Law

Water Act 2003

United Kingdom · statute

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In force since 2022-01-09, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 113 provisions
  1. Title and introductory text
  2. 1 Licences to abstract water
  3. 2 Restrictions on impounding
  4. 3 Existing impounding works
  5. 4 Existing impounding works: works notices
  6. 5 Rights of navigation, harbour and conservancy authorities
  7. 6 Rights to abstract small quantities
  8. 7 Rights to abstract for drainage purposes, etc
  9. 8 Amendments relating to section 7
  10. 9 Power to provide for further exemptions
  11. 10 Orders under section 33 of the WRA, etc
  12. 11 Who may apply for a licence
  13. 12 Abolition of combined licences
  14. 13 Applications: types of abstraction licence
  15. 14 Publication of application for licence
  16. 15 General consideration of licence applications
  17. 16 Protection from derogation
  18. 17 Protected rights
  19. 18 Register of certain protected rights
  20. 19 Form, contents and effect of licences
  21. 20 Limited extension of abstraction licence validity
  22. 21 Modification of licences
  23. 22 Proposals for modification at instance of Agency or Secretary of State
  24. 23 Transfer and apportionment of licences
  25. 24 Claims arising out of water abstraction
  26. 25 Compensation for modification of licence on direction of Secretary of State
  27. 26 Recovery of compensation from new licence-holder
  28. 27 Withdrawal of compensation for certain revocations and variations
  29. 28 Water resources management schemes: other abstractors
  30. 29 Water resources management schemes: referral to Secretary of State
  31. 30 Enforcement notices, and related procedures and offences
  32. 31 Bulk supplies
  33. 32 Visiting forces
  34. 33 Application of certain water resources provisions to this Act
  35. 34 Water Services Regulation Authority
  36. 35 Consumer Council for Water
  37. 36 Transfer to Authority and Council of functions, property etc
  38. 37 Conditions relating to costs of water regulation
  39. 38 Forward work programmes and annual reports
  40. 39 Objectives and duties under WIA
  41. 40 Guidance to Authority on social and environmental matters
  42. 41 Standards of performance in relation to water supply
  43. 42 Standards of performance in relation to sewerage services
  44. 43 General functions of the Council
  45. 44 Provision of information to the Council
  46. 45 Provision of statistical information to consumers etc
  47. 46 Consumer complaints
  48. 47 Investigations by the Council
  49. 48 Financial penalties
  50. 49 Enforcement of certain provisions
  51. 50 Links between directors' pay and standards of performance
  52. 51 Reasons for decisions
  53. 52 Co-operation between water regulators
  54. 53 Specialist members of the Competition Commission
  55. 54 Determination references under section 12 of the WIA
  56. 55 Conditions of appointments under the WIA
  57. 56 Licensing of other water suppliers
  58. 57 The Chief Inspector of Drinking Water and the Drinking Water Inspectorate
  59. 58 Fluoridation of water supplies
  60. 59 Charges for services provided with the help of an undertaker
  61. 60 Abstraction and impounding offences
  62. 61 Supplying water unfit for human consumption
  63. 62 Water resources management plans
  64. 63 Drought plans
  65. 64 Drought orders and drought permits: charges
  66. 65 Procedure at local inquiries
  67. 66 Revocation of local flood defence schemes
  68. 67 Membership of regional flood defence committees in Wales
  69. 68 Regional flood defence committees
  70. 69 Grants for drainage works and flood warning systems
  71. 70 Information
  72. 71 Extension of Environment Agency’s powers of entry
  73. 72 Efficient use of water resources
  74. 73 Border rivers
  75. 74 Environment Agency to be enforcement authority under the Reservoirs Act 1975
  76. 75 Extension of enforcement authority’s reserve powers
  77. 76 Service of documents
  78. 77 Flood plans: large raised reservoirs
  79. 78 National security
  80. 79 Offences
  81. 80 Crown application
  82. 81 Duty to encourage water conservation
  83. 82 Water conservation: requirements on relevant undertakers
  84. 83 Water conservation by public authorities
  85. 84 Fire hydrants
  86. 85 Control of water from coal mines
  87. 86 Contaminated land: pollution of controlled waters
  88. 87 Transfer of discharge consents
  89. 90 Water main requisitions: financial conditions
  90. 91 Water main requisitions: calculation of payments
  91. 92 Self-lay and adoption of water mains and service pipes
  92. 93 Requisition and adoption of sewers
  93. 94 Provision of public sewers otherwise than by requisition
  94. 95 Requisition of lateral drains
  95. 96 Adoption of lateral drains
  96. 97 Requisitioning and adoption of lateral drains: supplementary
  97. 98 Schemes for the adoption of sewers, lateral drains and sewage disposal works
  98. 99 Communication with public sewers
  99. 100 Devolution: Wales
  100. 101 Minor and consequential amendments and repeals
  101. 102 Specific transitional and transitory provisions
  102. 103 Powers to make further supplementary, consequential and transitional provision, etc
  103. 104 Regulations and orders
  104. 105 Interpretation, commencement, short title, and extent
  105. SCHEDULE 1 The Water Services Regulation Authority
  106. SCHEDULE 2 The Consumer Council for Water
  107. SCHEDULE 3 Further provisions about transfers of functions, property etc
  108. SCHEDULE 4 Licensing of water suppliers
  109. SCHEDULE 5 Powers of entry under the Coal Industry Act 1994
  110. SCHEDULE 6 Compulsory purchase under the Coal Industry Act 1994
  111. SCHEDULE 7 Minor and consequential amendments
  112. SCHEDULE 8 Minor and consequential amendments: licensing of water suppliers etc
  113. SCHEDULE 9 Repeals and revocation

Proposed changes to this act

No one has proposed a change to this act yet.

113 provisions

80 Crown application

After section 27 of the Reservoirs Act 1975 there is inserted— Crown application Crown application 27A (1) Subject to the provisions of this section, this Act binds the Crown. (2) No contravention by the Crown of any provision made by or under this Act shall make the Crown criminally liable; but the High Court may, on the application of the Environment Agency, declare unlawful any act or omission of the Crown which constitutes such a contravention. (3) Notwithstanding anything in subsection (2) above, the provisions of this Act shall apply to persons in the public service of the Crown as they apply to other persons. (4) If the Secretary of State certifies that it appears to him, as respects any Crown premises and any power of entry exercisable in relation to them specified in the certificate, that it is requisite or expedient that, in the interests of national security, the powers should not be exercisable in relation to those premises, those powers shall not be exercisable in relation to those premises. (5) Subject to subsection (4) above, the power conferred by section 17 above shall be exercisable in relation to land in which there is a Crown or Duchy interest only with the consent of the appropriate authority. (6) Nothing in this section shall be taken as in any way affecting Her Majesty in Her private capacity; and this subsection shall be construed as if section 38(3) of the Crown Proceedings Act 1947 (interpretation of references to Her Majesty in Her private capacity) were contained in this Act. (7) In this section— “the appropriate authority” has the same meaning as it has in Part 13 of the Town and Country Planning Act 1990 by virtue of section 293(2) of that Act; “Crown or Duchy interest” means an interest which belongs to Her Majesty in right of the Crown or of the Duchy of Lancaster, or to the Duchy of Cornwall, or belonging to a government department or held in trust for Her Majesty for the purposes of a government department; “Crown premises” means premises held by or on behalf of the Crown. (8) The provisions of subsection (3) of section 293 of the Town and Country Planning Act 1990 (questions relating to Crown application) as to the determination of questions shall apply for the purposes of this section.

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81 Duty to encourage water conservation

(1) The relevant authority must, where appropriate, take steps to encourage the conservation of water. (2) The relevant authority is— (a) the Secretary of State, in relation to England, (b) the Assembly, in relation to Wales. (3) After the period of three years beginning with the date on which this section comes into force, and after each succeeding period of three years, the Secretary of State must prepare a report about the steps taken by him under this section, and about any such steps which he proposes to take. (4) The Assembly may make an order requiring the preparation by it of corresponding reports, and such an order may make provision about when, or in relation to what periods, they are to be prepared. (5) Each such report must— (a) if prepared by the Secretary of State, be laid before Parliament, (b) if prepared by the Assembly, be laid before, and published by, the Assembly.

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82 Water conservation: requirements on relevant undertakers

In section 3(2)(a) of the WIA (environmental duties in relation to proposals relating to the functions of a relevant undertaker), after “special interest” there is inserted “ 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 ”.

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83 Water conservation by public authorities

(1) In exercising its functions and conducting its affairs, each public authority shall take into account, where relevant, the desirability of conserving water supplied or to be supplied to premises. (2) In subsection (1), “public authority” means any of the following— (a) a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975 (c. 26)), (b) a Government department, (c) the Assembly, (d) a local authority (within the meaning of section 270(1) of the Local Government Act 1972 (c. 70)), (e) a person holding an office— (i) under the Crown, (ii) created or continued in existence by a public general Act, or (iii) the remuneration in respect of which is paid out of money provided by Parliament, (f) a statutory undertaker (being any person who, by virtue of section 262 of the Town and Country Planning Act 1990 (c. 8) is or is deemed to be a statutory undertaker for any purpose), and (g) any other public body of any description.

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84 Fire hydrants

(1) After subsection (4) of section 57 of the WIA (duty to supply water etc for fire-fighting) there is inserted— (4A) Where a fire-hydrant is removed (other than at the request of the fire authority concerned) by a water undertaker in the course of carrying out works in relation to any of its water mains or other pipes, the cost of replacing the fire-hydrant shall be borne by the undertaker. (2) After subsection (4) of section 58 of the WIA (specially requested fire-hydrants) there is inserted— (4A) Where a specially requested fire-hydrant is removed (other than at the request of the owner or occupier of the factory or place of business in question) by a water undertaker in the course of carrying out works in relation to any of its water mains or other pipes, the cost of replacing the fire-hydrant shall be borne by the undertaker.

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85 Control of water from coal mines

(1) After section 4 of the Coal Industry Act 1994 (c. 21) there is inserted— Power of the Authority with respect to coal mine water discharge 4A (1) The Authority may take such action as it considers appropriate (if any) for the purpose of preventing, or mitigating the effect of, the discharge of water from a coal mine into or on to any land or into any controlled waters. (2) In this section and sections 4B and 4C below— (a) “controlled waters” has the meaning given by section 104 of the Water Resources Act 1991; and (b) references to coal mines are to coal mines vested in the Authority. Coal mine water discharge: powers of entry 4B (1) If the Authority is of the opinion that a discharge of water from a coal mine into or on to any land or into any controlled waters has caused, is causing or is likely to cause— (a) serious pollution of the environment; or (b) danger to life or health, the Authority may, for any purpose specified in subsection (2) below, in writing authorise a person to exercise, in accordance with the terms of the authorisation, any of the powers specified in subsection (3) below. (2) The purposes are— (a) to determine the extent of the pollution or of the danger, or the likelihood of serious pollution or such danger; (b) to determine whether, and, if so, how, the Authority should exercise its power under section 4A above; (c) to take action under that section. (3) The powers are— (a) to enter at any reasonable time (or, in an emergency, at any time and, if need be, using reasonable force) any premises which the authorised person has reason to believe it is necessary for him to enter; (b) to use a vehicle or a boat to do so; (c) on entering any premises by virtue of paragraph (a) above, to take with him— (i) any other person authorised by the Authority and, if the authorised person reasonably believes he is likely to be obstructed, a constable; and (ii) any equipment or materials needed for any purpose for which the power of entry is being exercised; (d) to make such examination and investigation as may in any circumstances be necessary; (e) to take such measurements and photographs and make such recordings as he considers necessary for the purpose of any examination or investigation under paragraph (d) above; (f) to take samples, or cause samples to be taken, of any articles or substances found in or on any premises which he has power to enter, and of the air or water or land in, on, or in the vicinity of, the premises; (g) to require any person to give him such facilities and assistance with respect to any matters or things within that person’s control or in relation to which that person has responsibilities as are necessary to enable the authorised person to exercise any of the powers conferred on him by this section. (4) The powers which are conferred in relation to any land by this section include power, for the purposes mentioned in subsection (2) above— (a) to carry out experimental borings or other works on those premises; and (b) to install, keep or maintain monitoring and other apparatus there. (5) Except in an emergency, in any case where it is proposed to enter any premises used for residential purposes, or to take heavy equipment on to any premises which are to be entered, any entry by virtue of this section shall only be effected— (a) after the expiration of at least seven days' notice of the proposed entry given to a person who appears to the authorised person in question to be in occupation of the premises in question; and (b) either— (i) with the consent of a person who is in occupation of those premises; or (ii) under the authority of a warrant by virtue of Schedule 1A to this Act. (6) Except in an emergency, where an authorised person proposes to enter any premises and— (a) entry has been refused and he reasonably believes that the use of force may be necessary to effect entry; or (b) he reasonably believes that entry is likely to be refused and that the use of force may be necessary to effect entry, any entry on to those premises by virtue of this section shall be effected only under the authority of a warrant by virtue of Schedule 1A to this Act. (7) In relation to any premises belonging to or used for the purposes of the United Kingdom Atomic Energy Authority, subsections (1) to (3) above shall have effect subject to section 6(3) of the Atomic Energy Authority Act 1954 (which restricts entry to such premises where they have been declared to be prohibited places for the purposes of the Official Secrets Act 1911). (8) Schedule 1A to this Act shall have effect with respect to the powers of entry and related powers which are conferred by this section. (9) In this section, “premises” includes any land, vehicle or vessel, and any plant which is designed to move or be moved (whether or not on roads). Coal mine water discharge: compulsory purchase of land 4C (1) The Authority may be authorised by the Secretary of State to purchase compulsorily any land anywhere in England and Wales where he is of the opinion that— (a) the purchase is required by the Authority for the purpose of preventing, or mitigating the effect of, a discharge of water from a coal mine; and (b) the discharge has caused, is causing or is likely to cause significant pollution of controlled waters or serious harm to human health. (2) The power of the Secretary of State under subsection (1) above shall include power— (a) to authorise the acquisition of interests in, and rights over, land by the creation of new interests and rights; and (b) by authorising the acquisition by the Authority of any rights over land which is to be or has been acquired by the Authority, to provide for the extinguishment of those rights. (3) Without prejudice to the generality of subsection (1) above, the land which the Authority may be authorised under that subsection to purchase compulsorily shall include land which is or will be required for the purpose of being given in exchange for, or for any right over, any other land which for the purposes of the Acquisition of Land Act 1981 is or forms part of a common, open space or a fuel or field garden allotment. (4) The Acquisition of Land Act 1981 shall apply to any compulsory purchase under subsection (1) above of any land by the Authority; and Schedule 3 to that Act shall apply to the compulsory acquisition under that subsection of rights by the creation of new rights. (5) Schedule 1B to this Act shall have effect for the purpose of modifying enactments relating to compensation and the provisions of the Compulsory Purchase Act 1965 in their application in relation to the compulsory acquisition under subsection (1) above of a right over land by the creation of a new right. (2) Schedules 5 and 6 (which respectively insert Schedules 1A and 1B into the Coal Industry Act 1994 (c. 21)) are to have effect. (3) In subsection (7) of section 68 of the Coal Industry Act 1994 (extent, etc), before paragraph (a) there is inserted— (za) sections 4A to 4C and Schedules 1A and 1B; .

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86 Contaminated land: pollution of controlled waters

(1) The Environmental Protection Act 1990 (c. 43) is amended as follows. (2) In section 78A (which contains provisions for the interpretation of Part 2A of the 1990 Act, relating to contaminated land)— (a) for subsection (2)(b) there is substituted— (b) significant pollution of controlled waters is being caused or there is a significant possibility of such pollution being caused; , (b) in subsection (5)— (i) in paragraph (a), after “harm” there is inserted “ or pollution of controlled waters ”, (ii) in paragraph (b), after “harm” there is inserted “ or of significant pollution of controlled waters ”, and (iii) paragraph (c) is omitted, (c) in subsection (6)— (i) in paragraph (a), after “systems” there is inserted “ , or of poisonous, noxious or polluting matter or solid waste matter ”, (ii) in paragraph (b), after “places” there is inserted “ or controlled waters, or different degrees of pollution ”, and (iii) after “significant harm” there is inserted “ or of significant pollution ”, (d) in subsection (7)(b)(i), before “pollution” there is inserted “ significant ”, (e) in subsection (8), for the words from “pollution” to the end there is substituted “ significant pollution of those waters is being caused or there is a significant possibility of such pollution being caused ”, and (f) in subsection (9), in paragraph (a) of the definition of “controlled waters”, after “1991” there is inserted “ except that “ground waters” does not include waters contained in underground strata but above the saturation zone ”. (3) In section 78C (identification and designation of special sites), in subsection (10)— (a) in paragraph (a)(ii), for “be, or would be likely to be, caused” there is substituted “ or might be caused ”, and (b) in paragraph (b), before “pollution” there is inserted “ significant ”. (4) In section 78E (duty of enforcing authority to require remediation of contaminated land), in subsection (4)(b), after “or” there is inserted “ of the ”. (5) In section 78K (liability in respect of contaminating substances which escape to other land), in each of subsections (3) and (4), for the words from “is being caused” to “likely to be caused” there is substituted “ , or significant pollution of controlled waters, is being caused, or there is a significant possibility of such harm or pollution being caused ”. (6) In section 78X (supplementary provisions relating to contaminated land)— (a) in subsection (1)— (i) for paragraph (b) there is substituted— (b) significant pollution of controlled waters is being caused or there is a significant possibility of such pollution being caused, , and (ii) for the words from “is being caused, or” to “likely to be caused” there is substituted “ , or significant pollution of controlled waters, is being caused, or there is a significant possibility of such harm or pollution being caused ”, and (b) in subsection (2), for the words from “is being caused” to “likely to be, caused” there is substituted “ , or significant pollution of controlled waters, is being caused, or there is a significant possibility of such harm or pollution being caused ”. (7) In section 78YB (interaction of Part 2A of the Environmental Protection Act 1990 (c. 43) with other enactments), in each of subsections (1)(b) and (2), before “pollution” there is inserted “ significant ”.

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87 Transfer of discharge consents

(1) Paragraph 11 of Schedule 10 to the WRA (transfer of discharge consents) is amended as follows. (2) In sub-paragraph (2), the words “, subject to sub-paragraph (4) below,” are omitted. (3) In sub-paragraph (3), the words “, subject to sub-paragraph (4) below,” are omitted. (4) Sub-paragraph (4) is omitted. (5) For sub-paragraph (6) there is substituted— (6) Where a consent under paragraph 3 or 6 above is to be transferred under sub-paragraph (1) above— (a) the person from whom and the person to whom the consent is to be transferred shall give joint notice to the Agency of the proposed transfer; (b) the notice may specify the date on which it is proposed that the transfer should take effect; (c) within twenty-one days beginning with the date of receipt of the notice duly given in accordance with sub-paragraph (6A) below, the Agency shall— (i) arrange to amend the consent by substituting the name of the transferee as holder of the consent; and (ii) serve notice on the transferor and the transferee that the amendment has been made; and (d) the transfer shall take effect from the later of— (i) the date on which the Agency amends the consent; and (ii) the date (if any) specified in the joint notice under paragraph (a) above. (6A) A joint notice under sub-paragraph (6)(a) above shall include such information as may be prescribed. (6B) If the person from whom the consent is to be transferred is a person in whom the consent has vested by virtue of sub-paragraph (2) or (3) above, a joint notice given under sub-paragraph (6)(a) above shall be of no effect unless the notice required by sub-paragraph (7) below has been given. (6C) A notice or other instrument given by or on behalf of the Agency pursuant to sub-paragraph (6) above shall not constitute an instrument signifying the consent of the Agency for the purposes of paragraph 8 above. (6) In sub-paragraph (9), the words “(6) or” are omitted.

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90 Water main requisitions: financial conditions

(1) Section 42 of the WIA (financial conditions of compliance with water main requisition) is amended as follows. (2) In subsection (2), for paragraph (a) there is substituted— (a) bind the person or persons mentioned in that subsection to pay to the undertaker either (at the election of such person or persons)— (i) in respect of each of the twelve years following the provision of the main, an amount not exceeding the relevant deficit (if any) for that year on that main; or (ii) following provision of the main, a single amount not exceeding the discounted aggregate deficit on that main; and . (3) In subsection (6), for the words from “shall be referred” to the end there is substituted “ may be referred to the Authority for determination under section 30A above by either party to the dispute. ”. (4) For subsection (7) there is substituted— (7) In this section “relevant deficit” and “discounted aggregate deficit” have the meanings given by sections 43 and 43A below, respectively. (5) The amendments made by subsections (2) to (4) of this section do not apply in respect of water main requisitions (as defined in section 43(9) of the WIA) for which notice has been served under section 41(1) of that Act before the commencement of the subsection in question.

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91 Water main requisitions: calculation of payments

(1) In section 43 of the WIA (calculation of “relevant deficit” for the purposes of section 42)— (a) in paragraph (b) of subsection (4), after “providing” there is inserted “ or procuring the provision of ”, (b) for subsection (5) there is substituted— (5) In subsection (4) above the reference to an earlier main, in relation to the new main, is a reference to any water main which— (a) has been provided in pursuance of a water main requisition; or (b) has been vested (by virtue of a declaration made under this Chapter) in the water undertaker, in the period of twelve years immediately before the provision of the new main. , (c) in subsection (8), in paragraph (b), for “that has already been provided” there is substituted “ in respect of which the conditions referred to in section 42(1) above have already been satisfied. ” (2) After section 43 of the WIA there is inserted— Calculation of “discounted aggregate deficit” for the purposes of section 42 43A (1) For the purposes of section 42 above the discounted aggregate deficit on a water main is the amount equal to the sum of the estimated relevant deficits for each of the twelve years following the provision of the main, in each case discounted in accordance with subsection (6) below. (2) The estimated relevant deficit for any year is the amount (if any) by which the estimated revenue in respect of the water main for that year would be exceeded by the annual borrowing costs of a loan of the amount required for the provision of that main. (3) Subsections (2) to (6), (8) and (9) of section 43 above (which relate to the annual borrowing costs of a loan of the amount required for the provision of a water main) shall apply for the purposes of this section as they apply for the purposes of that. (4) Any reference in this section to the estimated revenue in respect of a water main for any year— (a) in relation to premises expected to be connected with the main and supplied with water by a water undertaker, is a reference to so much of the aggregate of any charges expected to be payable to the undertaker for the provision of services in the course of that year as would represent charges— (i) imposed by the undertaker in relation to those premises, and (ii) reasonably attributable to the provision of a supply of water (whether or not for domestic purposes) to those premises by means of that main; and (b) in relation to premises expected to be connected with the main and supplied with water by a licensed water supplier, is a reference to so much of the aggregate of any charges expected to be made during the course of that year as would be— (i) payable by the supplier to the undertaker in respect of the duty under section 66A(2)(b), 66B(3)(b) or 66C(2)(b)(ii) below; and (ii) reasonably attributable to the use of that main for the purpose of the supplier’s supplying water to those premises. (5) For the purpose of calculating estimated revenue under subsection (4) above, a thing is expected to be the case if, at the time the calculation is made, it is reasonably likely to occur. (6) The estimated relevant deficit for a year mentioned in subsection (1) above shall be discounted in order to determine its net present value by applying such factor, and in accordance with such other provision, as may be determined by the Authority. (7) A determination made by the Authority for the purposes of subsection (6) above— (a) may be made in relation to the provision of a particular water main or in relation to the provision of water mains generally; and (b) may be revoked at any time except in relation to a water main in respect of which the conditions referred to in section 42(1) above have already been satisfied. (3) Section 44 of the WIA (determination of completion date and route for requisitioned main) is amended as follows— (a) in subsection (1), for paragraph (b) there is substituted— (b) the water undertaker has not, before the end of that period, so laid the water main to be provided as to enable (as the case may be)— (i) service pipes to premises in that locality; or (ii) a water main which is the subject of an agreement under section 51A below (“the self-laid main”), to connect with the main at the place or places determined under subsection (3) below. , (b) in paragraph (b) of subsection (2), for “an arbitrator” there is substituted “ the Authority ”, (c) in paragraph (b) of subsection (3)— (i) for “an arbitrator” there is substituted “ the Authority ”, (ii) after “in question” there is inserted “ , or (as the case may be) the self-laid main, ”, (d) for subsection (4) there is substituted— (4) A reference for the purposes of subsection (2) or (3) above may be made to the Authority for determination under section 30A above by either party to the dispute. , (e) in subsection (5)— (i) the words “for any locality” are omitted, (ii) for paragraph (b) there is substituted— (b) the day on which the place or places where (as the case may be)— (i) service pipes to premises in the locality in question; or (ii) the self-laid main, will connect with the main are determined under subsection (3) above. (4) The amendments made by subsections (1) to (3) of this section do not apply in respect of water main requisitions (as defined in section 43(9) of the WIA) for which notice has been served under section 41(1) of that Act before commencement of the subsection in question.

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92 Self-lay and adoption of water mains and service pipes

(1) After section 51 of the WIA there is inserted— Adoption of water mains and service pipes Agreements to adopt water main or service pipe at future date 51A (1) Subject to subsections (2) and (10) below, a water undertaker may agree with any person constructing or proposing to construct— (a) any water main; or (b) any service pipe, that, if the water main or service pipe is constructed in accordance with the terms of the agreement, the undertaker will, upon completion of the work, at some specified date or on the happening of some future event, declare the water main or (as the case may be) so much of the service pipe as the undertaker could otherwise, by virtue of sections 45 to 51 above, be required to lay, to be vested in that undertaker. (2) Subsection (1) above shall not apply in the case of water mains or service pipes which are to be used (in whole or in part) for the purpose of supplying water other than for domestic purposes, but— (a) nothing in this section shall prevent a water undertaker from agreeing apart from this section to declare any such water main or service pipe (or a part of it, as specified in the agreement) to be vested in the undertaker; and (b) such a declaration shall take effect as a declaration made under this Chapter. (3) A person constructing or proposing to construct a water main or a service pipe to which subsection (1) above applies may make an application in writing to a water undertaker requesting the undertaker to make an agreement under this section. (4) An application under subsection (3) above shall be accompanied and supplemented by all such information as the undertaker may reasonably require; but subject to subsection (5) below and without prejudice to the effect (if any) of any other contravention of the requirements of this section in relation to such an application, a failure to provide information in pursuance of the obligation to supplement such an application shall not invalidate the application. (5) Where— (a) a person who has made an application to a water undertaker under subsection (3) above has failed to comply with his obligation under this section to supplement that application with information required by the undertaker; and (b) that requirement was made by the undertaker at such a time before the end of the period within which the undertaker is required, by virtue of section 51B below, to respond to the application as gave that person a reasonable opportunity to provide the required information within that period, the undertaker may delay its response to the application until a reasonable time after the required information is provided. (6) In deciding whether or on what terms to grant an application under subsection (3) above, a water undertaker shall have regard in particular to any effect or potential effect on the quality of water supplies and to any increased danger to life or health which it considers may result. (7) The terms of an agreement under subsection (1) above relating to a water main may, in particular, include terms— (a) for the provision (at the expense of the person constructing or proposing to construct the water main) by— (i) that person; or (ii) the water undertaker, of such associated infrastructure at or downstream of the point of connection with the undertaker’s supply system as it is necessary to provide in consequence of incorporating the new water main into that system; (b) providing that, if the water main and the associated infrastructure are constructed in accordance with the terms of the agreement, the undertaker will, in addition to declaring the water main to be vested in it, declare the associated infrastructure to be so vested; (c) where the undertaker considers that the proposed main is, or is likely to be, needed for the provision of water supply services in addition to those for which the person is proposing to construct the main— (i) requiring that person to construct the main in a manner differing, as regards material or size of pipes, depth or otherwise, from the manner in which that person proposes, or could otherwise be required by the undertaker, to construct it; and (ii) providing for the repayment by the undertaker of any extra expense reasonably incurred by that person in complying with that requirement; (d) for the connection of the new water main to the undertaker’s existing supply system at the point or points specified in the agreement; (e) for any service pipes which the person constructing or proposing to construct the new water main proposes to connect to that main to be constructed in accordance with the terms of the agreement and, subject to that, to be vested in the undertaker at the same time as the main. (8) The terms of an agreement under subsection (1) above relating to a service pipe may, in particular, include terms— (a) for the connection of the new service pipe to the undertaker’s existing supply system at the point or points specified in the agreement; (b) for such requirements of the kind referred to in section 47(2) above as may be applicable to be complied with before connection takes place. (9) An agreement made under this section by a water undertaker shall be enforceable against the undertaker by the owner or occupier for the time being of any premises connected or to be connected with the water main or service pipe to which it relates. (10) A water undertaker shall not make an agreement under this section with respect to a water main or a service pipe situated within the area of another water undertaker, until either— (a) that other undertaker has consented in writing to the making of the agreement; or (b) the Secretary of State, on an application made to him, has dispensed with the necessity for such consent, either unconditionally or subject to such conditions as he may think fit to impose. Appeals with respect to adoption 51B (1) Subject to section 51A(5) above, a person constructing or proposing to construct a water main or service pipe may appeal to the Authority where the water undertaker— (a) has refused an application under section 51A above; (b) has offered to grant such an application on terms to which that person objects; or (c) has failed, before the end of two months from the making of such an application, either to refuse the application or to give notice to the applicant of the terms on which it is prepared to grant the application. (2) On the hearing of an appeal under this section, the Authority may— (a) uphold the refusal of the undertaker to grant the application or to modify the terms offered; or (b) on behalf of the undertaker, refuse the application or enter into any agreement into which the undertaker might have entered on the application. (3) Where the Authority makes an agreement under subsection (2)(b) above on behalf of a water undertaker, it may do so on such terms as it considers reasonable or, as the case may be, on the terms offered by the undertaker subject to such modifications as it considers appropriate for ensuring that the terms of the agreement are reasonable. (4) An agreement entered into on behalf of a water undertaker under subsection (2)(b) above shall be deemed, for the purposes of this Act, to have been entered into under section 51A above. (5) In deciding on an appeal 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 thinks fit, and any such provision as to costs or expenses shall be enforceable as if it were a judgment of a county court. Financial conditions of compliance 51C (1) This section applies where an agreement is, or is to be, entered into under section 51A above in relation to a water main (“the adopted main”) by, or on behalf of, a water undertaker and a person constructing or proposing to construct that water main. (2) Where this section applies, the water undertaker may, as a condition of the undertaker’s compliance with the agreement, require that person to pay to it the costs mentioned in subsection (3) below. (3) The costs are those reasonably incurred by the undertaker in connection with the adopted main equivalent to the costs referred to in section 43(4)(a) and (b) above, as if references there (and in section 43(5)) to the provision of the new main were references to the incorporation of the adopted main into the undertaker’s supply system. (4) For the purposes of any payment required to be made by virtue of subsection (2) above, the water undertaker may require the person to provide such security as it may reasonably request, and the provisions of subsections (4) and (5) of section 42 above shall apply to any security so required as they apply to security required under that section. (5) Where this section applies, the water undertaker shall pay to the person referred to in subsection (1) above, upon declaring the water main to be vested in the undertaker, a sum equal to the discounted offset amount. (6) For the purposes of subsection (5) above, the discounted offset amount is the sum of the estimated offsets for each of the twelve years following the vesting in the undertaker of the water main, in each case discounted in accordance with subsection (9) below. (7) The estimated offset for any year is the lesser of— (a) the estimated revenue (if any) in respect of the adopted main for that year; and (b) the annual borrowing costs of a loan of the amount required for the provision of that main. (8) The amounts referred to in paragraphs (a) and (b) of subsection (7) above shall be calculated in accordance with the provisions of subsections (3) to (5) of section 43A above as if the adopted main had been provided in pursuance of a water main requisition (as defined in section 43 above). (9) The estimated offset for a year shall be discounted in order to determine its net present value by applying such factor, and in accordance with such other provision, as may be determined by the Authority. (10) A determination made by the Authority for the purposes of subsection (9) above— (a) may be made in relation to a particular water main or in relation to water mains generally; and (b) may be revoked at any time except in relation to an adopted main in respect of which the agreement referred to in subsection (1) above has already been made. (11) Any dispute between the water undertaker and the other person as to the payments required to be made or the security required to be provided by virtue of this section may be referred to the Authority for determination under section 30A above by either party to the dispute. Prohibition on connection without adoption 51D (1) Where a person (other than a water undertaker) constructs a water main or service pipe which is to be used, in whole or in part, for supplying water for domestic or food production purposes, no water undertaker may permit that water main or service pipe to become connected with its supply system unless it vests (to the relevant extent) in a water undertaker. (2) In subsection (1) above, “the relevant extent” means the extent specified in the agreement for the vesting in the undertaker of the water main or service pipe in question. (3) The prohibition imposed on a water undertaker by subsection (1) above shall be enforceable under section 18 above by the Authority. Sections 51A to 51D: supplementary 51E (1) For the purposes of sections 51A to 51D above, the definition of “water main” in section 219(1) below shall be treated as if the words “not being a pipe for the time being vested in a person other than the undertaker” were omitted. (2) In sections 51A to 51C above, references to so much of the service pipe as the undertaker could otherwise, by virtue of sections 45 to 51 above, be required to lay shall be construed disregarding section 46(8) above. (3) In this Act, references to vesting or the making of a declaration of vesting with respect to a service pipe refer to so much of the service pipe as is specified for those purposes in the relevant vesting agreement. (2) In section 45 of the WIA (duty to make connections with main), after subsection (1) there is inserted— (1A) In relation to service pipes which do not belong to or fall to be laid by the undertaker— (a) subsection (1) above is subject to section 51D(1) below; and (b) any such service pipe which is to vest in the undertaker by virtue of an agreement under section 51A below shall be connected to one of the undertaker’s water mains subject to and in accordance with the terms of that agreement. (3) In section 47 of the WIA (conditions of connection with water main), in subsection (2), for sub-paragraph (i) of paragraph (d) there is substituted— (i) subject to section 51D(1) below, so much of the service pipe to the relevant premises as does not belong to, vest in or fall to be laid by the undertaker; and . (4) After subsection (2) of section 179 of the WIA (vesting of works in undertaker) there is inserted— (2A) In addition to the water mains and service pipes which vest in a water undertaker by virtue of subsection (1) above, every water main and so much of each service pipe with respect to which a declaration of vesting made by a water undertaker under Chapter 2 of Part 3 of this Act takes effect shall also vest in that undertaker. (5) After subsection (1) of section 198 of the WIA (maps of waterworks) there is inserted— (1A) Subject to subsection (4) below, it shall also be the duty of every water undertaker to keep records of the location and (in the case of a water main) other relevant particulars of— (a) every water main in relation to which a declaration of vesting has been made by the undertaker under Chapter 2 of Part 3 of this Act but has not taken effect; and (b) every water main which is the subject of any agreement to make such a declaration which has been entered into by (or on behalf of) the undertaker. (1B) For the purposes of this section the other relevant particulars of a water main are (in addition to its location) particulars of whether it is a water main in relation to which a declaration has been made under Chapter 2 of Part 3 of this Act or a water main which is the subject of an agreement to make such a declaration. ; and, in subsection (4) of that section, after “subsection (1)” there is inserted “ or (1A) ”. (6) In section 219 of the WIA (general interpretation), in subsection (1), in the definition of “service pipe”, after “below” there is inserted “ and to section 51E(3) above ”. (7) The amendments of the WIA made by this section do not apply in respect of any water main or service pipe the construction of which was begun before the coming into force of this section.

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93 Requisition and adoption of sewers

(1) In section 99 of the WIA (financial conditions of compliance with sewer requisition)— (a) in subsection (2), for paragraph (a) there is substituted— (a) bind the person or persons mentioned in that subsection to pay to the undertaker either (at the election of such person or persons)— (i) in respect of each of the twelve years following the provision of the sewer, an amount not exceeding the relevant deficit (if any) for that year on that sewer; or (ii) following provision of the sewer, a single amount not exceeding the discounted aggregate deficit on that sewer; and , (b) in subsection (6), for the words from “shall be referred” to the end there is substituted “ may be referred to the Authority for determination under section 30A above by either party to the dispute. ”, (c) for subsection (7) there is substituted— (7) In this section “relevant deficit” and “discounted aggregate deficit” have the meanings given by sections 100 and 100A below, respectively. (2) In section 100 of the WIA (calculation of “relevant deficit” for the purposes of section 99), in subsection (8), in paragraph (b), for “that has already been provided” there is substituted “ in respect of which the conditions referred to in section 99(1) above have already been satisfied. ”. (3) After section 100 of the WIA there is inserted— Calculation of “discounted aggregate deficit” for the purposes of section 99 100A (1) For the purposes of section 99 above the discounted aggregate deficit on a public sewer is the amount equal to the sum of the estimated relevant deficits for each of the twelve years following the provision of the sewer, in each case discounted in accordance with subsection (6) below. (2) The estimated relevant deficit for any year is the amount (if any) by which the estimated drainage charges payable for the use during that year of that sewer would be exceeded by the annual borrowing costs of a loan of the amount required for the provision of that sewer. (3) Subsections (2) to (6), (8) and (9) of section 100 above (which relate to the annual borrowing costs of a loan of the amount required for the provision of a public sewer) shall apply for the purposes of this section as they apply for the purposes of that section. (4) Any reference in this section to the estimated drainage charges payable for the use during any year of any sewer is a reference to so much of the aggregate of any charges expected to be payable to the sewerage undertaker for the provision of services in the course of that year as would represent charges— (a) imposed by the undertaker in relation to such of the premises with which the sewer is expected to be connected as are premises where there are buildings; and (b) reasonably attributable to the use of that sewer for the drainage for domestic sewerage purposes of those premises or to the disposal of effluent drained for any such purposes from those premises. (5) For the purposes of subsection (4) above, a thing is expected to be the case if, at the time the relevant calculation is made, it is reasonably likely to occur. (6) The estimated relevant deficit for a year mentioned in subsection (1) above shall be discounted in order to determine its net present value by applying such factor, and in accordance with such other provision, as may be determined by the Authority. (7) A determination made by the Authority for the purposes of subsection (6) above— (a) may be made in relation to the provision of a particular public sewer or in relation to the provision of public sewers generally; and (b) may be revoked at any time except in relation to a public sewer in respect of which the conditions referred to in section 99(1) above have already been satisfied. (4) The amendments made by subsections (1) to (3) of this section do not apply in respect of public sewer requisitions (as defined in section 100(9) of the WIA) for which notice has been served under section 98(1) of that Act before commencement of the subsection in question.

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94 Provision of public sewers otherwise than by requisition

In section 101A of the WIA (which imposes a duty on sewerage undertakers to provide sewers for certain premises whose drainage gives rise to adverse environmental effects), in subsection (2)— (a) in paragraph (a), the words from “each of which” to the end of the paragraph are omitted, and (b) in paragraph (c), “in respect of which the condition specified in paragraph (a) above is satisfied” is omitted.

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95 Requisition of lateral drains

(1) Section 98 of the WIA (duty to comply with sewer requisition) is amended as provided in subsections (2) to (5). (2) After subsection (1) there is inserted— (1A) It shall be the duty of a sewerage undertaker (in accordance with section 101 below) to provide a lateral drain to communicate with a public sewer and to be used for the drainage for domestic purposes of premises in its area if— (a) the undertaker is required to provide the lateral drain by a notice served on the undertaker by one or more of the persons who under subsection (2A) below are entitled to require the provision of the lateral drain; (b) the premises the drainage of which would be by means of that lateral drain are— (i) premises on which there are buildings; or (ii) premises on which there will be buildings when proposals made by any person for the erection of any buildings are carried out; and (c) the conditions specified in section 99 below are satisfied in relation to that requirement. (3) After subsection (2) there is inserted— (2A) Each of the following persons shall be entitled to require the provision of a lateral drain, that is to say— (a) the owner of the premises the drainage of which would be by means of that lateral drain; (b) the occupier of those premises; (c) any local authority within whose area those premises are situated; (d) where those premises are situated in a new town, within the meaning of the New Towns Act 1981— (i) the Commission for the New Towns; and (ii) the development corporation for the new town; and (e) where those premises are situated within an area designated as an urban development area under Part 16 of the Local Government, Planning and Land Act 1980, the urban development corporation. (4) In subsection (3)— (a) after “public sewer” there is inserted “ or, as the case may be, a lateral drain ”, (b) after “of the sewer” there is inserted “ or lateral drain ”. (5) In subsection (5)— (a) the words “in a particular locality” are omitted, (b) in paragraph (a), for “premises in that locality” there is substituted “ those premises ”, (c) in paragraph (b), for “premises in the locality” there is substituted “ those premises ”. (6) In section 99 of the WIA (financial conditions of compliance)— (a) in subsection (1)— (i) after “98(1)(c)” there is inserted “ or 98(1A)(c) ”, (ii) after “sewer”, in both places, there is inserted “ or (as the case may be) lateral drain ”, (iii) in paragraph (a), after “subsection (2)” there is inserted “ or, as the case may be, subsection (2A) ”, (b) after subsection (2) there is inserted— (2A) The undertakings which a sewerage undertaker may require for the purposes of subsection (1) above in respect of any lateral drain are undertakings which— (a) bind the person or persons mentioned in that subsection to pay to the undertaker, following provision of the lateral drain, on such terms as may be specified in the undertaking, an amount not exceeding the costs reasonably incurred in or in connection with the provision of the lateral drain; and (b) in the case of undertakings binding two or more persons, bind them either jointly and severally or with liability apportioned in such manner as they may agree. , (c) for subsection (3) there is substituted— (3) For the purposes of subsection (1)(b) above a person may be required to secure his undertakings in relation to the provision of a public sewer or, as the case may be, a lateral drain if— (a) it was by virtue of section 98(2)(a) or (b) or (as the case may be) section 98(2A)(a) or (b) above that he required, or joined in requiring, the provision of the sewer or drain; and (b) he is not a public authority. , (d) for paragraph (a) of subsection (5) there is substituted— (a) may be given or made in relation to the provision of a particular public sewer or (as the case may be) lateral drain, in relation to the provision of sewers or lateral drains of a particular description or in relation to the provision of public sewers or lateral drains generally; and . (7) For section 101 of the WIA (determination of completion date and route for requisitioned sewer) there is substituted— Determination of completion date and route for requisitioned sewer or lateral drain 101 (1) A sewerage undertaker shall not be in breach of a duty imposed by section 98 above in relation to any locality or (in the case of a lateral drain) in relation to any premises unless— (a) the period of six months beginning with the relevant day has expired; and (b) the sewerage undertaker has not, before the end of that period, so laid (as the case may be)— (i) the public sewer to be provided as to enable drains and private sewers to be used for the drainage of premises in the locality to communicate with the public sewer; or (ii) the lateral drain to be provided as to enable the drain to be used for the drainage of premises to communicate with a public sewer vested in that undertaker, at the place or places determined under subsection (3) below. (2) The period mentioned in subsection (1)(a) above may be extended— (a) by agreement between the undertaker and the person or persons who required the provision of the public sewer or, as the case may be, lateral drain; or (b) where there is a dispute as to whether the period should be extended, by the Authority on a reference under subsection (4) below. (3) The places mentioned in subsection (1)(b) above shall be— (a) such place or places as are determined by agreement between the sewerage undertaker and the person or persons who required the provision of the public sewer or, as the case may be, lateral drain; or (b) in default of agreement, such place or places as are determined by the Authority on a reference under subsection (4) below to be the place or places at which it is reasonable, in all the circumstances— (i) in relation to the provision of a public sewer, for drains or private sewers to be used for the drainage of premises in the locality in question to communicate with the public sewer; or (ii) in relation to the provision of a lateral drain— (a) for the lateral drain to communicate with a public sewer vested in the undertaker; and (b) for the remainder of the drain of which the lateral drain forms part to connect with the lateral drain. (4) A reference for the purposes of subsection (2) or (3) above may be made to the Authority for determination under section 30A above by either party to the dispute. (5) In this section “relevant day”, in relation to a requirement to provide a public sewer for any locality or, as the case may be, a lateral drain, means the day after whichever is the later of the following— (a) the day on which the conditions specified in section 99 above are satisfied in relation to the requirement; and (b) the day on which the place or places where (as the case may be)— (i) drains or private sewers to be used for the drainage of premises in that locality will communicate with the public sewer; or (ii) the lateral drain will communicate with a public sewer and the remainder of the drain will connect with the lateral drain, are determined under subsection (3) above. (8) The substitution, by subsection (7), of section 101 of the WIA does not apply in respect of requirements notified under section 98 of the WIA before subsection (7) comes into force. (9) After section 101A of the WIA there is inserted— Power to construct lateral drains following provision of public sewer 101B (1) Where a sewerage undertaker provides a public sewer pursuant to a duty to do so imposed on it by section 98 or section 101A above, the undertaker may, at the request of the person mentioned in subsection (2) below, also provide at the same time one or more lateral drains to be used for the drainage for domestic purposes of premises in its area and to communicate with that sewer. (2) A request under subsection (1) above may be made— (a) in the case of a public sewer to be provided under section 98 above, by the person who requires the provision of the sewer under that section; and (b) in the case of a public sewer to be provided under section 101A above, by the owner or occupier of any premises in respect of which the duty to provide the sewer arises under that section (but any request may only be for the provision of a lateral drain to his premises). (3) The person making a request under this section shall pay to the water undertaker, following provision of the lateral drain, the costs reasonably incurred in or in connection with providing that drain. (4) Any dispute between the sewerage undertaker and the person making a request under this section as to— (a) whether a lateral drain should be provided pursuant to the request; or (b) the costs reasonably incurred in the provision of a lateral drain, may be referred to the Authority for determination under section 30A above by either party to the dispute. (5) Any lateral drain provided pursuant to a request made to a sewerage undertaker under this section shall belong to the undertaker. (10) Section 101B of the WIA (as inserted by subsection (9)) does not apply in respect of a public sewer to be provided pursuant to— (a) a requirement notified under section 98 of that Act before the coming into force of subsection (9), or (b) a duty under section 101A of that Act which the sewerage undertaker had accepted, or the Environment Agency had determined, it was under before the coming into force of subsection (9).

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96 Adoption of lateral drains

(1) In section 102 of the WIA (adoption of sewers and disposal works)— (a) in subsection (1), the word “or” at the end of paragraph (a) is omitted and after that paragraph there is inserted— (aa) any lateral drain which communicates or is to communicate with a public sewer which— (i) is so situated or serves the whole or any part of that area; and (ii) is vested in that undertaker; or , (b) in subsection (2), after “sewer” in both places there is inserted “ , lateral drain ”, (c) in subsection (4), in paragraph (a), after “sewer” there is inserted “ , lateral drain ”, (d) in subsection (5)— (i) in paragraph (b), after “sewer” there is inserted “ or lateral drain ”, (ii) in paragraph (c), after “sewer” there is inserted “ or lateral drain ”, (iii) in paragraph (d), after “sewer” there is inserted “ , lateral drain ”, (e) in subsection (6), after “sewer” in both places there is inserted “ or lateral drain ”. (2) In section 103 of the WIA (adoption of cross-border sewers etc)— (a) in subsection (1), the word “or” at the end of paragraph (a) is omitted and after that paragraph there is inserted— (aa) any lateral drain which is situated within the area of another sewerage undertaker or which, though situated within its own area, communicates or is to communicate with a public sewer which is situated within or serves the whole or any part of the area of another sewerage undertaker; or , (b) for subsection (3) there is substituted— (3) Where— (a) a sewer (or part of a sewer) or a lateral drain is vested, or any sewage disposal works are vested, in a relevant body; and (b) in the case of a sewer, part of a sewer, lateral drain or works vested in railway undertakers or dock undertakers, the sewer, part or lateral drain in question is, or the works are, situated in or on land belonging to those undertakers and held or used by them for the purposes of their undertaking, a sewerage undertaker shall not make a declaration under section 102 above with respect to (as the case may be) the sewer, or part of it, or the lateral drain or the works, except on the application of the relevant body concerned. , (c) in subsection (4), in paragraph (a), after “sewer” there is inserted “ or lateral drain ”. (3) Sections 102 and 103 of the WIA (adoption of sewers etc), as amended by subsections (1) and (2) above, do not apply to any lateral drains (as mentioned in those sections) the construction of which was completed before the coming into force of subsections (1) and (2) above. (4) Section 104 of the WIA (agreements to adopt sewer etc at future date) is amended as follows— (a) for subsection (1) there is substituted— (1) Subject to subsection (7) and section 146(3) below, a sewerage undertaker may agree with— (a) any person constructing or proposing to construct— (i) any sewer; (ii) any drain which is intended to communicate with a public sewer vested in that undertaker; or (iii) any sewage disposal works; or (b) any person at whose expense the undertaker is, by virtue of an agreement under section 160 below, to carry out work in connection with the construction of such a drain or sewer, that, if the sewer, drain or sewage disposal works is or are constructed in accordance with the terms of the agreement, the undertaker will, upon completion of the work, at some specified date or on the happening of some future event, declare the sewer or such part of the drain as constitutes the lateral drain or the works (as the case may be) to be vested in that undertaker. , (b) in subsection (2), for “constructing or proposing to construct a sewer” there is substituted “ mentioned in paragraph (a) or (b) of subsection (1) above ”, (c) in subsection (5), after “sewer” there is inserted “ , lateral drain ”, (d) subsection (6) is omitted, (e) after subsection (6) there is inserted— (6A) Without limiting the terms which may be included in an agreement under this section, the terms of an agreement which relates to a drain may include in particular— (a) identification of that part of the drain which constitutes the lateral drain for the purposes of the agreement and, in particular, the point or points of connection between that part and the remainder of the drain; (b) a requirement for the installation of an inspection chamber, at the expense of the person with whom the sewerage undertaker is to make the agreement, at a place specified in the agreement; (c) provision, if the inspection chamber is constructed in accordance with the terms of the agreement, for the undertaker to declare that the inspection chamber be vested in the undertaker at the same time as the lateral drain; and (d) provision for the lateral drain, once vested in the undertaker, to communicate with a public sewer at the place or places specified in the agreement. , (f) for subsection (7) there is substituted— (7) A sewerage undertaker shall not make an agreement under this section with respect to— (a) a sewer, drain or sewage disposal works situated within the area of another sewerage undertaker; or (b) a drain which is intended to communicate with a sewer which— (i) is so situated; or (ii) is vested in another sewerage undertaker, until one of the conditions mentioned in subsection (8) below is satisfied. (8) The conditions are— (a) that other undertaker has consented to the making of the agreement; or (b) the Secretary of State, on an application made to him, has dispensed with the necessity for such consent, either unconditionally or subject to such conditions as he may think fit to impose. (5) In section 105 of the WIA (appeals with respect to adoption)— (a) in subsection (1), after “sewer” there is inserted “ , lateral drain ”, (b) in subsection (3), after “sewer” there is inserted “ , lateral drain ”.

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97 Requisitioning and adoption of lateral drains: supplementary

(1) The WIA is amended as follows. (2) In section 36 (interpretation of Part 2 of the WIA)— (a) in subsection (3)(b)(i), after “sewer” there is inserted “ or drain ”, (b) for the definition of “relevant sewer” in subsection (4) there is substituted— “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) a public sewer or lateral drain vested in that company; (b) 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; (c) a sewer or lateral drain in relation to which that company has entered into an agreement under section 104 below. (3) In section 94 (general duty to provide sewerage system), in paragraph (a) of subsection (1), after “those sewers” there is inserted “ and any lateral drains which belong to or vest in the undertaker ”. (4) In section 158 (powers to lay pipes in streets), for paragraph (b) of subsection (7) there is substituted— (b) in relation to a sewerage undertaker, as references to— (i) any sewer or disposal main; or (ii) in relation to the exercise of a power to lay a pipe under paragraph (a) of subsection (1) above or a power related to that power under paragraph (c) of that subsection, any lateral drain which the undertaker is to lay by virtue of section 98 or 101B above; or (iii) in relation to the exercise of any other power under subsection (1) above, any lateral drain which belongs to or is vested for the time being in the undertaker. (5) In section 159 (power to lay pipes in other land), in subsection (7), at the end there is added “ (reading references there to subsection (1) as references to subsection (1) of this section). ”. (6) In section 171 (entry for sewerage purposes), in subsection (3), for “a private drain or sewer” there is substituted “ a drain or private sewer ”. (7) In section 179 (vesting of works in undertaker)— (a) in paragraph (a) of subsection (2), after “sewer” there is inserted “ , lateral drain ”, (b) in subsection (7), in paragraph (b) of the definition of “relevant pipe”, after “sewer” there is inserted “ , lateral drain ”. (8) In section 199 (sewer maps), in subsection (1)— (a) in paragraph (a), after “sewer” there is inserted “ , lateral drain ”, (b) in paragraph (b), after “sewer” there is inserted “ or lateral drain ”. (9) In section 219 (general interpretation)— (a) in subsection (1), after the definition of “inland waters” there is inserted— “lateral drain” means— (a) that part of a drain which runs from the curtilage of a building (or buildings or yards within the same curtilage) to the sewer with which the drain communicates or is to communicate; or (b) (if different and the context so requires) the part of a drain identified in a declaration of vesting made under section 102 above or in an agreement made under section 104 above; , (b) in subsection (3), after “sewer,” there is inserted “ lateral drain, ”. (10) In Schedule 12 (compensation etc in respect of pipe-laying and other works powers), in sub-paragraph (5) of paragraph 4, after “sewer” there is inserted “ , lateral drain ”.

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98 Schemes for the adoption of sewers, lateral drains and sewage disposal works

After section 105 of the WIA there is inserted— Schemes for the adoption of sewers, lateral drains and sewage disposal works 105A (1) The Secretary of State may by regulations provide for him to make schemes for the adoption by sewerage undertakers of sewers, lateral drains and sewage disposal works of the descriptions set out in paragraphs (a), (aa) and (b) of section 102(1) above. (2) The regulations may require sewerage undertakers to prepare draft schemes and to submit them to the Secretary of State. (3) Each scheme shall relate to— (a) the area of a sewerage undertaker, or part or parts of it; or (b) the areas of more than one sewerage undertaker, or part or parts of them. (4) It shall be the duty of a sewerage undertaker, in specified circumstances, to exercise its powers under section 102 above with a view to making the declaration referred to in subsection (1) of that section in relation to sewers, lateral drains or sewage disposal works which— (a) fall within the area to which a scheme relates; and (b) satisfy specified criteria. (5) The circumstances and the criteria shall each be— (a) specified in the regulations; or (b) determined in accordance with the regulations and specified in the scheme. (6) In relation to the exercise of those powers pursuant to that duty— (a) section 102 above shall have effect— (i) with the omission of subsections (2), (5) and (7); (ii) as if in subsection (1) the words “sections 103, 105 and 146(3) below” read “section 105B below”; (iii) with the omission of the words “or application” in subsection (3); (iv) as if for subsection (4)(a) there were substituted— (a) shall give notice of its proposal to the owner or owners of the sewer, lateral drain or works in question unless, after diligent enquiry, he or they cannot be traced; (aa) shall publish notice of its proposal in the prescribed manner; and ; (v) as if in subsection (4)(b) “two months” read “two months or, if longer, the period specified by virtue of section 105B(5) below” and “section 105 below” read “section 105B(4) or (5) below, or”; and (vi) as if section 96(3) of the Water Act 2003 did not apply; (b) sections 103 and 105 above shall not apply; and (c) if the regulations so provide, section 146(3) below shall not apply in circumstances or cases specified in the regulations. (7) A duty imposed on a sewerage undertaker under subsection (4) above shall be enforceable by the Secretary of State under section 18 above. (8) A statutory instrument containing regulations under subsection (1) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament. Adoption schemes: appeals 105B (1) Any person falling within subsection (2) below may appeal to the Authority if he is aggrieved by— (a) the proposal of a sewerage undertaker to make a declaration under section 102 above in relation to a sewer, lateral drain or sewage disposal works, pursuant to the undertaker’s duty to do so under section 105A(4) above (the “relevant duty”); or (b) the failure of a sewerage undertaker to make such a proposal pursuant to that duty. (2) The persons referred to are— (a) an owner of a sewer, lateral drain or sewage disposal works; (b) any other person affected by the proposal, or the failure, in question. (3) The grounds upon which a person may appeal are— (a) in a subsection (1)(a) case, that the relevant duty is not owed in relation to the sewer, lateral drain or sewage disposal works, or that the making of the proposed declaration would be seriously detrimental to him; (b) in a subsection (1)(b) case, that the relevant duty is owed in relation to the sewer, lateral drain or sewage disposal works; or (c) any other prescribed ground. (4) An appeal under subsection (1)(a) above shall be made within two months after notice of the proposal is— (a) served on the owner of the sewer, lateral drain or sewage disposal works; or (b) published in accordance with section 102(4) above as modified by section 105A(6) above, (or, if both occur, within two months after whichever is the later). (5) An appeal under subsection (1)(b) above shall be made within such period as is specified in the scheme (not being less than two months). (6) On the hearing of an appeal under subsection (1) above, the Authority may— (a) in a subsection (1)(a) case, allow or disallow the proposal of the sewerage undertaker; or (b) in a subsection (1)(b) case, determine that the undertaker was not under the relevant duty in relation to the sewer, lateral drain or sewage disposal works in question, or, in either case, make any declaration that the sewerage undertaker might have made, unless the proposal is disallowed. (7) If, in a subsection (1)(a) case, the Authority finds that the making of the proposed declaration would be seriously detrimental to the appellant, it shall disregard any duty on the part of the sewerage undertaker to make the proposal for the purpose of determining whether to allow or disallow the proposal. (8) If, in a subsection (1)(a) case, the Authority disallows the proposal of the sewerage undertaker, the scheme pursuant to which it was made shall have effect as if there were no duty under section 105A(4) above on the sewerage undertaker in relation to the sewer, lateral drain or sewage disposal works in question. (9) Where the Authority makes a declaration under subsection (6) above, it may, if it thinks fit— (a) specify conditions, including conditions as to the payment of compensation by the sewerage undertaker; and (b) direct that its declaration shall not take effect unless any conditions so specified are accepted. (10) A declaration made under subsection (6) above shall have the same effect as if it had been made by the undertaker. (11) The Secretary of State may by regulations make further provision in connection with appeals under this section. (12) The regulations may, in particular, require the Authority to have regard to prescribed matters when determining an appeal under this section. Adoption schemes: supplementary 105C (1) The Secretary of State may vary any scheme, or revoke it. (2) Before making regulations or any scheme under section 105A above, and before amending or revoking the regulations or varying or revoking a scheme, the Secretary of State shall consult— (a) each sewerage undertaker which would be affected; (b) the Authority; (c) the Council; (d) such other persons as the Secretary of State considers appropriate. (3) The Secretary of State shall publish each scheme he makes, and any such scheme as varied, in the way he considers best for the purpose of bringing it to the attention of those likely to be affected by it.

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99 Communication with public sewers

(1) Section 106 of the WIA (right to communicate with public sewers) is amended as follows. (2) After subsection (1) there is inserted— (1A) In this section, and in sections 107 to 109, 111, 113 to 116, 118, 119, 124, 127, 139 and 146 below— (a) references (however expressed) to a public sewer include a public lateral drain which satisfies sewer standards; and (b) for the purposes of paragraph (a) above— (i) a “public lateral drain” is a lateral drain which either belongs to the sewerage undertaker or is vested in the sewerage undertaker by virtue of a declaration made under section 102 above or under an agreement made under section 104 above; and (ii) “sewer standards” means such standards of construction and repair as the undertaker would require if the public lateral drain or part of it were to become a public sewer. (3) In subsection (4), for “is such that the making of the communication would be prejudicial to the undertaker’s sewerage system” there is substituted— (a) does not satisfy the standards reasonably required by the undertaker; or (b) is such that the making of the communication would be prejudicial to the undertaker’s sewerage system. (4) After subsection (5) there is inserted— (5A) Where the sewer or drain satisfies the standards reasonably required by it, a sewerage undertaker may, as a condition of permitting the communication to be made, require that the sewer or that part of the drain forming the lateral drain be vested in it by virtue of a declaration under section 102 above. (5) In subsection (6)— (a) for “(3) to (5)” there is substituted “ (3) to (5A) ”, (b) in paragraph (b), after “(5)” there is inserted “ or (5A) ”, (c) at the end there is added “ (and, accordingly, section 105 above shall not apply to any requirement under subsection (5A) above). ” (6) In section 219 of the WIA (general interpretation), in the definition of “public sewer”, after “means” there is inserted “ (subject to section 106(1A) above) ”.

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100 Devolution: Wales

(1) In the entry relating to the Reservoirs Act 1975 (c. 23) in Schedule 1 to the National Assembly for Wales (Transfer of Functions) Order 1999 (SI 1999/672) (referred to in this section as “the Order”), at the end there is inserted “ except section 12A(4). ”. (2) The entry relating to the WIA in Schedule 1 to the Order is amended as follows— (a) in the list of sections conferring on the Secretary of State functions which are not transferred by the Order— (i) after “sections 1,” there is inserted “ 2A, ”, (ii) for “17” there is substituted “ 16A, 17 to 17D, 17F to 17K, 17N to 17P, 17R, 22A to 22F, ”, (iii) after “27(3),” there is inserted “ 27A, 27B, 27E, 27G, 27I to 27K, 29, 29A, ”, (iv) after “35,” there is inserted “ 38B, 66B, 66F to 66L, 86(1A), 87B, 88A, 89, ”, (v) after “92,” there is inserted “ 95B, ”, (vi) after “152(2),” there is inserted “ 192A, 192B, ”, (vii) before “206(3)(e)” there is inserted “ 195A, ”, (viii) after “Schedules 1” there is inserted “ , 1A, 3A, ”, (ix) at the end there is inserted “ and except functions under such other sections or Schedules as are expressly stated in the succeeding paragraphs to be so excepted (but only to the extent stated). ”, (b) in the paragraph relating to functions under sections 2, 5 (etc)— (i) the reference to section 2 is omitted, (ii) the reference to sections 18 to 22 is omitted, (iii) for “37 to 39” there is substituted “ 37, 38, 39, 51A ”, (iv) the reference to sections 68 to 70 is omitted, (v) the reference to section 93A is omitted, (vi) for “94 to 96,” there is substituted “ 94, 95, 96, ”, (vii) after “104,” there is inserted “ 105A to 105C, ”, (viii) for “198 to 203” there is substituted “ 198 to 200 ”, (ix) the reference to section 205 is omitted, (x) at the end there is inserted “ (but not in relation to any licensed water suppliers). ”, (c) the paragraph relating to section 28(4) is omitted, (d) before the paragraph relating to functions under section 67 there is inserted— Functions under sections 2, 18 to 22, 68 to 70, 93A and 201 to 203 are transferred to the Assembly in relation to— (a) any water or sewerage undertaker whose area is wholly or mainly in Wales; (b) any licensed water supplier so far as relating to licensed activities using the supply system of any such water undertaker; and (c) in the case of functions under section 70, any other person who is a relevant person (as defined in that section) in relation to any such undertaker or licensed water supplier. , (e) in the paragraph relating to functions under section 67, for paragraphs (a) and (b) there is substituted— (a) for the making of regulations concerning water supplied using the supply system of a water undertaker, the function is transferred in relation to the supply system of any water undertaker whose area is wholly or mainly in Wales; (b) for the making of regulations concerning water supplied other than using the supply system of a water undertaker, the function is transferred in relation to Wales. , (f) in the paragraph relating to functions under sections 3, 86 (etc), for “86” there is substituted “ 86 (except subsection (1A)) ”, (g) after that paragraph there is inserted— In respect of the functions under sections 37A to 37D, 39B and 39C it is provided as follows— (a) functions under those provisions so far as relating to matters concerning the construction or enlargement of reservoirs are transferred to the Assembly in relation to Wales; (b) functions under those provisions so far as relating to matters other than the construction or enlargement of reservoirs are transferred to the Assembly in relation to any water undertaker whose area is wholly or mainly in Wales; and (c) the functions of the Assembly referred to in paragraph (b) above so far as they are exercisable in relation to England shall be exercisable only after consultation with the Secretary of State. , (h) in the paragraph relating to section 152(1), after “Wales” there is inserted “ or (so far as relating to licensed activities using the supply system of any such water undertaker) any licensed water supplier ”, (i) for the paragraph relating to section 208 there is substituted— In respect of the functions under section 208 it is provided as follows— (a) the functions under that section of giving directions for the purpose of mitigating the effects of any civil emergency and the function (in the case of sub-paragraphs (i) and (ii) below) of enforcing such directions are transferred to the Assembly— (i) in relation to any water or sewerage undertaker whose area is wholly or mainly in Wales; (ii) in relation to any licensed water supplier so far as relating to licensed activities using the supply system of any such water undertaker; and (iii) in relation to the Consumer Council for Water so far as relating to its functions in connection with any such water undertaker; and (b) it is directed that the other functions under that section shall be exercisable by the Assembly concurrently with the Secretary of State in relation to the bodies and so far as mentioned in paragraph (a)(i) to (iii) above. , (j) in the paragraph relating to Article 2(c), at the end there is inserted “ or any licensed water supplier using the supply system of any such water undertaker. ”. (3) In Schedule 2 to the Order, after the entry relating to the Environmental Protection Act 1990 there is inserted a new entry as follows— Water Industry Act 1991 c 56 The functions of the Secretary of State under sections 37A to 37D, 39B and 39C so far as relating to matters other than the construction or enlargement of reservoirs shall be exercisable only after consultation with the Assembly. (4) The entry relating to the WRA in Schedule 1 to the Order is amended as follows— (a) in the paragraph referring to the functions of a Minister of the Crown under sections 20(3) and 75(5)(c), after “20(3)” there is inserted “ , 20B(3) ”, and (b) in the list of provisions under which there are transferred functions of the Secretary of State to which paragraph 6 of Schedule 3 to the Government of Wales Act 1998 (c. 38) is applied, in the appropriate places there is inserted— (i) “section 27A and (so far as it relates to section 27A) Schedule 6,” (ii) “section 33A,” (iii) “section 51(1C) to 51(1F),”, and in the entry in that list relating to section 161C, after “regulations)” there is inserted “ , but not including section 161C as applied by section 25B. ”. (5) The entry relating to the Environment Act 1995 (c. 25) in Schedule 1 to the Order is amended as follows— (a) after paragraph (e) in the list of sections conferring functions which are not transferred by the Order there is inserted— (f) functions exercisable by the Secretary of State in pursuance of sub-paragraph (bb) of the definition of “the relevant Minister” in paragraph 1(5) of Schedule 4; (g) the function of the Secretary of State under section 16A(5)(a); , (b) after paragraph (e) of the list of functions which are transferred not in relation to Wales but in the manner specified there is inserted— (ea) functions under section 18A are transferred to the Assembly in relation to the local flood defence scheme for a district which is in the area of a regional flood defence committee the whole or the greater part of which is in Wales; . (6) Subject to subsections (1) to (5), the references in Schedule 1 to the Order to— (a) the WIA generally and to specific sections of or Schedules to the WIA, (b) the WRA generally and to specific sections of or Schedules to the WRA, (c) the Reservoirs Act 1975 (c. 23), the Environmental Protection Act 1990 (c. 43), the Land Drainage Act 1991 (c. 59) and the Environment Act 1995 (c. 25) generally and (where applicable) to specific sections of or Schedules to those Acts, and (d) any other Act generally and (where applicable) to specific sections of or Schedules to those Acts, are to be treated as referring to those Acts (or those sections or Schedules) as amended by this Act. (7) Subsection (6), and the amendments made by subsections (1) to (5), do not affect the power to make further Orders varying or omitting the references mentioned in subsection (6) or the provisions amended by subsections (1) to (5).

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101 Minor and consequential amendments and repeals

(1) Schedules 7 and 8, which make minor amendments (including the repeal of certain spent enactments) and amendments consequential on the provisions of this Act, have effect. (2) The enactments and instrument mentioned in Schedule 9 are repealed or revoked to the extent specified.

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102 Specific transitional and transitory provisions

(1) Subject to subsection (2), each licence to abstract water under Chapter 2 of Part 2 of the WRA which is in force immediately before the coming into force of section 1 of this Act shall, after the coming into force of that section, be treated as a full licence within the meaning of that Act. (2) If— (a) immediately before the coming into force of section 6 of this Act, a person is the holder of a licence under Chapter 2 of Part 2 of the WRA to abstract water, and (b) upon the coming into force of that section an abstraction authorised by the licence becomes an abstraction to which the restriction on abstraction does not apply, the licence shall cease to have effect (so far as it applies to that abstraction) upon the coming into force of that section. (3) Subject to subsection (4), the person who was the holder of a full licence which ceases (or ceases in part) to have effect by virtue of subsection (2), and who had been taken in consequence of that licence (or that part of the licence) to have a right to abstract water by virtue of section 48(1) of the WRA, shall continue to be taken to have that right for the purposes of Chapter 2 of Part 2 of the WRA. (4) A person shall cease to continue to be taken to have the right mentioned in subsection (3), for the purposes mentioned there, if during a period of— (a) four years, or (b) if the abstractions authorised under the licence (or relevant part of the licence) were abstractions planned to be carried out at intervals of more than four years, or abstractions for emergency purposes only, such longer period as the appropriate agency may determine on the application of the person, he does not carry out any such abstraction as would have been authorised by the licence (or relevant part of the licence) if it had still been in force. (5) Where, immediately after the coming into force of any provision of this Act, an abstraction of water to which the restriction on abstraction did not apply becomes one to which the restriction on abstraction does apply, nothing in— (a) section 39(1), 42(4) or 44(4) of the WRA (which relate to protected rights), or (b) any other enactment specified in regulations made by the Secretary of State, prevents the appropriate agency from granting a licence under Chapter 2 of Part 2 of the WRA in respect of that abstraction, or the Secretary of State from giving the appropriate agency a direction to do so. (6) In subsections (2)(b) and (5), “the restriction on abstraction” has the meaning given by section 72(1) of the WRA.

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103 Powers to make further supplementary, consequential and transitional provision, etc

(1) The Secretary of State may by regulations make— (a) such supplementary, incidental or consequential provision, or (b) such transitory, transitional or saving provision, as he considers necessary or expedient for the purposes of, in consequence of, or for giving full effect to any provision of this Act. (2) The provision which may be made under subsection (1) includes provision— (a) amending or repealing any enactment, instrument or document (including in particular any instrument appointing a company to be a water or sewerage undertaker), (b) conferring functions, powers or duties on any person. (3) The provision which may be made under subsection (1) also includes, in particular, provision for or in relation to the payment by the appropriate agency of compensation to any person who— (a) before the coming into force of any provision of this Act was not required by or by virtue of the WRA to have a licence under Chapter 2 of Part 2 of the WRA in respect of any abstraction, (b) following the coming into force of any provision of this Act does require such a licence in respect of that abstraction, and (c) has suffered loss or damage as a result of his having been— (i) refused such a licence in respect of that abstraction, or (ii) granted such a licence, but in respect of an abstraction of more limited extent than that of the abstraction he was carrying out before the coming into force of the provision in question, or who is a person who falls within subsection (4). (4) A person falls within this subsection if he satisfies the appropriate agency of the following— (a) that the nature of his operations, or proposed operations, requires him to make plans about the abstraction of water, (b) that before the coming into force of any provision of this Act he would not have required a licence under Chapter 2 of Part 2 of the WRA in respect of any such abstraction for which he had reasonably planned (or, if there has already been such an abstraction, he did not require such a licence in respect of it), (c) that following the coming into force of any such provision he does require such a licence in respect of it, and (d) that he has suffered loss or damage as a result of his having been— (i) refused a licence under Chapter 2 of Part 2 of the WRA in respect of that abstraction, or (ii) granted such a licence, but in respect of an abstraction of more limited extent than he had reasonably applied for, and he applies for compensation before any deadline provided for in the regulations under subsection (1). (5) The provision which may be made under subsection (1) also includes, in particular, provision for or in relation to the payment by the Water Services Regulation Authority of compensation to any person who— (a) before 31st July 2002 was carrying on any activities in respect of the supply of water, (b) following the coming into force of any provision of this Act— (i) is unable to continue to carry on those activities as a result of their having been prohibited, (ii) is unable to continue to carry on those activities as a result of a licence under Chapter 1A of Part 2 of the WIA having been required in respect of them and his not having applied for, or his having been refused, a licence, or (iii) is unable to continue to carry on those activities in the same manner as a result of his having been granted a licence the effect of which is to restrict the carrying on of the activities, and (c) has suffered loss or damage as a result of— (i) those activities having been prohibited, (ii) a licence not having been granted, or (iii) those activities having been restricted. (6) Where regulations made under subsection (1) include provision for the discharge by the Director General of Water Services instead of the Water Services Regulation Authority of any functions conferred on the Authority by or by virtue of any provision of this Act, then, for the purposes of Schedule 3, any such function shall be treated as if it had been the subject of a transfer under section 36 when the provision in the regulations ceased to apply. (7) The power to make regulations under this section is also exercisable by the Assembly, in relation to provision dealing with matters with respect to which functions are exercisable by the Assembly. (8) Nothing in this Act shall be read as affecting the generality of subsection (1).

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104 Regulations and orders

(1) Any power under this Act to make any order or regulations is exercisable by statutory instrument. (2) A statutory instrument containing an order or regulations— (a) made by the Secretary of State under any provision of this Act except section 10 (but including section 105), and (b) which contains (or contain) provision amending or repealing any enactment, shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament. (3) Otherwise, a statutory instrument containing any order or regulations made by the Secretary of State under this Act, other than an order under section 105, shall be subject to annulment in pursuance of a resolution of either House of Parliament. (4) Any power under this Act to make any order or regulations may be exercised— (a) either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case, (b) so as to make, as respects the cases in relation to which it is exercised— (i) the full provision to which the power extends or any less provision (whether by way of exception or otherwise), (ii) the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act, (iii) any such provision either unconditionally or subject to any specified condition. (5) Where any such power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for all or any of those purposes. (6) Any such power includes power— (a) to make such incidental, supplementary, consequential, saving or transitional provision (including provision amending, repealing or revoking enactments or provisions of subordinate legislation) as the authority making the order or regulations considers to be expedient, and (b) to provide for a person to exercise a discretion in dealing with any matter. (7) In subsection (6)(a), “subordinate legislation” has the meaning given by the Interpretation Act 1978 (c. 30). (8) Nothing in this Act shall be read as affecting the generality of subsection (6).

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105 Interpretation, commencement, short title, and extent

(1) This Act may be cited as the Water Act 2003. (2) In this Act— (a) the “WIA” means the Water Industry Act 1991 (c. 56), (b) the “WRA” means the Water Resources Act 1991 (c. 57), (ba) “the appropriate agency” has the meaning given by section 221 of the WRA, (c) “the Assembly” means the National Assembly for Wales. (3) Apart from this section and sections 102 to 104, this Act comes into force on such day as the appropriate authority may by order appoint. (4) Different days may be appointed for different provisions and for different purposes. (5) Except as stated in subsection (6), the appropriate authority for the purposes of subsection (3) is the Secretary of State after consulting the Assembly. (6) In relation to the sections and Schedules listed in the first column of this table, the appropriate authority is as listed in the second column— Section or Schedule | Appropriate authority Section 73 | The Secretary of State. Section 67 | The Assembly after consulting the Secretary of State. Sections 58, 69, 75, 77, 78, 80, 81 and 86 | The Secretary of State, in relation to England; the Assembly, in relation to Wales. Section 101 and Schedules 7, 8 and 9 | As respects any amendment or repeal consequential on a provision referred to above in this table, the same appropriate authority as listed in respect of the provision in question; otherwise, the Secretary of State after consulting the Assembly. (7) Subject to the following provisions of this section, this Act extends to England and Wales only. (8) Section 36 and Schedule 3 extend also to Scotland and Northern Ireland. (9) The following provisions extend also to Scotland— (a) section 53(1) and (2), (b) sections 66 and 68, (c) section 73, (d) section 74(1), (e) section 76, (f) section 85(3), (g) section 103(1), (2), (7) and (8), (h) section 104. (10) Section 58(10) extends to Scotland only. (11) Any amendment or repeal of a provision of the WRA made by this Act has the same extent as the provision being amended or repealed. (12) Sections 3, 4, 10 and 27 have the same extent as they would have if they were contained in the WRA, and section 224 of the WRA (application to Isles of Scilly) applies in relation to those sections as it applies to the WRA. (13) Any amendment or repeal made by Schedule 7 or 8 has the same extent as the enactment being amended or repealed. (14) Any repeal contained in Schedule 9 has the same extent as the provision elsewhere in this Act which provides for the repeal.

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SCHEDULE 3 Further provisions about transfers of functions, property etc

Section 36(6) Preliminary 1 In this Schedule— “transfer” means— a transfer of functions under section 36 to the Authority, or a transfer of property, rights and liabilities to the Authority or to the Council under section 36, and “transfer scheme” means a transfer scheme under section 36. Contents of transfer schemes 2 (1) The property, rights and liabilities which may be transferred by a transfer scheme include property, rights and liabilities that would not otherwise be capable of being transferred or assigned. (2) The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were no such contravention, liability or interference with any interest or right as there would otherwise be by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, in question. 3 A transfer scheme may define the property, rights and liabilities to be transferred by specifying them or describing them or by referring to all (or all except anything specified or described) of the property, rights and liabilities comprised in a specified part of the undertaking of the transferor (or partly in one way and partly in the other). 4 A transfer scheme may include such supplementary, incidental, transitional and consequential provision as the Secretary of State considers appropriate. Modification of transfer scheme after appointed day 5 (1) If, after the day appointed by a transfer scheme, the transferor and transferee so agree in writing, the scheme shall for all purposes be deemed to have come into force on that day with such modifications as may be agreed. (2) An agreement under this paragraph may, in connection with giving effect to modifications to the scheme, include incidental, supplemental, consequential and transitional provision. (3) In this paragraph, “modifications” includes additions, alterations and omissions. Effect of transfers 6 (1) Anything done by the transferor for the purpose of or in connection with anything transferred which is in effect immediately before it is transferred shall be treated as if done by the transferee. (2) A transfer does not affect the validity of anything done by or in relation to the transferor before the transfer takes effect. 7 There may be continued by or in relation to the transferee anything (including legal proceedings) relating to anything transferred which is in the process of being done by or in relation to the transferor immediately before it is transferred. 8 The transferee shall be substituted for the transferor in any document relating to anything transferred. Continuity of employment, etc of transferred employees 9 Where a person employed in the civil service of the state becomes an employee of the Council under a transfer scheme, his period of employment in that service counts as a period of employment with the Council for the purposes of the Employment Rights Act 1996 (c. 18) (and the change of employer does not break the continuity of the period of employment for those purposes).

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SCHEDULE 4 Licensing of water suppliers

Section 56 1 The WIA is amended as follows. 2 After Chapter 1 of Part 2 of the WIA there is inserted— CHAPTER 1A LICENSING OF WATER SUPPLIERS Granting of licences Licensing of water suppliers 17A (1) Subject to the following provisions of this Chapter— (a) the Secretary of State; or (b) with the consent of or in accordance with a general authorisation given by the Secretary of State (after consulting the Assembly), the Authority, may grant to a company a licence (a “water supply licence”) giving it the retail authorisation referred to in subsection (2) below, or both that and the supplementary authorisation referred to in subsection (5) below. (2) The retail authorisation is an authorisation to the company to use a water undertaker’s supply system for the purpose of supplying water to the premises of customers of the company (subject to subsection (3) below) in accordance with Chapter 2A of Part 3 of this Act. (3) The following requirements must be satisfied in relation to each of the premises supplied by the company— (a) the requirement that the premises are not household premises (as defined in section 17C below); (b) the threshold requirement (construed in accordance with section 17D below); and (c) the requirement that the premises are not being supplied with water by another company pursuant to a water supply licence, and those requirements shall be enforceable under section 18 below by the Authority. (4) A water supply licence which gives a company only the retail authorisation is referred to in this Chapter as a “retail licence”. (5) The supplementary authorisation is an authorisation to the company to introduce water into a water undertaker’s supply system, by means of which any particular supply of water in accordance with the retail authorisation is to take place, in connection with that supply and in accordance with Chapter 2A of Part 3 of this Act. (6) A water supply licence which gives a company also the supplementary authorisation is referred to in this Chapter as a “combined licence”. (7) Before granting a combined licence— (a) the Secretary of State shall consult the Assembly; and (b) the Authority shall consult the Secretary of State and the Assembly. (8) A water supply licence shall not be granted to a company unless— (a) it is a limited company; and (b) it is not a relevant undertaker. (9) The Authority may, with the approval of the Secretary of State, issue guidance as to the factors which are, or are not, to be taken into account in determining the extent of any premises for the purposes of subsection (3) above. (10) Before giving his approval to any guidance issued under subsection (9) above, the Secretary of State shall consult the Assembly. Section 17A: supplementary 17B (1) The Authority shall publish guidance issued under section 17A(9) above in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it. (2) The Authority may, with the approval of the Secretary of State, revise the guidance so issued. (3) Before giving his approval to guidance revised under subsection (2) above, the Secretary of State shall consult the Assembly. (4) Subsection (1) above applies to guidance revised under subsection (2) above as it applies to guidance issued under section 17A(9) above. (5) In this Chapter, references to the supply system of a water undertaker are to the system comprising the following— (a) any water mains and other pipes which it is the water undertaker’s duty to develop and maintain by virtue of section 37 below and which are used for the purpose of conveying water from the undertaker’s treatment works to the premises of customers; and (b) any water mains and other pipes which— (i) are used by the undertaker for the purpose of conveying non-domestic water from any of its sources to the premises of customers; and (ii) are not connected to any water mains or pipes falling within paragraph (a) above or to any water mains or other pipes connected to the treatment works mentioned in that paragraph (whether directly or indirectly), and in sub-paragraph (i) above the reference to non-domestic water is to water supplied other than for domestic or food production purposes. (6) In subsection (5)(a) above, the reference to treatment works is a reference to the works designated from time to time by the Secretary of State as treatment works for the purposes of this subsection. (7) Before designating any works for the purposes of subsection (6) above, the Secretary of State shall consult the Assembly. (8) A list of any works designated for the purposes of subsection (6) above shall be published from time to time by the Secretary of State in such manner as he considers appropriate for the purpose of bringing the designations to the attention of persons likely to be affected by them. (9) References in this Act to a licensed water supplier are references to a company which is the holder for the time being of a water supply licence. Meaning of household premises 17C (1) For the purposes of section 17A(3)(a) above, “household premises” means premises in which, or in any part of which, a person has his home. (2) The fact that a person has his home in, or in part of, any premises does not mean that the premises are household premises unless the principal use of the premises is as a home. (3) The Secretary of State may by regulations make provision as to— (a) the circumstances in which a person is or is not to be treated as having his home in, or in part of, any premises for the purposes of this section; and (b) the factors which are, or are not, to be taken into account in determining the principal use of any premises for those purposes. (4) The power to make regulations under subsection (3) above is exercisable by the Assembly (and not by the Secretary of State) in relation to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales. The threshold requirement 17D (1) This section applies for the purpose of construing the reference to the threshold requirement in section 17A(3)(b) above in relation to the supply of water to any premises. (2) The requirement is that, at the time when the licensed water supplier first enters into an undertaking with a customer to give the supply, the total quantity of water estimated to be supplied to the premises annually pursuant to the undertaking is not less than 50 megalitres. (3) Any estimate of the quantity of water to be supplied to any premises for the purposes of subsection (2) above shall be made in accordance with guidance issued by the Authority with the approval of the Secretary of State. (4) Any guidance issued under subsection (3) above may, in particular— (a) specify— (i) the factors to be, and not to be, taken into account; (ii) the assumptions to be made; and (iii) the method of calculation to be employed, in making estimates; and (b) make provision as to the commencement of the annual periods by reference to which estimates are to be made. (5) Before giving his approval to any guidance issued under that subsection, the Secretary of State shall consult the Assembly. (6) Subsections (1) to (4) of section 17B above apply to guidance issued under subsection (3) above as they apply to guidance issued under section 17A(9) above. (7) The Secretary of State may make provision by regulations as to the circumstances in which a licensed water supplier is not, for the purposes of subsection (2) above, to be treated as entering into an undertaking with a new customer to give a supply of water to any premises (subject to subsection (12) below). (8) The Secretary of State may by regulations amend subsection (2) above by substituting, for the quantity of water for the time being specified there, a different quantity of water (subject to subsection (12) below). (9) Regulations under subsection (8) above— (a) shall include provision for the amendment made by the regulations not to apply in relation to any undertaking entered into before the date on which the regulations come into force; and (b) may include provision for that amendment not to apply in relation to any undertaking which is proposed, but not entered into, before that date. (10) A statutory instrument containing regulations under subsection (8) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament. (11) Before making regulations under subsection (8) above, the Secretary of State shall consult— (a) the Authority; and (b) such other persons (if any) as the Secretary of State thinks it appropriate to consult. (12) The powers to make regulations under subsections (7) and (8) above are exercisable by the Assembly (and not by the Secretary of State) in relation to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales. (13) Subsections (9) and (11) above apply in relation to regulations made by the Assembly under subsection (8) above by virtue of subsection (12) above as they apply in relation to regulations made by the Secretary of State under subsection (8) above. Determinations by the Authority 17E (1) The Authority may determine, in a case referred to it by a licensed water supplier or a potential customer of a licensed water supplier, whether a proposed supply of water by the supplier to the customer would be in accordance with the retail authorisation given to the supplier in the licence. (2) The matters which the Authority may determine include the following matters— (a) the extent of the premises to be supplied for the purposes of section 17A(3) above; (b) whether the premises to be supplied are household premises (as defined in section 17C above); and (c) whether the threshold requirement is satisfied in relation to the premises to be supplied (construed in accordance with section 17D above), and also include any other matter the determination of which is relevant to those matters. Procedure for granting water supply licences 17F (1) An application for— (a) a water supply licence; (b) the variation of a retail licence so that it gives also the supplementary authorisation; or (c) the variation of a combined licence so that it gives only the retail authorisation, shall be made in such form and manner, and shall contain, or be accompanied by, such information and documents and such fee (if any), as may be prescribed. (2) Within the prescribed period after the making of such an application, the applicant shall publish in the prescribed manner a notice of the application containing such particulars as may be prescribed. (3) The particulars which may be prescribed by virtue of subsection (2) above include the time within which, and the address at which, representations or objections with respect to the application may be made. (4) If the Secretary of State or the Authority proposes to refuse the application, he or it shall give to the applicant a notice— (a) stating that he or it proposes to refuse the application; (b) stating the reasons why he or it proposes to refuse the application; and (c) specifying the time within which representations or objections with respect to the proposed refusal may be made, and shall consider any representations or objections which are duly made and not withdrawn. (5) The Secretary of State may make provision by regulations disapplying subsections (2) and (3) above in relation to an application under subsection (1) above in such circumstances as may be prescribed. (6) A licence shall be in writing and, unless revoked or suspended in accordance with any condition contained in it, shall continue in force for such period as may be specified in or determined by or under the licence. (7) As soon as practicable after granting a licence or variation of a licence, the Secretary of State or the Authority shall serve a copy of the licence or licence as varied— (a) on the licence holder; (b) on the Assembly; (c) on the Chief Inspector of Drinking Water; (d) on the Environment Agency; (e) on the Council; (f) on each relevant undertaker; (g) on each licensed water supplier (other than the holder of the licence in question); (h) if the licence or variation is granted by the Secretary of State, on the Authority; (i) if the licence or variation is granted by the Authority, on the Secretary of State. (8) Any sums received by the Secretary of State or by the Authority by virtue of this section shall be paid into the Consolidated Fund. Water supply licence conditions 17G (1) A water supply licence 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 1 of this Act; (b) conditions requiring the rendering to the Secretary of State of a payment on the grant of a water supply licence, or payments while such a licence 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 a water supply licence whether or not they are connected with the supply of water or the introduction of water into a water undertaker’s supply system. (3) Conditions included in a water supply licence may— (a) require the holder of the licence to comply with any direction given by a specified relevant person as to specified matters or matters which are of a specified description; (b) require the holder of the licence to do or not to do specified things or things which are of a specified description, except in so far as a specified relevant person consents to the holder’s not doing or doing them; and (c) provide for the reference to and determination by a specified relevant person of specified questions, or questions which are of a specified description, which arise under or in connection with the licence. (4) For the purposes of subsection (3) above— (a) the following are relevant persons— (i) the Secretary of State; (ii) the Authority; (iii) the Assembly; (iv) the Environment Agency; and (b) “specified” means specified in the licence in question. (5) Conditions included in a water supply licence may contain provision for the conditions to have effect, cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined in accordance with the conditions. (6) Any such condition as is referred to in subsection (5) above shall have effect in addition to the provision made by this Chapter with respect to the modification of the conditions of a licence. (7) Any sums received by the Secretary of State by virtue of this section shall be paid into the Consolidated Fund. Standard conditions of water supply licences 17H (1) Such conditions as may be— (a) determined by the Secretary of State (after consulting the Assembly); and (b) published by him in such manner as he considers appropriate, shall be standard conditions of water supply licences granted by the Secretary of State or the Authority. (2) The standard conditions which may be determined may be different for— (a) retail licences; and (b) combined licences, and standard conditions relating to the retail authorisation may be different depending on whether they are to relate to retail licences or combined licences. (3) The power to determine standard conditions in relation to retail licences and combined licences may be exercised only before the grant of (respectively) the first retail licence and the first combined licence (but this is without prejudice to the power to modify standard conditions in accordance with the provisions of this Chapter). (4) The standard conditions for the purposes of water supply licences of either description may contain provision— (a) for any standard condition included in a licence of that description not to have effect until brought into operation in such manner and in such circumstances as may be specified in or determined under the standard conditions; (b) for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; and (c) for any standard condition included in such a licence which is for the time being suspended to be brought back into operation in such manner and in such circumstances as may be so specified or determined. (5) Subject to subsection (6) below, each condition which is a standard condition shall be incorporated by reference in each water supply licence (or in each such licence to which the standard condition applies). (6) Subject to the following provisions of this section, the Secretary of State or the Authority may, in granting a licence, exclude or modify any of the standard conditions to such extent as he or it considers requisite to meet the circumstances of a particular case. (7) Before excluding any standard conditions or making any modifications under subsection (6) above, the Secretary of State or the Authority shall give notice— (a) stating that he or it proposes to exclude the conditions or make the modifications and setting out the effect of so doing; (b) stating the reasons why he or it proposes to exclude the conditions or make the modifications; and (c) specifying the time (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 exclusions or modifications may be made, and shall consider any representations or objections which are duly made and not withdrawn. (8) A notice under subsection (7) 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 the purpose of bringing the notice to the attention of persons likely to be affected by the making of the exclusions or modifications; and (b) by serving a copy of the notice— (i) on the Assembly; (ii) on the Chief Inspector of Drinking Water; (iii) if the notice is published by the Secretary of State, on the Authority; (iv) if the notice is published by the Authority, on the Secretary of State. (9) If, within the time specified in the notice under subsection (7) above, the Secretary of State (after consulting the Assembly) directs the Authority not to exclude or modify any standard condition, the Authority shall comply with the direction. (10) The Secretary of State or the Authority shall not exclude any conditions, or make any modifications, under subsection (6) above unless he or it is of the opinion that the exclusions or modifications are such that— (a) the licence holder would not be unduly disadvantaged in competing with other holders of water supply licences; and (b) no other holder of a water supply licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence). (11) The modification under subsection (6) above of part of a standard condition shall not prevent any other part of the condition from continuing to be treated as a standard condition for the purposes of this Chapter. Modification of water supply licences by agreement 17I (1) Subject to the following provisions of this section, the Authority may modify the conditions of a particular water supply licence. (2) The Authority may not make any modifications under this section unless the licence holder has consented to the modifications and, in the case of standard conditions of the licence, the Authority is of the opinion that the modifications— (a) are requisite to meet the circumstances of the particular case; and (b) are such that— (i) the licence holder would not be unduly disadvantaged in competing with other holders of water supply licences; and (ii) no other holder of a water supply licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being modified). (3) 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. (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 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— (i) the licence holder; (ii) the Council; (iii) the Secretary of State; (iv) the Assembly; and (v) the Chief Inspector of Drinking Water. (5) If, within the period specified in the notice under subsection (3) above, the Secretary of State (after consulting the Assembly) directs the Authority not to make any modification, the Authority shall comply with the direction. (6) The modification under this section of part of a standard condition of a licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter. Modification of standard conditions of water supply licences 17J (1) Subject to the following provisions of this section, the Authority may modify the standard conditions of retail licences or combined licences. (2) Where at any time the Authority modifies the standard conditions of retail licences or combined licences under this section the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of any licence of that description. (3) Before making any 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 time (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 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— (i) each relevant licence holder; (ii) the Council; (iii) the Secretary of State; (iv) the Assembly; and (v) the Chief Inspector of Drinking Water. (5) If, within the time specified in the notice under subsection (3) above, the Secretary of State (after consulting the Assembly) directs the Authority not to make any modification, the Authority shall comply with the direction. (6) The Authority may not under this section make any modifications of the standard conditions of retail licences or combined licences unless— (a) no notice of objection to those modifications is given by any relevant licence holder to the Authority within the time specified in the notice under subsection (3) above; (b) if one or more relevant licence holders give notice of objection to the Authority within that time— (i) the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection is less than such percentage as may be specified in an order made by statutory instrument by the Secretary of State; and (ii) the percentage given by subsection (7) below is less than such percentage as may be so specified; or (c) subsection (8) below applies to the case. (7) The percentage given by this subsection is the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection, weighted according to their market share at such time and in such manner as may be specified in an order under subsection (6) above. (8) This subsection applies where the Authority is satisfied that— (a) the effect of the standard conditions is such as to impose a burden affecting relevant licence holders in the carrying on of activities to which the modifications relate; (b) the modifications would remove or reduce the burden without removing any necessary protection; and (c) the modifications are such that no holder of a water supply licence would be unduly disadvantaged in competing with other holders of such licences. (9) An order under subsection (6) above may include such supplemental, consequential and transitional provision as the Secretary of State considers appropriate. (10) Before making an order under subsection (6) above, the Secretary of State shall consult the Assembly. (11) A statutory instrument containing an order under subsection (6) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament. (12) Where the Authority modifies the standard conditions of retail licences or combined licences, the Authority shall— (a) also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that description granted after that time; and (b) publish the modifications in such manner as it considers appropriate. (13) In this section “relevant licence holder”, in relation to proposed modifications of standard conditions of retail licences or combined licences, means the holder of a licence of that description— (a) which is to be modified under the proposals by the inclusion of any new standard condition; or (b) which includes any standard conditions to which the proposals relate, other than standard conditions which are not in effect (by virtue of anything done under section 17H(4) above) at the time specified in the notice under subsection (3) above. Water supply licences: modification references to Competition Commission 17K (1) The Authority may make to the Competition Commission (in this section and the following provisions of this Chapter referred to as “the Commission”) a reference which is so framed as to require the Commission to investigate and report on the questions— (a) whether any matters which— (i) relate to the carrying on of activities authorised or regulated by a particular licence; 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 licence. (2) The Authority may make to the Commission a reference which is so framed as to require the Commission to investigate and report on the questions— (a) whether any matters which— (i) relate to the carrying on of activities authorised or regulated by retail licences or combined licences; 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 standard conditions of licences of that description. (3) The Authority may, at any time, by notice given to the Commission vary a reference under this section by— (a) adding to the matters specified in the reference; or (b) excluding from the reference some of the matters so specified, and on receipt of any such notice the Commission shall give effect to the variation. (4) The Authority may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the Commission in carrying out the investigation on the reference— (a) any effects adverse to the public interest which, in its opinion, the matters specified in the reference or variation have or may be expected to have; and (b) any modifications of the relevant conditions by which, in its opinion, those effects could be remedied or prevented. (5) As soon as practicable after making a reference under this section or a variation of such a reference, the Authority shall— (a) 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; and (b) serve a copy of the reference or variation on— (i) the licence holder or, as the case may be, the relevant licence holders; (ii) the Council; (iii) the Secretary of State; (iv) the Assembly; and (v) the Chief Inspector of Drinking Water. (6) If, before the end of the period of twenty-eight days beginning with the day on which the Secretary of State receives the copy of the reference or variation, the Secretary of State directs the Commission— (a) not to proceed with the reference; or (b) not to give effect to the variation, the Commission shall comply with the direction. (7) It shall be the duty of the Authority, for the purpose of assisting the Commission in carrying out an investigation on a reference under this section or in carrying out functions under section 17P below, to give to the Commission— (a) any information in the Authority’s 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 Commission for that purpose; or (ii) information which, in the Authority’s opinion, it would be appropriate for that purpose to give to the Commission without any such request; and (b) any other assistance which the Commission may require, and which it is within the Authority’s power to give, in relation to any such matters, and the Commission, for the purpose of carrying out any such investigation or such functions, shall take account of any information given to it for that purpose under this subsection. (8) In this section and the following provisions of this Chapter— “relevant conditions”— in relation to a reference under subsection (1) above, means the conditions of the licence to which the reference relates; and in relation to a reference under subsection (2) above, means the standard conditions of the licences to which the reference relates; and “relevant licence holder” means the holder of a licence to which a reference under subsection (2) above relates. (9) In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the Commission shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Authority by Part 1 of this Act. References under section 17K: time limits 17L (1) Every reference under section 17K 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 Commission on a reference under section 17K above shall not have effect (and no action shall be taken in relation to it under section 17O 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 Commission 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 the Authority 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 it under paragraph (a) above to the holder of the licence or, as the case may be, the relevant licence holders. References under section 17K: powers of investigation 17M (1) The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (2) and (3) below, for the purposes of references under section 17K above as they apply 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). (2) Section 110 shall, in its application by virtue of subsection (1) above, have effect as if— (a) subsection (2) were omitted; and (b) in subsection (9) the words from “or section” to “section 65(3))” were omitted. (3) Section 111(5)(b)(ii) shall, in its application by virtue of subsection (1) above, have effect as if— (a) for the words “published (or, in the case of a report under section 50 or 65, given)” there were substituted “ made ”; (b) for the words “published (or given)”, in both places where they appear, there were substituted “ made ”; and (c) the words “by this Part” were omitted. (4) Provisions of Part 3 of the Enterprise Act 2002 which have 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. (5) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection. Water supply licences: reports on modification references 17N (1) In making a report on a reference under section 17K above, the Commission— (a) shall include in the report definite conclusions on the questions comprised in the reference together with such an account of its reasons for those conclusions as in its opinion is expedient for facilitating a proper understanding of those questions and of its conclusions; (b) where it concludes 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 it concludes that any adverse effects so specified could be remedied or prevented by modifications of the relevant conditions, shall specify in the report modifications by which those effects could be remedied or prevented. (2) For the purposes of section 17O below, a conclusion contained in a report of the Commission is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted in connection with the reference concerned in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998. (3) If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 17K above as the conclusions of the Commission, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing. (4) For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the Commission on a reference under section 17K above. (5) In making any report on a reference under section 17K above the Commission must have regard to the following considerations before disclosing any information. (6) The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the Commission thinks is contrary to the public interest. (7) The second consideration is the need to exclude from disclosure (so far as practicable)— (a) commercial information whose disclosure the Commission 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 Commission thinks might significantly harm the individual’s interests. (8) The third consideration is the extent to which the disclosure of the information mentioned in subsection (7)(a) or (b) above is necessary for the purposes of the report. (9) A report of the Commission on a reference under section 17K above shall be made to the Authority. (10) Subject to subsection (13) below, the Authority shall— (a) on receiving a report on a reference under section 17K(1) above, serve a copy of it on— (i) the licence holder; (ii) the Council; (iii) the Secretary of State; and (iv) the Assembly; and (b) not earlier than the relevant time, publish another copy of the report in such manner as it considers appropriate for bringing the report to the attention of persons likely to be affected by it. (11) Subject to subsection (13) below, the Authority shall— (a) on receiving a report on a reference under section 17K(2) above, serve a copy of it on— (i) the Secretary of State; and (ii) the Assembly; and (b) not earlier than the relevant time— (i) serve another copy on each relevant licence holder; and (ii) not less than twenty-four hours after complying with sub-paragraph (i) above, publish another copy of the report in such manner as it considers appropriate for bringing the report to the attention of persons likely to be affected by it. (12) For the purposes of subsections (10) and (11) above, the “relevant time” means— (a) fourteen days after the copy of the report in question is received by the Secretary of State and the Assembly, or (b) if copies are received by them on different days, fourteen days after the later day. (13) Subsection (14) below applies if it appears to the Secretary of State that the publication of any matter in a report on a reference under section 17K(1) or (2) above would be against— (a) the public interest; or (b) the commercial interests of any person. (14) The Secretary of State may, not later than the relevant time for the purposes of subsection (10) or (11) above, direct the Authority to exclude that matter from the copy of the report, or (as the case may be) each copy of the report, to be served and published as mentioned in paragraph (b) of that subsection; and the Authority shall comply with any such direction. Water supply licences: modification following report 17O (1) Where a report of the Commission on a reference under section 17K 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 relevant conditions; 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 relevant conditions as appear to it requisite for the purpose of remedying or preventing the adverse effects specified in the report. (2) Where at any time it modifies under subsection (1) above the standard conditions of retail licences or combined licences in consequence of a reference under section 17K(2) above, the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of licences of that description. (3) Before making modifications under this section, the Authority shall have regard to the modifications specified in the report. (4) 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. (5) A notice under subsection (4) 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; (b) by serving a copy of the notice on the holder of the licence in question or, as the case may be, the relevant licence holders; and (c) by serving a copy of the notice on— (i) the Council; (ii) the Secretary of State; (iii) the Assembly; and (iv) the Chief Inspector of Drinking Water. (6) After considering any representations or objections made in response to proposals set out in a notice under subsection (4) above, the Authority shall give notice to the Commission— (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. (7) The Authority shall include with the notice under subsection (6) above a copy of any representations or objections received in relation to the notice under subsection (4) above. (8) If the period of four weeks from the date on which the notice under subsection (6) above is given elapses without a direction under section 17P(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 17P(1)(b) below has been given, make the modifications which are not specified in the direction. (9) The modification under subsection (1) above of part of a standard condition of a particular licence in consequence of a reference under section 17K(1) above shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter. (10) Where at any time it modifies under subsection (1) above the standard conditions of retail licences or combined licences in consequence of a reference under section 17K(2) above, the Authority shall— (a) also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that description granted after that time; and (b) publish the modifications made for those purposes in such manner as it considers appropriate. Water supply licences: Commission’s power of veto following report 17P (1) The Commission may, within the period of four weeks after the date on which it is given a notice under section 17O(6) 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— (a) within the period of four weeks after the date on which the Commission is given a notice under section 17O(6) above; and (b) on the application of the Commission, direct that the period for giving a direction under subsection (1) above (and, accordingly, the period mentioned in section 17O(8) 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 17O(6)(a) above as appear to the Commission 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 Commission gives a direction under subsection (1) above, it shall— (a) give notice setting out the modifications proposed by the Authority, the terms of the direction and the reasons for giving it; and (b) make such modifications itself of the relevant conditions 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 17O(8)(b) above. (5) In exercising its power under subsection (4)(b) above the Commission shall have regard to the matters as respects which duties are imposed on the Authority by Part 1 of this Act. (6) Before making modifications under subsection (4)(b) above the Commission 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 Commission considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the making of the modifications; (b) by serving a copy of the notice on— (i) the Authority; (ii) the holder of the licence in question or, as the case may be, the relevant licence holders; (iii) the Council; (iv) the Secretary of State; (v) the Assembly; and (vi) the Chief Inspector of Drinking Water. (8) After making modifications under this section the Commission shall publish a notice stating that the modifications have been made and setting them out, with the reasons for making them. (9) The modification under this section of part of a standard condition of a particular licence in consequence of a reference under section 17K(1) above shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter. (10) Where, in consequence of a reference under section 17K(2) above, the Commission modifies under subsection (4)(b) above the standard conditions of retail licences or combined licences, the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of licences of that description. (11) Where, in consequence of a reference under section 17K(2) above, the Commission modifies under subsection (4)(b) above the standard conditions of retail licences or combined licences, the Authority shall— (a) make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that description granted after that time, and (b) publish the modifications made for those purposes in such manner as it considers appropriate. Section 17P: supplementary 17Q (1) For the purposes of the law relating to defamation, absolute privilege attaches to any notice under subsection (4)(a), (6) or (8) of section 17P above. (2) In giving any notice under subsection (4)(a) or (6) of section 17P above, or publishing any notice under subsection (8) of that section, the Commission 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 Commission 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 Commission 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 Commission 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, with the modifications mentioned in subsections (7) and (8) below, for the purposes of any investigation by the Commission for the purposes of the exercise of its functions under section 17P above, as they apply for the purposes of any investigation 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). (7) Section 110 shall, in its application by virtue of subsection (6) above, have effect as if— (a) subsection (2) were omitted, (b) in subsection (4), for the words “the publication of the report of the Commission on the reference concerned” there were substituted “ the publication by the Commission of a notice under section 17P(8) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction has been given by the Commission under section 17P(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 ”; 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), have effect as if for sub-paragraph (ii) there were substituted— (ii) if earlier, the day on which a notice is published by the Commission under section 17P(8) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction is given by the Commission under section 17P(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 have 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. (10) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection. Water supply licences: modification by order under other enactments 17R (1) Where the OFT, the Commission or the Secretary of State (the “relevant authority”) makes a relevant order, the order may also provide for the modification of— (a) the conditions of a particular retail licence or combined licence; or (b) the standard conditions of retail licences or combined licences, 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 Enterprise Act 2002 where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a retail licence or combined licence; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a retail licence or combined licence; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to activities authorised or regulated by a retail licence or combined licence. (3) The modification under subsection (1)(a) above of part of a standard condition of a particular licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter. (4) Where at any time the relevant authority modifies under subsection (1)(b) above the standard conditions of retail licences or combined licences, the relevant authority— (a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that description granted after that time; and (b) may, after consultation with the Authority, make such incidental or consequential modifications as the relevant authority considers necessary or expedient of any conditions of licences of that description granted before that time. (5) Where at any time the relevant authority modifies standard conditions of retail licences or combined licences under subsection (4)(a) above for the purposes of their incorporation in licences, the relevant authority shall publish those modifications in such manner as the relevant authority considers appropriate. (6) Expressions used in subsection (2) above and in Part 3 or 4 of the Enterprise Act 2002 have the same meaning in that subsection as in that Part. 3 After Chapter 2 of Part 3 of the WIA there is inserted— CHAPTER 2A SUPPLY DUTIES ETC: LICENSED WATER SUPPLIERS Duty of undertaker to supply licensed water supplier etc Wholesale water supply by primary water undertaker 66A (1) This section applies where— (a) a licensed water supplier requests its primary water undertaker to provide it with a supply of water for the purpose of supplying water to the premises of its customers in accordance with the retail authorisation; and (b) the premises are in the area of the undertaker. (2) Where this section applies, it shall be the duty of the primary water undertaker, in accordance with an agreement or determination for such period and containing such terms and conditions as may be provided for under section 66D(2) below— (a) to take any such steps— (i) for the purpose of connecting the premises in question with the undertaker’s supply system; or (ii) in respect of that system, as may be so provided for in order to enable the undertaker to provide the requested supply; and (b) having taken any such steps, to provide that supply. (3) A primary water undertaker shall not be required by virtue of this section to provide a supply of water to a licensed water supplier, or to take any steps to enable it to provide such a supply, if— (a) both of the first and second conditions are satisfied; or (b) the third condition is satisfied. (4) The first condition is that— (a) the premises to be supplied by the supplier do not consist in the whole or any part of a building; or (b) the supply to be made by it to those premises is for purposes other than domestic purposes. (5) The second condition is that the provision of the supply by the undertaker would— (a) require the undertaker, in order to meet all its existing obligations to supply water for domestic or other purposes, together with its probable future obligations to supply buildings and parts of buildings with water for domestic purposes, to incur unreasonable expenditure in carrying out works; or (b) otherwise put at risk its ability to meet any of the existing or probable future obligations mentioned in paragraph (a) above. (6) The third condition is that there is a contravention in relation to the water fittings used or to be used in connection with— (a) the supply of water to the premises to be supplied by the supplier; or (b) the use of water in those premises, of such of the requirements of regulations under section 74 below as are prescribed for the purposes of this subsection. (7) Where— (a) a request has been made by a licensed water supplier to its primary water undertaker for the purposes of subsection (1) above; and (b) the steps which the undertaker is required to take by virtue of that request include steps for the purpose of obtaining any necessary authority for, or agreement to, any exercise by it of any of its powers or the carrying out by it of any works, the failure of the undertaker to acquire the necessary authority or agreement shall not affect any liability of the licensed water supplier, under any term or condition in accordance with which those steps are taken, to reimburse the undertaker in respect of some or all of the expenses incurred by it in taking those steps. (8) A water undertaker is the primary water undertaker of a licensed water supplier for the purposes of this section and section 66C below if the undertaker’s supply system is to be used for the purpose of making the supply to premises mentioned in those sections. (9) In this section and sections 66B and 66C below— (a) any reference to the supply system of a water undertaker shall be construed in accordance with section 17B(5) above; and (b) any reference to the retail authorisation shall be construed in accordance with section 17A(2) above. Introduction of water into water undertaker’s supply system 66B (1) This section applies where— (a) a qualifying licensed water supplier requests a water undertaker to permit it to introduce water into the undertaker’s supply system, by means of which any particular supply of water to any premises in accordance with the retail authorisation is to take place, in connection with that supply; and (b) the premises are in the area of the undertaker. (2) This section also applies where— (a) a water undertaker agrees to permit a qualifying licensed water supplier to introduce water into the undertaker’s treatment works; (b) in connection with that introduction, the supplier requests the undertaker to permit it to introduce water into the undertaker’s supply system, by means of which any particular supply of water to any premises in accordance with the retail authorisation is to take place, in connection with that supply; and (c) the premises are in the area of the undertaker. (3) Where this section applies, it shall be the duty of the water undertaker, in accordance with an agreement or determination for such period and containing such terms and conditions as may be provided for under section 66D(2) below— (a) to take any such steps— (i) for the purpose of connecting the premises in question with the undertaker’s supply system; (ii) for the purpose of connecting the treatment works of the qualifying licensed water supplier with that system (in a case falling within subsection (1) above); (iii) for the purpose of connecting with that system any source used by the qualifying licensed water supplier for the purpose of supplying water other than for domestic or food production purposes (in a case falling within subsection (1) above); or (iv) in respect of that system, as may be so provided for in order to enable the supplier to make the requested introduction of the water into that system; and (b) having taken any such steps, to permit the requested introduction of the water into that system. (4) A water undertaker shall not be required by virtue of this section to permit the introduction of water into its supply system, or to take any steps to enable a qualifying water supplier to make such an introduction, if the first or second condition is satisfied. (5) The first condition is that permitting the introduction of the water into the water undertaker’s supply system would— (a) require the undertaker, in order to meet all its existing obligations to supply water for domestic or other purposes, together with its probable future obligations to supply buildings and parts of buildings with water for domestic purposes, to incur unreasonable expenditure in carrying out works; or (b) otherwise put at risk its ability to meet any of the existing or probable future obligations mentioned in paragraph (a) above. (6) The second condition is that there is a contravention in relation to the water fittings used or to be used in connection with— (a) the supply of water to the premises to be supplied by the supplier; or (b) the use of water in those premises, of such of the requirements of regulations under section 74 below as are prescribed for the purposes of section 66A(6) above. (7) Where— (a) a request has been made by a qualifying licensed water supplier to a water undertaker for the purposes of subsection (1) or (2) above; and (b) the steps which the undertaker is required to take by virtue of that request include steps for the purpose of obtaining any necessary authority for, or agreement to, any exercise by it of any of its powers or the carrying out by it of any works, the failure of the undertaker to acquire the necessary authority or agreement shall not affect any liability of the supplier, under any term or condition in accordance with which those steps are taken, to reimburse the undertaker in respect of some or all of the expenses incurred by it in taking those steps. (8) In this section “treatment works”— (a) in relation to a water undertaker, means the works designated as treatment works by the Secretary of State for the purposes of section 17B(6) above; (b) in relation to a qualifying licensed water supplier, means the works designated from time to time by the Secretary of State as treatment works for the purposes of this paragraph. (9) Before designating any works for the purposes of subsection (8)(b) above, the Secretary of State shall consult the Assembly. (10) A list of any works designated for the purposes of subsection (8)(b) above shall be published from time to time by the Secretary of State in such manner as he considers appropriate for the purpose of bringing the designations to the attention of persons likely to be affected by them. (11) Any pipe laid in pursuance of subsection (3)(a)(ii) or (iii) above shall be regarded as a water main for the purposes of this Act, subject to any provision to the contrary. (12) In this section and section 66C below, references to a qualifying licensed water supplier are references to a licensed water supplier which is the holder of a combined licence (within the meaning of Chapter 1A of Part 2 of this Act). Wholesale water supply by secondary water undertaker 66C (1) This section applies where— (a) a qualifying licensed water supplier— (i) requests a water undertaker other than its primary water undertaker (the “secondary water undertaker”) to provide a supply of water for the purpose of the supplier supplying water, using the primary water undertaker’s supply system, to the premises of the supplier’s customers in accordance with the retail authorisation; and (ii) requests its primary water undertaker to permit it to introduce that water into its supply system; and (b) the premises are in the area of the primary water undertaker. (2) Where this section applies— (a) it shall be the duty of the secondary water undertaker, in accordance with an agreement or determination for such period and containing such terms and conditions as may be provided for under section 66D(2) below— (i) to take any such steps in respect of its supply system as may be so provided for in order to enable it to provide the requested supply; and (ii) having taken any such steps, to provide that supply; and (b) it shall be the duty of the primary water undertaker, in accordance with an agreement or determination for such period and containing such terms and conditions as may be provided for under section 66D(2) below— (i) to take any such steps specified in subsection (3) below as may be so provided for in order to enable the licensed water supplier to make the introduction of the requested supply of water into the primary water undertaker’s supply system; and (ii) having taken any such steps, to permit the introduction of that supply of water into that supply system. (3) The steps mentioned in subsection (2)(b)(i) above are steps— (a) for the purpose of connecting the premises in question with the primary water undertaker’s supply system; (b) for the purpose of connecting that system with the secondary water undertaker’s supply system; or (c) in respect of the primary water undertaker’s supply system. (4) If the first or second condition is satisfied— (a) a secondary water undertaker shall not be required by virtue of this section to provide a supply of water to a licensed water supplier; and (b) a primary water undertaker shall not be required by virtue of this section to permit the introduction of water into its supply system, or to take any steps to enable the licensed water supplier to make such an introduction. (5) The first condition is that the provision of the supply or permitting the introduction would— (a) require the undertaker in question, in order to meet all its existing obligations to supply water for domestic or other purposes, together with its probable future obligations to supply buildings and parts of buildings with water for domestic purposes, to incur unreasonable expenditure in carrying out works; or (b) otherwise put at risk its ability to meet any of the existing or probable future obligations mentioned in paragraph (a) above. (6) This second condition is that there is a contravention in relation to the water fittings used or to be used in connection with— (a) the supply of water to the premises to be supplied by the supplier; or (b) the use of water in those premises, of such of the requirements of regulations under section 74 below as are prescribed for the purposes of section 66A(6) above. (7) Where— (a) requests have been made by a licensed water supplier to its primary water undertaker and secondary water undertaker for the purposes of subsection (1) above; and (b) the steps which either of those undertakers is required to take by virtue of the request made to it include steps for the purpose of obtaining any necessary authority for, or agreement to, any exercise by it of any of its powers or the carrying out by it of any works, the undertaker’s failure to acquire the necessary authority or agreement shall not affect any liability of the licensed water supplier, under any term or condition in accordance with which those steps are taken, to reimburse the undertaker in respect of some or all of the expenses incurred by it in taking those steps. (8) Any pipe laid in pursuance of subsection (2)(b)(i) above by virtue of subsection (3)(b) above shall be regarded as a water main for the purposes of this Act, subject to any provision to the contrary. Sections 66A to 66C: determinations and agreements 66D (1) The Authority may determine, in a case referred to it by a licensed water supplier, whether any condition specified in section 66A(4) to (6), 66B(5) or (6) or 66C(5) or (6) above is satisfied (subject to section 66F below). (2) The period for which and terms and conditions on which a water undertaker is to perform any duty under sections 66A to 66C above are— (a) those which are— (i) in a case falling within section 66A(2) or 66B(3) above, agreed between the water undertaker and the licensed water supplier in question; and (ii) in a case falling within section 66C(2) above, agreed between the water undertakers and the licensed water supplier in question; or (b) in default of such agreement, those which are determined by the Authority, in a case referred to it by the licensed water supplier in question, if they are acceptable to the supplier, (subject to the following provisions of this section and sections 66E and 66F below). (3) The charges payable by a licensed water supplier to a water undertaker under an agreement under paragraph (a)(i) or (ii) of subsection (2) above or a determination under paragraph (b) of that subsection shall be fixed in accordance with the costs principle set out in section 66E below. (4) The Authority shall issue guidance in accordance with which the terms and conditions of an agreement under paragraph (a)(i) or (ii) of subsection (2) above shall be made. (5) Before issuing guidance under subsection (4) above, the Authority shall consult such persons as it considers appropriate. (6) The guidance issued under subsection (4) above shall include guidance with respect to the fixing of charges in accordance with subsection (3) above. (7) Subsection (8) below applies if it appears to the Authority that an agreement under paragraph (a)(i) or (ii) of subsection (2) above has not been made in accordance with— (a) subsection (3) above; or (b) the guidance issued under subsection (4) above. (8) The Authority may require the parties to the agreement to— (a) modify the agreement; or (b) terminate the agreement, and that requirement shall be enforceable under section 18 above by the Authority. (9) Neither the OFT nor the Authority may exercise, in respect of an agreement under paragraph (a)(i) or (ii) of subsection (2) above, the powers conferred by— (a) section 32 of the Competition Act 1998 (directions in relation to agreements); and (b) subsection (2) of section 35 of that Act (interim directions). (10) Subsection (9)(b) above does not apply to the exercise of powers in respect of conduct— (a) which is connected with an agreement under paragraph (a)(i) or (ii) of subsection (2) above; and (b) in respect of which subsection (1)(b) of section 35 of that Act applies. Section 66D: costs principle 66E (1) The costs principle referred to in subsection (3) of section 66D above is that the charges payable by a licensed water supplier to a water undertaker, under the agreement or determination mentioned in that subsection, shall enable the undertaker to recover from the supplier— (a) any expenses reasonably incurred in performing any duty under sections 66A to 66C above in accordance with that agreement or determination, and (b) the appropriate amount in respect of qualifying expenses and a reasonable return on that amount, to the extent that those sums exceed any financial benefits which the undertaker receives as a result of the supplier supplying water to the premises of relevant customers. (2) In subsection (1) above “qualifying expenses” means expenses (whether of a capital nature or otherwise) that the water undertaker has reasonably incurred or will reasonably incur in carrying out its functions. (3) For the purposes of subsection (1)(b) above, the appropriate amount is the amount which the water undertaker— (a) reasonably expected to recover from relevant customers; but (b) is unable to recover from those customers as a result of their premises being supplied with water by the licensed water supplier. (4) Nothing in subsection (3) above shall enable a water undertaker to recover any amount— (a) to the extent that any expenses can be reduced or avoided; or (b) to the extent that any amount is recoverable in some other way (other than from other customers of the undertaker). (5) In this section “relevant customers” means customers to whose premises the licensed water supplier is to make any supply of water in connection with which the agreement or determination mentioned in subsection (1) above is made. Section 66D: supplementary 66F (1) Before the Authority makes— (a) a determination for the purposes of subsection (1) of section 66D above as to whether any condition specified in section 66B(5) or (6) above is satisfied; or (b) a determination for the purposes of subsection (2)(b) of section 66D above as to the period for which and terms and conditions on which a water undertaker is to perform any duty under section 66B above, it shall consult the Secretary of State (subject to subsection (3) below). (2) Before the Authority makes— (a) a determination for the purposes of subsection (1) of section 66D above as to whether any condition specified in section 66C(5) or (6) is satisfied; or (b) a determination for the purposes of subsection (2)(b) of section 66D above as to the period for which and terms and conditions on which the water undertakers are to perform any duty under section 66C above, it shall consult the Secretary of State (subject to subsections (3) and (4) below) and the Environment Agency. (3) If— (a) a determination mentioned in subsection (1) or (2) above is in relation to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales; and (b) in the case of a determination mentioned in subsection (2) above, the area of the secondary water undertaker in question is wholly or mainly in Wales, the Authority shall consult the Assembly (and not the Secretary of State). (4) If a determination mentioned in subsection (2) above— (a) is in relation to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in— (i) England; or (ii) Wales; (b) but the area of the secondary water undertaker in question is (respectively) wholly or mainly in— (i) Wales; or (ii) England, the Authority shall consult the Assembly (as well as the Secretary of State). (5) The Authority shall publish guidance issued under section 66D(4) above in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it. (6) The Authority may from time to time revise the guidance so issued. (7) Before revising any guidance under subsection (6) above, the Authority shall consult such persons as it considers appropriate. (8) Subsection (5) above applies to guidance revised under subsection (6) above as it applies to guidance issued under section 66D(4) above. (9) In this section, references to the supply system of a water undertaker shall be construed in accordance with section 17B(5) above. (10) Where the period for which and terms and conditions on which a water undertaker is to perform any duty under sections 66A to 66C above are determined in accordance with subsection (2)(b) of section 66D above, they shall have effect as if they had been agreed between the parties in question (and references in the following provisions of this Act to an agreement under that section shall be construed accordingly). Designation of strategic supply 66G (1) Subsection (2) below applies if at any time the Authority determines that an introduction of water which a water undertaker is required to permit under section 66B or 66C above in accordance with an agreement under section 66D above constitutes a strategic supply of water. (2) The Authority shall designate the introduction as a strategic supply. (3) Subsection (4) below applies if— (a) a water undertaker requests the Authority to make a determination that an introduction of water constitutes a strategic supply for the purposes of subsection (1) above, or (b) the Authority otherwise proposes to make a determination that an introduction of water constitutes a strategic supply for the purposes of that subsection. (4) The Authority shall give notice of the request or proposed determination to— (a) the Secretary of State; (b) the Assembly; (c) the Environment Agency; (d) the other party or parties, or the parties, to the agreement under section 66D above; and (e) such other persons (if any) as the Authority thinks it appropriate to notify. (5) Any such notice shall specify the time (not being less than twenty-eight days from the date on which the notice was given) within which representations or objections with respect to the request or proposed determination may be made. (6) The Authority shall consider any representations or objections which are duly made and not withdrawn. (7) If the Authority determines that an introduction designated under this section as a strategic supply no longer constitutes such a supply, it shall cancel its designation. (8) If the Authority proposes to make a determination under subsection (7) above that an introduction no longer constitutes a strategic supply, it shall give notice of the proposed determination to the persons specified in paragraphs (a) to (d) of subsection (4) above. (9) Subsection (5) above applies to a notice under subsection (8) above as it applies to a notice under subsection (4) above (and subsection (6) above applies accordingly). (10) For the purposes of this section, an introduction of water is a strategic supply if, without that introduction being made, there is a substantial risk that the water undertaker would be unable to maintain supplies to its own customers as well as supplying customers of the licensed water supplier in question with water for domestic purposes. Designation of collective strategic supply 66H (1) Subsection (2) below applies if at any time the Authority determines that two or more introductions of water— (a) which are made by a licensed water supplier; and (b) which a water undertaker is required to permit under section 66B or 66C above in accordance with agreements under section 66D above, constitute a collective strategic supply of water. (2) The Authority shall designate the introductions as a collective strategic supply. (3) Subsection (4) below applies if— (a) a water undertaker requests the Authority to make a determination that two or more introductions of water constitute a collective strategic supply for the purposes of subsection (1) above, or (b) the Authority otherwise proposes to make a determination that two or more introductions of water constitute a collective strategic supply for the purposes of that subsection. (4) The Authority shall give notice of the request or proposed determination to— (a) the Secretary of State; (b) the Assembly; (c) the Environment Agency; (d) the other party or parties, or the parties, to the agreements under section 66D above; and (e) such other persons (if any) as the Authority thinks it appropriate to notify. (5) Any such notice shall specify the time (not being less than twenty-eight days from the date on which the notice was given) within which representations or objections with respect to the request or proposed determination may be made. (6) The Authority shall consider any representations or objections which are duly made and not withdrawn. (7) If the Authority determines that introductions designated under this section as a collective strategic supply no longer constitute such a supply, it shall cancel their designation. (8) If the Authority proposes to make a determination under subsection (7) above that introductions no longer constitute a collective strategic supply, it shall give notice of the proposed determination to the persons specified in paragraphs (a) to (d) of subsection (4) above. (9) Subsection (5) above applies to a notice under subsection (8) above as it applies to a notice under subsection (4) above (and subsection (6) above applies accordingly). (10) For the purposes of this section, introductions of water are a collective strategic supply if, without those introductions being made, there is a substantial risk that the water undertaker would be unable to maintain supplies to its own customers as well as supplying the customers of the licensed water supplier in question with water for domestic purposes. Offences Prohibition on unauthorised use of supply system 66I (1) Subject to subsections (2) and (3) and section 66K below, no person shall use a water undertaker’s supply system for the purpose of supplying water to any premises of a customer. (2) Subsection (1) above shall not apply where the supply is made— (a) by the water undertaker, or (b) by a licensed water supplier in pursuance of its licence. (3) The Secretary of State may by regulations specify further circumstances in which subsection (1) above shall not apply. (4) A person who contravenes subsection (1) above shall be guilty of an offence. (5) Any undertaking entered into which involves a contravention of subsection (1) above shall be unenforceable. (6) A person guilty of an offence under this section shall be liable— (a) on summary conviction, to a fine not exceeding the statutory maximum, and (b) on conviction on indictment, to a fine. (7) No proceedings for an offence under this section shall be instituted except by— (a) the Secretary of State, or (b) the Authority. (8) The functions of— (a) making regulations under subsection (3) above; and (b) instituting proceedings under subsection (7)(a) above, are exercisable by the Assembly (and not by the Secretary of State) in relation to any supply system of a water undertaker whose area is wholly or mainly in Wales. (9) In this section and sections 66J and 66L below, references to the supply system of a water undertaker shall be construed in accordance with section 17B(5) above. Prohibition on unauthorised introduction of water 66J (1) Subject to subsections (2) and (3) and section 66K below, no person shall introduce water into a water undertaker’s supply system (other than the undertaker itself). (2) Subsection (1) above shall not apply where the water is introduced— (a) by a licensed water supplier in pursuance of its licence, or (b) by another water undertaker under an agreement for a supply of water in bulk. (3) The Secretary of State may by regulations specify further circumstances in which subsection (1) above shall not apply. (4) A person who contravenes subsection (1) above shall be guilty of an offence. (5) Any undertaking entered into which involves a contravention of subsection (1) above shall be unenforceable. (6) A person guilty of an offence under this section shall be liable— (a) on summary conviction, to a fine not exceeding £20,000, and (b) on conviction on indictment, to a fine. (7) For the purposes of section 210 below, the penalty on conviction on indictment of an offence under this section shall be deemed to include imprisonment (in addition to or instead of a fine) for a term not exceeding two years. (8) No proceedings for an offence under this section shall be instituted except by— (a) the Secretary of State; or (b) the Authority. (9) The functions of— (a) making regulations under subsection (3) above; and (b) instituting proceedings under subsection (8)(a) above, are exercisable by the Assembly (and not by the Secretary of State) in relation to any supply system of a water undertaker whose area is wholly or mainly in Wales. Sections 66I and 66J: exemptions 66K (1) The Secretary of State may by order made by statutory instrument grant exemption from section 66I(1) or 66J(1) above to— (a) a person or persons of a class; (b) generally or to such extent as may be specified in the order; and (c) unconditionally or subject to such conditions as may be so specified. (2) Before making an order under subsection (1) above the Secretary of State shall give notice— (a) stating that he proposes to make such an order and setting out the terms of the proposed order; (b) stating the reasons why he proposes to make the order in the terms proposed; and (c) specifying the time (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposals may be made, and shall consider any representations or objections which are duly made and not withdrawn. (3) The notice required by subsection (2) above shall be given— (a) by serving a copy of it on the Authority; and (b) by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the proposed order. (4) Notice of an exemption granted to a person shall be given— (a) by serving a copy of the exemption on him; and (b) by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of other persons who may be affected by it. (5) Notice of an exemption granted to persons of a class shall be given by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of— (a) persons of that class; and (b) other persons who may be affected by it. (6) An exemption may be granted— (a) indefinitely; or (b) for a period specified in, or determined by or under, the exemption. (7) Conditions included in an exemption by virtue of subsection (1)(c) above may, in particular, require any person carrying on any activity in pursuance of the exemption— (a) to comply with any direction given by the Secretary of State or the Authority as to such matters as are specified in the exemption or are of a description so specified; (b) except in so far as the Secretary of State or the Authority consents to his doing or not doing them, not to do or to do such things as are specified in the exemption or are of a description so specified; and (c) to refer for determination by the Secretary of State or the Authority such questions arising under the exemption as are specified in the exemption or are of a description so specified. Section 66K: supplementary 66L (1) The Secretary of State may by order made by statutory instrument revoke an order by which an exemption was granted to a person under section 66K(1) above or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions— (a) at the person’s request; (b) in accordance with any provision of the order by which the exemption was granted; or (c) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect. (2) The Secretary of State may by order made by statutory instrument revoke an order by which an exemption was granted to persons of a class under section 66K(1) above or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions— (a) in accordance with any provision of the order by which the exemption was granted; or (b) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect. (3) The Secretary of State may by direction withdraw an exemption granted to persons of a class under section 66K(1) above from any person of that class— (a) at the person’s request; (b) in accordance with any provision of the order by which the exemption was granted; or (c) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect in the case of the person. (4) Before making an order under subsection (1)(b) or (c) or (2) above or giving a direction under subsection (3)(b) or (c) above, the Secretary of State shall— (a) consult the Authority; and (b) give notice— (i) stating that he proposes to make such an order or give such a direction; (ii) stating the reasons why he proposes to make such an order or give such a direction; and (iii) specifying the time (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposals may be made, and shall consider any representations or objections which are duly made and not withdrawn. (5) The notice under subsection (4) above shall be given— (a) where the Secretary of State is proposing to make an order under subsection (1)(b) or (c) above, by serving a copy of it on the person to whom the exemption was granted; (b) where he is proposing to make an order under subsection (2) above, by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of the class of persons to whom the exemption was granted; and (c) where he is proposing to give a direction under subsection (3)(b) or (c) above, by serving a copy of it on the person from whom he proposes to withdraw the exemption. (6) A statutory instrument containing an order under subsection (1) or (2) above or subsection (1) of section 66K above shall be subject to annulment in pursuance of a resolution of either House of Parliament. (7) The power to— (a) make an order under subsection (1) or (2) above or subsection (1) of section 66K above; or (b) give a direction under subsection (3) above, is exercisable by the Assembly (and not by the Secretary of State) in relation to any supply system of a water undertaker whose area is wholly or mainly in Wales. (8) Accordingly, subsections (1) to (5) above and section 66K above apply in relation to an order made or a direction given by the Assembly by virtue of subsection (7) above as they apply in relation to an order made or direction given by the Secretary of State. 4 (1) The Water Services Regulation Authority (“the Authority”) may, in accordance with this paragraph, modify the conditions of appointment of a company appointed under Chapter 1 of Part 2 of the WIA to be a water undertaker where it considers it necessary or expedient to do so in consequence of the amendments to the WIA made by this Schedule and Schedule 8. (2) Where the Authority modifies under sub-paragraph (1) any conditions of appointment it may make such incidental or consequential modifications as it considers necessary or expedient of other conditions of the appointment. (3) Before making any modifications under sub-paragraph (1) or (2), the Authority shall consult— (a) the company holding the appointment, and (b) such other persons (if any) as the Authority thinks it appropriate to consult. (4) The powers of the Authority under sub-paragraphs (1) and (2) may not be exercised after the end of the period of two years beginning with the first day on which all of the provisions of this Schedule and Schedule 8. (5) The Secretary of State may give directions to the Authority for the purpose of securing that conditions of appointment are modified in consequence of the amendments to the WIA made by this Schedule and Schedule 8; and the Authority shall comply with any such direction.

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SCHEDULE 5 Powers of entry under the Coal Industry Act 1994

Section 85(2) After Schedule 1 to the Coal Industry Act 1994 (c. 21) there is inserted— SCHEDULE 1A Supplemental provisions with respect to powers of entry Section 4B(8) Interpretation 1 (1) In this Schedule— “designated person” means an authorised person, within the meaning of section 4B of this Act, and includes a person designated by virtue of paragraph 2 below; “relevant power” means a power conferred by section 4B of this Act, including a power exercisable by virtue of a warrant under this Schedule. (2) Expressions used in this Schedule and in section 4B of this Act have the same meaning in this Schedule as they have in that section. Issue of warrants 2 (1) If it is shown to the satisfaction of a justice of the peace, on sworn information in writing— (a) that there are reasonable grounds for the exercise in relation to any premises of a relevant power; and (b) that one or more of the conditions specified in sub-paragraph (2) below is fulfilled in relation to those premises, the justice may by warrant authorise the Authority to designate a person who shall be authorised to exercise the power in relation to those premises, in accordance with the warrant and, if need be, by force. (2) The conditions mentioned in sub-paragraph (1)(b) above are— (a) that the exercise of the power in relation to the premises has been refused; (b) that such a refusal is reasonably expected; (c) that the premises are unoccupied; or (d) that the occupier is temporarily absent from the premises and the case is one of urgency. (3) In a case where subsection (5) of section 4B of this Act applies, a justice of the peace shall not issue a warrant under this Schedule merely because he is satisfied that the exercise of a power in relation to any premises has been refused, or that a refusal is reasonably expected, unless he is also satisfied that the notice required by that subsection has been given and that the period of that notice has expired. (4) Every warrant under this Schedule shall continue in force until the purposes for which the warrant was issued have been fulfilled. Manner of exercise of powers 3 A person designated as the person who may exercise a relevant power shall produce evidence of his designation and other authority before he exercises the power. Duty to secure premises 4 A person who, in the exercise of a relevant power, enters on any premises which are unoccupied or whose occupier is temporarily absent shall leave the premises as effectually secured against trespassers as he found them. Compensation 5 (1) Where any person exercises any power conferred by section 4B(3)(a) or (c) or (4) of this Act, it shall be the duty of the Authority to make full compensation to any person who has sustained loss or damage by reason of— (a) the exercise by the designated person of that power; or (b) the performance of, or failure of the designated person to perform, the duty imposed by paragraph 4 above. (2) Compensation shall not be payable by virtue of sub-paragraph (1) above in respect of any loss or damage if the loss or damage is attributable to the default of the person who sustained it. (3) Any dispute as to a person’s entitlement to compensation under this paragraph, or as to the amount of any such compensation, shall be referred to the arbitration of a single arbitrator, appointed by agreement between the Authority and the person who claims to have sustained the loss or damage or, in default of agreement, by the Secretary of State. (4) A designated person shall not be liable in any civil or criminal proceedings for anything done in the purported exercise of any relevant power if the court is satisfied that the act was done in good faith and that there were reasonable grounds for doing it.

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SCHEDULE 6 Compulsory purchase under the Coal Industry Act 1994

Section 85(2) After Schedule 1A to the Coal Industry Act 1994 (c. 21) (which is inserted by Schedule 5) there is inserted— SCHEDULE 1B Modification of compensation provisions etc in relation to the creation of new rights Section 4C(5) Compensation enactments 1 Subject to the following provisions of this Schedule, the enactments for the time being in force with respect to compensation for the compulsory purchase of land shall apply with the necessary modifications as respects compensation in the case of a compulsory acquisition under section 4C of this Act of a right by the creation of a new right as they apply as respects compensation on the compulsory purchase of land and interests in land. Adaptation of the Compulsory Purchase Act 1965 2 (1) The Compulsory Purchase Act 1965 (in the following provisions of this Schedule referred to as “the 1965 Act”) shall have effect with the modifications necessary to make it apply to the compulsory acquisition under section 4C of this Act of a right by the creation of a new right as it applies to the compulsory acquisition under that section of land, so that, in appropriate contexts, references in that Act to land are to be read (according to the requirements of the particular context) as referring to, or as including references to— (a) the right acquired or to be acquired; or (b) the land over which the right is or is to be exercisable. (2) Without prejudice to the generality of sub-paragraph (1) above, Part 1 of the 1965 Act shall apply in relation to the compulsory acquisition under section 4C this Act of a right by the creation of a new right with the modifications specified in the following provisions of this Schedule. Section 7 of the 1965 Act 3 For section 7 of the 1965 Act (measure of compensation) there shall be substituted the following section— 7 In assessing the compensation to be paid by the acquiring authority under this Act regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the special Act. Section 8 of the 1965 Act 4 For subsection (1) of section 8 of the 1965 Act (protection for vendor against severance of house, garden, etc) there shall be substituted the following subsections— (1) No person shall be required to grant any right over part only— (a) of any house, building or manufactory, or (b) of a park or garden belonging to a house, if he is willing to sell the whole of the house, building, manufactory, park or garden, unless the Lands Tribunal determine that— (i) in the case of a house, building or manufactory, the part over which the right is proposed to be acquired can be made subject to that right without material detriment to the house, building or manufactory, or (ii) in the case of a park or garden, the part over which the right is proposed to be acquired can be made subject to that right without seriously affecting the amenity or convenience of the house, and, if the Lands Tribunal so determine, the Tribunal shall award compensation in respect of any loss due to the acquisition of the right, in addition to its value; and thereupon the party interested shall be required to grant to the acquiring authority that right over the part of the house, building, manufactory, park or garden. (1A) In considering the extent of any material detriment to a house, building or manufactory, or any extent to which the amenity or convenience of a house is affected, the Lands Tribunal shall have regard not only to the right which is to be acquired over the land, but also to any adjoining or adjacent land belonging to the same owner and subject to compulsory purchase. Effect of deed poll 5 The following provisions of the 1965 Act (being provisions stating the effect of a deed poll executed in various circumstances where there is no conveyance by persons with interests in the land)— (a) section 9(4) (refusal by owners to convey); (b) paragraph 10(3) of Schedule 1 (owners under incapacity); (c) paragraph 2(3) of Schedule 2 (absent and untraced owners); and (d) paragraphs 2(3) and 7(2) of Schedule 4 (common land), shall be so modified as to secure that, as against persons with interests in the land which are expressed to be overridden by the deed, the right which is to be compulsorily acquired is vested absolutely in the acquiring authority. Section 11 of the 1965 Act 6 Section 11 of the 1965 Act (powers of entry) shall be so modified as to secure that, as from the date on which the acquiring authority have served notice to treat in respect of any right, they have power, exercisable in the like circumstances and subject to the like conditions, to enter for the purpose of exercising that right (which shall be deemed for this purpose to have been created on the date of service of the notice); and sections 12 (penalty for unauthorised entry) and 13 (entry on warrant in the event of obstruction) shall be modified correspondingly. Section 20 of the 1965 Act 7 Section 20 of the 1965 Act (protection for interests of tenants at will etc) shall apply with the modifications necessary to secure that persons with such interests as are mentioned in that section are compensated in a manner corresponding to that in which they would be compensated on a compulsory acquisition under section 4C of this Act of that land, but taking into account only the extent (if any) of such interference with such an interest as is actually caused, or likely to be caused, by the exercise of the right in question. Section 22 of the 1965 Act 8 Section 22 of the 1965 Act (protection of acquiring authority’s possession where by inadvertence an estate, right or interest has not been got in) shall be so modified as to enable the acquiring authority, in circumstances corresponding to those referred to in that section, to continue entitled to exercise the right acquired, subject to compliance with that section as respects compensation.

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SCHEDULE 7 Minor and consequential amendments

Section 101(1) Part 1 Abstraction and impounding Water Resources Act 1991 (c. 57) 1 The WRA is amended as follows. 2 In section 34 (regulations with respect to applications under Chapter 2 of Part 2)— (a) in subsection (1), after “particulars,” there is inserted “ be accompanied by such reports, ”, (b) in subsection (2), at the end there is added “ , and provision for making such applications available for public inspection. ”. 3 In section 40 (obligations to take river flow etc into account), in subsection (4)(b), for “neither discrete waters nor waters comprised in an order under section 33 above” there is substituted “ not discrete waters ”. 4 In section 51 (modification of licence on application of licence holder), after subsection (2) there is inserted— (2A) An application may not be made under subsection (2) above to convert an abstraction licence of one type into an abstraction licence of a different type. 5 In section 57 (emergency variation of licences for spray irrigation purposes), in subsection (3), for “neither discrete waters nor inland waters comprised in an order under section 33 above” there is substituted “ not discrete waters ”. 6 In section 61 (compensation for licence modified on direction of Secretary of State), in subsection (1), for “55” there is substituted “ 56 ”. 7 In section 66 (inland waters owned or managed by British Waterways Board), subsection (2)(a) is omitted. 8 (1) Section 67 (ecclesiastical property) is amended as follows. (2) In subsections (1) and (2), after “Where the relevant land belongs to a benefice” there is inserted “ or (in the case of a licence under this Chapter to abstract water) where it is a benefice which has a right of access to the relevant land ”. (3) In subsection (8), in the definition of “the relevant land”, for paragraph (a) there is substituted— (a) the land to which an applicant for a licence to abstract water is required by section 35 above to have a right of access; or . 9 In section 71 (modification of local enactments), in subsection (4), “33,” is omitted. 10 In section 125 (specific exemptions from water resources charges), subsection (2) is omitted. 11 In section 206 (making of false statements etc), in subsection (1), after “Act” there is inserted “ or of section 3, 4 or 10 of the Water Act 2003 ”. 12 In section 217 (criminal liabilities of directors and other third parties), in subsection (1), after “this Act” there is inserted “ or under section 4 of the Water Act 2003 ”. 13 In section 222 (Crown application), as substituted by paragraph 2(4) of Schedule 21 to the Environment Act 1995 (c. 25), after subsection (10) there is added— (11) This section shall apply in relation to sections 3, 4 and 10 of the Water Act 2003 as it applies in relation to the provisions of this Act. 14 For Schedule 6 (which relates to the making of orders providing for exemption from restrictions on abstraction) there is substituted— SCHEDULE 6 Orders relating to abstraction of small quantities and compulsory registration of protected rights Sections 27A(4) and 39B(7) Notice of draft order 1 (1) An application to the Secretary of State for an order under section 27A(1) or 39B(3) of this Act (an “order”) shall be accompanied by a draft of the proposed order. (2) Before submitting a draft order to the Secretary of State, the Agency shall publish a notice— (a) stating the general effect of the draft order; (b) specifying the place where a copy of the draft order, and of any relevant map or plan, may be inspected by any person free of charge at all reasonable times during the period of twenty-eight days beginning with the date of first publication of the notice; and (c) stating that any person may within that period, by notice to the Secretary of State, object to the making of the order. (3) A notice under this paragraph shall be published either— (a) at least once in each of two successive weeks, in one or more newspapers circulating in the area to which the draft order relates; or (b) in any other manner which, in any particular case, may be certified by the Secretary of State to be expedient in that case. (4) Not later than the date on which the notice is first published in pursuance of sub-paragraph (2) above, the Agency shall serve a copy of the notice on— (a) every local authority (in its capacity as the local planning authority), joint planning board or National Park authority whose area consists of, includes or is included in the area to which the draft order relates; (b) any relevant water undertaker; (c) any internal drainage board— (i) whose district consists of, includes or is included in the area to which the draft order relates; (ii) from whose district water is discharged into any relevant source of supply; or (iii) into whose district water is discharged from any relevant source of supply; (d) any navigation authority, harbour authority or conservancy authority having functions in relation to— (i) any relevant source of supply; or (ii) any related inland waters; (e) if a relevant source of supply or related inland waters are tidal waters in relation to which there is no such navigation authority, harbour authority or conservancy authority, the Secretary of State for Transport; (f) any person authorised by a licence under Part 1 of the Electricity Act 1989 to generate electricity who is (in that capacity) the holder of a licence to abstract water under Chapter 2 of Part 2 of this Act from— (i) any relevant source of supply; or (ii) any related inland waters; (g) English Nature, if the area to which the order relates is or includes England, or part of it; (h) the Countryside Council for Wales, if the area to which the order relates is or includes Wales, or part of it; and (i) the Broads Authority (established under the Norfolk and Suffolk Broads Act 1988), if the area to which the order relates is or includes the Broads (as defined in that Act), or part of it. (5) Where an application for an order is made, the Agency shall also publish a notice in the London Gazette— (a) stating that the draft order has been submitted to the Secretary of State; (b) naming the areas of each of the authorities or boards in respect of which a copy of the notice is required to be served under sub-paragraph (4)(a) above; (c) specifying a place where a copy of the draft order and of any relevant map or plan may be inspected; and (d) where the notice required by sub-paragraph (2) above is published in a newspaper, giving the name of the newspaper and the date of an issue containing the notice. (6) In this paragraph— (a) where a draft order makes provision generally (rather than for a specified geographical area), references to the area to which the order relates are to the whole area (whether England, Wales or both of them) in relation to which the order is applied; (b) references to a National Park authority are to a National Park authority established under Part 3 of the 1995 Act; (c) a “relevant source of supply”, in relation to a draft order, means— (i) if the draft order relates only to particular sources of supply (or a class of them) in an area, any of those sources of supply (or any source of supply in that class) in that area; (ii) otherwise, any source of supply in the area to which the draft order relates; (d) a “relevant water undertaker”, in relation to a draft order, means a water undertaker which is the holder of a licence to abstract water under Chapter 2 of Part 2 of this Act from— (i) a relevant source of supply; or (ii) a source of supply which is related to a relevant source of supply; (e) for the purposes of paragraph (d) above, a source of supply (the “related source”) is related to a relevant source of supply if it appears to the Agency that, having regard to the extent to which the level or flow of water in the related source depends on the level or flow of the waters in the relevant source of supply, the ability of the water undertaker to abstract water from the related source in accordance with its licence may be substantially affected as a result of the draft order; (f) “related inland waters” are inland waters the level or flow of which may, in the Agency’s opinion, be affected by changes in the level or flow of the waters in a relevant source of supply. Duty to provide copy of draft order 2 Where an application for an order is made, the Agency shall, at the request of any person, furnish him with a copy of the draft order on payment of such charge as the Agency thinks reasonable. Making of order 3 (1) Where an application for an order is made, the Secretary of State may make the order either in the form of the draft or in that form as altered in such manner as he thinks fit. (2) Where the Secretary of State— (a) proposes to make any alteration of an order before making it; and (b) considers that any persons are likely to be adversely affected by it, the Agency shall give and publish such additional notices, in such manner, as the Secretary of State may require. (3) Sub-paragraph (4) below shall apply if before the end of— (a) the period of twenty-eight days referred to in sub-paragraph (2)(b) of paragraph 1 above; (b) the period of twenty-five days from the publication in the London Gazette of the notice under sub-paragraph (5) of that paragraph; or (c) any period specified in notices under sub-paragraph (2) above, notice of an objection is received by the Secretary of State from any person on whom a notice is required by this Schedule to be served, from any other person appearing to the Secretary of State to be affected by the order (either as prepared in draft or as proposed to be altered) or, in a case where the Secretary of State directed the Agency to apply for the order, from the Agency. (4) Where this sub-paragraph applies and the objection in question is not withdrawn, the Secretary of State, before making the order, may take such steps as he sees fit and, in particular, may— (a) cause a local inquiry to be held; or (b) afford to the objector and to the Agency an opportunity of appearing before, and being heard by, a person appointed by the Secretary of State for the purpose. (5) Where— (a) the order (whether as prepared in draft or as proposed to be altered) relates to any tidal water situated in Wales (or in an area of the sea adjoining either the coast of Wales or an area of sea forming part of Wales); and (b) no navigation authority, harbour authority or conservancy authority has functions in relation to that tidal water, the Secretary of State shall not make the order except with the approval of the Secretary of State for Transport. Notice and inspection of final order 4 (1) Where an order is made under section 27A(1) or 39B(3) of this Act, whether in the form of the draft proposed by the Agency or with alterations, the Secretary of State shall give notice to the Agency— (a) stating that the order has been made, either without alteration or with alterations specified in the notice; and (b) specifying the date (not being earlier than twenty-eight days after the date of the notice under this paragraph) on which the order shall have effect; and the Agency shall forthwith publish the notice. (2) The Agency shall keep a copy of every order made under section 27A(1) or 39B(3) of this Act available at its offices for inspection by the public, free of charge, at all reasonable times. Environment Act 1995 (c. 25) 15 (1) The Environment Act 1995 is amended as follows. (2) In section 6 (general provisions with respect to water), after subsection (3) there is inserted— (3A) Subsection (3) above shall apply to— (a) sections 3 and 4 of the Water Act 2003; and (b) such of the related water resources provisions as apply in relation to those sections by virtue of section 33(2) of the Water Act 2003, as it applies to the provisions referred to in that subsection. (3) In Schedule 22 (amendment of enactments), paragraph 181 is omitted. Part 2 New regulatory arrangements, etc Public Records Act 1958 (c. 51) 16 In Schedule 1 to the Public Records Act 1958 (definition of public records), at the appropriate place in Part 2 of the Table at the end of paragraph 3 there is inserted— “ Consumer Council for Water. ” Public Bodies (Admission to Meetings) Act 1960 (c. 67) 17 In the Schedule to the Public Bodies (Admission to Meetings) Act 1960 (bodies to which Act applies), for paragraph 1(k) there is substituted— (k) regional committees of the Consumer Council for Water established under section 27A of the Water Industry Act 1991. Parliamentary Commissioner Act 1967 (c. 13) 18 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments and authorities subject to investigation)— (a) there is inserted at the appropriate places— “ Consumer Council for Water. ” “ Water Services Regulation Authority. ”, and (b) the entry relating to the Office of the Director General of Water Services is omitted. Superannuation Act 1972 (c. 11) 19 In Schedule 1 to the Superannuation Act 1972, in the list of “Other Bodies” there is inserted at the appropriate place— “ The Consumer Council for Water. ” House of Commons Disqualification Act 1975 (c. 24) 20 (1) Schedule 1 to the House of Commons Disqualification Act 1975 is amended as follows. (2) In Part 2 (bodies of which all members are disqualified), there is inserted at the appropriate places— “ The Consumer Council for Water, and each regional committee of the Council established under section 27A of the Water Industry Act 1991. ” “ The Water Services Regulation Authority. ” (3) In Part 3 (other disqualifying offices), the entries relating to the following are omitted— (a) the Chairman of a customer service committee maintained under section 28 of the Water Industry Act 1991, and (b) the Director General of Water Services. Northern Ireland Assembly Disqualification Act 1975 (c. 25) 21 (1) Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 is amended as follows. (2) In Part 2 (bodies of which all members are disqualified), there is inserted at the appropriate places— “ The Consumer Council for Water, and each regional committee of the Council established under section 27A of the Water Industry Act 1991. ” “ The Water Services Regulation Authority. ” (3) In Part 3 (other disqualifying offices), the entries relating to the following are omitted— (a) the Chairman of a customer service committee maintained under section 28 of the Water Industry Act 1991, and (b) the Director General of Water Services. Race Relations Act 1976 (c. 74) 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Telecommunications Act 1984 (c. 12) 23 In the Telecommunications Act 1984, in section 101 (restriction on disclosure of information)— (a) in subsection (2)(b), for “the Director General of Water Services” there is substituted “ the Water Services Regulation Authority ”, (b) in subsection (3)(j), at the end there is inserted “ , or the Water Act 2003 ”. Airports Act 1986 (c. 31) 24 In the Airports Act 1986, in section 74 (restriction on disclosure of information)— (a) in subsection (2)(a), for “the Director General of Water Services” there is substituted “ the Water Services Regulation Authority ”, (b) in subsection (3)(k), at the end there is inserted “ , or the Water Act 2003 ”. Company Directors Disqualification Act 1986 (c. 46) 25 In section 9E of the Company Directors Disqualification Act 1986 (interpretation for the purposes of sections 9A to 9D of that Act), in subsection (2), for paragraph (c) there is substituted— (c) the Water Services Regulation Authority; . Water Act 1989 (c. 15) 26 (1) The Water Act 1989 is amended as follows. (2) In section 174 (general restrictions on disclosure of information)— (a) in subsection (2)— (i) in paragraph (a)— (a) for “the Director” there is substituted “ the Water Services Regulation Authority, the Consumer Council for Water ”, (b) for “or the Environment Act 1995” there is substituted “ , the Environment Act 1995 or the Water Act 2003 ”, (ii) in paragraph (c), for “or of any arrangements” to the end there is substituted “ or section 27H of the Water Industry Act 1991 ”, (iii) in paragraph (j), after “1995” there is inserted “ , the Water Act 2003 ”, (b) in subsection (4)(a)— (i) for “the Director” there is substituted “ the Water Services Regulation Authority ”, (ii) for “a customer service committee” there is substituted “ the Consumer Council for Water (or any regional committee of that Council established under section 27A of the Water Industry Act 1991) ”. (3) In section 185 (powers to make regulations), in subsection (2), paragraph (a) is omitted. (4) In Schedule 3 (Director General of Water Services), paragraphs 6 and 7 are omitted. (5) In Schedule 4 (customer service committees), paragraph 6 is omitted. (6) In Schedule 25 (amendment of enactments), paragraphs 68(2)(a) and 76(a) are omitted. Water Industry Act 1991 (c. 56) 27 (1) The WIA is amended as follows. (2) In section 35 (construction of merger provisions), whose insertion into the WIA is provided for by section 70(1) of the Enterprise Act 2002 (c. 40), in subsection (1), in the definition of “water enterprise”, for “water undertaker” there is substituted “ relevant undertaker ”. (3) In section 86A(2)(a) and 116A(2)(a) (procedures for dealing with complaints), for “customer service committee” there is substituted “ regional committee ”. (4) In section 181 (complaints with respect to the exercise of works powers on private land), in subsection (2)(c), for “the appropriate customer service committee” there is substituted “ the Council ”. (5) In section 206 (restrictions on disclosure of information)— (a) in subsection (3)— (i) in paragraph (a), before “, the Competition Commission” there is inserted “ , the Council ”, (ii) in that paragraph, for “or regulations under section 2 of the Pollution Prevention and Control Act 1999” there is substituted “ , regulations under section 2 of the Pollution Prevention and Control Act 1999, or the Water Act 2003 ”, (iii) in paragraph (b), for “or the Water Act 1989” there is substituted “ , the Water Act 1989 or the Water Act 2003 ”, (iv) in paragraph (c), for “of any arrangements made by the Director under section 29(6) above or of any duty imposed by” there is substituted “ of any duty imposed by section 27H above or ”, (v) in paragraph (j)— (a) after “the Water Act 1989” there is inserted “ , the Water Act 2003 ”, (b) for “or that Act of 1989” there is substituted “ , the Water Act 1989 or the Water Act 2003 ”, (b) in subsection (4)(a)— (i) for “a customer service committee” there is substituted “ the Council (or any regional committee) ”, (ii) for “or regulations under section 2 of the Pollution Prevention and Control Act 1999” there is substituted “ , regulations under section 2 of the Pollution Prevention and Control Act 1999, or the Water Act 2003 ”. (6) In section 208 (directions in the interests of national security), after subsection (3) there is inserted— (3A) The Secretary of State may, after consultation with the Council, give to the Council such directions of a general character as appear to the Secretary of State to be requisite or expedient— (a) in the interests of national security; or (b) in connection with any civil emergency which may occur. (3B) If it appears to the Secretary of State to be requisite or expedient to do so— (a) in the interests of national security; or (b) in connection with any civil emergency which has occurred or may occur, he may, after consultation with the Council, give to the Council a direction requiring it to do, or not to do, a particular thing specified in the direction. (3C) The Council shall comply with any direction given to it by the Secretary of State under this section. (7) In section 219(1) (interpretation)— (a) after the definition of “analyse” there is inserted— “the Assembly” means the National Assembly for Wales; , “the Authority” means the Water Services Regulation Authority; , (b) after the definition of “contravention” there is inserted— “the Council” means the Consumer Council for Water; , (c) the definition of “the Director” is omitted, (d) after the definition of “records” there is inserted— “regional committee” means a regional committee of the Council established under section 27A above; . Water Resources Act 1991 (c. 57) 28 (1) The WRA is amended as follows. (2) In section 20 (water resources management schemes), in subsection (2)(c), for “Director General of Water Services” there is substituted “ Water Services Regulation Authority ”. (3) In section 204 (restriction on disclosure of information)— (a) in subsection (2)— (i) in paragraph (a), for “the Director General of Water Services” there is substituted “ the Water Services Regulation Authority, the Consumer Council for Water ”, (ii) in that paragraph, for “or regulations under section 2 of the Pollution Prevention and Control Act 1999” there is substituted “ , regulations under section 2 of the Pollution Prevention and Control Act 1999, or the Water Act 2003 ”, (iii) in paragraph (b), for “or the Water Act 1989” there is substituted “ , the Water Act 1989 or the Water Act 2003 ”, (iv) in paragraph (c), for “of any arrangements made by the Director General of Water Services under section 29(6)” there is substituted “ of any duty imposed by section 27H ”, (v) in paragraph (j)— (a) after “the Water Act 1989” there is inserted “ , the Water Act 2003 ”, (b) for “or that Act of 1989” there is substituted “ , the Water Act 1989 or the Water Act 2003 ”, (b) in subsection (3), in paragraph (a)— (i) for sub-paragraph (ii) there is substituted— (ii) the Water Services Regulation Authority; , (ii) for sub-paragraph (iii) there is substituted— (iii) the Consumer Council for Water (or any regional committee of that Council established under section 27A of the Water Industry Act 1991); or , (iii) for “or regulations under section 2 of the Pollution Prevention and Control Act 1999” there is substituted “ , regulations under section 2 of the Pollution Prevention and Control Act 1999, or the Water Act 2003 ”. (4) In section 219 (powers to make regulations), in each of paragraphs (a) and (b) of subsection (2), for “the Director” there is substituted “ the Water Services Regulation Authority ”. Water Consolidation (Consequential Provisions) Act 1991 (c. 60) 29 (1) The Water Consolidation (Consequential Provisions) Act 1991 is amended as follows. (2) In Schedule 1 (amendment of enactments), paragraphs 10, 28(a) and 29(a) are omitted. (3) In Schedule 2 (transitional and transitory provisions and savings)— (a) in paragraph 8, for “Director General of Water Services” there is substituted “ Water Services Regulation Authority ”, (b) in paragraph 10, for “Director General of Water Services” there is substituted “ Water Services Regulation Authority ”. Competition and Service (Utilities) Act 1992 (c. 43) 30 Section 50 of the Competition and Service (Utilities) Act 1992 (which amends section 2 of the WIA) shall cease to have effect. Coal Industry Act 1994 (c. 21) 31 In section 59 (information to be kept confidential by the Authority), in subsection (4), after paragraph (o) there is inserted— (p) the Water Act 2003. Competition Act 1998 (c. 41) 32 (1) The Competition Act 1998 is amended as follows. (2) In section 54 (regulators), in subsection (1), for paragraph (d) there is substituted— (d) the Water Services Regulation Authority; . (3) In Schedule 7 (the Competition Commission), in paragraph 2(1)(d), sub-paragraph (i) is omitted. (4) In Schedule 10 (regulators), the following are omitted— (a) paragraph 5(3), (b) paragraph 13(2) and (3). (5) In Schedule 13 (transitional provisions and savings), in paragraph 35(2)(e), for “Director General of Water Services” there is substituted “ Water Services Regulation Authority ”. Postal Services Act 2000 (c. 26) 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Utilities Act 2000 (c. 27) 34 In section 105 of the Utilities Act 2000 (general restrictions on disclosure of information)— (a) in subsection (5), for paragraph (e) there is substituted— (e) the Water Services Regulation Authority; , (b) in subsection (6)(l), at the end there is inserted “ or the Water Act 2003 ”. Transport Act 2000 (c. 38) 35 In Schedule 9 to the Transport Act 2000 (air traffic: information), in paragraph 3— (a) in sub-paragraph (2), for paragraph (g) there is substituted— (g) the Water Services Regulation Authority; , (b) in sub-paragraph (3), after paragraph (ra) there is inserted— (rb) the Water Act 2003; . Enterprise Act 2002 (c. 40) 36 (1) The Enterprise Act 2002 is amended as follows. (2) In section 136 (investigations and reports on market investigation references), in each of subsections (7)(c) and (8), for “the Director General of Water Services” there is substituted “ the Water Services Regulation Authority ”. (3) In section 168 (regulated markets)— (a) in subsection (4)(f), for “the Director General of Water Services” there is substituted “ the Water Services Regulation Authority ”, (b) in subsection (5), for paragraph (e) there is substituted— (e) the Water Services Regulation Authority; . (4) In Schedule 15 (enactments conferring functions in relation to which a public authority may disclose information), at the end there is inserted the following entry— “ Water Act 2003 (c. 37). ” Part 3 Miscellaneous Metropolis Water Act 1852 (c. 84) 37 Section 1 of the Metropolis Water Act 1852 (restriction on sources of supply of water to London) shall cease to have effect. Reservoirs Act 1975 (c. 23) 38 In Schedule 1 to the Reservoirs Act 1975 (index of general definitions), the entry for “Local authority” is omitted. Water Industry Act 1991 (c. 56) 39 (1) The WIA is amended as follows. (2) In section 111 (restrictions on use of public sewers)— (a) in paragraph (b) of subsection (1), for “one hundred and ten degrees Fahrenheit” there is substituted “ forty-three degrees Celsius ”, (b) in subsection (5), for “seventy-three degrees Fahrenheit” there is substituted “ twenty-three degrees Celsius ”. (3) In section 213(1) (powers to make regulations), after “or 17D(8)” (which is inserted by paragraph 49(2) of Schedule 8) there is inserted “ or 105A ”. Land Drainage Act 1991 (c. 59) 40 (1) The Land Drainage Act 1991 is amended as follows. (2) In section 16 (which provides for the exercise of certain local authority powers by the Environment Agency), in subsection (2), for “under subsection (3) above” there is substituted “ in exercising those powers ”. (3) In section 55 (powers of internal drainage boards to borrow), in subsection (1)(a), for “in the execution of this Act” there is substituted “ in the exercise or performance of any power or duty under this Act or the Water Resources Act 1991 ”. Health Authorities Act 1995 (c. 17) 41 In Schedule 1 to the Health Authorities Act 1995 (amendment of enactments), paragraph 120 is omitted. Environment Act 1995 (c. 25) 42 In section 101 of the Environment Act 1995 (grants in connection with drainage works), subsection (1) is omitted.

Propose a change

SCHEDULE 8 Minor and consequential amendments: licensing of water suppliers etc

Section 101(1) Water Act 1989 (c. 15) 1 (1) Section 174 of the Water Act 1989 (general restrictions on disclosure of information) is amended as follows. (2) In paragraph (b) of subsection (2), for “or a sewerage undertaker” there is substituted “ , sewerage undertaker or company holding a licence under Chapter 1A of Part 2 of the Water Industry Act 1991 ”. (3) In paragraph (c) of that subsection, for “203(1) or (2)” there is substituted “ 203(1), (1A), (2) or (2A) ”. (4) In subsection (6)(a), after “sewerage undertaker” there is inserted “ , or with the carrying on by a company holding a licence under Chapter 1A of Part 2 of the Water Industry Act 1991 of activities under its licence, ”. Water Industry Act 1991 (c. 56) 2 The WIA is amended as follows. 3 In section 6 (appointment of relevant undertakers), after subsection (5) there is inserted— (5A) A company shall not be appointed to be a relevant undertaker if it is a licensed water supplier. 4 (1) Section 18 (orders for securing compliance) is amended as follows. (2) In subsection (1)— (a) after “this Part” there is inserted “ or a licence under Chapter 1A of this Part ”; and (b) in paragraph (a), after “appointment” there is inserted “ or licence ”. (3) After that subsection there is inserted— (1A) Subject to subsection (2) and sections 19 and 20 below, where— (a) in the case of any company holding an appointment under Chapter 1 of this Part, the Secretary of State or the Authority is satisfied that the company— (i) is causing or contributing to a contravention of a condition or requirement such as is referred to in paragraph (a)(i) or (ii) of subsection (1) above by a company holding a licence under Chapter 1A of this Part; or (ii) is likely to cause or contribute to any such contravention; or (b) in the case of any company holding a licence under Chapter 1A of this Part, the Secretary of State or the Authority is satisfied that the company— (i) is causing or contributing to a contravention of a condition or requirement such as is referred to in paragraph (a)(i) or (ii) of subsection (1) above by a company holding an appointment under Chapter 1 of this Part; or (ii) is likely to cause or contribute to any such contravention, he or it shall by a final enforcement order make such provision as is requisite for the purpose of securing compliance with that condition or requirement. (4) In subsection (2)— (a) after “this Part” there is inserted “ or a licence under Chapter 1A of this Part ”; and (b) in paragraph (a), after “subsection (1)” there is inserted “ or (1A) ”. (5) In subsection (4), after paragraph (a)(ii) there is inserted or (iii) is causing or contributing to a contravention of any such condition or requirement; or (iv) is likely to cause or contribute to any such contravention; . (6) In subsection (6)— (a) in paragraph (a)— (i) after “this Part” there is inserted “ or a licence under Chapter 1A of this Part ”; and (ii) in sub-paragraph (i), after “appointment” there is inserted “ or licence ”; and (b) in paragraph (b), after “this Part” there is inserted “ or of a licence under Chapter 1A of this Part ”. (7) For subsection (8) there is substituted— (8) Where any act or omission— (a) constitutes a contravention of a condition of an appointment under Chapter 1 of this Part or of a condition of a licence under Chapter 1A of this Part or of a statutory or other requirement enforceable under this section; or (b) causes or contributes to a contravention of any such condition or requirement, the only remedies for, or for causing or contributing to, that contravention (apart from those available by virtue of this section) shall be those for which express provision is made by or under any enactment and those that are available in respect of that act or omission otherwise than by virtue of its constituting, or causing or contributing to, such a contravention. 5 (1) Section 19 (exceptions to duty to enforce) is amended as follows. (2) In subsection (1), after paragraph (a) there is inserted— (aa) that the extent to which the company caused or contributed to, or was likely to cause or contribute to, a contravention was trivial; . (3) In subsection (3), after “paragraph (a),” there is inserted “ (aa), ”. 6 (1) Section 20 (procedure for enforcement orders) is amended as follows. (2) In subsection (1)— (a) after “final enforcement order” there is inserted “ under section 18(1) above ”; and (b) after “provisional enforcement order” there is inserted “ in a case in which section 18(4)(a)(i) or (ii) above applies ”. (3) After that subsection there is inserted— (1A) Before making a final enforcement order under section 18(1A) above or confirming a provisional enforcement order in a case in which section 18(4)(a)(iii) or (iv) above applies, the Secretary of State or the Authority shall give notice— (a) stating that he or it proposes to make or confirm the order and setting out the effect of the order; (b) setting out— (i) the condition or requirement for the purposes of securing compliance with which the order is to be made or confirmed; (ii) the acts or omissions which, in his or its opinion, cause or contribute to or would cause or contribute to the contravention of that condition or requirement; and (iii) the other facts which, in his or its opinion, justify the making or confirmation of the order; and (c) specifying the period (not being less than twenty-one days from the date of publication of the notice) within which representations or objections to the proposed order or proposed confirmation may be made, and shall consider any representations or objections which are duly made and not withdrawn. (4) In subsection (2), after “subsection (1)” there is inserted “ or (1A) ”. 7 In section 22 (effect of enforcement order), in subsection (3), after “section 68(1)(a)” there is inserted “ or (1A)(a) ”. 8 (1) Section 23 (meaning and effect of special administration order) is amended as follows. (2) In subsection (1), after “this Part” there is inserted “ or which is a qualifying licensed water supplier ”. (3) In subsection (2), after “in relation to any company” there is inserted “ holding an appointment under Chapter 1 of this Part ”. (4) After that subsection, there is inserted— (2A) The purposes of a special administration order made in relation to any company which is a qualifying licensed water supplier shall be— (a) the transfer to another company or companies, as a going concern, of so much of the company’s undertaking as it is necessary to transfer in order to ensure that activities relating to the introduction or introductions of water mentioned in subsection (6)(b) below may be properly carried on; and (b) the carrying on of those activities pending the making of the transfer. (5) In subsection (4), for the words from “a company” to the end there is substituted— (a) a company is replaced by another as a relevant undertaker without an appointment or variation under Chapter 1 of this Part; or (b) a company carries on activities relating to the introduction or introductions of water mentioned in subsection (6)(b) below formerly carried on by another company, in pursuance of a special administration order. (6) After subsection (5), there is inserted— (6) For the purposes of this section, sections 24 to 26 below and Schedule 2 to this Act, a licensed water supplier is a qualifying licensed water supplier if— (a) it is the holder of a combined licence (within the meaning of Chapter 1A of this Part); and (b) the introduction of water by it which is permitted under section 66B or 66C below is designated as a strategic supply under section 66G below or the introductions of water by it which are so permitted are designated as a collective strategic supply under section 66H below. 9 (1) Section 24 (special administration orders made on special petitions) is amended as follows. (2) After subsection (1), there is inserted— (1A) If on an application made to the High Court by petition presented— (a) by the Secretary of State (after consulting the Assembly); or (b) with the consent of the Secretary of State (after consulting the Assembly), the Authority, the Court is satisfied in relation to any company which is a qualifying licensed water supplier that any one or more of the grounds specified in subsection (2) below is satisfied in relation to that company, that Court may make a special administration order in relation to that company. (3) In subsection (2)— (a) for “subsection (1)” there is substituted “ subsections (1) and (1A) ”, (b) in paragraphs (a) and (b), after “appointment” there is inserted “ or licence ”, (c) after paragraph (b) there is inserted— (bb) in the case of a company which is a qualifying licensed water supplier, that— (i) action taken by the company has caused a contravention by a water undertaker of any principal duty; and (ii) that action is serious enough to make it inappropriate for the company to continue to hold its licence; , (d) in paragraph (d), after “this Part” there is inserted “ or was not a qualifying licensed water supplier ”, and (e) in paragraph (e), at the beginning there is inserted “ in the case of a company holding an appointment under Chapter 1 of this Part, ”. (4) For subsection (7) there is substituted— (7) In this section “principal duty” means— (a) in relation to a company holding an appointment under Chapter 1 of this Part, a requirement imposed on the company by section 37 or 94 below; (b) in relation to a company which is a qualifying licensed water supplier, any condition of its licence or any statutory requirement imposed on it in consequence of its licence. 10 In section 25 (power to make special administration order on a winding up)— (a) after “this Part” there is inserted “ or is a qualifying licensed water supplier ”, and (b) in paragraph (b), after “appointment” there is inserted “ or a qualifying licensed water supplier ”. 11 In section 26 (restrictions on voluntary winding up and insolvency proceedings), after “this Part” there is inserted “ or is a qualifying licensed water supplier ”. 12 (1) Section 27 (general duty of Authority to keep matters under review) is amended as follows. (2) In subsection (1), for the words from “water” to the end there is substituted— (a) water undertakers or sewerage undertakers carry out functions; and (b) licensed water suppliers carry on activities authorised by their licences. (3) In subsection (2)— (a) after paragraph (a) there is inserted— (aa) the carrying on by companies holding licences under Chapter 1A of this Part of the activities authorised by their licences; or , and (b) in paragraph (b), for “such company” there is substituted “ company mentioned in paragraph (a) or (aa) above ”. (4) In subsection (4), at the end of paragraph (b) there is inserted or (c) the activities authorised by retail licences or combined licences (within the meanings of Chapter 1A of this Part); or (d) the carrying on of any such activities by a company holding any such licence. 13 (1) Section 39A (information to be given to customers about overall performance) is amended as follows. (2) In subsection (1), after “customers” there is inserted “ , and, if the direction so specifies, licensed water suppliers using the undertaker’s supply system for the purpose of supplying water to the premises of customers or those customers, ”. (3) After subsection (2) there is inserted— (2A) The licensed water suppliers referred to in subsection (1) above shall, if the Authority so directs, pass on the information about the matters mentioned in that subsection to their customers. (2B) In subsection (1) above, the reference to the water undertaker’s supply system shall be construed in accordance with section 17B(5) above. (4) In subsection (3), after “undertaker” there is inserted “ or licensed water supplier ”. 14 (1) Section 43 (calculation of payments to undertaker in respect of provision of water main) is amended as follows. (2) In subsection (1), for “water charges payable for the use during that year of that main are” there is substituted “ relevant revenue in respect of that main for that year is ”. (3) For subsection (7) there is substituted— (7) Any reference in this section to the relevant revenue in respect of a main provided by a water undertaker for any year is— (a) in relation to premises connected with the main which are supplied with water by the undertaker, is a reference to so much of the aggregate of any charges payable to the undertaker in respect of services provided in the course of that year as represents charges which— (i) have been imposed by the undertaker in relation to those premises; and (ii) are reasonably attributable to the provision of a supply of water (whether or not for domestic purposes) to those premises by means of that main; (b) in relation to premises connected with the main which are supplied with water by a licensed water supplier, is a reference to so much of the aggregate of any charges made during the course of that year which— (i) are payable by the supplier to the undertaker in respect of the duty under section 66A(2)(b), 66B(3)(b) or 66C(2)(b)(ii) below; and (ii) are reasonably attributable to the use of that main for the purpose of the supplier supplying water to those premises. 15 (1) Section 52 (the domestic supply duty) is amended as follows. (2) In subsection (3), at the beginning there is inserted “ Subject to subsection (4A) below, ”. (3) After subsection (4) there is inserted— (4A) This section does not apply to any premises if— (a) they are not in the area of the water undertaker; (b) they are not household premises (as defined in section 17C above); and (c) the total quantity of water estimated to be supplied to them annually for the purposes of subsection (2) of section 17D above is not less than the quantity specified in that subsection. (4) After subsection (6) there is inserted— (6A) For the purposes of this section, there is also an interruption of the domestic supply duty owed by a water undertaker in relation to any premises where— (a) a notice is served in respect of those premises under section 63AA below; and (b) the time specified in that notice has passed. 16 (1) Section 55 (supplies for non-domestic purposes) is amended as follows. (2) After subsection (1) there is inserted— (1A) This section also applies where— (a) a water undertaker is requested to provide a supply of water to premises which are not in the undertaker’s area by the owner or occupier of the premises; (b) the premises are household premises (as defined in section 17C above) or 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; and (c) paragraph (a) or (b) of subsection (1) above applies. (3) In subsection (8), after “63” there is inserted “ and 63AB ”. 17 After section 63 there is inserted— Supply by licensed water supplier etc Supply by licensed water supplier: domestic supply 63AA (1) The owner or occupier of any premises may serve a notice on a water undertaker— (a) informing the undertaker that the premises are to be supplied by a licensed water supplier; and (b) specifying the time after which a supply of water to the premises by the undertaker will no longer be required. (2) Where the charges for the water supplied by the undertaker are, under Chapter 1 of Part 5 of this Act, fixed in relation to the premises by reference to volume, the time specified in the notice shall fall at least two working days after the notice is served. (3) In this section and section 63AB below, any reference to two working days is a reference to a period of forty-eight hours calculated after disregarding any time falling on— (a) a Saturday or Sunday; or (b) Christmas Day, Good Friday or any day which is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971. Supply by licensed water supplier: non-domestic supply 63AB (1) The duty of a water undertaker under section 55 above to provide a supply of water to any premises shall cease to apply if— (a) a notice specifying the time after which a supply of water to the premises by the undertaker will no longer be required in consequence of the premises being supplied by a licensed water supplier has been served on the undertaker by the owner or occupier of the premises; and (b) that time has passed. (2) Where the charges for the water supplied by the undertaker are, under Chapter 1 of Part 5 of this Act, fixed in relation to the premises by reference to volume, the time specified in the notice shall fall at least two working days after the notice is served. Interim duty of water undertaker: domestic and non-domestic supply 63AC (1) This section applies where— (a) a licensed water supplier ceases to supply any premises with water; and (b) the owner or occupier of the premises has not notified the water undertaker in whose area the premises are that— (i) he has made arrangements for the continuation of the supply of water to the premises; or (ii) he intends any supply of water to the premises to cease. (2) Where this section applies, it shall be the duty of the water undertaker to continue the supply of water to the premises which was made by the licensed water supplier. (3) Where a supply is made under subsection (2)— (a) the charges payable in respect of the supply shall be fixed from time to time by a charges scheme under section 143 below; and (b) subject to subsection (8) below, the supply shall be made until— (i) a supply is made under section 52 or 55 above; or (ii) a notice is served by the undertaker on the owner or occupier of the premises stating that the supply is to be discontinued (subject to subsection (4) below), whichever is earlier. (4) A notice under subsection (3)(b)(ii) above may not be served before the end of the period of three months beginning with the day on which the supply by the supplier ceased. (5) A water undertaker shall not be required by virtue of this section to provide a supply of water to any premises if the provision of the supply would— (a) require the undertaker, in order to meet all its existing obligations to supply water for domestic or other purposes, together with its probable future obligations to supply buildings and parts of buildings with water for domestic purposes, to incur unreasonable expenditure in carrying out works; or (b) otherwise put at risk its ability to meet any of the existing or probable future obligations mentioned in paragraph (a) above. (6) The supply of water to any premises by a water undertaker under this section shall not prevent a proposed supply to those premises by that undertaker under section 55 above from being regarded as a new supply for the purposes of that section. (7) Where a duty is imposed by this section in respect of any premises, any breach of the duty which causes the owner or occupier of the premises to sustain loss or damage shall be actionable at the suit of that owner or occupier; but, in any proceedings brought against a water undertaker in pursuance of this subsection, it shall be a defence for the undertaker to show that it took all reasonable steps and exercised all due diligence to avoid the breach. (8) Sections 60 to 63 above apply as they apply where a supply of water is made under section 52 or 55 above. 18 (1) Section 68 (water quality) is amended as follows. (2) In subsection (1)— (a) after “water undertaker” there is inserted “ where its supply system is used for the purpose of supplying water to any premises for domestic or food production purposes ”, (b) in paragraph (a), for the words from the beginning to “which” there is substituted “ to ensure that any water so supplied ”, (c) in paragraph (b), for the words from “that undertaker” to “purposes” there is substituted “ water is so supplied ”, and (d) after that paragraph, there is inserted— “ and this section and section 69 below apply, in relation to the duty of an undertaker, whether or not the water supplied using the undertaker’s supply system is supplied by the undertaker. ” (3) After that subsection, there is inserted— (1A) It shall be the duty of a licensed water supplier— (a) when supplying water to any premises for domestic or food production purposes, in accordance with its retail authorisation, to ensure that the water is wholesome at the time of supply; and (b) so far as reasonably practicable, to ensure, in relation to each source or combination of sources from which that supplier supplies water to premises for domestic or food production purposes, in accordance with its retail authorisation, that there is, in general, no deterioration in the quality of the water which is supplied from time to time from that source or combination of sources, and references in this subsection to the retail authorisation shall be construed in accordance with section 17A(2) above. (4) In subsection (2), for “water supplied by a water undertaker” there is substituted “ where a water undertaker’s supply system is used for the purpose of supplying water to any premises, any water so supplied ”. (5) In subsection (3)— (a) for the words from “this section” to “premises” there is substituted “ subsection (1) above where a water undertaker’s supply system is used for the purpose of supplying water to any premises, and the water so supplied ”; and (b) in paragraph (b), for “supplying the water, to take such steps” there is substituted “ the water is supplied, to ensure that such steps are taken ”. (6) After that subsection there is inserted— (3A) For the purposes of subsection (1A) above where water supplied by a licensed water supplier to any premises would not otherwise be regarded as unwholesome at the time of supply, that water shall be regarded as unwholesome at that time if— (a) it has ceased to be wholesome after leaving the relevant pipes but while in a pipe which is subject to water pressure from a water main or which would be so subject but for the closing of some valve; and (b) it has so ceased in consequence of the failure of the supplier, before supplying the water, to ensure that such steps are taken as may be prescribed for the purpose of securing the elimination, or reduction to a minimum, of any prescribed risk that the water would cease to be wholesome after leaving the relevant pipes. (3B) In subsection (3A) above “relevant pipes” means the pipes of the water undertaker whose supply system is used for the purpose of the supply made by the licensed water supplier. (7) In subsection (5), after “undertaker” there is inserted “ and licensed water supplier ”. (8) In the sidenote (and the italic heading immediately preceding it), after “undertakers” there is inserted “ and licensed water suppliers ”. 19 (1) Section 69 (regulations for preserving water quality) is amended as follows. (2) In subsection (1), for “to take all such steps” there is substituted “ or a licensed water supplier to ensure that such steps are taken ”. (3) In subsection (2)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, (b) in paragraph (a)— (i) for “take all such steps” there is substituted “ ensure that all such steps are taken ”; and (ii) for “which that undertaker supplies” there is substituted “ used for relevant supplies ”, (c) in paragraph (b)— (i) for “take all such steps” there is substituted “ ensure that all such steps are taken ”; and (ii) for “that undertaker uses or is proposing to use for supplying water” there is substituted “ is used or is proposed to be used for making relevant supplies ”, (d) in paragraph (c), for “that undertaker is using or proposing to use for supplying water” there is substituted “ is used or proposed to be used for making relevant supplies ”, (e) in paragraph (d)— (i) for “keep records” there is substituted “ ensure that records are kept ”; (ii) for “supplied with water” there is substituted “ receiving relevant supplies ”; and (iii) the words “by that undertaker” are omitted, and (f) in paragraph (e), for “comply with prescribed requirements” there is substituted “ ensure that prescribed requirements are complied with ”. (4) In subsection (3), for the words from “with respect” to “functions” there is substituted “ imposing obligations on water undertakers or licensed water suppliers with respect to the use for the purposes of or in connection with making relevant supplies ”. (5) In subsection (4)— (a) in paragraph (a)— (i) for “forbid the use by water undertakers of” there is substituted “ require water undertakers or licensed water suppliers to ensure that ”, and (ii) at the end there is inserted “ are not used for the purposes of or in connection with relevant supplies ”, (b) in paragraph (b)— (i) after “require” there is inserted “ water undertakers and licensed water suppliers to ensure that ”, and (ii) for “by water undertakers to” there is substituted “ for the purposes of or in connection with relevant supplies ”, and (c) in paragraph (c), for “by water undertakers” there is substituted “ for the purposes of or in connection with relevant supplies ”. (6) In subsection (5)— (a) the words “require a water undertaker” are omitted, (b) in paragraph (a)— (i) at the beginning, there is inserted “ require a water undertaker ”, and (ii) for “by that undertaker” there is substituted “ using that undertaker’s supply system ”, (c) the word “and” at the end of paragraph (a) is omitted, (d) after that paragraph, there is inserted— (aa) require a licensed water supplier to publish information about the quality of water supplied for domestic or food production purposes to any premises by that supplier , and (e) in paragraph (b)— (i) at the beginning, there is inserted “ require any such undertaker or supplier ”, and (ii) for “so supplied” there is substituted “ supplied as referred to in paragraph (a) or (aa) above (as the case may be) ”. (7) In subsection (6)— (a) in paragraph (b)— (i) after “water undertaker”there is inserted “ or licensed water supplier ”, and (ii) after “the undertaker” there is inserted “ or supplier ”, and (b) in paragraph (c), after “undertaker” there is inserted “ or licensed water supplier ”. (8) After that subsection there is inserted— (7) In this section, “relevant supplies” means— (a) in the case of an obligation imposed on a water undertaker, supplies of water— (i) made by the undertaker in carrying out its functions; or (ii) made by a licensed water supplier using the undertaker’s supply system; and (b) in the case of an obligation imposed on a licensed water supplier, supplies of water made by that supplier using a water undertaker’s supply system. 20 (1) Section 70 (offence of supplying water unfit for human consumption) is amended as follows. (2) In subsection (1)— (a) for the words from “water undertaker” to “pipes” there is substituted “ water undertaker’s supply system is used for the purposes of supplying water ”, and (b) for “the undertaker” there is substituted “ the relevant persons ”. (3) After that subsection there is inserted— (1A) For the purposes of subsection (1) above, the relevant persons are— (a) the water undertaker whose supply system is used for the purposes of supplying the water (in this section referred to as the “primary water undertaker”); and (b) any employer of persons, or any self-employed person, who is concerned in the supply of the water. (4) In subsection (3)— (a) for “water undertaker” there is substituted “ relevant person ”, (b) for “that undertaker” there is substituted “ that person ”, and (c) in paragraph (b), for “its” there is substituted “ the primary water undertaker's ”. (5) After that subsection there is inserted— (3A) For the purposes of paragraph (b) of subsection (3) above— (a) in the case of proceedings against a primary water undertaker, showing that the undertaker took all reasonable steps and exercised all due diligence as mentioned in that paragraph includes (among other things) showing that the relevant arrangements were reasonable in all the circumstances; and (b) in the case of proceedings against any other relevant person, showing that the person took all reasonable steps and exercised all due diligence as mentioned in that paragraph includes (among other things) showing that it took all reasonable steps and exercised all due diligence for securing that all aspects of the relevant arrangements for which it was responsible were properly carried out. (3B) In subsection (3A) above, “relevant arrangements” means arrangements made by the primary water undertaker to ensure that all other relevant persons were required to take all reasonable steps and exercise all due diligence for securing that the water was fit for human consumption on leaving the undertaker’s pipes or was not used for human consumption. 21 In section 72 (contamination of water sources), in subsection (5), after paragraph (b) there is inserted ; and (c) any pipe or conduit of a licensed water supplier. 22 In section 73 (offences of contaminating water etc), in subsection (1)— (a) in the opening words, after “undertaker” there is inserted “ or licensed water supplier ”, and (b) in paragraph (b), after “undertaker” there is inserted “ or supplier ”. 23 In section 74 (regulations for preventing contamination etc), in subsection (1)— (a) in paragraph (b), after “undertaker” there is inserted “ or licensed water supplier ”, (b) in paragraph (c), after “that undertaker” there is inserted “ or a licensed water supplier ”, and (c) in paragraph (d), after “undertaker” there is inserted “ or licensed water supplier ”. 24 (1) Section 75 (power to prevent damage etc) is amended as follows. (2) After subsection (1) there is inserted— (1A) Without prejudice to any power conferred on water undertakers by regulations under section 74 above, where a water undertaker whose supply system is used for the purpose of a licensed water supplier making a supply of water to any premises has reason for believing— (a) that damage to persons or property is being or is likely to be caused by any damage to, or defect in, any water fitting used in connection with the supply of water to those premises which is not a service pipe belonging to the water undertaker; (b) that water in a water main or other pipe of the undertaker is being or is likely to be contaminated by the return of any substance from those premises to that pipe or main; (c) that water which is in any pipe connected with any such main or other pipe or which has been supplied by the supplier to those premises is being or is likely to be contaminated before it is used; or (d) that water which has been or is to be so supplied is being or is likely to be wasted or, having regard to the purposes for which it is supplied, misused or unduly consumed, the undertaker may exercise the power conferred by subsection (2) below in relation to those premises. (3) After subsection (10) there is inserted— (11) Where the power conferred by subsection (2) above on a water undertaker is exercisable by virtue of subsection (1A) above— (a) the references to the consumer in subsections (2) and (3), in relation to a supply of water to any premises, shall be taken to be references to the person in respect of whom the supply is made; and (b) the undertaker shall serve on the licensed water supplier providing the supply a copy of any notice under this section which is served on the person mentioned in paragraph (a) above. (12) In subsection (1A) above, the reference to the supply system of a water undertaker shall be construed in accordance with section 17B(5) above. 25 In section 76 (temporary hosepipe bans), in subsection (1), after “supplied by that undertaker” there is inserted “ or a licensed water supplier ”. 26 (1) Section 78 (local authority functions in relation to undertaker’s supplies) is amended as follows. (2) In subsection (1)(a), after “undertaker” there is inserted “ , or by a licensed water supplier using that undertaker’s supply system, ”. (3) After subsection (2), there is inserted— (3) In subsection (1)(a) above, the reference to the water undertaker’s supply system shall be construed in accordance with section 17B(5) above. 27 (1) Section 86 (enforcement of water quality) is amended as follows. (2) In subsection (1)(b), for “by a water undertaker” there is substituted “ using a water undertaker’s supply system ”. (3) In subsection (2)(a)(i), for the words from “by” to “above” there is substituted “ or a licensed water supplier by or under any of sections 68, 69 and 79 above or imposed on a relevant person (as defined in subsection (1A) of section 70 above) by or under that section ”. (4) In subsection (3), after “undertaker” there is inserted “ , licensed water supplier or other relevant person (as defined in section 70(1A) above) ”. (5) In subsection (4), for paragraph (c) there is substituted— (c) at any reasonable time require— (i) any water undertaker or licensed water supplier to supply him with copies of, or extracts from, the contents of any records kept for the purpose of complying with any duty or other requirement imposed on that undertaker or supplier by or under any of sections 68, 69 and 79 above; or (ii) any relevant person (as defined in subsection (1A) of section 70 above) to supply him with copies of, or extracts from, the contents of any records kept for the purpose of complying with any duty or other requirement imposed on that person by or under that section. (6) In subsection (6), after “undertaker” there is inserted “ , licensed water supplier or other relevant person ”. 28 In section 93(1) (interpretation of Part 3), in the definition of “private supply”, after “undertaker” there is inserted “ or by a licensed water supplier in accordance with Chapter 1A of Part 2 of this Act ”. 29 In section 93A (duty to promote the efficient use of water), in the following provisions— (a) subsection (1), (b) subsection (2), and (c) subsection (3), after “undertaker” there is inserted “ or licensed water supplier ”. 30 (1) Section 93B (power to impose requirements in connection with section 93A) is amended as follows. (2) In subsection (1), after “undertaker” there is inserted “ or licensed water supplier ”. (3) In subsection (2)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, and (b) after “the undertaker”, in both places where it appears, there is inserted “ or supplier ”. (4) In subsection (3), in paragraphs (a) and (b), after “undertaker” there is inserted “ or licensed water supplier ”. (5) In subsection (4)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, and (b) after “that undertaker” there is inserted “ or supplier ”. (6) In subsection (5)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, and (b) after “that undertaker” there is inserted “ or supplier ”. (7) In subsection (6)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, and (b) after “that undertaker” there is inserted “ or supplier ”. 31 (1) Section 93C (publicity) is amended as follows. (2) In subsection (1)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, and (b) after “that undertaker's” there is inserted “ or supplier's ”. (3) In subsection (2), in paragraph (b), after “undertaker” there is inserted “ or supplier ”. 32 (1) Section 93D (information as to compliance) is amended as follows. (2) In subsection (1)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, (b) after “that undertaker” there is inserted “ or supplier ”, and (c) after “the undertaker” there is inserted “ or supplier ”. (3) In subsection (2), in paragraph (b), after “undertaker” there is inserted “ or supplier ”. (4) In subsection (3)— (a) after “water undertaker” there is inserted “ or licensed water supplier ”, (b) after “the undertaker's” there is inserted “ or supplier's ”, and (c) after “the undertaker” there is inserted “ or supplier ”. (5) In subsection (4), after “water undertaker” there is inserted “ or licensed water supplier ”. 33 In section 148 (restriction on charging for metering works), in subsection (2), after paragraph (c) there is inserted— (cc) any sums which it is entitled to recover under an agreement under section 66D above; . 34 In section 150 (fixing maximum charges for services provided with the help of undertakers' services), after subsection (1) there is inserted— (1A) This section does not apply to water supplies provided by a licensed water supplier to premises of customers in accordance with Chapter 1A of Part 2 of this Act. 35 In section 152 (grants for national security purposes), in subsection (1), after “relevant undertakers” there is inserted “ and licensed water suppliers ”. 36 In section 158 (powers to lay pipes in streets), in subsection (7)(a), after “trunk main” there is inserted “ but not including a pipe laid in pursuance of section 66B(3)(a)(ii) above which is used for the purpose of supplying water other than for domestic or food production purposes or laid in pursuance of section 66B(3)(a)(iii) above ”. 37 (1) Section 162 (works in connection with metering) is amended as follows. (2) In subsection (1A), in paragraph (a) at the end there is inserted “ or ”. (3) In that subsection, after paragraph (c) there is inserted or (d) a licensed water supplier supplies water to those premises using the undertaker’s supply system. (4) After that subsection there is inserted— (1B) In subsection (1A)(d) above, the reference to the supply system of a water undertaker shall be construed in accordance with section 17B(5) above. 38 In section 163 (power to fit stopcocks), in subsection (1), after “by the undertaker” there is inserted “ or a licensed water supplier ”. 39 (1) Section 174 (offences of interference with works) is amended as follows. (2) After subsection (1) there is inserted— (1A) Subject to subsection (2) below, if any person without the consent of the licensed water supplier— (a) intentionally or recklessly interferes with any pipe or any structure, installation or apparatus which— (i) is vested in any licensed water supplier (in the case of a pipe) or belongs to any such supplier (in any other case); and (ii) is used in connection with the carrying on by the supplier of the activities authorised by its licence; or (b) by any act or omission negligently interferes with any such pipe or with any such structure, installation or apparatus so as to damage it or so as to have an effect on its use or operation, that person shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 3 on the standard scale. (3) In subsection (2)— (a) after “subsection (1)” there is inserted “ or (1A) ”, and (b) in paragraph (b)— (i) after “water undertaker” there is inserted “ or licensed water supplier ”, and (ii) in sub-paragraph (ii), for the words from “the stopcock was” to the end there is substituted “ subsection (2A) below applies ”. (4) After that subsection there is inserted— (2A) This subsection applies— (a) in the case of a stopcock belonging to a water undertaker, if the stopcock was closed otherwise than by the undertaker; (b) in the case of a stopcock belonging to a licensed water supplier— (i) if the stopcock was closed otherwise than by the supplier; or (ii) if the stopcock was closed by the supplier and the person in question for the purposes of subsection (2) above is the water undertaker whose supply system is used for the purpose of the supply made by the supplier, and in this subsection the reference to the supply system of a water undertaker shall be construed in accordance with section 17B(5) above. (5) In subsection (3), in paragraph (c), for “section” there is substituted “ subsection ”. (6) After that subsection there is inserted— (3A) Any person who, without the consent of the licensed water supplier— (a) attaches any pipe or apparatus to any pipe which is— (i) vested in a licensed water supplier; and (ii) used in connection with the carrying on by the supplier of the activities authorised by its licence; (b) attaches any pipe or apparatus to any service pipe which does not belong to such a supplier or a water undertaker but which is a pipe by means of which water is supplied by such a supplier to any premises; (c) makes any alteration in a service pipe by means of which water is so supplied, or in any apparatus attached to any such pipe; or (d) subject to subsection (4) below, uses any pipe or apparatus which has been attached or altered in contravention of this subsection, shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 3 on the standard scale. (7) In subsection (4)— (a) after “subsection (3) above” there is inserted “ or paragraph (d) of subsection (3A) above ”, and (b) for “that subsection” there is substituted “ subsection (3) or (3A) above (as the case may require) ”. (8) After subsection (5) there is inserted— (5A) If any person wilfully or negligently injures or suffers to be injured any water fitting which— (a) belongs to a licensed water supplier; and (b) is used in connection with the carrying on by the supplier of the activities authorised by its licence, he shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 1 on the standard scale. (9) After subsection (8) there is inserted— (8A) In this section “consumer”— (a) in relation to a supply of water provided by a water undertaker to any premises, means a person who is for the time being the person on whom liability to pay charges to the undertaker in respect of that supply of water would fall; (b) in relation to a supply of water provided by a licensed water supplier to any premises, means a person who is for the time being the person on whom liability to pay charges to the supplier in respect of that supply of water would fall. (10) In subsection (9), for “ “consumer” and “water fitting” have the same meanings” there is substituted “ “water fitting” has the same meaning ”. 40 (1) Section 175 (offence of tampering with meter) is amended as follows. (2) In subsection (1)(a), after “undertaker” there is inserted “ or licensed water supplier ”. (3) In subsection (2), for the words from “consent” to the end there is substituted “ appropriate consent ”. (4) After that subsection there is inserted— (3) In subsection (2) above, the “appropriate consent” means— (a) if the meter is used by one relevant undertaker, the consent of that undertaker; (b) if the meter is used by one licensed water supplier, the consent of that supplier; (c) if the meter is used by two or more of the following persons— (i) a relevant undertaker; (ii) a licensed water supplier, the consent of each of those persons. (4) In subsection (3) above, references to the consent of a relevant undertaker are references to consent under section 176 below. 41 (1) Section 179 (vesting of works in undertaker) is amended as follows. (2) In subsection (1), for the words from “subsection” to “vested” there is substituted “ subsections (1A) and (3) below ”. (3) After that subsection there is inserted— (1A) Subsection (1) above is subject to any provision to the contrary contained in an agreement between the relevant undertaker and the person in whom an interest in the pipe or works is or is to be vested; but no agreement may be made between a relevant undertaker and any other person for the vesting in that person of any pipe laid in pursuance of section 66B(3)(a)(ii) above or of subsection (2)(b)(i) of section 66C above by virtue of subsection (3)(b) of that section. 42 (1) Section 195 (maintenance of register for the purposes of Part 2) is amended as follows. (2) In subsection (2), after paragraph (a) there is inserted— (aa) every licence under Chapter 1A of Part 2 of this Act, every variation or revocation of any such licence and every modification of the conditions of any such licence; . (3) In that subsection, after paragraph (b) there is inserted— (bb) every direction, consent or determination given or made under any such licence by the Secretary of State, the Authority, the Assembly or the Environment Agency; (bc) every determination made by the Authority under section 17E or 66D(1) above; . (4) In that subsection, after paragraph (f) (inserted by section 48(2)) there is inserted and (g) every designation made by the Authority under section 66G or 66H above. (5) After subsection (3) there is inserted— (3AA) Before giving a direction under subsection (3) above which relates to a licensed water supplier, the Secretary of State shall consult the Assembly. 43 (1) Section 201 (publication of information and advice) is amended as follows. (2) In subsection (1), for the words from “relating to” to “as it may” there is substituted— (a) relating to any matter which is connected with the carrying out by a company holding an appointment under Chapter 1 of Part 2 of this Act of the functions of a relevant undertaker; or (b) relating to any matter which is connected with the carrying on by a company holding a licence under Chapter 1A of that Part of the activities authorised by the licence, as it may . (3) In subsection (2), at the end there is inserted “ or a licence under Chapter 1A of that Part ”. 44 (1) Section 202 (duty to furnish the Secretary of State with information) is amended as follows. (2) After subsection (1) there is inserted— (1A) It shall be the duty of a company holding a licence under Chapter 1A of Part 2 of this Act to furnish the Secretary of State with all such information relating to any matter which— (a) is connected with, or with any proposals relating to, the carrying on by that company of the activities authorised by the licence; or (b) is material to the carrying out by the Secretary of State of any of his functions under this Act, any of the other consolidation Acts or the Water Act 1989, as the Secretary of State may reasonably require. (3) In subsection (4), in paragraph (c), at the end there is inserted “ or licences under Chapter 1A of that Part ”. (4) In subsection (5), after “undertaker” there is inserted “ or licensed water supplier ”. 45 (1) Section 203 (power to acquire information for enforcement purposes) is amended as follows. (2) In subsection (1), for the words from “that a company” to “section 18 above” there is substituted— (a) in the case of a company which holds an appointment as a relevant undertaker, that the company— (i) may be contravening, or may have contravened, any condition of the appointment or any statutory or other requirement enforceable under section 18 above; or (ii) may be causing or contributing to, or may have caused or contributed to, a contravention by a company holding a licence under Chapter 1A of Part 2 of this Act of any condition of the licence or any statutory or other requirement enforceable under section 18 above; or (b) in the case of a company which holds a licence under that Chapter, that the company— (i) may be contravening, or may have contravened, any condition of the licence or any statutory or other requirement enforceable under section 18 above; or (ii) may be causing or contributing to, or may have caused or contributed to, a contravention by a company holding an appointment as a relevant undertaker of any condition of the appointment or any statutory or other requirement enforceable under section 18 above, . (3) In subsection (7)— (a) after “this Act” there is inserted “ or of a licence under Chapter 1A of that Part ”, and (b) after “such an appointment” there is inserted “ or licence ”. 46 (1) Section 205 (exchange of metering information) is amended as follows. (2) In subsection (1)— (a) in paragraph (a), for “relevant undertakers” there is substituted “ service providers ”, (b) in paragraphs (b) and (c), for “undertakers” there is substituted “ providers ”, (c) in paragraph (d), for “undertaker” there is substituted “ provider ”, and (d) in the closing words, for “undertaker”, in both places where it appears, there is substituted “ provider ”. (3) In subsection (2)— (a) for “relevant undertaker” there is substituted “ service provider ”, (b) for “such undertaker” there is substituted “ such provider ”, and (c) for “the undertaker” there is substituted “ the provider ”. (4) For subsection (3) there is substituted— (3) The duties of a service provider under this section shall be enforceable under section 18 above by the Authority. (4) For the purposes of this section, the following are service providers— (a) any relevant undertaker; and (b) any licensed water supplier. 47 (1) Section 206 (restriction on disclosure of information) is amended as follows. (2) In subsection (3), at the end of paragraph (b) there is inserted “ or by a licensed water supplier of any of the duties imposed on it by or under this Act ”. (3) In that subsection, in paragraph (c), for “203(1) or (2)” there is substituted “ 203(1), (1A), (2) or (2A) ”. (4) In subsection (5), in paragraph (a), after “undertaker” there is inserted “ , or with the carrying on by a licensed water supplier of activities under its licence, ”. 48 (1) Section 208 (directions in the interests of national security) is amended as follows. (2) In subsections (1) and (2)— (a) after “relevant undertaker” there is inserted “ or licensed water supplier ”, and (b) after “that undertaker” there is inserted “ or supplier (as the case may be) ”. (3) In subsection (3), after “relevant undertaker”, in both places where it appears, there is inserted “ or licensed water supplier ”. 49 (1) Section 213 (power to make regulations) is amended as follows. (2) In subsection (1), after “section 8(1) or (2)” there is inserted “ or 17D(8) ”. (3) In subsection (2)(a), after “sewerage undertaker” there is inserted “ or licensed water supplier ”. 50 (1) Section 219 (general interpretation) is amended as follows. (2) In subsection (1)— (a) in paragraph (a) of the definition of “customer or potential customer”, at the end there is inserted “ (other than a licensed water supplier) ”, (b) in the definition of “water main”— (i) after “water undertaker” there is inserted “ or licensed water supplier ”, and (ii) after “of the undertaker” there is inserted “ or supplier ”, and (c) in the appropriate place there is inserted— “licensed water supplier” shall be construed in accordance with section 17B(9) above; . (3) After subsection (4) there is inserted— (4A) In this Act, unless otherwise stated, references to the supply system of a water undertaker are to the water mains and other pipes which it is the undertaker’s duty to develop and maintain by virtue of section 37 above. 51 (1) Schedule 2 (transitional provision on termination of appointments) is amended as follows. (2) In paragraph 1, in sub-paragraph (1), for “and (3)” there is substituted “ to (3A) ”. (3) In that paragraph, in paragraph (a) of sub-paragraph (3), after “company” there is inserted “ holding an appointment under Chapter 1 of this Part ”. (4) In that paragraph, after that sub-paragraph there is inserted— (3A) The third case in which this Schedule applies is where— (a) the High Court has made a special administration order in relation to any company which is a qualifying licensed water supplier (“the transferor”); and (b) it is proposed that on and after the relevant date another company (“the transferee”) should carry on activities relating to the introduction or introductions of water mentioned in section 23(6)(b) of this Act which were carried on by the transferor until that date. (5) In that paragraph, in sub-paragraph (4)— (a) in paragraph (b) of the definition of “the relevant date”, after “sub-paragraph (3)” there is inserted “ or (3A) ”, and (b) there are inserted in the appropriate places— “other relevant companies” means any companies, other than the transferor and the transferee, which are likely on or at a time after the relevant date to be holding appointments as water undertakers for any area in which, or in part of which, the activities relating to the introduction or introductions of water mentioned in section 23(6)(b) of this Act will be carried on by the transferee; “transferor” and “transferee” shall be construed in accordance with sub-paragraph (3A) above; . (6) In paragraph 2, after sub-paragraph (7) there is inserted— (7A) In a case specified in paragraph 1(3A) above— (a) the preceding provisions of this paragraph shall have effect as if— (i) any reference to the existing appointee were a reference to the transferor; (ii) any reference to the new appointee were a reference to the transferee; and (iii) any reference to other appointees were a reference to other relevant companies; and (b) sub-paragraph (6) above shall have effect as if the reference to functions were, in relation to a company which is a licensed water supplier, a reference to activities authorised by its licence and any statutory functions imposed on it in consequence of its licence. (7) In paragraph 3, after sub-paragraph (6) there is inserted— (7) In a case specified in paragraph 1(3A) above the preceding provisions of this paragraph shall have effect as if— (a) any reference to the existing appointee were a reference to the transferor; (b) any reference to the new appointee were a reference to the transferee; and (c) any reference to other appointees were a reference to other relevant companies. (8) After paragraph 4 there is inserted— Exclusion of transfer of licence 4A Where a scheme under this Schedule is made in the case specified in paragraph 1(3A) above, the scheme may not provide for the transfer to the transferee of the licence under Chapter 1A of Part 2 of this Act which is held by the transferor. (9) In paragraph 5, after sub-paragraph (2) there is inserted— (3) In a case specified in paragraph 1(3A) above— (a) sub-paragraph (2) above shall have effect as if— (i) any reference to the existing appointee were a reference to the transferor; (ii) any reference to the new appointee were a reference to the transferee; and (iii) any reference to any other appointee or appointees were a reference to any other relevant company or companies; and (b) paragraph (g) of that sub-paragraph shall have effect as if the reference to two or more such appointees as are mentioned in paragraph (f) of that sub-paragraph were a reference to two or more such persons as are mentioned in that paragraph (as it has effect by virtue of paragraph (a) above). (10) In paragraph 6, after sub-paragraph (8) there is inserted— (9) In a case specified in paragraph 1(3A) above, the preceding provisions of this paragraph shall have effect as if— (a) any reference to the existing appointee were a reference to the transferor; and (b) any reference to the new appointee were a reference to the transferee. 52 (1) Schedule 3 (special administration orders) is amended as follows. (2) In paragraph 4— (a) in paragraph (a), at the end there is inserted “ or a licence under Chapter 1A of that Part ”, and (b) in paragraph (b), at the end there is inserted “ or licence ”. (3) In paragraph 10(2)— (a) after “1991” there is inserted “ or its licence under Chapter 1A of that Part ”, and (b) after “that appointment” there is inserted “ or licence ”. Water Resources Act 1991 (c. 57) 53 (1) The WRA is amended as follows. (2) In section 203 (exchange of information with respect to pollution incidents etc)— (a) after subsection (1) there is inserted— (1A) It shall be the duty of the Agency to provide a licensed water supplier with all such information to which this section applies as is in the possession of the Agency and is reasonably requested by the supplier for purposes connected with the carrying on of activities under its licence. , (b) after subsection (2) there is inserted— (2A) It shall be the duty of every licensed water supplier to provide the Agency with all such information to which this section applies as is in the possession of the supplier and is reasonably requested by the Agency for purposes connected with the carrying out of any of its functions. , (c) for subsection (3) there is substituted— (3) Information provided to a water undertaker, to a licensed water supplier or to the Agency under subsection (1), (1A), (2) or (2A) above shall be provided in such form and in such manner and at such times as the undertaker, the supplier or the Agency, as the case may be, may reasonably require. , (d) in subsection (4)— (i) for “subsection (1) or (2)” there is inserted “ subsection (1), (1A), (2) or (2A) ”, and (ii) after “undertaker” there is inserted “ , to a licensed water supplier ”, (e) in subsection (5), for “a water undertaker under subsection (2) above shall” there is substituted— (a) a water undertaker under subsection (2) above; or (b) a licensed water supplier under subsection (2A) above, shall , and (f) after subsection (7) there is inserted— (8) Any reference in this section to a licensed water supplier is a reference to a company holding a licence under Chapter 1A of Part 2 of the Water Industry Act 1991. (3) In section 204 (restriction on disclosure of information)— (a) in paragraph (b) of subsection (2), for “or sewerage undertaker” there is substituted “ , sewerage undertaker or company holding a licence under Chapter 1A of Part 2 of the Water Industry Act 1991 ”, (b) in paragraph (c) of that subsection, for “203(1) or (2)” there is substituted “ 203(1), (1A), (2) or (2A) ”, and (c) in subsection (4)(a), after “sewerage undertaker” there is inserted “ , or with the carrying on by a company holding a licence under Chapter 1A of Part 2 of the Water Industry Act 1991 of activities under its licence, ”. Competition Act 1998 (c. 41) 54 In Schedule 7 to the Competition Act 1998, in paragraph 19A(9), in the definition of “special reference group”, in paragraph (g), for “or 14” there is substituted “ , 14 or 17K ”. Enterprise Act 2002 (c. 40) 55 (1) The Enterprise Act 2002 is amended as follows. (2) In section 168 (regulated markets)— (a) after subsection (3)(f) there is inserted— (ff) modifying the conditions of a licence granted under Chapter 1A of Part 2 of the Act of 1991 or modifying the terms and conditions of an agreement under section 66D of that Act; , and (b) after subsection (4)(f) there is inserted— (ff) in relation to a licence granted under Chapter 1A of Part 2 of the Act of 1991 or an agreement under section 66D of that Act, the duties of the Authority under section 2 of that Act or under that section and section 66D of that Act (as the case may be); . (3) In section 249 (special administration regimes), in subsection (1), after paragraph (a) there is inserted— (aa) a qualifying licensed water supplier within the meaning of subsection (6) of section 23 of the Water Industry Act 1991 (meaning and effect of special administration order), .

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SCHEDULE 9 Repeals and revocation

Section 101(2) Part 1 Abstraction and impounding Title and reference | Extent of repeal Water Resources Act 1991 (c. 57) | In section 21(9), the words from “and in that subsection” to the end. In section 25(2), the words “, in circumstances not constituting such a contravention,”. Section 28. Section 29(3). Sections 30 and 31. Section 33. Section 36. Section 39(3). In section 47, in subsection (1), the words “to abstract water”; and subsection (3). Sections 49 and 50. Section 52(8). Section 223. Part 2 New regulatory arrangements, etc Title and reference | Extent of repeal Water Industry Act 1991 (c. 56) | Section 1. Section 12(3)(b)(i), (4) and (5). Section 14(8) and (8A). Section 28. Section 30. In section 39, in each of subsections (1)(b) and (3)(b), the word “and” at the end of sub-paragraph (i). In section 96, in each of subsections (1)(b) and (3)(b), the word “and” at the end of sub-paragraph (i). Sections 193 and 194. In section 195(2), the word “and” at the end of paragraph (d). Schedule 1. Schedule 4. Utilities Act 2000 (c. 27) | In section 104(1), the word “or” at the end of paragraph (a). Part 3 Miscellaneous and supplementary Title and reference | Extent of repeal or revocation Metropolis Water Act 1852 (c. 84) | Section 1. Parliamentary Commissioner Act 1967 (c. 13) | In Schedule 2, the entry relating to the Office of the Director General of Water Services. Reservoirs Act 1975 (c. 23) | In section 22(1), the word “or” at the end of paragraph (a). In Schedule 1, the entry for “Local authority”. House of Commons Disqualification Act 1975 (c. 24) | In Schedule 1, in Part 3, the entry relating to the Chairman of a customer service committee maintained under section 28 of the Water Industry Act 1991, and the entry relating to the Director General of Water Services. Northern Ireland Assembly Disqualification Act 1975 (c. 25) | In Schedule 1, in Part 3, the entry relating to the Chairman of a customer service committee maintained under section 28 of the Water Industry Act 1991, and the entry relating to the Director General of Water Services. Water Act 1989 (c. 15) | Section 185(2)(a). In Schedule 3, paragraphs 6 and 7. In Schedule 4, paragraph 6. In Schedule 25, paragraphs 68(2)(a) and 76(a). Environmental Protection Act 1990 (c. 43) | Section 78A(5)(c). Water Industry Act 1991 (c. 56) | In section 44(5), the words “for any locality”. In section 69, in subsection (2)(d), the words “by that undertaker”; and in subsection (5), the words “require a water undertaker”, and the word “and” at the end of paragraph (a). In section 86(1), the words “as technical assessors”. In section 98(5), the words “in a particular locality”. In section 101A(2), in paragraph (a), the words from “each of which” to the end of the paragraph; and in paragraph (c), the words “in respect of which the condition specified in paragraph (a) above is satisfied”. In section 102(1)(a), the word “or” at the end of paragraph (a). In section 103(1)(a), the word “or” at the end of paragraph (a). Section 104(6). Section 138(5). In section 219(1), the definition of “the Director”. Schedule 7. Water Resources Act 1991 (c. 57) | Section 66(2)(a). In section 71(4), “33,”. Section 77(4). Section 79A(8). Section 125(2). Sections 147 to 149. In section 221(1), in paragraph (a)(ii) of the definition of “flood defence provisions”, the words “147 to 149,”. In Schedule 10, in paragraph 11, in each of sub-paragraphs (2) and (3), the words “, subject to sub-paragraph (4) below,”; sub-paragraph (4); and in sub-paragraph (9), the words “(6) or”. Water Consolidation (Consequential Provisions) Act 1991 (c. 60) | In Schedule 1, paragraphs 10, 28(a) and 29(a). Competition and Service (Utilities) Act 1992 (c. 43) | Section 50. Health Authorities Act 1995 (c. 17) | In Schedule 1, paragraph 120. Environment Act 1995 (c. 25) | Section 101(1). In Schedule 4, in paragraph 1(1), the word “or” at the end of paragraph (a); and in paragraph 1(5), the word “and” at the end of paragraph (b). In Schedule 22, paragraph 181. Competition Act 1998 (c. 41) | In Schedule 7, paragraph 2(1)(d)(i). In Schedule 10, paragraphs 5(3) and 13(2) and (3). National Assembly for Wales (Transfer of Functions) Order 1999 (SI 1999/672) | In Schedule 1, in the entry relating to the WIA— in the paragraph relating to functions under sections 2, 5 (etc), the references to section 2, sections 18 to 22, sections 68 to 70, section 93A and section 205, the paragraph relating to section 28(4).

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