Water Act 2014

(144ZA) (1) The Authority may issue rules about charges that may be imposed by a relevant undertaker under— (a) section 42(2)(a) (provision of new water main); (b) section 45(6) (connections with water main); (c) section 46(7)(b) (ancillary works for domestic connection); (d) section 99(2)(a) or (2A)(a) (provision of public sewer or lateral drain); (e) section 101B(3) (lateral drains); (f) section 107(3)(b)(i) (communications with public sewers); (g) section 185(5) (moving of pipes etc). (2) Rules under this section may in particular— (a) make provision about the types of charges that may be imposed; (b) make provision about the amount or maximum amount, or the methods for determining the amount or maximum amount, of any type of charge; (c) make provision about the principles for determining what types of charges may or may not be imposed; (d) make provision about the principles for determining the amount of any charge that may be imposed; (e) provide for charges to be payable over a period; (f) make provision about publication of the charges that may be imposed. (3) The charges that may be imposed by a water undertaker under section 42(2)(a) for the provision of a new water main may include charges for— (a) providing such other infrastructure, including other water mains, as it is necessary to provide in consequence of the provision of the new water main; (b) doing works to increase the capacity of an existing water main, or procuring the doing of such works, where the use of that increased capacity is a consequence of the provision of the new water main. (4) The charges that may be imposed by a sewerage undertaker under section 99(2)(a) for the provision of a new public sewer may include charges for— (a) providing such other infrastructure, including other public sewers, as it is necessary to provide in consequence of the provision of the new public sewer; (b) doing works to increase the capacity of an existing public sewer, where the use of that increased capacity is a consequence of the provision of the new public sewer. (5) The rules may make provision as to— (a) the amount of security that may be required by a relevant undertaker under section 42(1)(b), 47(2)(a), 99(1)(b), 101B(3A), 107(3)(b)(ii) or 185(4); (b) the type of security that may be required; (c) the payment of interest on a sum deposited with a relevant undertaker by way of security. (6) If the Authority considers that a relevant undertaker is not acting as required by rules under this section, the Authority may give the undertaker a direction to do, or not to do, a thing specified in the direction. (7) It is the duty of a relevant undertaker to comply with a direction under subsection (6), and this duty is enforceable by the Authority under section 18. (8) The rules may make— (a) different provision for different persons or different descriptions of person; (b) different provision for different powers to impose charges or different descriptions of such powers. (9) The Authority may from time to time revise rules issued under this section and issue revised rules. (10) The Authority must issue revised rules if— (a) guidance is issued under section 144ZD, and (b) the Authority, having regard to that guidance, considers that it is appropriate to revise the rules. (144ZB) (1) The Authority must have regard to guidance issued under section 144ZD in making rules under section 144ZA. (2) Before issuing rules under section 144ZA, the Authority must— (a) prepare a draft of the proposed rules, and (b) consult the relevant persons about the draft. (3) The relevant persons are— (a) the Secretary of State; (b) the Welsh Ministers; (c) the Council; (d) any relevant undertakers likely to be affected by the rules; (e) any water supply or sewerage licensees likely to be affected by the rules; (f) such other persons as the Authority thinks appropriate. (4) The Authority must specify the period (“the consultation period”) within which a person may make representations about the proposed rules. (5) Before rules under section 144ZA prepared by the Authority are issued, the Minister may direct the Authority not to issue the rules. (6) In subsection (5) “the Minister” means— (a) the Secretary of State, so far as the rules in question affect relevant undertakers whose areas are wholly or mainly in England; (b) the Welsh Ministers, so far as the rules in question affect relevant undertakers whose areas are wholly or mainly in Wales. (7) A direction under subsection (5) must be given within the period of 28 days beginning with the day after the end of the consultation period, and rules prepared by the Authority may not be issued before that period of 28 days has expired. (8) This section is subject to section 144ZC. (144ZC) (1) This section applies if the Authority proposes to issue revised rules under section 144ZA and, in the view of the Authority, the revision or each of the revisions proposed to be made is— (a) a revision for which consultation is unnecessary, or (b) a revision that it is necessary or desirable to make without delay. (2) Section 144ZB does not apply to the proposed revised rules. (3) Before issuing the revised rules, the Authority must give notice to the Minister of its intention to issue revised rules. (4) Before the revised rules are issued, the Minister may direct the Authority not to issue the revised rules. (5) A direction under subsection (4) must be given within the period of 14 days beginning with the day after the day on which notice is given under subsection (3), and the Authority may not issue the revised rules in question before— (a) that period of 14 days expires, or (b) the Minister notifies the Authority that no direction under subsection (4) will be given in relation to the revised rules, whichever is the sooner. (6) Once the Authority has issued the revised rules, it must give notice as soon as reasonably practicable of— (a) the issuing of the revised rules, and (b) as regards each revision contained in them, whether in the view of the Authority the revision falls within paragraph (a) or (b) of subsection (1). (7) Notice under subsection (6) is to be given to such persons as the Authority considers appropriate. (8) Unless the Authority gives notice that a revision in revised rules is in the view of the Authority a revision falling within subsection (1)(a), the revision ceases to have effect at the end of the period of six months beginning with the day after that on which the revised rules are issued. (9) In this section “the Minister” has the meaning given by section 144ZB. (144ZD) (1) The Minister must issue guidance as to the content of rules under section 144ZA. (2) Before issuing the guidance, the Minister must— (a) prepare a draft of the proposed guidance; (b) consult the relevant persons about the draft. (3) The relevant persons are— (a) the Secretary of State; (b) the Welsh Ministers; (c) such other persons as the Minister thinks appropriate. (4) The Minister may from time to time revise the guidance and issue revised guidance. (5) Subsections (2) and (3) apply to revised guidance as they apply to the original guidance. (6) The Minister must arrange for the publication of guidance issued under this section. (7) In this section “the Minister” means— (a) the Secretary of State, in relation to relevant undertakers whose areas are wholly or mainly in England; (b) the Welsh Ministers, in relation to relevant undertakers whose areas are wholly or mainly in Wales.

Charges for providing a water main etc

18

• (1) The Water Industry Act 1991 is amended as follows.

• (2) In section 42 (financial conditions for compliance with the duty in section 41 to provide a water main)—

• (a) in subsection (1)(b) (condition as to providing security), for the words from “such security” to “reasonably required” there is substituted “ such security as charging rules allow and the undertaker may have required ”;

• (b) in subsection (2) (undertaking to pay), for paragraph (a) there is substituted—

(a) bind the person or persons mentioned in that subsection to pay to the undertaker such charges as the undertaker may impose in accordance with charging rules, and

;

• (c) subsections (4) and (5) (interest on sums deposited by way of security) are repealed;

• (d) in subsection (6) (reference of disputes to Water Services Regulation Authority), in paragraph (b), after “the amount” there is inserted “ or amounts by way of charges ”.

• (3) In section 45 (duty to make domestic connections to a water main)—

• (a) in subsection (2) (the nature of the duty), the words “, at the expense of the person serving the notice,” are repealed;

• (b) for subsection (6) there is substituted—

(6) Where a water undertaker carries out any works which it is its duty under this section to carry out, the person serving the notice is liable to pay to the undertaker such charges as the undertaker may impose in accordance with charging rules.

;

• (c) in subsection (6A) (reference of disputes to Authority), for “as to whether the expenses were incurred reasonably” there is substituted “ as to the payments required to be made ”.

• (4) In section 46 (duty to carry out ancillary works for the purpose of making a domestic connection under section 45)—

• (a) in subsection (1) (the nature of the duty), the words “, at the expense of the person serving the notice,” are repealed;

• (b) in subsection (7), in paragraph (b), for “under this section at another person's expense” there is substituted “ as its duty under this section ”;

• (c) in subsection (7), in the words after paragraph (b), for “under that section at another person's expense” there is substituted “ as its duty under that section ”;

• (d) in subsection (9) (consequences of exercising power under section 46(8) to lay a water main rather than a service pipe), paragraph (b) (maximum expenses recoverable) and the “but” preceding it are repealed.

• (5) In section 47 (conditions of connection with water main)—

• (a) in subsection (2)(a) (requirement to give security for amounts to be paid), for the words from “such security” to “reasonably require” there is substituted “ such security as charging rules allow and the undertaker requires ”;

• (b) in subsection (3B) (reference of disputes to Authority), in the opening words, “whether” is repealed;

• (c) in subsection (3B), for paragraph (a) there is substituted—

(a) the security required to be provided by a condition imposed under subsection (2)(a),

;

• (d) in subsection (3B)(b), at the beginning there is inserted “whether”;

• (e) in subsection (3B)(c), after “particular case,” there is inserted “ whether ”.

Charges for providing a public sewer etc

19

• (1) The Water Industry Act 1991 is amended as follows.

• (2) In section 99 (financial conditions for compliance with the duty in section 98 to provide a public sewer or lateral drain)—

• (a) in subsection (1)(b) (condition as to providing security), for the words from “such security” to “reasonably required” there is substituted “ such security as charging rules allow and the undertaker may have required ”;

• (b) in subsection (2) (undertaking to pay in respect of public sewer), for paragraph (a) there is substituted—

(a) bind the person or persons mentioned in that subsection to pay to the undertaker such charges as the undertaker may impose in accordance with charging rules, and

;

• (c) in subsection (2A) (undertaking to pay in respect of lateral drain), for paragraph (a) there is substituted—

(a) bind the person or persons mentioned in that subsection to pay to the undertaker such charges as the undertaker may impose in accordance with charging rules, and

;

• (d) subsections (4) and (5) (interest on sums deposited by way of security) are repealed;

• (e) in subsection (6) (reference of disputes to the Water Services Regulation Authority), in paragraph (b), after “the amount” there is inserted “ or amounts by way of charges ”.

• (3) In section 101B (power to provide lateral drain following provision of public sewer)—

• (a) in subsection (3) (obligation to pay for drain requested), for “the costs reasonably incurred in or in connection with providing that drain” there is substituted “ such charges as the undertaker may impose in accordance with charging rules ”;

• (b) after subsection (3) there is inserted—

(3A) The sewerage undertaker may require the person making a request under this section to provide such security for the payment of the charges as charging rules allow.

;

• (c) in subsection (4) (reference of disputes to Authority), for paragraph (b) there is substituted—

(b) the amount of any charge imposed,

;

• (d) in subsection (4), after paragraph (b) there is inserted

or (c) the security required to be provided,

.

• (4) In section 107 (right of a sewerage undertaker to undertake the making of a communication with a public sewer)—

• (a) in subsection (3)(b)(i) (no obligation for undertaker to act until paid an estimated cost of the work in advance), for “the cost of the work” there is substituted “ the amount by way of charges that the undertaker may impose in accordance with charging rules for making the connection ”;

• (b) in subsection (3)(b)(ii) (no obligation for undertaker to act until given security for payment), for “such security” to the end there is substituted “ such security for the payment of that amount as charging rules allow and it may have required. ”;

• (c) for subsection (4), there is substituted—

(4) If a payment to a sewerage undertaker under subsection (3) exceeds the charges that may, in the event, be imposed in accordance with charging rules for making the connection in question, the excess is to be repaid by the undertaker; and, if and so far as those charges are not covered by a payment under subsection (3), those charges are to be paid by the person for whom the work was undertaken.

;

• (d) in subsection (4A) (reference to disputes to Authority), in paragraph (a), for “of the cost of works” there is substituted “ of the amount of charges ”;

• (e) in subsection (4A), for paragraph (b) (and the “or” following it) there is substituted—

(b) the security required by the undertaker, or

;

• (f) in subsection (4A), for paragraph (c) there is substituted—

(c) whether any excess is repayable, or any charges are payable, under subsection (4), or the amount of any such excess or charges,

.

• (5) In section 146 (connection charges etc, and charges for highway drainage), in subsection (5)(a), after “expenses incurred by it in” there is inserted “ , or charges imposed by it for, ”.

Charges for moving pipes

20

In section 185 of the Water Industry Act 1991 (duty to move pipes etc in certain cases), in subsection (5) (recovery of undertaker's expenses), for the words from “the undertaker” to the end there is substituted “ the person serving the notice is liable to pay to the undertaker such charges as the undertaker may impose in accordance with charging rules ”.

Sustainable drainage

Drainage systems relieving public sewers

21

• (1) After section 114 of the Water Industry Act 1991 there is inserted—

(114A) (1) Sewerage undertakers may construct, on their own or on another's land, drainage systems for the purpose of reducing the volume of surface water entering public sewers or the rate at which it does so. (2) A sewerage undertaker may maintain and operate a drainage system constructed by it under subsection (1). (3) In this section— - “drainage system” means a structure designed to receive rainwater and other surface water, other than a natural watercourse; - “natural watercourse” means a river or stream; - “rainwater” includes snow and other precipitation; - “structure” includes— 1. any part of an existing or proposed structure, and 2. any feature or aspect of a design that is intended to receive or facilitate the receipt of rainwater or other surface water. (4) The powers conferred by subsections (1) and (2) are not to be regarded as functions of a sewerage undertaker for the purposes of section 155 (compulsory purchase of land required for the purposes of carrying out functions of relevant undertakers).

• (2) In section 158 of that Act (powers to lay pipes in streets), in subsection (7) (meaning of reference to a relevant pipe), in paragraph (b)—

• (a) omit the “or” at the end of both sub-paragraphs (i) and (ii);

• (b) after sub-paragraph (iii) there is inserted

or (iv) any pipe forming part of, or required in connection with, a drainage system constructed under section 114A.

• (3) In Schedule 3 to the Flood and Water Management Act 2010 (sustainable drainage), after paragraph 19 there is inserted—

(19A) The adoption duty does not apply to a drainage system constructed under section 114A of the Water Industry Act 1991 (drainage systems relieving public sewers).

CHAPTER 3 — Regulation of the water industry

General duties of the Water Services Regulation Authority

Primary duty to secure resilience

22

• (1) Section 2 of the Water Industry Act 1991 (general duties with respect to water industry) is amended as follows.

• (2) In subsection (2A)—

• (a) omit the “and” at the end of paragraph (c);

• (b) after paragraph (d) insert

; and (e) to further the resilience objective.

• (3) After subsection (2D) insert—

(2DA) The resilience objective mentioned in subsection (2A)(e) is— (a) to secure the long-term resilience of water undertakers' supply systems and sewerage undertakers' sewerage systems as regards environmental pressures, population growth and changes in consumer behaviour, and (b) to secure that undertakers take steps for the purpose of enabling them to meet, in the long term, the need for the supply of water and the provision of sewerage services to consumers, including by promoting— (i) appropriate long-term planning and investment by relevant undertakers, and (ii) the taking by them of a range of measures to manage water resources in sustainable ways, and to increase efficiency in the use of water and reduce demand for water so as to reduce pressure on water resources. (2DB) For the purposes of subsection (2DA)— (a) the reference to water undertakers' supply systems is to be construed in accordance with section 17B; (b) the reference to sewerage undertakers' sewerage systems is a reference to the systems comprising— (i) the systems of public sewers, the facilities for emptying public sewers and the sewage disposal works and other facilities for dealing effectually with the contents of public sewers that undertakers are required to provide by section 94, and (ii) the lateral drains that undertakers are required to maintain by section 94.

General duty as regards undue preference in the provision of services

23

In section 2 of the Water Industry Act 1991 (general duties of the Secretary of State and the Water Services Regulation Authority with respect to the water industry), in subsection (3) (general considerations in exercising powers and duties), after paragraph (b) there is inserted—

(ba) to secure that no undue preference (including for itself) is shown, and that there is no undue discrimination, in the doing by such a company of— (i) such things as relate to the provision of services by itself or another such company, or (ii) such things as relate to the provision of services by a water supply licensee or a sewerage licensee;

.

Strategic priorities and objectives

24

• (1) For section 2A of the Water Industry Act 1991 there is substituted—

(2A) (1) The Secretary of State may from time to time publish a statement setting out strategic priorities and objectives for the Authority in carrying out relevant functions relating wholly or mainly to England. (2) The Authority must carry out those functions in accordance with any statement published under this section. (3) In formulating a statement under this section, the Secretary of State— (a) must have regard to the duties imposed on the Authority under section 2, (b) must have regard to social and environmental matters, and (c) may have regard to such other matters as the Secretary of State thinks fit. (4) Before publishing a statement under this section, the Secretary of State must consult— (a) the Authority, (b) the Council, (c) relevant undertakers, (d) licensed water suppliers, (e) the Environment Agency, (f) the Welsh Ministers, (g) the NRBW, and (h) anyone else the Secretary of State thinks appropriate. (5) Before publishing a statement under this section the Secretary of State must— (a) lay a draft of the statement before Parliament, and (b) then wait until the end of the 40-day period. (6) The Secretary of State may not publish the statement under this section if, within the 40-day period, either House of Parliament resolves not to approve it. (7) “The 40-day period” means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House on the same day, the later of the days on which it is laid). (8) When calculating the 40-day period, ignore any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days. (9) In this section “relevant functions relating wholly or mainly to England” means the functions mentioned in section 2(1)(b) so far as they relate to appointment areas wholly or mainly in England. (10) In subsection (9) “appointment area” means an area for which an appointment is held under Chapter 1 of Part 2. (2B) (1) The Welsh Ministers may from time to time publish a statement setting out strategic priorities and objectives for the Authority in carrying out relevant functions relating wholly or mainly to Wales. (2) The Authority must carry out those functions in accordance with any statement published under this section. (3) In formulating a statement under this section the Welsh Ministers— (a) must have regard to the duties imposed on the Authority under section 2, (b) must have regard to social and environmental matters, and (c) may have regard to such other matters as the Welsh Ministers think fit. (4) Before publishing a statement under this section, the Welsh Ministers must consult— (a) the Authority, (b) the Council, (c) relevant undertakers, (d) licensed water suppliers, (e) the NRBW, (f) the Secretary of State, (g) the Environment Agency, and (h) anyone else the Welsh Ministers think appropriate. (5) Before publishing a statement under this section the Welsh Ministers must— (a) lay a draft of the statement before the Assembly, and (b) then wait until the end of the 40-day period. (6) The Welsh Ministers may not publish the statement under this section if, within the 40-day period, the Assembly resolves not to approve it. (7) “The 40-day period” means the period of 40 days beginning with the day on which the draft is laid before the Assembly. (8) When calculating the 40-day period, ignore any period during which the Assembly is dissolved or is in recess for more than 4 days. (9) In this section “relevant functions relating wholly or mainly to Wales” means the functions mentioned in section 2(1)(b) so far as they relate to appointment areas wholly or mainly in Wales. (10) In subsection (9) “appointment area” means an area for which an appointment is held under Chapter 1 of Part 2.

• (2) In section 2(6A), (6B) and (7) of that Act (general duties with respect to water industry), for “section 2A” there is substituted “ sections 2A and 2B ”.

• (3) In section 192A of that Act (forward work programme), after subsection (3) there is inserted—

(3A) The forward work programme for any year must also include an explanation of how the projects described in it reflect any strategic priorities or objectives published under section 2A or 2B.

Regulation of relevant undertakers, water supply licensees and sewerage licensees

Procedure for granting water supply and sewerage licences

25

• (1) Section 17F of the Water Industry Act 1991 (procedure for granting water supply licences) is amended as follows.

• (2) For subsection (1) (application to be made as set out in regulations) there is substituted—

(1) The Authority must determine for each type of relevant application that may be made— (a) the form and manner in which an application is to be made; (b) the information it is to contain; (c) the documents that are to accompany it; (d) the fee that is to accompany it. (1A) The fees may be different in different circumstances. (1B) The Authority may make a new determination as to a matter referred to in subsection (1). (1C) The Authority must publish a notice of what it has determined under subsection (1) or (1B) in such manner as it thinks appropriate for bringing the determination to the attention of those affected by the determination. (1D) For the purposes of subsection (1) a relevant application is an application for— (a) the grant of a water supply or sewerage licence giving a particular authorisation or combination of authorisations; (b) the variation of a water supply or sewerage licence so that it gives— (i) a particular authorisation only, or (ii) a particular combination of authorisations. (1E) A person making a relevant application must comply with such provisions of a notice published under subsection (1C) as relate to the application.

• (3) Subsections (2), (3) and (5) (requirement for applicant to publish notice of an application made) are repealed.

• (4) In subsection (4) (procedure where the Secretary of State or the Authority proposes to refuse an application), for “the application”, in the first place it occurs, there is substituted “ a relevant application ”.

Extension of time limit for imposing financial penalties

26

• (1) In section 22C of the Water Industry Act 1991 (time limits on the imposition of financial penalties), in subsection (1), for “twelve months” there is substituted “ five years ”.

• (2) But subsection (1) does not apply in relation to a contravention or failure which—

• (a) occurred before the date on which this section comes into force, and

• (b) is not continuing on that date.

Water resources management plans for England: resilience

27

• (1) Chapter 1 of Part 3 of the Water Industry Act 1991 (water supply) is amended as follows.

• (2) In section 37A(3) (water resources management plans: preparation and review), at the end insert—

(and see also section 37AA).

• (3) After that section insert—

(37AA) (1) The Secretary of State may give a direction about the basis on which a water resources management plan for England is to be prepared. (2) A direction under this section may be given only where the Secretary of State considers it appropriate to do so with a view to securing that a water undertaker is able to meet the need for the supply of water to consumers in particular circumstances. (3) A direction under this section may, in particular, require a plan to be prepared on the basis of a specified assumption, including— (a) an assumption as to whether, and how often, specified circumstances are likely to arise; (b) an assumption that a specified power would or would not be exercised by the water undertaker or another person in specified circumstances. (4) Before giving a direction under this section, the Secretary of State must consult— (a) the Authority, (b) the Welsh Ministers, (c) each water undertaker to which the direction would apply, (d) the Environment Agency, (e) the NRBW, and (f) such other persons as the Secretary of State considers appropriate. (5) In this section— - “specified” means specified in a direction under this section; - “water resources management plan for England” means a water resources management plan prepared by a water undertaker whose area is wholly or mainly in England.

• (4) In section 37D(1) (water resources management plans: directions), after “37A” insert “ , 37AA ”.

Frequency of water resources management and drought plans

28

• (1) The Water Industry Act 1991 is amended as follows.

• (2) In section 37A (water resources management plans: preparation and review)—

• (a) in subsection (1), after “prepare” there is inserted “ , publish ”;

• (b) in subsection (4), after “preparing” there is inserted “ and publishing ”;

• (c) in subsection (6), in the opening words, after “prepare” there is inserted “ and publish ”.

• (3) In section 37D (water resources management plans: supplementary), after subsection (3) there is inserted—

(4) The Minister may by order made by statutory instrument amend the period for the time being specified in section 37A(6)(c). (5) In subsection (4), “the Minister” means— (a) the Secretary of State, in relation to an order applying to water undertakers whose areas are wholly or mainly in England, and (b) the Welsh Ministers, in relation to an order applying to water undertakers whose areas are wholly or mainly in Wales. (6) A statutory instrument containing an order made by the Secretary of State under subsection (4) is subject to annulment in pursuance of a resolution of either House of Parliament. (7) A statutory instrument containing an order made by the Welsh Ministers under subsection (4) is subject to annulment in pursuance of a resolution of the Assembly. (8) Subsection (9) applies in relation to a statutory instrument containing both— (a) an order made by the Secretary of State under subsection (4), and (b) an order made by the Welsh Ministers under subsection (4). (9) If in accordance with subsection (6) or (7) (negative resolution procedure)— (a) either House of Parliament resolves that an address be presented to Her Majesty praying that an instrument containing an order made by the Secretary of State be annulled, or (b) the Assembly resolves that an instrument containing an order made by the Welsh Ministers be annulled, the instrument is to have no further effect and Her Majesty may by Order in Council revoke the instrument.

• (4) In section 39B (drought plans: preparation and review)—

• (a) in subsection (1), after “prepare” there is inserted “ , publish ”;

• (b) in subsection (6)—

• (i) in the opening words, after “prepare” there is inserted “ and publish ”;

• (ii) in paragraph (c) (long-stop date) for “three years” there is substituted “ five years ”.

• (5) After section 39C (drought plans: provision of information) there is inserted—

(39D) (1) The Minister may by order made by statutory instrument amend the period for the time being specified in section 39B(6)(c). (2) In subsection (1), “the Minister” means— (a) the Secretary of State, in relation to an order applying to water undertakers whose areas are wholly or mainly in England, and (b) the Welsh Ministers, in relation to an order applying to water undertakers whose areas are wholly or mainly in Wales. (3) A statutory instrument containing an order made by the Secretary of State under subsection (1) is subject to annulment in pursuance of a resolution of either House of Parliament. (4) A statutory instrument containing an order made by the Welsh Ministers under subsection (1) is subject to annulment in pursuance of a resolution of the Assembly. (5) Subsection (6) applies in relation to a statutory instrument containing both— (a) an order made by the Secretary of State under subsection (1), and (b) an order made by the Welsh Ministers under subsection (1). (6) If in accordance with subsection (3) or (4) (negative resolution procedure)— (a) either House of Parliament resolves that an address be presented to Her Majesty praying that an instrument containing an order made by the Secretary of State be annulled, or (b) the Assembly resolves that an instrument containing an order made by the Welsh Ministers be annulled, the instrument is to have no further effect and Her Majesty may by Order in Council revoke the instrument.

Standards of performance: water supply

29

• (1) After section 38 of the Water Industry Act 1991 there is inserted—

(38ZA) (1) For the purpose of establishing overall standards of performance in connection with the supply of water by water supply licensees in accordance with their retail authorisations or restricted retail authorisations, the Minister may, in accordance with section 39ZA, by regulations— (a) impose requirements in connection with such supplies of water; (b) provide for a requirement so imposed to be enforceable under section 18 by— (i) the Minister, or (ii) the Authority, with the consent of or in accordance with a general authorisation given by the Secretary of State. (2) The Minister may, in accordance with section 39ZA, by regulations prescribe such standards of performance in connection with the provision of supplies of water as, in the Minister's opinion, ought to be achieved in individual cases. (3) Regulations under subsection (2) may provide that if a water supply licensee fails to meet a prescribed standard the licensee must pay such amount as may be prescribed to any person who— (a) is affected by the failure, and (b) is of a prescribed description. (4) Without prejudice to the generality of the power conferred by subsection (2), regulations under subsection (2) may— (a) include in a standard of performance a requirement for a water supply licensee, in prescribed circumstances, to inform a person of that person's rights by virtue of any such regulations; (b) provide for a dispute under the regulations to be referred by either party to the dispute to the Authority; (c) make provision for the procedure to be followed in connection with any such reference and for the Authority's determination on such a reference to be enforceable in such manner as may be prescribed; (d) prescribe circumstances in which a water supply licensee is to be exempted from requirements of the regulations. (5) Where the Authority determines any dispute in accordance with regulations under this section it must, in such manner as may be specified in the regulations, give its reasons for reaching its decision with respect to the dispute. (6) In this section— - “the Minister” means— 1. the Secretary of State, in relation to supplies of water made in accordance with a retail authorisation; 2. the Welsh Ministers, in relation to supplies of water made in accordance with a restricted retail authorisation; - “prescribed” means prescribed by regulations made by the Minister.

• (2) Section 38A of that Act (information as to levels of performance of water undertakers) is amended in accordance with subsections (3) to (6).

• (3) In subsection (1) (duty of Water Services Regulation Authority to collect information)—

• (a) the “and” following paragraph (a) is repealed;

• (b) after paragraph (a) there is inserted—

(aa) the compensation paid by water supply licensees under regulations under section 38ZA(2); and

;

• (c) in paragraph (b), after “water undertakers” there is inserted “ or water supply licensees ”.

• (4) After subsection (2) there is inserted—

(2A) At such times as the Authority may direct, each water supply licensee is to give the following information to the Authority— (a) as respects each standard established by regulations under section 38ZA(1), such information with respect to the level of performance achieved by the licensee as may be specified in the direction; (b) as respects each standard prescribed by regulations under section 38ZA(2), the number of cases in which compensation was paid and the aggregate amount or value of that compensation.

• (5) For subsection (3) (offence of failing to comply with subsection (2)) there is substituted—

(3) The requirements in subsections (2) and (2A) are enforceable by the Authority under section 18.

• (6) In subsection (4) (publication of information collected), after “water undertakers” there is inserted “ or water supply licensees ”.

• (7) After section 39 there is inserted—

(39ZA) (1) Section 39 applies for the purposes of making regulations under section 38ZA as it applies for the purposes of making regulations under section 38. (2) In the application of section 39 by virtue of subsection (1)— (a) a reference to a water undertaker is to be treated as a reference to a water supply licensee, and (b) a reference to the Secretary of State is to be treated as a reference to the Minister (as defined in section 38ZA(6)). (3) Regulations under section 38ZA are to be made by statutory instrument. (4) A statutory instrument containing regulations under section 38ZA is subject to annulment in pursuance of a resolution of— (a) either House of Parliament, in the case of regulations made by the Secretary of State; (b) the Assembly, in the case of regulations made by the Welsh Ministers. (5) Section 213(2) to (2B) applies to regulations made by the Welsh Ministers under section 38ZA as it applies to regulations made by the Secretary of State.

Standards of performance: sewerage

30

• (1) After section 95 of the Water Industry Act 1991 there is inserted—

(95ZA) (1) For the purpose of establishing overall standards of performance in connection with the provision of sewerage services by sewerage licensees in accordance with their retail authorisations, the Secretary of State may, in accordance with section 96ZA, by regulations— (a) impose requirements in connection with the provision of sewerage services; (b) provide for a requirement so imposed to be enforceable under section 18 by— (i) the Secretary of State, or (ii) the Authority, with the consent of or in accordance with a general authorisation given by the Secretary of State. (2) The Secretary of State may, in accordance with section 96ZA, by regulations prescribe such standards of performance in connection with the provision of sewerage services as, in the Secretary of State's opinion, ought to be achieved in individual cases. (3) Regulations under subsection (2) may provide that if a sewerage licensee fails to meet a prescribed standard the licensee must pay such amount as may be prescribed to any person who— (a) is affected by the failure, and (b) is of a prescribed description. (4) Without prejudice to the generality of the power conferred by subsection (2), regulations under subsection (2) may— (a) include in a standard of performance a requirement for a sewerage licensee, in prescribed circumstances, to inform a person of that person's rights by virtue of any such regulations; (b) provide for a dispute under the regulations to be referred by either party to the dispute to the Authority; (c) make provision for the procedure to be followed in connection with any such reference and for the Authority's determination on such a reference to be enforceable in such manner as may be prescribed; (d) prescribe circumstances in which a sewerage licensee is to be exempted from requirements of the regulations. (5) Where the Authority determines any dispute in accordance with regulations under this section it must, in such manner as may be specified in the regulations, give its reasons for reaching its decision with respect to the dispute.

• (2) Section 95A of that Act (information as to levels of performance of sewerage undertakers) is amended in accordance with subsections (3) to (6).

• (3) In subsection (1) (duty of Water Services Regulation Authority to collect information)—

• (a) the “and” following paragraph (a) is repealed;

• (b) after paragraph (a) there is inserted—

(aa) the compensation paid by sewerage licensees under regulations under section 95ZA(2); and

;

• (c) in paragraph (b), after “sewerage undertakers” there is inserted “ or sewerage licensees ”.

• (4) After subsection (2) there is inserted—

(2A) At such times as the Authority may direct, each sewerage licensee is to give the following information to the Authority— (a) as respects each standard established by regulations under section 95ZA(1), such information with respect to the level of performance achieved by the licensee as may be specified in the direction; (b) as respects each standard prescribed by regulations under section 95ZA(2), the number of cases in which compensation was paid and the aggregate amount or value of that compensation.

• (5) For subsection (3) (offence of failing to comply with subsection (2)) there is substituted—

(3) The requirements in subsections (2) and (2A) are enforceable by the Authority under section 18.

• (6) In subsection (4) (publication of information collected), after “sewerage undertakers” there is inserted “ or sewerage licensees ”.

• (7) After section 96 there is inserted—

(96ZA) (1) Section 96 applies for the purposes of making regulations under section 95ZA as it applies for the purposes of making regulations under section 95. (2) In the application of section 96 by virtue of subsection (1), a reference to a sewerage undertaker is to be treated as a reference to a sewerage licensee.

Interim duty: water supply

31

For section 63AC of the Water Industry Act 1991 (interim duty of water undertaker: domestic and non-domestic supply) there is substituted—

(63AC) (1) This section applies where— (a) a water supply licensee (“the previous licensee”) ceases to supply any premises with water, and (b) the owner or occupier of the premises has not notified the water undertaker in whose area the premises are that— (i) he has made arrangements for the continuation of the supply of water to the premises, or (ii) he intends any supply of water to the premises to cease. (2) It is to be the duty of the water undertaker to continue the supply of water to the premises which was made by the previous licensee. (3) But the Authority may give a direction to an eligible water supply licensee (an “interim licensee”) providing that it is to be the duty of that licensee to continue the supply instead. (4) An “eligible water supply licensee” is a water supply licensee with a retail authorisation or a restricted retail authorisation who has elected to be an eligible water supply licensee for the purposes of this section in accordance with the code issued under section 63AF. (5) If the Authority proposes to give a direction under subsection (3) to an eligible water supply licensee— (a) the Authority must give notice of the proposed direction to the licensee, and (b) the licensee may, in accordance with the code issued under section 63AF, temporarily suspend the election made by the licensee as mentioned in subsection (4), so that the proposed direction cannot be given to the licensee. (6) Where a supply is made by an undertaker under subsection (2)— (a) the charges payable in respect of the supply are to be fixed from time to time by a charges scheme under section 143, and (b) subject to subsection (12), the supply is to be made until— (i) a supply is made by an interim licensee by virtue of a direction under subsection (3), (ii) a supply is made by a water supply licensee following the service of a notice under section 63AA or 63AB; (iii) a supply is made under section 52 or 55, or (iv) a notice is served by the undertaker on the owner or occupier of the premises stating that the supply is to be discontinued (subject to subsection (8)), whichever is the earlier. (7) Where a supply is made by an interim licensee by virtue of a direction given under subsection (3)— (a) the supply by the interim licensee is to be treated as having begun on the date on which the previous licensee ceased to supply the premises, (b) the terms and conditions in accordance with which the supply is to be made are to be— (i) those provided for by a scheme made under section 63AE, or (ii) such other terms and conditions as may be agreed between the interim licensee and the owner or occupier of the premises, and (c) subject to subsection (12), the supply is to be made until it is discontinued in accordance with the terms and conditions mentioned in paragraph (b). (8) A notice under subsection (6)(b)(iv) may not be served before the end of the period of three months beginning with the day on which the supply by the previous licensee ceased. (9) Subsections (10) and (11) apply if, within a period of three months beginning with the date on which the previous licensee ceased to supply the premises with water, the owner or occupier of the premises serves notice— (a) under section 63AA or 63AB, on the water undertaker continuing the supply under subsection (2), or (b) in accordance with the terms and conditions mentioned in subsection (7)(b), on the interim licensee continuing the supply by virtue of a direction given under subsection (3), that instead another water supply licensee (“the new licensee”) is to continue the supply of water to the premises which was made by the previous licensee. (10) The notice must— (a) specify the time from which the new licensee is to continue the supply in question, and (b) be served in accordance with the code issued under section 63AF. (11) In the case of a notice served as mentioned in subsection (9)(a), the supply by the new licensee is to be treated as having begun on the date on which the previous licensee ceased to supply the premises. (12) Supplies of water under this section are subject to sections 60 to 63. (63AD) (1) A water undertaker is not required by virtue of section 63AC to provide a supply of water to any premises if the provision of the supply would— (a) require the undertaker, in order to meet all its existing obligations to supply water for domestic or other purposes, together with its probable future obligations to supply buildings and parts of buildings with water for domestic purposes, to incur unreasonable expenditure in carrying out works, or (b) otherwise put at risk its ability to meet any of the existing or probable future obligations mentioned in paragraph (a). (2) The Authority may determine, in a case referred to it by the owner or occupier of the premises in question, whether the condition in subsection (1) is satisfied in relation to a water undertaker. (3) Before the Authority determines whether that condition is satisfied, it must consult— (a) the Secretary of State, in the case of a water undertaker whose area is wholly or mainly in England; (b) the Welsh Ministers, in the case of a water undertaker whose area is wholly or mainly in Wales. (4) The supply of water to any premises by a water undertaker under section 63AC does not prevent a proposed supply to those premises by that undertaker under section 55 from being regarded as a new supply for the purposes of that section. (5) Where a duty is imposed by section 63AC(2), or by virtue of a direction given under section 63AC(3), in respect of any premises, any breach of the duty which causes the owner or occupier of the premises to sustain loss or damage is actionable at the suit of that owner or occupier. (6) But in any proceedings brought against a water undertaker or water supply licensee in pursuance of subsection (5), it is a defence for the undertaker or licensee to show that the undertaker or, as the case may be, the licensee took all reasonable steps and exercised all due diligence to avoid the breach. (7) For the purposes of section 63AC, premises which are outside a water undertaker's area are to be treated as being within that area if they are supplied with water using the undertaker's supply system. (8) In subsection (7), the reference to the undertaker's supply system is to be construed in accordance with section 17B. (63AE) (1) A person who is an eligible water supply licensee for the purposes of section 63AC must make, and from time to time revise, a scheme containing the terms and conditions which, in the absence of agreed terms and conditions, are to apply to a supply of water made by the licensee by virtue of a direction given under section 63AC(3). (2) A scheme under this section may make different provision for different purposes, or for different areas. (3) As soon as practicable after a water supply licensee makes or revises a scheme under this section the licensee is to— (a) publish the scheme, or revised scheme, on the licensee's website, and (b) send a copy of the scheme, or revised scheme, to the Authority. (4) The Authority may give a direction that terms and conditions applying to a supply of water in accordance with a scheme under this section must be modified as specified in the direction. (5) A direction under subsection (4) may apply— (a) generally to terms and conditions applying in accordance with a scheme under this section, or (b) to terms and conditions so applying in any particular case. (6) It is the duty of a water supply licensee to comply with a direction under subsection (4), and this duty is enforceable under section 18. (63AF) (1) The Authority must issue a code in relation to— (a) supplies of water under section 63AC, and (b) its power of direction under section 63AC(3) (power to direct that eligible water supply licensee makes interim supply). (2) The code may, in particular, make provision about— (a) the procedure for electing to be an eligible water supply licensee for the purposes of section 63AC; (b) the procedure for temporarily suspending such an election under section 63AC(5)(b); (c) the circumstances in which the Authority's power of direction under section 63AC(3) or 63AE(4) may or may not be exercised; (d) how the Authority will determine the date on which a water supply licensee ceased to supply premises with water for the purposes of section 63AC; (e) terms and conditions contained in schemes made under section 63AE; (f) eligible water supply licensees informing owners or occupiers of premises of their schemes for terms and conditions made under section 63AE, before agreeing any terms and conditions as mentioned in section 63AC(7)(b)(ii); (g) the giving of notices as mentioned in section 63AC(9) (that a new licensee is to continue the supply of water made by the previous licensee) including, in particular, provision about— (i) the earliest time that a notice may specify as the time from which a new licensee is to continue the supply of water made by a previous licensee; (ii) the procedure for serving a notice. (3) If the Authority considers that a water supply licensee is not acting as required by provision contained in the code as mentioned in subsection (2)(e) or (f), the Authority may give the licensee a direction to do, or not to do, a particular thing specified in the direction. (4) It is the duty of a water supply licensee to comply with a direction under subsection (3), and this duty is enforceable under section 18. (5) The Authority must from time to time review the code and, if appropriate, issue a revised code. (6) References in section 63AC to the code issued under this section are to the code issued under this section that has effect at the time in question.

Interim duty: sewerage services

32

After section 110J of the Water Industry Act 1991 (as inserted by section 9) there is inserted—

(110K) (1) The owner or occupier of any premises may serve a notice on a sewerage undertaker— (a) informing the undertaker that sewerage services to the premises are to be provided by a sewerage licensee, and (b) specifying the time after which the undertaker will no longer be required to provide sewerage services to the premises. (2) Where the charges for the sewerage services provided by the undertaker are, under Chapter 1 of Part 5 of this Act, fixed in relation to the premises by reference to volume, the time specified in the notice is to fall at least two working days after the notice is served. (3) In this section a reference to two working days is a reference to a period of 48 hours calculated after disregarding any time falling on— (a) a Saturday or Sunday, or (b) Christmas Day, Good Friday or any day which is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971. (110L) (1) This section applies where— (a) a sewerage licensee (“the previous licensee”) ceases to provide sewerage services to any premises, and (b) the owner or occupier of the premises has not notified the sewerage undertaker in whose area the premises are that— (i) he has made arrangements for the continuation of the provision of sewerage services to the premises, or (ii) he intends any provision of sewerage services to the premises to cease. (2) It is to be the duty of the sewerage undertaker to continue to provide the sewerage services to the premises which were provided by the previous licensee. (3) But the Authority may give a direction to an eligible sewerage licensee (an “interim licensee”) providing that it is to be the duty of that licensee to provide the sewerage services instead. (4) An “eligible sewerage licensee” is a sewerage licensee with a retail authorisation who has elected to be an eligible sewerage licensee for the purposes of this section in accordance with the code issued under section 110O. (5) If the Authority proposes to give a direction under subsection (3) to an eligible sewerage licensee— (a) the Authority must give notice of the proposed direction to the licensee, and (b) the licensee may, in accordance with the code issued under section 110O, temporarily suspend the election made by the licensee as mentioned in subsection (4), so that the proposed direction cannot be given to the licensee. (6) Where sewerage services are provided by an undertaker under subsection (2)— (a) the charges payable in respect of the provision of the services are to be fixed from time to time by a charges scheme under section 143, and (b) the services are to be provided until— (i) services are provided by an interim licensee by virtue of a direction under subsection (3), (ii) services are provided by a sewerage licensee following the service of a notice under section 110K, or (iii) services are provided to the premises by another sewerage undertaker following the service of a notice by the owner or occupier of the premises on the undertaker providing services under subsection (2) specifying the time after which the undertaker will no longer be required to provide sewerage services to the premises (see section 110M(5)), whichever is the earlier. (7) Where sewerage services are provided by an interim licensee by virtue of a direction given under subsection (3)— (a) the provision of services by the interim licensee is to be treated as having begun on the date on which the previous licensee ceased to provide services to the premises, (b) the terms and conditions in accordance with which the services are to be provided are to be— (i) those provided for by a scheme made under section 110N, or (ii) such other terms and conditions as may be agreed between the interim licensee and the owner or occupier of the premises, and (c) the services are to be provided until they are discontinued in accordance with the terms and conditions mentioned in paragraph (b). (8) Subsections (9) and (10) apply if, within a period of three months beginning with the date on which the previous licensee ceased to provide sewerage services to the premises, the owner or occupier of the premises serves notice— (a) under section 110K, on the sewerage undertaker continuing the provision of services under subsection (2), or (b) in accordance with the terms and conditions mentioned in subsection (7)(b), on the interim licensee continuing the provision of services by virtue of a direction given under subsection (3), that instead another sewerage licensee (“the new licensee”) is to continue the provision of the services to the premises which were provided by the previous licensee. (9) The notice must— (a) specify the time from which the new licensee is to continue the provision of the services in question, and (b) be served in accordance with the code issued under section 110O. (10) In the case of a notice served as mentioned in subsection (8)(a), the provision of services by the new licensee is to be treated as having begun on the date on which the previous licensee ceased to provide services to the premises. (110M) (1) Where a duty is imposed by section 110L(2), or by virtue of a direction given under section 110L(3), in respect of any premises, any breach of the duty which causes the owner or occupier of the premises to sustain loss or damage is actionable at the suit of that owner or occupier. (2) But in any proceedings brought against a sewerage undertaker or sewerage licensee in pursuance of subsection (1), it is a defence for the undertaker or licensee to show that the undertaker or, as the case may be, the licensee took all reasonable steps and exercised all due diligence to avoid the breach. (3) For the purposes of section 110L, premises which are outside a sewerage undertaker's area are to be treated as being within that area if they are provided with sewerage services using the undertaker's sewerage system. (4) In subsection (3), the reference to the undertaker's sewerage system is to be construed in accordance with section 17BA(7). (5) Section 110K(2) and (3) apply to a notice served under section 110L(6)(b)(iii) as they apply to a notice served under section 110K. (110N) (1) A person who is an eligible sewerage licensee for the purposes of section 110L must make, and from time to time revise, a scheme containing the terms and conditions which, in the absence of agreed terms and conditions, are to apply to the provision of sewerage services by the licensee by virtue of a direction given under section 110L(3). (2) A scheme under this section may make different provision for different purposes, or for different areas. (3) As soon as practicable after a sewerage licensee makes or revises a scheme under this section the licensee is to— (a) publish the scheme, or revised scheme, on the licensee's website, and (b) send a copy of the scheme, or revised scheme, to the Authority. (4) The Authority may give a direction that terms and conditions applying to the provision of sewerage services in accordance with a scheme under this section must be modified as specified in the direction. (5) A direction under subsection (4) may apply— (a) generally to terms and conditions applying in accordance with a scheme under this section, or (b) to terms and conditions so applying in any particular case. (6) It is the duty of a sewerage licensee to comply with a direction under subsection (4), and this duty is enforceable under section 18. (110O) (1) The Authority must issue a code in relation to— (a) the provision of sewerage services under section 110L, and (b) its power of direction under section 110L(3) (power to direct that eligible sewerage licensee provides interim sewerage services). (2) The code may, in particular, make provision about— (a) the procedure for electing to be an eligible sewerage licensee for the purposes of section 110L; (b) the procedure for temporarily suspending such an election under section 110L(5)(b); (c) the circumstances in which the Authority's power of direction under section 110L(3) or 110N(4) may or may not be exercised; (d) how the Authority will determine the date on which a sewerage licensee ceased to provide sewerage services to premises for the purposes of section 110L; (e) terms and conditions contained in schemes made under section 110N; (f) eligible sewerage licensees informing owners or occupiers of premises of their schemes for terms and conditions made under section 110N, before agreeing any terms and conditions as mentioned in section 110L(7)(b)(ii); (g) the giving of notices as mentioned in section 110L(8) (that a new licensee is to continue the provision of the sewerage services provided by the previous licensee) including, in particular, provision about— (i) the earliest time that a notice may specify as the time from which a new licensee is to continue the provision of the sewerage services provided by a previous licensee; (ii) the procedure for serving a notice. (3) If the Authority considers that a sewerage licensee is not acting as required by provision contained in the code as mentioned in subsection (2)(e) or (f), the Authority may give the licensee a direction to do, or not to do, a particular thing specified in the direction. (4) It is the duty of a sewerage licensee to comply with a direction under subsection (3), and this duty is enforceable under section 18. (5) The Authority must from time to time review the code and, if appropriate, issue a revised code. (6) References in section 110L to the code issued under this section are to the code issued under this section that has effect at the time in question.

Notice of agreements within section 142(2)(b)

33

• (1) The Water Industry Act 1991 is amended as follows.

• (2) In section 142 (powers of undertakers to charge), after subsection (6) there is inserted—

(6A) If an undertaker makes an agreement that falls within subsection (2)(b), it must notify the Authority of the provisions of the agreement. (6B) The requirement in subsection (6A) is enforceable by the Authority under section 18.

• (3) In section 195 (the Water Services Regulation Authority's register relating to relevant undertakers and licensees)—

• (a) in subsection (3) (power to direct that provisions of an undertaker's appointment etc are not entered in the register), after “any provision” there is inserted “ or, in the case of information that falls to be entered under subsection (3B), any information ”;

• (b) in subsection (3), after “that provision” there is inserted “ or that information ”;

• (c) after subsection (3A) there is inserted—

(3B) Subject to any direction given under subsection (3), the Authority must cause to be entered on the register such information about an agreement falling within section 142(2)(b) as the Authority thinks fit. (3C) Subsection (3B) has effect in relation to agreements made after the coming into force of section 33 of the Water Act 2014.

Register relating to undertakers and licensees

34

• (1) Section 195 of the Water Industry Act 1991 (the Water Services Regulation Authority's register relating to undertakers and licensees) is amended as follows.

• (2) In subsection (1) (register to be maintained in a certain place, in a certain form and for certain purposes), the words from “for the purposes” to the end are repealed.

• (3) After subsection (3C) (inserted by section 33) there is inserted—

(3D) Subject to any direction given under subsection (3), the Authority must cause to be entered on the register the provisions of— (a) a notice under section 40F(3) (reduction in charges payable under a bulk supply agreement); (b) a notice under section 66EA(3) (reduction in charges payable under a section 66D agreement); (c) a notice under section 110G(3) (reduction in charges payable under a main connection agreement); (d) a notice under section 117J(3) (reduction in charges payable under a section 117E agreement).

Operation of register

35

In section 195 of the Water Industry Act 1991, for subsections (4) to (6) (inspection of the register and fees for certified copies or extracts) there is substituted—

(4) The Authority must publish a notice setting out— (a) the times at which the contents of the register are for the time being available for inspection by the public; (b) the fees that must be paid for, or in connection with, an inspection of the contents of the register; (c) the fees that must be paid for, or in connection with, the supply by the Authority of— (i) a copy of the contents of the register, certified by the Authority as being a true copy, or (ii) an extract from the contents of the register, certified by the Authority as being a true extract. (4A) The Authority must publish the notice in such manner as the Authority thinks appropriate for bringing it to the attention of the persons who, in the Authority's opinion, are likely to be affected by it. (4B) The Authority must make the contents of the register available for inspection by the public— (a) during such hours, and (b) on payment of such fees, as are set out in the notice under subsection (4) that is for the time being in force.

Obtaining information for enforcement purposes

36

• (1) Section 203 of the Water Industry Act 1991 (power to acquire information for enforcement purposes) is amended as follows.

• (2) For subsection (1) there is substituted—

(1) The Minister or the Authority may serve a notice under subsection (2) in respect of— (a) a company that holds an appointment as a relevant undertaker, if of the opinion that Condition 1 is satisfied, or (b) a person who holds a licence under Chapter 1A of Part 2, if of the opinion that Condition 2 is satisfied. (1A) Condition 1 is that the company— (a) may be contravening, or may have contravened, a condition of the appointment or a statutory or other requirement enforceable under section 18, (b) may be causing or contributing to, or may have caused or contributed to, a contravention by another company holding an appointment as a relevant undertaker of a condition of the appointment or a statutory or other requirement enforceable under section 18, (c) may be causing or contributing to, or may have caused or contributed to, a contravention by a person holding a licence under Chapter 1A of Part 2 of a condition of the licence or a statutory or other requirement enforceable under section 18, (d) has not met the standards prescribed under section 38(2) in connection with the provision of supplies of water, or (e) has not met the standards prescribed under section 95(2) in connection with the provision of sewerage services. (1B) Condition 2 is that the person— (a) may be contravening, or may have contravened, a condition of the licence or a statutory or other requirement enforceable under section 18, (b) may be causing or contributing to, or may have caused or contributed to, a contravention by a company holding an appointment as a relevant undertaker of a condition of the appointment or a statutory or other requirement enforceable under section 18, (c) may be causing or contributing to, or may have caused or contributed to, a contravention by another person holding a licence under Chapter 1A of Part 2 of a condition of the licence or a statutory or other requirement enforceable under section 18, (d) has not met the standards prescribed under section 38ZA(2) in connection with the provision of water supplies, or (e) has not met the standards prescribed under section 95ZA(2) in connection with the provision of sewerage services. (1C) The notice may be served— (a) on any person; (b) for any purpose connected with powers under Chapter 2 of Part 2.

• (3) In subsections (2) and (6), for “Secretary of State”, in each place where those words occur, there is substituted “ Minister ”.

• (4) In subsection (7), for “or licence” there is substituted “ or a person holding such a licence ”.

• (5) After subsection (7) there is inserted—

(8) The Minister” means— (a) the Secretary of State, in respect of— (i) any relevant undertaker whose area is wholly or mainly in England; (ii) any water supply licensee or sewerage licensee carrying out licensed activities using the supply system or sewerage system of any such undertaker; (b) the Welsh Ministers, in respect of— (i) any relevant undertaker whose area is wholly or mainly in Wales; (ii) any water supply licensee or sewerage licensee carrying out licensed activities using the supply system or sewerage system of any such undertaker. (9) In this section— (a) references to the supply system of a water undertaker are to be construed in accordance with section 17B; (b) references to the sewerage system of a sewerage undertaker are to be construed in accordance with section 17BA(7).

Appeals relating to codes

Appeals relating to revisions of codes

37

• (1) The Water Industry Act 1991 is amended as follows.

• (2) After section 207 there is inserted—