**Exhibit 4.3**

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**WATER ACT 2003    MODIFICATION OF THE CONDITIONS OF APPOINTMENT OF    [ALL WATER AND SEWERAGE UNDERTAKERS    AND ALL WATER UNDERTAKERS]**

Made on 11 September 2005 

Coming into effect on 15 September 2005 

The Director General of Water    Services, in exercise of the power conferred on him by paragraph 4 of Schedule4 to the Water Act 2003 (“the 2003 Act”)1, after consulting **[theundertaker concerned]** and other appropriate persons as required by that paragraph,hereby modifies with effect on and from 15 September 2005 the conditions of theappointment of **[the undertaker concerned]** under Chapter I of Part II ofthe Water Industry Act 1991 as follows: 

| 1.     | After Condition Q there      shallbe inserted:                             |
|--------|----------------------------------------------------------------------------|
|   |                                                                       |
|   | “**Condition R: Provision of combined and wholesale water supplies** |

|   |                |
|--------|---------------------|
|   | **The Access Code** |

|   |               |   |                                                                                                   |
|--------|--------------------|--------|--------------------------------------------------------------------------------------------------------|
|   | **1.**–– | (1)    | The    Appointee shall have an Access Code which complies with paragraphs 2 to 4    of this condition. |
|   |               |   |                                                                                                   |
|   |               | (2)    | The Appointee shall comply    with its Access Code.                                                    |

|   |               |   |                         |                                                                           |
|--------|--------------------|--------|------------------------------|--------------------------------------------------------------------------------|
|   | **2.**–– | (1)    | The Access Code shall – |
|   |               |   |                         |                                                                           |
|   |               |   | (a)                          | conform to the guidance for the time being    issued under section 66D(4); and |
|   |               |   |                         |                                                                           |
|   |               |   | (b)                          | set out –                                                                 |
|   |               |   |                         |                                                                           |
|   |               |   |                         | (i)                                                                            | the Appointee’s procedure (including      timetables) for dealing with a request made to it by a licensed water supplier      under sections 66A, 66B or 66C (which procedure shall itself conform to    any relevant guidance); |
|   |               |   |                         |                                                                           |
|   |               |   |                         | (ii)                                                                           | the types of feasibility studies which      the Appointee may undertake in response to any of those possible applications,      including the method of calculation of any costs associated with any such      study with a view to recovering them from any such applicant (all of which      feasibility studies and the method of calculation shall themselves conform      to any relevantguidance); and |
|   |               |   |                         |                                                                           |
|   |               |   |                         | (iii)                                                                          | the terms (including the basis for calculating      charges in accordance with the costs principle in section 66E) upon which      the Appointee will offer to perform each duty under sections 66A to 66C      and indicative charges for performing each duty under sections 66A and      66B (which indicative charges shall themselves be calculated in accordance    with any relevant guidance). |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  1 By virtue of article 6 and paragraph 7 of Schedule 3 of the Water Act 2003 (Commencement No. 1 and Transitional Provisions) Order 2004 (SI 2004/641), references to the Water Services Regulation Authority in paragraph 4 of Schedule 4 to the 2003 Act have effect as if they were references to the Director General of Water Services, until the coming fully into force of section 36(1) (transfer to the Authority and the Consumer Council for Water of functions, property etc) of the 2003 Act. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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|       |
|--------------------------------|

|   |               | (2)    | In this paragraph andin paragraph 3 below, “relevant guidance” means guidance –                                                                                                                                              |
|--------|--------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (a)                                                                                                                                                                                                                                           | in relation to the matters specified in    sub-paragraph (1)(b) above; |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (b)                                                                                                                                                                                                                                           | for the time being issued by the Authority    where – |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   |                                                                                                                                                                                                                                          | (i) | before issuing such guidance, the Authority    has consulted such persons as it considers appropriate; and |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   |                                                                                                                                                                                                                                          | (ii) | the Authority has published such      guidance in such a manner as it considers appropriate for the purpose of    bringing it to the attention of persons likely to be affected by it. |
|   |               |   |                                                                                                                                                                                                                                          |
|   | **3.**–– | (1)    | Subjectto sub-paragraph (2), the Appointee –                                                                                                                                                                                             |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (a)                                                                                                                                                                                                                                           | shall review its Access Code annually      not later than the anniversary of the date upon which this condition comes    into effect; and |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (b)                                                                                                                                                                                                                                           | may at any time revise it. |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               | (2)    | If the Authority revises its guidance      under section 66D(4), the Appointee shall revise its Access Code to conform    to the revised guidance within the timescales set out by the Authority.                                             |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               | (3)    | If the Authority revises any relevant      guidance, the Appointee shall revise its Access Code to conform to such      revised relevant guidance, within the timescales set out by the Authority,      providedthat the Authority has – |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (a)                                                                                                                                                                                                                                           | consulted such persons as it considers    appropriate before revising that relevant guidance; and |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (b)                                                                                                                                                                                                                                           | published that revised relevant guidance      in such a manner as it considers appropriate for the purpose of bringing    it to the attention of persons likely to be affected by it. |
|   |               |   |                                                                                                                                                                                                                                          |
|   | **4.**–– | (1)    | TheAppointee shall –                                                                                                                                                                                                                     |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (a)                                                                                                                                                                                                                                           | include the text of its Access Code,      as revised from time to time, on any Internet website which it may maintain;    and |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (b)                                                                                                                                                                                                                                           | in response to any request, provide a    copy of it free of charge. |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               | (2)    | The Appointee shall provideto the Authority –                                                                                                                                                                                            |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (a)                                                                                                                                                                                                                                           | free of charge a copy of its Access Code;    and |
|   |               |   |                                                                                                                                                                                                                                          |
|   |               |   | (b)                                                                                                                                                                                                                                           | within seven days of making them, written    particulars of any modifications of it. |
|   |               |   |                                                                                                                                                                                                                                          |

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**Anti-competitive behaviour**

|   | **5.**––                | (1)                                                                                                                                              | If and for so long as the    Appointee is related to any licensed water supplier –                                                                                                                                                                                                                                                                                                                         |
|--------|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (a)                                                                                                                                                                                                                                                                                                                                                                                                             | it shall not without the        consent of the Authority sell (or otherwise make available) to that licensed        water supplierany water, or any of its other assets; and |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (b)                                                                                                                                                                                                                                                                                                                                                                                                             | otherwise, it shall ensure        that every other transaction between the Appointed Business and that    licensed water supplier is at arm's length |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              | (2)                                                                                                                                              | For the purpose of this        paragraph the Appointee is related to a licensed water supplier if their        enterprises are under common ownership or common control (within the        meaning those expressions have in section 26(1) of the Enterprise Act    2002).                                                                                                                                      |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              | (3)                                                                                                                                              | The Appointee shall by        notice inform the Authority if at any time it becomes, or ceases to be,        related to alicensed water supplier.                                                                                                                                                                                                                                                               |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              | (4)                                                                                                                                              | This paragraph is without        prejudice to anything contained in paragraph 6 of Condition F (Transactions        entered into by the Appointee or the Appointed Business with or for the        benefit of Associated Companies or other businesses or activities of    the Appointee).                                                                                                                      |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **6.**––                | The Appointee shall not    show undue preference towards, or undue discrimination against –                                                 |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (a)                                                                                                                                                                                                                                                                                                                                                                                                             | customers or potential customers (or        classes of customers) of a licensed water supplier, as compared with        either the Appointee’s own customers or potential customers (or        classes of customers) or the customers or potential customers (or classes        of customers) of any other licensed watersupplier; or |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (b)                                                                                                                                                                                                                                                                                                                                                                                                             | a licensed water supplier, as compared    with any other licensed water supplier or the Appointee itself. |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **Obligations about information** |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | **7.**––                | (1)                                                                                                                                              | Wheneverthe Appointee is –                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (a)                                                                                                                                                                                                                                                                                                                                                                                                             | negotiating with a licensed water supplier        the period for which and terms and conditions on which it might discharge    any of its duties under sections 66A to 66C; or |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (b)                                                                                                                                                                                                                                                                                                                                                                                                             | discharging any of those duties, |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              | it shall ensure that legally enforceable        terms exist about the confidentiality of information provided to or by    it for those purposes. |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              | (2)                                                                                                                                              | Without prejudice to the generality        of sub-paragraph (1) above, the Appointee shall not use or disclose information        received from a licensed water supplier in the course or contemplation        of the discharge of its duties under sections 66A to 66C or in the course        or contemplation of its dealings with that licensed water supplier under    sections 66A to 66C, except – |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (a)                                                                                                                                                                                                                                                                                                                                                                                                             | to the minimum extent necessary to discharge    those duties or for those dealings |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (b)                                                                                                                                                                                                                                                                                                                                                                                                             | where required or permitted by law;    or |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                              |                                                                                                                                             | (c)                                                                                                                                                                                                                                                                                                                                                                                                             | where otherwise agreed with the licensed    water supplier. |
|   |                              |                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                            |

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|   |               |   |                                                                                                                                          |
|--------|--------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|   | **8.**–– | (1)    | The Appointee shall provide to a licensed        water supplier such information as the licensed water supplier reasonably    requires – |
|   |               |   |                                                                                                                                          |
|   |               |   | (a)                                                                                                                                           | to enable the licensed water supplier    to apply for, negotiate and conclude an agreement under section 66D; |
|   |               |   |                                                                                                                                          |
|   |               |   | (b)                                                                                                                                           | to comply with any condition of        its water supply licence, or any statutory requirement imposed in consequence    of its water supply licence; or |
|   |               |   |                                                                                                                                          |
|   |               |   | (c)                                                                                                                                           | to comply with any reasonable request    for information made by the Environment Agency. |
|   |               |   |                                                                                                                                          |

|   |   | (2)    | The Appointee may impose reasonable      conditions on the use which any licensed water supplier makes of information      provided    under this paragraph. |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                         |
|   |   | (3)    | Any question    as to the reasonablenessof –                                                                                                            |

|   |   |   |                                                                                                                                                                                                                                                                |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   | (a)                                                                                                                                                                                                                                                                 | any requirement to provide information under    sub-paragraph (1); or |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   | (b)                                                                                                                                                                                                                                                                 | any condition proposed by the Appointee    under sub-paragraph (2); |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   | shall be resolved by referring that question    to the Authority for its determination.                                                                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   | (4)    | A reference under sub-paragraph (3)      shall have the effect of suspending the requirement so referred pending      the Authority’sdetermination.                                                                                                           |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   | (5)    | The Appointee shall not be required      under this paragraph to disclose any information or produce any document      which it would be entitled to refuse to disclose or produce on grounds      of legal professionalprivilege in proceedings in the High Court. |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   | (6)    | (a)                                                                                                                                                                                                                                                                 | The Appointee shall immediately inform      the licensed water supplier of relevant details if the Appointee is or      becomes aware that a special consumer occupies or is likely to occupy any      premiseswhich the licensed water supplier is proposing to supply. |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   | (b)                                                                                                                                                                                                                                                                 | For the purpose of sub-paragraph (a) above,    a special consumer is a person or a member of a class of persons who – |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   |                                                                                                                                                                                                                                                                | (i) | the Appointee and the relevant licensed    water supplier agree; or |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   |                                                                                                                                                                                                                                                                | (ii) | the Authority specifically or generally    determines by relevant notice, |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   | regularly requires water urgently on medical    or other grounds.                                                                                                                                                                                                   |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   | (7)    | Under sub-paragraph (6) –                                                                                                                                                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   | (a)                                                                                                                                                                                                                                                                 | a determination shall not have effect      unless, before making the determination, the Authority has consulted such    persons as it considers appropriate; and |
|   |   |   |                                                                                                                                                                                                                                                                |
|   |   |   | (b)                                                                                                                                                                                                                                                                 | a “relevant notice” is a notice      published in such manner as the Authority considers appropriate and served    on the Appointee. |
|   |   |   |                                                                                                                                                                                                                                                                |

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|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |               | (8)                                                                                                                                                   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                | The Appointee shall immediately inform      each licensed water supplier which is supplying water to premises in its      Water Supply Area of every actual or potential incident which affects adversely,    or is likely to affect adversely –                  |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               | (i)                                                                                                                                                                                                                                                                    | water quality; |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               | (ii)                                                                                                                                                                                                                                                                   | water pressure; |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               | (iii)                                                                                                                                                                                                                                                                  | continuity of supply; or |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               | (iv)                                                                                                                                                                                                                                                                   | any other matter related to the Appointee’s    supply system as defined in section 17B(5); |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  | but the foregoing obligation applies only      if and to the extent that the supply or supplies being made by such licensed      water supplier to premises in the Appointee’s Water Supply Area is      or are, or is or are likely to be, affected by any such actual or potential    incident; and                                                                                                        |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                | information provided by the Appointee      under sub-paragraph (a) above shall be as detailed as the information which      the Appointee uses or intends to use or would use, when dealing with complaints    from its own customers arising out of the same matters. |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               | (9)                                                                                                                                                   | For the purposes of sub-paragraph (8),      an incident includes regulatory infringements which may put the Appointee      or relevant licensed water supplier at risk of supplying water which is      unwholesome as determined under section 67 (standards of wholesomeness)      or unfit for human consumption within the meaning of section 70 (offence      of supplyingwater unfit for human consumption). |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   | **9**.–– | In so far as the provision of information      to the Appointee is not provided for by or under any enactment, the Appointee    shall not seek – |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  | (a)                                                                                                                                                                                                                                                                                                                                                                                                                | from a licensed water supplier;or                                                                                                                                                                                                                                      |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               |                                                                                                                                                  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                | from a person supplied or seeking    to be supplied by a licensed water supplier;                                                                                                                                                                                      |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |
|   |               | more information than the Appointee reasonably    requires –                                                                                     |
|   |               |                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                   |

|   |   | (i)    | for the purposes of carryingout its functions;                                                                                                                            |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|   |   | (ii)   | to ascertain whether the licensed water      supplier has sufficient product and public liability insurance for the    activities authorised by its water supply licence; |
|   |   |   |
|   |   | (iii)  | to comply with any condition of the Appointee’s    appointment;                                                                                                     |
|   |   |   |
|   |   | (iv)   | in relation to national security or civil    emergencies; or                                                                                                              |
|   |   |   |
|   |   | (v)    | to comply with any reasonable request    for information made by the Environment Agency.                                                                                  |

|       |
|--------------------------------|

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**General**

|   | **10.**––                                                                                                                        | (1)                                                                                                                                                                                | Until the coming fully into force of        section 36(1) of the Water Act 2003 (transfer to the Water Services Regulation        Authority and the Consumer Council for Water of functions, property etc),        any reference to the Authority in this Condition shall have effect as    if it were a reference to the Director. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (2)                                                                                                                                                                                | Unless the contrary intention appears,        references in this Condition to sections are references to sections of    the Water Industry Act 1991.                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | **[Application**                                                                                                                                                                   |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   | **11.**––                                                                                                                        | (1)                                                                                                                                                                                | This Condition shall not apply to the    Appointee in the circumstances and to the extent set out in this paragraph.                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (2)                                                                                                                                                                                | Paragraphs 1 to 9 of this Condition        shall not apply if and for so long as the Appointee has no supply system,        asdefined in section 17B(5).                                                                                                                                                                            |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (3)                                                                                                                                                                                | Subject to sub-paragraph (4), the Appointee        shall notify the Authority as soon as it has a supply system, as defined    in section 17B(5).                                                                                                                                                                                   |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (4)                                                                                                                                                                                | If the Appointee has a supply system,        as defined in section 17B(5), on 15 September 2005, it shall be deemed    to have notified the Authority that it has a supply system at that date.                                                                                                                                     |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (5)                                                                                                                                                                                | If and for such time as the Appointee    has a supply system, as defined in section 17B(5) –                                                                                                                                                                                                                                   |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               | (a)                                                                                                                                                                                                                                                                                                                                 | the Appointee shall notify the Authority        immediately of the fact and terms of each request the Appointee receives        from a licensed water supplier to provide a supply of water or to permit        the introduction of water into the Appointee’s supply system pursuant    to section 66A, 66B or 66C; and |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               | (b)                                                                                                                                                                                                                                                                                                                                 | paragraphs 1 to 9 of this Condition        shall apply only from and for such time and to such extent as may be        specifiedby the Authority from time to time by relevant notice. |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (6)                                                                                                                                                                                | Under sub-paragraph (5)(a) –                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               | (a)                                                                                                                                                                                                                                                                                                                                 | a relevant notice shall not have effect        unless, before making the relevant notice, the Authority has consulted    the Appointee and such persons as it considers appropriate; and |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               | (b)                                                                                                                                                                                                                                                                                                                                 | a “relevant notice” is a        notice published in such manner as the Authority considers appropriate    and served on the Appointee.**]**” |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | **[Paragraph 11 of Condition          R above has only been included in the conditions of the appointments    of Albion Water Ltd and Cholderton and District Water Company Ltd]** |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
| 2.     | After Condition R, as inserted by paragraph        1 above, there shall be inserted: “**Condition S: Customer transfer    protocol** |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   | **1.**––                                                                                                                         | For the purposes of this condition –                                                                                                                                          |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (a)                                                                                                                                                                                | “the Protocol” means the “Customer    Transfer Protocol” –                                                                                                                                                                                                                                             |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               | (i)                                                                                                                                                                                                                                                                                                                                 | complying with the requirements of paragraphs    3 to 6 below; |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               | (ii)                                                                                                                                                                                                                                                                                                                                | served by the Authority on the Appointee    on or after the date on which this condition comes into force; and |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       |                                                                                                                                                                               | (iii)                                                                                                                                                                                                                                                                                                                               | as subsequently amended from time to    time in accordance with this Condition; and |
|   |                                                                                                                                       |                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                       | (b)                                                                                                                                                                                | until the coming fully into force of        section 36 (1) of the Water Act 2003 (transfer to the Water Services    Regulation Authority and the Consumer Council for Water of functions, property        etc), any reference to the Authority in this Condition shall have effect    as if it were a reference to Director.        |
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|   |               |                                                                                                                                                                                                                     |
|--------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | **2.**–– | The Appointee shall comply with the    Protocol.                                                                                                                                                                         |
|   |               |                                                                                                                                                                                                                     |   |
|   | **3.**–– | The Protocol shall provide a clear,        simple and standardised process for the timely and efficient transfer    of supplies to premises of customers–                                                           |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (a)                                                                                                                                                                                                                      | between any water undertaker and any    licensed water supplier; and |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (b)                                                                                                                                                                                                                      | between any two licensed watersuppliers. |
|   |               |                                                                                                                                                                                                                     |
|   | **4.**–– | The Protocolshall –                                                                                                                                                                                                 |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (a)                                                                                                                                                                                                                      | make the same provision for all of the    transfers referred to in paragraph 3 above; and |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (b)                                                                                                                                                                                                                      | include provisions for its amendment    which shall – |
|   |               |                                                                                                                                                                                                                     |   |
|   |               |                                                                                                                                                                                                                     | (i) | allow the Authority and such other persons    as the Protocol shall specify to propose amendments; |
|   |               |                                                                                                                                                                                                                     |   |
|   |               |                                                                                                                                                                                                                     | (ii) | subject to (iii) below, require        the agreement of the Authority and such majorities, as the Protocol shall        specify, of water undertakers and of licensed water suppliers, before        any amendment canbe made; and |
|   |               |                                                                                                                                                                                                                     |   |
|   |               |                                                                                                                                                                                                                     | (iii) | in the case of such disagreements as        the Protocol shall specify, about any amendment to the Protocol which        has been proposed other than by the Authority, allow the Authority to        determine whetherthat amendment shall be made. |
|   |               |                                                                                                                                                                                                                     |
|   | **5.**–– | The Protocol shall include provisions    to the effect that, where –                                                                                                                                                |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (a)                                                                                                                                                                                                                      | any water undertaker or licensed water        supplier (“the old supplier”) is supplying water to premises    of a customer; |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (b)                                                                                                                                                                                                                      | that customer has failed to pay the        old supplier’scharges for that supply; |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (c)                                                                                                                                                                                                                      | those charges have been demanded by    notice served on the customer; and |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | (d)                                                                                                                                                                                                                      | they have remained unpaid for 30 days    or more after the date of that notice, |
|   |               |                                                                                                                                                                                                                     |   |
|   |               | the old supplier may suspend the transfer        of the supply of water to those premises of that customer until satisfactory        provision has been made for the outstanding debt to be paid to the old    supplier. |
|   |               |                                                                                                                                                                                                                     |
|   | **6.**–– | Where the Authority so determines, the        Protocol shall provide for such matters as are specified or are of a        type specified in the Protocol to be referred to and determined by the    Authority.”    |

 

**Philip Fletcher**

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