Competition and Service (Utilities) Act 1992
1992 c. 43
An Act to make provision with respect to standards of performance and service to customers in relation to the telecommunications, gas supply, electricity supply, water supply and sewerage service industries; to make provision with respect to complaints by, and disputes with, customers in those industries; to make provision with respect to the powers of the regulators of those industries and with respect to related matters; to make provision with respect to the payment of deposits by customers of certain telecommunications operators; to make further provision for facilitating effective competition in certain of those industries; to make provision with respect to mergers of water or sewerage undertakers; to make provision with respect to compliance orders against public gas suppliers; to make a minor correction in section 98 of the Water Industry Act 1991; and for connected purposes.
[16th March 1992]
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
The following sections shall be inserted in the Gas Act 1986, after section 33—
Standards of performance
Standards of performance in individual cases.
33A (1) The Director may make regulations prescribing such standards of performance in connection with the provision of gas supply services by public gas suppliers to tariff customers as, in his opinion, ought to be achieved in individual cases.
(2) Regulations under subsection (1) above may only be made—
(a) with the consent of the Secretary of State;
(b) after consulting—
(i) the public gas suppliers; and
(ii) persons or bodies appearing to the Director to be representative of persons likely to be affected by the regulations; and
(c) after arranging for such research as the Director considers appropriate with a view to discovering the views of a representative sample of persons likely to be so affected and considering the results.
(3) Regulations under this section may—
(a) prescribe circumstances in which public gas suppliers are to inform tariff customers of their rights under this section;
(b) prescribe such standards of performance in relation to any duty arising under paragraph (a) above as, in the Director’s opinion, ought to be achieved in all cases;
(c) prescribe circumstances in which public gas suppliers are to be exempted from any requirements of the regulations or this section; and
(d) make different provision with respect to different public gas suppliers.
(4) If a public gas supplier fails to meet a prescribed standard, he shall make to any tariff customer who is affected by the failure such compensation as may be determined by or under the regulations.
(5) The making of compensation under this section in respect of any failure to meet a prescribed standard shall not prejudice any other remedy which may be available in respect of the act or omission which constituted that failure.
(6) Any dispute arising under this section or regulations made under this section—
(a) may be referred to the Director by either party or, with the agreement of either party, by the Council; and
(b) on such a reference, shall be determined by order made—
(i) by the Director; or
(ii) by such other person as may be prescribed.
(7) Any person making an order under subsection (6) above shall include in the order his reasons for reaching his decision with respect to the dispute.
(8) The practice and procedure to be followed in connection with any such determination shall be such as may be prescribed.
(9) An order under subsection (6) above shall be final and shall be enforceable—
(a) in England and Wales, as if it were a judgment of a county court; and
(b) in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.
(10) In this section “prescribed” means prescribed by regulations under this section.
(11) The power of the Director under this section to make regulations shall be exercisable by statutory instrument.
Overall standards of performance.
33B (1) The Director may from time to time—
(a) determine such standards of overall performance in connection with the provision of gas supply services by public gas suppliers as, in his opinion, ought to be achieved by them; and
(b) arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.
(2) The Director may only make a determination under subsection (1)(a) above after—
(a) consulting the public gas suppliers and persons or bodies appearing to the Director to be representative of persons likely to be affected; and
(b) arranging for such research as the Director considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and considering the results.
(3) Different standards may be determined for different public gas suppliers.
(4) It shall be the duty of every public gas supplier to conduct his business in such a way as can reasonably be expected to lead to his achieving the standards set under this section.
12 Information with respect to levels of performance.
The following section shall be inserted in the Gas Act 1986, after section 33B—
Information with respect to levels of performance.
33C (1) The Director shall from time to time collect information with respect to—
(a) the compensation made by public gas suppliers under section 33A above;
(b) the levels of overall performance achieved by public gas suppliers in connection with the provision of gas supply services; and
(c) the levels of performance achieved by public gas suppliers in connection with the promotion of the efficient use of gas by consumers.
(2) At such times as the Director may direct, each public gas supplier shall give the following information to the Director—
(a) as respects each standard prescribed by regulations under section 33A above, the number of cases in which compensation was made and the aggregate amount or value of that compensation; and
(b) as respects each standard determined under section 15B or 33B above, such information with respect to the level of performance achieved by the supplier as may be so specified.
(3) A public gas supplier who without reasonable excuse fails to do anything required of him by subsection (2) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.
(4) The Director shall, at least once in every year, arrange for the publication, in such form and in such manner as he considers appropriate, of such of the information collected by or given to him under this section as appears to him expedient to give to customers, or potential customers, of public gas suppliers.
(5) In arranging for the publication of any such information, the Director shall have regard to the need for excluding, so far as practicable—
(a) any matter which relates to the affairs of an individual, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that individual; and
(b) any matter which relates specifically to the affairs of a particular body of persons, whether corporate or unincorporate, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that body.
13 Information to be given to customers about overall performance.
The following section shall be inserted in the Gas Act 1986, after section 33C—
Information to be given to customers about overall performance.
33D (1) Each public gas supplier shall, in such form and manner and with such frequency as the Director may direct, take steps to inform his customers of—
(a) the standards of overall performance determined under section 33B above which are applicable to that supplier; and
(b) that supplier’s level of performance as respects each of those standards.
(2) In giving any such direction, the Director shall not specify a frequency of less than once in every period of twelve months.
18 Preliminary investigation of disputes by Gas Consumers’ Council
The following section shall be inserted in the Gas Act 1986, after section 32—
Preliminary investigation by Council of certain disputes.
32A (1) This section applies where—
(a) representations are made to the Council by or on behalf of a person who appears to the Council to have an interest in the matter to which the representations relate; and
(b) that matter appears to the Council to constitute a dispute of a kind which may be referred to the Director under section 14A above or 33A below, or under regulations made under section 15A above.
(2) It shall be the duty of the Council—
(a) to inform the person by or on whose behalf the representations are made that he may have the right to refer his dispute to the Director; and
(b) to make such investigations with respect to the matter to which the representations relate as may be specified in a direction given by the Director.
(3) Any such direction may be given so as to apply generally or to a specified class of matter or particular matter and may, in particular, specify in relation to any investigation which the Council is required to make under this section—
(a) the practice and procedure which it is to follow in conducting its investigation; and
(b) the information which it is to give to the Director with respect to the matter investigated.
21 Information to be given to customers about overall performance.
The following section shall be inserted in the Electricity Act 1989, after section 42—
Information to be given to customers about overall performance.
42A (1) Each public electricity supplier shall, in such form and manner and with such frequency as the Director may direct, take steps to inform his customers of—
(a) the standards of overall performance determined under section 40 above which are applicable to that supplier; and
(b) that supplier’s level of performance as respects each of those standards.
(2) In giving any such direction, the Director shall not specify a frequency of less than once in every period of twelve months.
24 Compliance with standards of overall performance.
In section 40 of the Electricity Act 1989 (electricity supply: overall performance), the following subsection shall be added at the end—
(3) It shall be the duty of every public electricity supplier to conduct his business in such a way as can reasonably be expected to lead to his achieving the standards set under this section.
25 Determination of disputes by Director: interim directions.
(1) The power of the Director General of Electricity Supply, under section 23(2) of the Electricity Act 1989, to require a public electricity supplier to continue a supply of electricity pending the Director’s determination of a dispute shall be extended to enable the Director to require the giving of a supply of electricity pending such a determination.
(2) Accordingly, in section 23(2) of that Act, the words “to continue” shall be omitted, in both places where they occur.
(1) Section 39 of the Water Industry Act 1991 (procedure for making regulations under section 38 relating to standards of performance in the supply of water) shall be amended as follows.
(2) In subsection (1)(d), for “both” there shall be substituted “ the summary mentioned in subsection (2)(bb) below, ”.
(3) The following subsection shall be inserted after subsection (1)—
(1A) Before making an application to the Secretary of State under this section the Director shall arrange for such research as he considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and consider the results.
(4) In subsection (2), the following paragraph shall be inserted after “apply” in paragraph (b)—
“ (bb) is accompanied by a written summary of the results of the research carried out in accordance with subsection (1A) above; ”.
27 Information with respect to levels of performance.
The following section shall be inserted in the Water Industry Act 1991, after section 38—
Information with respect to levels of performance.
38A (1) The Director shall from time to time collect information with respect to—
(a) the compensation paid by water undertakers under regulations under section 38(2) above; and
(b) the levels of overall performance achieved by water undertakers in connection with the provision of water supplies.
(2) At such times as the Director may direct, each water undertaker shall give the following information to the Director—
(a) as respects each standard prescribed by regulations under section 38(2) above, the number of cases in which compensation was paid and the aggregate amount or value of that compensation; and
(b) as respects each standard established by regulations under section 38(1)(b) above, such information with respect to the level of performance achieved by the undertaker as may be so specified.
(3) A water undertaker who without reasonable excuse fails to do anything required of him by subsection (2) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.
(4) The Director shall, at least once in every year, arrange for the publication, in such form and in such manner as he considers appropriate, of such of the information collected by or given to him under this section as it may appear to him expedient to give to customers or potential customers of water undertakers.
(5) In arranging for the publication of any such information the Director shall have regard to the need for excluding, so far as practicable—
(a) any matter which relates to the affairs of an individual, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that individual; and
(b) any matter which relates specifically to the affairs of a particular body of persons, whether corporate or unincorporate, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that body.
28 Information to be given to customers about overall performance.
The following section shall be inserted in the Water Industry Act 1991, after section 39—
Information to be given to customers about overall performance.
39A (1) Each water undertaker shall, in such form and manner and with such frequency as the Director may direct, take steps to inform its customers of—
(a) the standards of overall performance established under section 38(1)(b) above which are applicable to that undertaker; and
(b) that undertaker’s level of performance as respects each of those standards.
(2) In giving any such direction, the Director shall not specify a frequency of less than once in every period of twelve months.
(3) The duty of a water undertaker to comply with this section shall be enforceable by the Director under section 18 above.
The following section shall be inserted in the Water Industry Act 1991, after section 86—
Complaints
Procedure for dealing with complaints.
86A (1) Each water undertaker shall establish a procedure for dealing with complaints made by its customers or potential customers in connection with the supply of water.
(2) No such procedure shall be established, and no modification of such a procedure shall be made, unless—
(a) the water undertaker has consulted the customer service committee to which it has been allocated; and
(b) the proposed procedure or modification has been approved by the Director.
(3) The water undertaker shall—
(a) publicise the procedure in such manner as may be approved by the Director; and
(b) send a description of the procedure, free of charge, to any person who asks for one.
(4) The Director may give a direction to a water undertaker requiring the undertaker to review its procedure or the manner in which the procedure operates.
(5) A direction under subsection (4) above—
(a) may specify the manner in which the review is to be conducted; and
(b) shall require a written report of the review to be made to the Director.
(6) Where the Director receives a report under subsection (5)(b) above, he may, after consulting the water undertaker, direct the undertaker to make such modifications of—
(a) the procedure; or
(b) the manner in which the procedure operates,
as may be specified in the direction.
(7) Subsection (2) above does not apply to any modification made in compliance with a direction under subsection (6) above.
(8) The duty of a water undertaker to comply with subsection (1) above and with any direction given to it under subsection (4) or (6) above shall be enforceable by the Director under section 18 above.
(9) Where the Director is considering whether to exercise his powers under subsection (4) or (6) above in relation to a water undertaker, it shall be the duty of that undertaker to give him such information as he may reasonably require for the purpose of assisting him in coming to a decision.
(10) Section 202 below shall have effect, with the necessary modifications, in relation to information which the Director requires for that purpose as it has effect in relation to information which the Secretary of State requires for purposes mentioned in subsection (1) of that section.
(1) Section 96 of the Water Industry Act 1991 (procedure for regulations under section 95 relating to standards of performance in the provision of sewerage services) shall be amended as follows.
(2) In subsection (1)(d), for “both” there shall be substituted “ the summary mentioned in subsection (2)(bb) below, ”.
(3) The following subsection shall be inserted after subsection (1)—
(1A) Before making an application to the Secretary of State under this section the Director shall arrange for such research as he considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and consider the results.
(4) In subsection (2), the following paragraph shall be inserted after “apply” in paragraph (b)—
“ (bb) is accompanied by a written summary of the results of the research carried out in accordance with subsection (1A) above; ”.
31 Information with respect to levels of performance.
The following section shall be inserted in the Water Industry Act 1991, after section 95—
Information with respect to levels of performance.
95A (1) The Director shall from time to time collect information with respect to—
(a) the compensation paid by sewerage undertakers under regulations under section 95(2) above; and
(b) the levels of overall performance achieved by sewerage undertakers in connection with the provision of sewerage services.
(2) At such times as the Director may direct, each sewerage undertaker shall give the following information to the Director—
(a) as respects each standard prescribed by regulations under section 95(2) above, the number of cases in which compensation was paid and the aggregate amount or value of that compensation; and
(b) as respects each standard established by regulations under section 95(1)(b) above, such information with respect to the level of performance achieved by the undertaker as may be so specified.
(3) A sewerage undertaker who without reasonable excuse fails to do anything required of him by subsection (2) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.
(4) The Director shall, at least once in every year, arrange for the publication, in such form and in such manner as he considers appropriate, of such of the information collected by or given to him under this section as it may appear to him expedient to give to customers or potential customers of sewerage undertakers.
(5) In arranging for the publication of any such information the Director shall have regard to the need for excluding, so far as practicable—
(a) any matter which relates to the affairs of an individual, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that individual; and
(b) any matter which relates specifically to the affairs of a particular body of persons, whether corporate or unincorporate, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that body.
32 Information to be given to customers about overall performance.
The following section shall be inserted in the Water Industry Act 1991, after section 96—
Information to be given to customers about overall performance.
96A (1) Each sewerage undertaker shall, in such form and manner and with such frequency as the Director may direct, take steps to inform its customers of—
(a) the standards of overall performance established under section 95(1)(b) above which are applicable to that undertaker; and
(b) that undertaker’s level of performance as respects each of those standards.
(2) In giving any such direction, the Director shall not specify a frequency of less than once in every period of twelve months.
(3) The duty of a sewerage undertaker to comply with this section shall be enforceable by the Director under section 18 above.
The following section shall be inserted in the Water Industry Act 1991, after section 116—
Complaints
Procedures for dealing with complaints.
116A (1) Each sewerage undertaker shall establish a procedure for dealing with complaints made by its customers or potential customers in connection with the provision of sewerage services.
(2) No such procedure shall be established, and no modification of such a procedure shall be made, unless—
(a) the sewerage undertaker has consulted the customer service committee to which it has been allocated; and
(b) the proposed procedure or modification has been approved by the Director.
(3) The sewerage undertaker shall—
(a) publicise the procedure in such manner as may be approved by the Director; and
(b) send a description of the procedure, free of charge, to any person who asks for one.
(4) The Director may give a direction to a sewerage undertaker requiring the undertaker to review its procedure or the manner in which the procedure operates.
(5) A direction under subsection (4) above—
(a) may specify the manner in which the review is to be conducted; and
(b) shall require a written report of the review to be made to the Director.
(6) Where the Director receives a report under subsection (5)(b) above, he may, after consulting the sewerage undertaker, direct the undertaker to make such modifications of—
(a) the procedure; or
(b) the manner in which the procedure operates,
as may be specified in the direction.
(7) Subsection (2) above does not apply to any modification made in compliance with a direction under subsection (6) above.
(8) The duty of a sewerage undertaker to comply with subsection (1) above and with any direction given to it under subsection (4) or (6) above shall be enforceable by the Director under section 18 above.
(9) Where the Director is considering whether to exercise his powers under subsection (4) or (6) above in relation to a sewerage undertaker, it shall be the duty of that undertaker to give him such information as he may reasonably require for the purpose of assisting him in coming to a decision.
(10) Section 202 below shall have effect, with the necessary modifications, in relation to information which the Director requires for that purpose as it has effect in relation to information which the Secretary of State requires for purposes mentioned in subsection (1) of that section.
The following section shall be inserted after section 30 of the Water Industry Act 1991—
Determination of disputes by the Director.
30A (1) In this section “relevant dispute” means a dispute which, by virtue of any provision of this Act, may be referred to the Director for determination under this section.
(2) The practice and procedure to be followed in connection with the reference to the Director of any relevant dispute shall be such as he considers appropriate.
(3) Where the Director determines any dispute under this section he shall give his reasons for reaching his decision with respect to the dispute.
(4) On making a determination under this section the Director 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 Director) as he considers appropriate.
(5) A determination under this section—
(a) shall be final; and
(b) shall be enforceable as if it were a judgment of a county court, in so far as it includes such provision as to costs or expenses as is mentioned in subsection (4) above.
(6) The Director shall not determine any relevant dispute which is the subject of proceedings before, or with respect to which judgment has been given by, any court.
(7) In including in any determination under this section any provision as to costs or expenses, the Director shall have regard to the conduct and means of the parties and any other relevant circumstances.
(1) The Water Industry Act 1991 shall be amended as follows.
(2) In section 45 (duty to make connections with mains), the following subsection shall be inserted after subsection (6)—
(6A) Any dispute between a water undertaker and any other person as to whether the expenses were incurred reasonably may be referred to the Director for determination under section 30A above by either party to the dispute.
(3) In section 46 (duty to carry out ancillary works for the purpose of making domestic connection), in subsection (7), for “(6)” there shall be substituted “ (6A) ”.
(4) In section 49 (supplemental provisions with respect to metering conditions), the following shall be substituted for subsection (3)—
(3) Any dispute between a water undertaker and any other person as to the terms of any condition imposed under section 47 above for the purposes of metering shall be referred—
(a) to the arbitration of a single arbitrator appointed by agreement between the undertaker and that person; or
(b) if no agreement is reached, for determination by the Director under section 30A above.
(5) In section 53 (conditions of compliance with domestic supply duty), the following subsection shall be inserted after subsection (2)—
(2A) Any dispute between a water undertaker and any other person as to whether any requirement of a kind mentioned in subsection (2)(a) or (b) above has been complied with may be referred to the Director for determination under section 30A above by either party to the dispute.
(6) In section 64 (supply by means of separate service pipes), the following subsection shall be inserted after subsection (2)—
(2A) Any dispute between a water undertaker and any other person as to whether any condition of a kind mentioned in subsection (2) above has been complied with may be referred to the Director for determination under section 30A above by either party to the dispute.
(7) In section 105 (appeals with respect to adoption of sewers etc.), for “Secretary of State”, wherever it appears, there shall be substituted “ Director ”.
(8) In section 106 (right to communicate with public sewers)—
(a) in subsection (6), for “a magistrates’ court” there shall be substituted “ the Director under section 30A above ”;
(b) subsection (7) shall cease to have effect; and
(c) in subsection (8)(b), for “a magistrates’ court” there shall be substituted “ the Director ”.
(9) In section 107 (right of sewerage undertaker to undertake the making of communications with public sewers), in subsection (1)(b), for “a magistrates’ court” there shall be substituted “ the Director ” and after subsection (4) there shall be inserted the following subsection—
(4A) Any dispute between a sewerage undertaker and any other person as to—
(a) whether the undertaker’s estimate of the cost of works given under subsection (3)(b)(i) above is reasonable,
(b) whether any requirement of security for the payment of the cost of works was reasonably made by the undertaker, or
(c) whether any excess is repayable, or any expenses are recoverable, by the undertaker under subsection (4) above, or the amount of any such excess or expenses,
may be referred to the Director for determination under section 30A above by either party to the dispute.
(10) In section 112 (requirement that proposed drain or sewer be constructed so as to form part of general system), in subsections (2) and (3), for “Secretary of State” there shall be substituted “ Director ”.
(11) In section 113 (power to alter drainage system of premises)—
(a) in subsection (4), for “appeal to a magistrates’ court” there shall be substituted “ refer the matter to the Director for determination under section 30A above ”; and
(b) subsection (5) shall cease to have effect.
(12) In section 116 (power to close or restrict use of public sewer), the following subsection shall be inserted after subsection (3)—
(4) Any dispute arising under subsection (3)(a) above between a sewerage undertaker and any other person as to the effectiveness of any sewer provided by the undertaker for that person’s use may be referred to the Director for determination under section 30A above by either party to the dispute.
The following section shall be inserted in the Gas Act 1986 after section 8—
Modification or removal of the 25,000 therm limits.
8A (1) The Secretary of State may by order amend section 4(2)(d) or 8(5)(b) above or section 10(5) or 14(3) or (4)(b) below by substituting—
(a) where the limit is for the time being expressed by reference to a number of therms—
(i) such lower number of therms as he considers appropriate; or
(ii) such lower limit, expressed by reference to a number of kilowatt hours, as he considers appropriate; or
(b) where the limit is for the time being expressed by reference to a number of kilowatt hours, such lower number of kilowatt hours as he considers appropriate.
(2) An order under subsection (1) above may be made so as to provide for the number specified in one provision to differ from that for the time being specified in any of the other provisions.
(3) If the Secretary of State considers that it is appropriate to remove the limit for the time being specified in sections 4(2)(d) and 8(5)(b) above and section 14(3) and (4)(b) below he may make an order repealing—
(a) in section 4(2)(d) above, the words from “at rates” to the end;
(b) section 8(5) above;
(c) in section 14(3) below, the words from “but this subsection” to the end; and
(d) in section 14(4) below, the words from “if either” to the end.
(4) Before making any order under this section, the Secretary of State shall consult the Director.
(1) In section 34(3) of the Water Industry Act 1991 (matters to which the Monopolies Commission is to have regard on a reference under section 32 of that Act with respect to a water enterprise) the following shall be substituted for paragraph (a)—
“ (a) shall have regard to the desirability of giving effect to the principle that the Director’s ability, in carrying out his functions by virtue of this Act, to make comparisons between different water enterprises should not be prejudiced; and ”.
(2) Section 35(3) of the Act of 1991 (meaning of reference to the number of water enterprises under independent control) shall cease to have effect.
(3) This section applies only to references under section 32 of the Act of 1991 made after the commencement of this section.
(1) In section 7 of the Water Industry Act 1991 (continuity of appointments, replacement appointments etc.), in subsection (4), for “company; or”, at the end of paragraph (b) there shall be substituted—
company;
(bb) the appointment or variation relates only to parts of that area and the conditions mentioned in subsection (5) below are satisfied in relation to each of the premises in those parts which are served by that company; or
.
(2) In section 7 of the Act of 1991 the following subsections shall be added at the end—
(5) The conditions are that—
(a) the premises are, or are likely to be, supplied with not less than 250 megalitres of water in any period of twelve months; and
(b) the person who is the customer in relation to the premises consents in writing to the appointment or variation.
(6) The Secretary of State may, after consulting the Director, make regulations amending subsection (5)(a) above by substituting, for the quantity of water for the time being specified there, such smaller quantity as he considers appropriate.
(3) In section 8 of the Act of 1991 (procedure with respect to appointments and variations) the following subsection shall be added at the end—
(7) The Secretary of State may by regulations impose such additional procedural requirements as he considers appropriate for any case where the conditions mentioned in section 7(5) above are required to be satisfied in relation to an application for an appointment or variation replacing a company as a relevant undertaker.
(4) In section 9 of the Act of 1991 (duties affecting making of appointments and variations), in subsection (3), after “(4)(b)” insert “ or (bb) ”.
(5) In section 36(3) of the Act of 1991, the following paragraphs are hereby repealed—
(a) paragraph (a)(ii) (premises to be treated as being served by a water undertaker holding an appointment under Chapter I of Part I of that Act if they consist in a building or part of a building which is situated within thirty metres of a distribution main of that company); and
(b) paragraph (b)(ii) (premises to be treated as being served by a sewerage undertaker holding an appointment under Chapter I of Part I of that Act if they consist in a building or part of a building which is situated within thirty metres of a relevant sewer which is not a storm-water overflow sewer).
(6) In section 158 of the Act of 1991 (powers to lay pipes), the following subsections shall be added at the end—
(8) Subsections (9) and (11) below apply where—
(a) an appointment or variation has been made under section 7 above replacing a company as a relevant undertaker,
(b) the appointment or variation relates only to parts of the area to which the company’s appointment as relevant undertaker related, and
(c) the conditions mentioned in subsection (5) of that section were required to be satisfied in relation to each of the premises in those parts served by that company.
(9) Where the company which has replaced the relevant undertaker has done so as water undertaker, in the application of this section and section 159 below in relation to that company any pipe supplying, or intended to supply, any of the premises referred to in subsection (8)(c) above with a supply of water which exceeds, or is likely to exceed, 250 megalitres of water in any period of twelve months shall, for the purposes of subsection (7) above, be deemed to be a water main.
(10) Where the Secretary of State makes regulations under section 7(6) above amending section 7(5)(a) above he shall by regulations make the corresponding amendment in subsection (9) above.
(11) Where the company which has replaced the relevant undertaker has done so as sewerage undertaker, in the application of this section and section 159 below in relation to that company any pipe draining, or intended to drain, any of those premises shall, for the purposes of subsection (7) above, be deemed to be a sewer.
In section 52 of the Water Industry Act 1991 (the domestic supply duty), in subsection (2), the words “and which are situated in the area of the undertaker” shall cease to have effect.
42 Transitional provision with respect to replacement appointments.
The provisions of section 10 of the Water Industry Act 1991 (transitional provision with respect to replacement appointments) shall become subsection (1) of that section and the following subsections shall be added at the end—
(2) Subsections (3) and (4) below apply where, by such an appointment or variation, one company (“the new undertaker”) is to replace another company as a relevant undertaker, but the appointment or variation has not come into force.
(3) The following provisions of this Act shall (except where they are inapplicable to the kind of undertaker in question) apply in relation to the new undertaker as if the appointment or variation had come into force—
(a) sections 18 to 24 and Schedule 3;
(b) sections 32 to 35;
(c) section 155 and Schedule 9;
(d) sections 156, 158 to 161 and 163 to 167 and Schedule 11;
(e) sections 168 to 171, 173, 174, 178 to 180 and Schedule 12;
(f) sections 181 to 183 and Schedule 13;
(g) sections 184 to 188 and Schedule 14;
(h) sections 189 to 192, 197 to 200, 202, 203, 206, 208, 209, 211, 212 and 217.
(4) Such of the conditions imposed on the new undertaker under section 11 below as the Director may specify in a written notice given by him to the undertaker shall have effect, in relation to the operation of any provision mentioned in subsection (3) above before the appointment or variation comes into force, as if the appointment or variation had come into force.
(5) The Secretary of State may by regulations amend subsection (3) above by adding to, removing or modifying references to provisions of this Act.