprise belonging to the person making the take over; and
(b) water enterprises shall be treated as separate enterprises so far as they are carried on by different companies holding appointments under Chapter 1 of this Part.
(4) For the purposes of this section the turnover of a water enterprise shall be determined in accordance with such provisions as may be specified in regulations made by the Secretary of State.
(5) Regulations under subsection (4) above may, in particular, make provision as to—
(a) the amounts which are, or which are not, to be treated as comprising an enterprise’s turnover; and
(b) the date or dates by reference to which an enterprise’s turnover is to be determined.
(6) Regulations under subsection (4) above may, in particular, make provision enabling the Secretary of State or the CMA to determine matters of a description specified in the regulations (including any of the matters mentioned in paragraphs (a) and (b) of subsection (5) above).
(6A) The CMA must—
(a) keep under review the conditions set out in subsection (1)(a) and (b), and
(b) from time to time advise the Secretary of State as to whether the conditions in subsection (1)(a) and (b), and the sums mentioned in those paragraphs, are still appropriate.
(7) The Secretary of State may by regulations amend subsection (1) above so as—
(a) to alter the sum for the time being mentioned in paragraph (a) of that subsection or otherwise to modify the condition set out in that paragraph; or
(b) to alter the sum for the time being mentioned in paragraph (b) of that subsection or otherwise to modify the condition set out in that paragraph.
(8) Regulations under subsection (7) above—
(a) shall not make any modifications in relation to mergers on or before the coming into force of the regulations; and
(b) may, in particular, include supplemental, consequential or transitional provision amending or repealing any provision of this section.
(9) References in this section to enterprises being carried on under the same ownership and control shall be construed in accordance with Part 3 of the 2002 Act.
(1) The CMA may decide not to make a merger reference under section 32 as regards a case falling within section 32(a) if it believes that—
(a) the arrangements concerned are not sufficiently far advanced, or are not sufficiently likely to proceed, to justify the making of a merger reference;
(b) the prospective merger is not likely to prejudice the ability of the Authority, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises; or
(c) the prospective merger is likely to prejudice that ability, but the prejudice in question is outweighed by relevant customer benefits relating to the merger.
(2) The CMA may decide not to make a merger reference under section 32 as regards a case falling within section 32(b) if it believes that—
(a) the merger has not prejudiced and is not likely to prejudice the ability of the Authority, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises; or
(b) the merger has prejudiced or is likely to prejudice that ability, but the prejudice in question is outweighed by relevant customer benefits relating to the merger.
(3) Before forming a view as to the matters in subsection (1)(b) or (c) or (2)(a) or (b), the CMA must—
(a) request the Authority to give an opinion under section 33B, and
(b) consider that opinion.
(4) The CMA may not make a merger reference under section 32 if—
(a) it is considering whether to accept an undertaking under section 33D instead of making such a reference; or
(b) it is prevented by section 74 of the Enterprise Act 2002 (effect of accepting an undertaking in lieu), in a case where that section as applied by paragraph 1 of Schedule 4ZA may have effect to prevent such a merger reference.
(5) In this section “relevant customer benefit” has the meaning given by paragraph 7 of Schedule 4ZA.
(1) Where the CMA makes a request under section 33A(3), the Authority must give its opinion on—
(a) whether and to what extent the actual or prospective merger has prejudiced or is likely to prejudice the Authority's ability, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises, and
(b) where it forms the view that the actual or prospective merger has prejudiced or is likely to prejudice that ability, whether the prejudice in question is outweighed by any relevant customer benefits relating to the merger.
(2) In forming an opinion on the matters in subsection (1), the Authority must apply the methods set out in the statement under section 33C that has effect when the request under section 33A(3) is made.
(3) In this section “relevant customer benefit” has the meaning given by paragraph 7 of Schedule 4ZA, except that references in paragraph 7 to what the CMA believes are to be read for the purposes of this section as references to what the Authority believes.
(1) The Authority must prepare and keep under review a statement of the methods to be applied in forming an opinion on the matters in section 33B(1).
(2) The statement must in particular set out—
(a) the criteria to be used for assessing the effect of any particular water enterprise ceasing to be a distinct enterprise on the Authority's ability, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises;
(b) the relative weight to be given to the criteria.
(3) Before preparing or altering the statement, the Authority must consult—
(a) the Secretary of State,
(b) the Welsh Ministers,
(c) the CMA, and
(d) relevant undertakers.
(4) The Authority must from time to time publish the statement as it has effect for the time being.
(1) If the CMA considers that it is under a duty to make a merger reference under section 32, it may instead of making such a reference accept undertakings to take such action as it thinks appropriate from such of the parties concerned in the actual or prospective merger as it considers appropriate.
(2) The power under subsection (1) is to be exercised for the purpose of remedying, mitigating or preventing the prejudicial effect on the Authority's ability, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises that the actual or prospective merger has had, may have had or may be likely to have.
(3) In forming a view for the purposes of subsection (1) as to whether it is under a duty to make a merger reference under section 32, the CMA—
(a) is to disregard the effect of section 33A(4)(a), but
(b) is to take into account the powers under section 33A(1) and (2) to decide not to make a merger reference.
(4) In proceeding under subsection (1), the CMA must, in particular, have regard to the need to achieve as comprehensive a solution as is reasonable and practicable to the prejudicial effect on the Authority's ability, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises.
(5) In proceeding under subsection (1), the CMA may, in particular, have regard to the effect of any action on any relevant customer benefits in relation to the actual or prospective merger.
(6) Before deciding whether or not to accept an undertaking under this section, the CMA must—
(a) request the Authority to give its opinion on the effect of the undertakings offered, and
(b) consider the Authority's opinion.
(7) Where the CMA makes a request under subsection (6), the Authority must give its opinion on the effect of the undertakings offered.
(8) An undertaking under this section—
(a) comes into force when accepted;
(b) may be varied or superseded by another undertaking under this section;
(c) may be released by the CMA.
(9) An undertaking under this section ceases to be in force if an order under section 75 or 76 of the Enterprise Act 2002 (powers to make an order where an undertaking is not fulfilled) is made, in a case where that provision of the Enterprise Act 2002 as applied by paragraph 1 of Schedule 4ZA may have effect in relation to such an undertaking.
(10) The CMA must consider any representations received by it in relation to varying or releasing an undertaking under this section as soon as reasonably practicable.
(11) In this section “relevant customer benefit” has the meaning given by paragraph 7 of Schedule 4ZA, except that references in paragraph 7 to what the CMA believes are to be read for the purposes of subsection (7) as references to what the Authority believes.
(1) In this Chapter (including Schedule 4ZA)—
“enterprise” has the same meaning as in Part 3 of the 2002 Act; and
“water enterprise” means an enterprise carried on by a relevant undertaker.
(2) References in this Chapter (including Schedule 4ZA), in relation to any two or more enterprises, to the merger of those enterprises are references to those enterprises ceasing, within the meaning of Part 3 of the 2002 Act, to be distinct enterprises; and sections 27 and 29 of that Act and any provision made under section 34 of that Act (time at which enterprises cease to be distinct) shall have effect for the purposes of this Chapter (including Schedule 4ZA) as they have effect for the purposes of that Part.
(3) Nothing in sections 32 to 34 above (including Schedule 4ZA) shall prejudice any power of the CMA or the Secretary of State, in a case in which, or to any extent to which, the CMA is not required to make a reference under section 32 above, to make a reference under Part 3 of the 2002 Act in respect of any actual or prospective merger of two or more water enterprises.
(4) Where two or more enterprises have merged or will merge as part of transactions or arrangements which also involve an actual or prospective merger of two or more water enterprises, Part 3 of the 2002 Act shall apply in relation to the actual or prospective merger of the enterprises concerned excluding the water enterprises; and references in that Part to the creation of a relevant merger situation shall be construed accordingly.
(5) Subject to subsections (3) and (4), Part 3 of the 2002 Act shall not apply in a case in which the CMA is required to make a reference under section 32 above except as applied by virtue of Schedule 4ZA.
(1) This section applies to any company holding an appointment under Chapter 1 of this Part.
(2) As soon as reasonably practicable after the end of each financial year of the company it must make a statement to the Authority—
(a) disclosing whether or not remuneration has been paid or become due during that financial year to the directors of the company as a result of arrangements falling within subsection (3) below; and
(b) where such remuneration has been paid or become due, describing the arrangements and the remuneration.
(3) Arrangements fall within this subsection if they are arrangements for linking the remuneration of the directors of the company to standards of performance in connection with the carrying out by the company of the functions of a relevant undertaker.
(4) A description under subsection (2)(b) above must include in particular—
(a) a statement of when the arrangements were made;
(b) a description of the standards of performance in question;
(c) an explanation of the means by which the standards of performance are assessed; and
(d) an explanation of how the remuneration was calculated.
(5) The statement required by subsection (2) above must also state—
(a) whether or not there are in force in respect of the financial year during which the statement is made arrangements falling within subsection (3) above; or
(b) if not, whether the company intends that such arrangements will be in force at some time during that financial year,
and if there are, or it is intended that there will be, such arrangements in force the statement must describe those arrangements.
(6) A description under subsection (5) above must—
(a) include in particular the matters listed in subsection (4)(a), (b) and (c) above; and
(b) where the arrangements described are different from any arrangements described under subsection (2)(b) above, state the likely effect of those differences on the remuneration of each director of the company.
(7) The statement required by subsection (2) above must be made to the Authority in such manner as may be required by the Authority.
(8) The statement required by subsection (2) above—
(a) must be published by the company making the statement in such manner as it reasonably considers will secure adequate publicity for it; and
(b) may be published by the Authority in such manner as it may consider appropriate.
(9) The duty of a company under this section applies in respect of any person who has at any time been a director of the company.
(10) In this section—
“remuneration” in relation to a director of a company—
means any form of payment, consideration or other benefit (including pension benefit), paid or due to or in respect of the director; and
includes remuneration in respect of any of his services while a director of the company;
“standards of performance”, in relation to any company, include any standards which are—
set by or under any conditions of the company’s appointment under Chapter 1 of this Part;
contained in or prescribed by regulations made under section 38(1)(b) or (2) or section 95(1)(b) or (2) below; or
set or agreed to by the company.
(11) Any requirement imposed by this section shall be treated as a statutory requirement enforceable under section 18 above by the Authority.
(1) The Authority may issue rules about the arrangements made by relevant undertakers for—
(a) the remuneration of their directors and other persons, and
(b) their governance.
(2) The Authority must exercise its power under subsection (1) to issue rules which achieve the following effects—
(a) prohibiting a relevant undertaker from giving to persons holding senior roles performance-related pay in respect of any financial year in which the undertaker has failed to meet specified standards;
(b) requiring a relevant undertaker—
(i) to appoint persons to hold senior roles only if they meet specified standards as to fitness and propriety or in respect of other matters, and
(ii) to prevent persons from continuing to hold senior roles if they fail to meet such standards;
(c) requiring a relevant undertaker to have arrangements in place for involving consumers in decisions of the undertaker that are likely to have a material impact on consumer matters.
(3) Rules made for the purposes of imposing the prohibition mentioned in subsection (2)(a) (“the pay prohibition”)—
(a) must include standards that relate to—
(i) consumer matters,
(ii) the environment,
(iii) the financial resilience of undertakers, and
(iv) the criminal liability of undertakers;
(b) may include standards in relation to any other matters that the Authority considers appropriate;
(c) may make provision designed to secure that performance-related pay that, if given by a relevant undertaker, would contravene the pay prohibition on the part of the undertaker, is not given by another person;
(d) may provide that any provision of an agreement (whether made before or after the issuing of the rules) is void to the extent that it contravenes the pay prohibition;
(e) may provide for a relevant undertaker to recover any payment made, or other property transferred, in breach of the pay prohibition.
(4) For the purposes of subsection (2)(a)—
(a) “performance-related pay” means any payment, consideration or other benefit (including pension benefit) the giving of which results from the meeting of any targets or performance standards on the part of the relevant undertaker or the person to whom such payment, consideration or benefit is given;
(b) the reference to giving performance-related pay to a person holding a senior role includes—
(i) giving such pay in respect of the person, and
(ii) giving such pay in respect of services provided by the person other than in that role.
(5) A person holds a “senior role” with a relevant undertaker for the purposes of subsection (2)(a) and (b) if the person—
(a) is a chief executive of the undertaker,
(b) is a director of the undertaker, or
(c) holds such other description of role with the undertaker as may be specified.
(6) Rules made for the purposes of subsection (2)(c) may include a requirement for persons representing the views of consumers to be members of a board, committee or panel of a relevant undertaker.
(7) If the Authority considers that a relevant undertaker is contravening the rules, the Authority may give the undertaker a direction to do, or not to do, a particular thing specified in the direction.
(8) It is the duty of a relevant undertaker to comply with a direction given under subsection (7), and this duty is enforceable by the Authority under section 18.
(9) Rules under this section may—
(a) make different provision for different relevant undertakers or descriptions of undertakers;
(b) make different provision for different purposes;
(c) make provision subject to exceptions.
(10) The Authority may from time to time—
(a) revise rules issued under this section, and
(b) issue the revised rules.
(11) Rules issued under this section (including as revised under subsection (10)) may apply to agreements made before the rules (or revised rules) come into effect.
(12) Nothing in subsection (2) limits other kinds of provision about remuneration and governance arrangements that may be contained in rules issued under subsection (1).
(13) In this section—
“chief executive”, in relation to a relevant undertaker, means an employee of the undertaker who, alone or jointly with one or more others, is responsible under the immediate authority of the board of directors for the conduct of the whole of the business of the undertaker;
“specified” means specified in rules under this section.
(1) Before issuing rules under section 35B, the Authority must—
(a) prepare a draft of the proposed rules, and
(b) consult the relevant persons about the draft.
(2) The relevant persons are—
(a) the Secretary of State;
(b) the Welsh Ministers;
(c) the Council;
(d) each relevant undertaker likely to be materially affected by the rules;
(e) a person whose functions are or include representing relevant undertakers in respect of interests of the undertakers that are likely to be materially affected by the rules;
(f) such other persons as the Authority considers appropriate.
(3) The Authority must specify the period within which relevant persons may make representations about the proposed rules.
(4) This section is subject to section 35D.
35D Rules under section 35B: minor or urgent variations
(1) This section applies if the Authority proposes to issue revised rules under section 35B and, in the view of the Authority, the revision or each of the revisions proposed to be made is—
(a) a revision for which consultation is unnecessary, or
(b) a revision that it is necessary or desirable to make without delay.
(2) Section 35C does not apply to the proposed revised rules.
(3) Once the Authority has issued the revised rules, it must give notice as soon as reasonably practicable of—
(a) the issuing of the revised rules, and
(b) as regards each revision contained in them, whether in the view of the Authority the revision falls within paragraph (a) or (b) of subsection (1).
(4) Notice under subsection (3) is to be given to the relevant persons mentioned in section 35C(2).
(5) Unless the Authority gives notice that a revision in revised rules is in the view of the Authority a revision falling within subsection (1)(a), the revision ceases to have effect at the end of the period of six months beginning with the day after that on which the revised rules are issued.
35E Authority to secure publication of financial overview
(1) The purpose of this section is that members of the public should have easy access to a concise, intelligible and up-to-date overview of the financial position of each relevant undertaker.
(2) A relevant undertaker’s “financial position” includes the amount and essential characteristics of the share capital and debt used to fund the operations of the undertaker.
(3) The overview should include significant changes that—
(a) took place in the period of 12 months before the publication of the overview, or
(b) are expected to take place in the period of 12 months following that publication,
provided that the changes have been publicly announced.
(4) The Authority must from time to time decide—
(a) what information should be included in the overview, and
(b) in what format it should be published,
in order to fulfil the purpose set out in subsection (1) (as read with subsection (3)).
(5) The Authority must secure that each relevant undertaker is required to publish at least once every year, in a prominent place on its website, an up-to-date overview that accords with what the Authority has decided under subsection (4).
(6) It must do so by—
(a) exercising its appointment powers, or
(b) issuing rules under this section.
(7) The Authority’s “appointment powers” are—
(a) its powers to impose and modify conditions of appointments under this Chapter, and
(b) anything it may do by virtue of such conditions with the result that a relevant undertaker is required to act in a certain way.
(8) Sections 35B(7) to (10), 35C and 35D apply in relation to rules under this section as they apply in relation to rules under section 35B.
(1) In this Part—
“the 1973 Act” means the Fair Trading Act 1973; and
“the 1980 Act” means the Competition Act 1980.
“the 2002 Act” means the Enterprise Act 2002;
(2) References in this Part to an appointment or variation replacing a company as a relevant undertaker are references to the following, that is to say—
(a) the appointment of a company to be the water undertaker or sewerage undertaker for any area which is or includes the whole or any part of any area for which another company already holds an appointment as water undertaker or, as the case may be, sewerage undertaker; or
(b) a variation by virtue of which the area for which a company holds an appointment under Chapter I of this Part is modified so as to include the whole or any part of an area for which another company already holds an appointment as water undertaker or, as the case may be, sewerage undertaker.
(3) For the purposes of this Part premises in a part of an area are served by a company holding an appointment under Chapter I of this Part—
(a) in relation to an appointment or variation by virtue of which that company would be replaced as the water undertaker for that part of that area, if those premises—
(i) are supplied with water by means of a connection with a distribution main of that company; or
(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
and
(b) in relation to an appointment or variation by virtue of which that company would be replaced as the sewerage undertaker for that part of that area, if those premises—
(i) are drained by means of a relevant sewer or drain ; or
(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In this section—
“distribution main” means a water main that is not a trunk main; and
“relevant sewer or drain”, in relation to any appointment or variation which would replace a company as a sewerage undertaker, means any of the following, that is to say—
a public sewer or lateral drain vested in that company;
a sewer or lateral drain in relation to which that company has made a declaration of vesting under section 102 below which has not yet taken effect;
a sewer or lateral drain in relation to which that company has entered into an agreement under section 104 below.
(1) The Minister may make regulations about the provision of infrastructure for the use of water undertakers or sewerage undertakers.
(2) The regulations may in particular—
(a) confer regulatory functions on the Authority;
(b) apply provisions of Part 2 with or without modification;
(c) make provision similar to a provision of Part 2.
(3) The regulations must specify the activities to which they apply; in particular, the regulations may—
(a) apply to designing, constructing, owning and operating infrastructure, and
(b) define “infrastructure”.
(4) The regulations—
(a) may make provision only in relation to projects or works that in the Minister's opinion are of a size or complexity that threatens the undertaker's ability to provide services for its customers, and
(b) in conferring powers, must restrict them to projects or works that, in the opinion of the person exercising the power, are of a size or complexity that threatens the undertaker's ability to provide services for its customers.
(5) Sections 36B to 36D and 36F specify other kinds of provision that the regulations may make; and in those sections “infrastructure project” means a project, or part of a project, in connection with any of the things specified in subsection (3)(a).
(1) Regulations under section 36A may—
(a) allow the Minister to specify one or more infrastructure projects which must be put out to tender;
(b) allow the Authority to specify one or more infrastructure projects which must be put out to tender;
(c) allow the Minister to delegate the power under paragraph (a) to the Authority.
(2) The regulations must prohibit a water undertaker or sewerage undertaker from undertaking an infrastructure project which is to be put out to tender in accordance with the regulations.
(3) But the regulations may permit or require a water or sewerage undertaker to undertake preparatory work of a specified kind or for a specified purpose.
(4) The regulations must make provision about the extent to which companies associated with a water undertaker or sewerage undertaker (as defined by the regulations) are permitted to bid in a tender process.
(5) The regulations must specify the procedure to be followed in a tender process; in particular, the regulations—
(a) may require the undertaker to consult the Authority or the Minister about the terms on which an infrastructure project is put out to tender;
(b) may specify factors to be taken into account in considering bids;
(c) must provide for the water or sewerage undertaker responsible for the tender process to determine which bid to accept (if any).
(1) Regulations under section 36A must specify criteria to be used by the Minister or the Authority in determining whether to exercise a power by virtue of section 36B(1).
(2) The regulations may—
(a) provide that the Authority must consult the Minister before exercising a power by virtue of section 36B(1);
(b) require the Authority to publish guidance to be followed by it in determining whether to exercise a power by virtue of section 36B(1).
(1) Regulations under section 36A may enable the Minister or the Authority to designate as an “infrastructure provider” a person who appears to the Minister or Authority to be wholly or partly responsible for an infrastructure project that was put out to tender in accordance with regulations by virtue of section 36B.
(2) The regulations may—
(a) confer powers and impose duties on designated infrastructure providers (including any power or duty that is the same as or similar to a power or duty conferred or imposed under or by virtue of this Act on water or sewerage undertakers),
(b) confer powers and impose duties on the Authority, the Minister or any other body with public functions (including any power or duty that is the same as or similar to a power or duty conferred or imposed under or by virtue of this Act in respect of water or sewerage undertakers),
(c) relieve water or sewerage undertakers of specified duties to a specified extent,
(d) provide for designation to be conditional,
(e) provide, or enable the provision of, limits (by reference to place, time or otherwise) on powers and duties conferred under paragraph (a),
(f) include provision about enforcement of powers, duties, conditions and limitations, and
(g) include provision for variation or revocation of designation.
(1) In this Part “the Minister” means—
(a) the Secretary of State, in relation to infrastructure which is provided or to be provided for the use of one or more English undertakers,
(b) the Welsh Ministers, in relation to infrastructure which is provided or to be provided for the use of one or more Welsh undertakers, and
(c) the Secretary of State and the Welsh Ministers acting jointly in relation to infrastructure which is provided or to be provided for the use of one or more English undertakers and one or more Welsh undertakers.
(2) In this section and section 36F—
(a) “an English undertaker” means a water undertaker or sewerage undertaker whose area is wholly or mainly in England, and
(b) “a Welsh undertaker” means a water undertaker or sewerage undertaker whose area is wholly or mainly in Wales.
(1) Regulations under section 36A may make provision about cross-border infrastructure projects.
(2) In this section “cross-border infrastructure project” means an infrastructure project which—
(a) relates to infrastructure in Wales which is for the use of an English undertaker, or
(b) relates to infrastructure in England which is for the use of a Welsh undertaker.
(3) Regulations made by the Secretary of State about cross-border infrastructure projects—
(a) may confer functions on the Welsh Ministers, and
(b) must require the Secretary of State or the Authority to consult the Welsh Ministers before exercising any power under section 36B(1) to specify projects which must be put out to tender.
(4) Regulations made by the Welsh Ministers about cross-border infrastructure projects—
(a) may confer functions on the Secretary of State, and
(b) must require the Welsh Ministers or the Authority to consult the Secretary of State before exercising any power under section 36B(1) to specify projects which must be put out to tender.
(1) Regulations under section 36A may not be made unless a draft has been laid before and approved by resolution of—
(a) each House of Parliament, in the case of regulations made by the Secretary of State,
(b) the National Assembly for Wales, in the case of regulations made by the Welsh Ministers, or
(c) each House of Parliament and the National Assembly for Wales, in the case of regulations made by the Secretary of State and the Welsh Ministers acting jointly.
(2) Before laying a draft under subsection (1) the Minister must consult persons who in the Minister's opinion represent interests likely to be affected by the regulations.
(3) Section 213 applies to regulations made by the Welsh Ministers under section 36A as it applies to regulations made by the Secretary of State.