Water Act 2003

(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. (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). (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. (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. (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. (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). (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. (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. (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. (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. (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. (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.

SCHEDULE 5

After Schedule 1 to the Coal Industry Act 1994 (c. 21) there is inserted—

SCHEDULE 6

After Schedule 1A to the Coal Industry Act 1994 (c. 21) (which is inserted by Schedule 5) there is inserted—

SCHEDULE 7

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 (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. (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. (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. (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.

SCHEDULE 8

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 ”.