# Water Act 2014

        - Previous
        - Next

U.K.

# Water Act 2014

# 2014 CHAPTER 21

An Act to make provision about the water industry; about compensation for modification of licences to abstract water; about                        main river maps; about records of waterworks; for the regulation of the water environment; about the provision of flood insurance                        for household premises; about internal drainage boards; about Regional Flood and Coastal Committees; and for connected purposes.                     

[14th May 2014]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons,                           in this present Parliament assembled, and by the authority of the same, as follows:—                        

## **Part 1**E+WWater industry

### CHAPTER 1E+WWater supply licences and sewerage licences

#### Expansion of water supply licensingE+W

##### 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 2The supply system of a water undertakerE+W

##### 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Introduction of sewerage licencesE+W

##### 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

Prospective

#### Application as regards WalesE+W

##### 5Water supply and sewerage licensing changes applied as regards WalesE+W

#### Licensing arrangements between England and Wales and ScotlandE+W

##### 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 2E+WWater and sewerage undertakers

#### Arrangements between relevant undertakersE+W

##### 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Agreements to adopt infrastructureE+W

##### 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

Prospective

#### Arrangements for water undertakers to take waterE+W

##### 12Arrangements for water undertakers to take water from other personsE+W

#### Appointments and variationsE+W

##### 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Duty of CMA to refer mergers of relevant undertakersE+W

##### 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Relevant undertakers' chargesE+W

##### 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 18Charges for providing a water main etcE+W

##### 19Charges for providing a public sewer etcE+W

##### 20Charges for moving pipesE+W

#### Sustainable drainageE+W

##### 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 3E+WRegulation of the water industry

#### General duties of the Water Services Regulation AuthorityE+W

##### 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 24Strategic priorities and objectivesE+W

#### Regulation of relevant undertakers, water supply licensees and sewerage licenseesE+W

##### 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 31Interim duty: water supplyE+W

##### 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Appeals relating to codesE+W

##### 37Appeals relating to revisions of codesE+W

#### Guidance relating to rules about chargesE+W

##### 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

Prospective

#### Adjudication functionsE+W

##### 39Exercise of adjudication functions by other personsE+W

#### Drinking water inspectorateE+W

##### 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Provision of public sewers: premises in WalesE+W

##### 41Disputes about the provision of public sewers: premises in WalesE+W

### CHAPTER 4E+WRetail exit: non-household premises

#### 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

Prospective

#### 48Exit applications: further provisionE+W

#### 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

Prospective

#### 50General directionsE+W

#### 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 5E+WMiscellaneous

Prospective

#### 54Consumer redressE+W

#### 55Modification of appointment and licence conditionsE+W

#### 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **Part 2**E+WWater resources

### 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 59Main rivers in England and WalesE+W

### 60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **Part 3**E+W+SEnvironmental regulation

### 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **Part 4**U.K.Flood insurance

### The Flood Reinsurance SchemeU.K.

#### 64The Flood Reinsurance SchemeU.K.

(1)For the purposes of this Part, the Flood Reinsurance Scheme is a scheme which—                  

(a)is established for the purpose mentioned in subsection (2), and                  

(b)is designated for the purposes of this Part by regulations made by the Secretary of State.                  

(2)The purpose referred to in subsection (1)(a) is the purpose of providing reinsurance to relevant insurers in respect of such                        risks arising from a flood as are identified by the scheme, in such a way as to—                  

(a)promote the availability and affordability of flood insurance for household premises while minimising the costs of doing so,                        and                  

(b)manage, over the period of operation of the scheme, the transition to risk-reflective pricing of flood insurance for household                        premises.                  

(3)The Secretary of State may by regulations make provision as to levels of reinsurance premiums payable by relevant insurers                        under the FR Scheme, and may make different provision for different purposes.                  

(4)Regulations under subsection (3) may, in particular, make different provision for different purposes by reference to the value                        of the household premises insured.                  

(5)In this section “flood insurance” means insurance in respect of risks arising from a flood.                  

(6)In this Part, the Flood Reinsurance Scheme is called “the FR Scheme”.                  

#### 65Scheme administratorU.K.

(1)The FR Scheme is to be administered by a body designated by regulations made by the Secretary of State.                  

(2)The Secretary of State may under subsection (1) designate a company registered under the Companies Act 2006 or a body of another                        kind.                  

(3)In this Part, the body designated under subsection (1) is called “the FR Scheme administrator”.                  

#### 66Scheme fundingU.K.

(1)The Secretary of State may, with the consent of the Treasury, make regulations requiring relevant insurers to pay to the FR                        Scheme administrator—                  

(a)a levy, the amount and timing of which is to be determined in accordance with the regulations;                  

(b)such further amounts, by way of levy or contribution, as may be requested by the FR Scheme administrator from time to time                        in accordance with the FR Scheme.                  

(2)Regulations under subsection (1) may make provision as to—                  

(a)the circumstances in which a request under subsection (1)(b) may be made;                  

(b)the amounts that may be requested under subsection (1)(b).                  

(3)The Secretary of State may by regulations make provision for amounts payable under subsection (1) to be recoverable summarily                        (or in Scotland recoverable) as a civil debt.                  

(4)The Secretary of State may by regulations make provision as to the application of any amounts paid under subsection (1).                  

(5)The Secretary of State may by regulations provide that, where such conditions as are specified in the regulations as regards                        the reserves of the FR Scheme are satisfied, the FR Scheme administrator must pay to the Secretary of State an amount of the                        reserves to be determined in accordance with the regulations.                  

(6)Regulations under subsection (5) may—                  

(a)define “reserves”;                  

(b)make provision about determining the amount of the reserves of the FR Scheme.                  

(7)Before making regulations under subsection (5), the Secretary of State must obtain the consent of the FR Scheme administrator,                        which is not to be unreasonably withheld.                  

#### 67Scheme administrationU.K.

(1)The Secretary of State may by regulations make provision in connection with the administration of the FR Scheme.                  

(2)Regulations under subsection (1) may require the FR Scheme administrator to have regard to the following in discharging its                        functions—                  

(a)the need to ensure economy, efficiency and effectiveness in the discharge of those functions,                  

(b)the need to act in the public interest,                  

(c)the need to ensure propriety and regularity in the operation of the FR Scheme, and                  

(d)the need to manage, over the period of operation of the FR Scheme, the transition to risk-reflective pricing of flood insurance                        for household premises.                  

(3)Regulations under subsection (1) may require the FR Scheme administrator to produce and publish, in accordance with the regulations,                        a plan for achieving the transition mentioned in subsection (2)(d).                  

(4)Regulations under subsection (1) may require the FR Scheme administrator to provide the following information to relevant                        insurers who have issued insurance policies that are reinsured under the FR Scheme, so that those insurers may supply the                        information to holders of those policies—                  

(a)information about how to find out about the levels of flood risk to which an area in which household premises are situated                        is subject and how any flood risk may be managed;                  

(b)information about the FR Scheme, including information about the effect of section 64(2)(b) (transition to risk-reflective                        pricing of flood insurance for household premises).                  

(5)Regulations under subsection (1) may—                  

(a)limit, to any extent, the power of the FR Scheme administrator to borrow money or otherwise incur debt;                  

(b)make provision about the reserves of the FR Scheme, including limitations on draw downs and transfers;                  

(c)require the FR Scheme administrator to take steps to limit the overall net losses that may be incurred by the FR Scheme in                        any year to an amount specified in or determined in accordance with the regulations;                  

(d)provide for the form and contents of the FR Scheme's accounts;                  

(e)provide for a copy of the audited FR Scheme's accounts and a copy of the auditor's report on those accounts to be laid before                        Parliament;                  

(f)provide for the Comptroller and Auditor General to examine—                  

(i)the economy, efficiency and effectiveness with which the FR Scheme administrator has used resources in discharging its functions,                        and                  

(ii)the propriety and regularity in the operation of the FR Scheme,                  

and for a report on any such examination to be laid before Parliament;

(g)provide that for the purposes of an examination under paragraph (f)—                  

(i)the Comptroller and Auditor General is to have a right of access at all reasonable times to any of the documents relating                        to the FR Scheme, and                  

(ii)a person who holds or has control of any of those documents is to give the Comptroller and Auditor General any assistance,                        information or explanation which the Comptroller and Auditor General requires in relation to any of those documents.                  

(6)Regulations under subsection (1) may—                  

(a)require the FR Scheme administrator to designate an individual of a description specified in the regulations as the responsible                        officer of the FR Scheme;                  

(b)provide for the responsible officer to have such responsibilities in respect of—                  

(i)the FR Scheme's finances,                  

(ii)the FR Scheme's accounts,                  

(iii)accountability to Parliament for the economy, efficiency and effectiveness with which the FR Scheme uses resources in discharging                        its functions,                  

(iv)accountability to Parliament for propriety and regularity in the operation of the FR Scheme, and                  

(v)examinations and reports under subsection (5)(f),                  

as are specified in the regulations.

(7)Regulations under subsection (1) may make provision about the disclosure of information required for the purposes of the FR                        Scheme and may, in particular, require relevant insurers to supply to the FR Scheme administrator such information as it may                        request in relation to insurance policies issued by them.                  

(8)Regulations under subsection (1) may provide for the supply by the FR Scheme administrator of information held by it in connection                        with the FR Scheme to—                  

(a)the Environment Agency,                  

(b)the Scottish Environment Protection Agency,                  

(c)the Natural Resources Body for Wales,                  

(d)the Department of Agriculture and Rural Development in Northern Ireland, or                  

(e)such other body as may be specified in the regulations.                  

(9)Regulations under subsection (1) may provide for the supply by the FR Scheme administrator of information held by it in connection                        with the FR Scheme to the Secretary of State for purposes relating to government accounting.                  

(10)Subsections (2) to (9) are not exhaustive of what may be done under subsection (1).                  

(11)In this section—                  
          -  “flood insurance” has the meaning given in section 64;                         
          -  “the FR Scheme's accounts” means the accounts for a financial year of the FR Scheme prepared by the FR Scheme administrator in respect of the FR Scheme.                         

#### 68Replacement of the scheme or administratorU.K.

(1)Where regulations under section 64 replace the FR Scheme by revoking a designation and making a new designation, the regulations                        may make such provision as the Secretary of State thinks fit in connection with the replacement of the old FR scheme with                        the new FR scheme.                  

(2)Where regulations under section 65 replace the FR Scheme administrator by revoking a designation and making a new designation,                        the regulations may make provision for the transfer of property, rights and liabilities (whether or not otherwise capable                        of being transferred, and including pension liabilities in respect of staff) relating to the FR Scheme from the old administrator                        to the new administrator.                  

#### 69Disclosure of HMRC council tax informationU.K.

(1)The Commissioners for Her Majesty's Revenue and Customs may disclose relevant HMRC council tax information to any person who                        requires that information for either of the following descriptions of purposes—                  

(a)purposes connected with such scheme as may be established and designated in accordance with section 64 (in any case arising                        before any scheme is so designated);                  

(b)purposes connected with the FR Scheme (in any case arising after the designation of a scheme in accordance with section 64).                  

(2)A person to whom information is disclosed under subsection (1)(a) or (b)—                  

(a)may use the information only for the purposes mentioned in subsection (1)(a) or (b), as the case may be;                  

(b)may not further disclose the information except with the consent of the Commissioners.                  

(3)In this section—                  
          -  “HMRC council tax information” means information which is held for council tax purposes by the Valuation Office of Her Majesty's Revenue and Customs;                         
          -  “relevant HMRC council tax information” means HMRC council tax information relating to premises which are household premises and consisting of any of the following—                          (a)
the address (including the postcode) of the premises;
(b)
the council tax valuation band in which the premises fall;
(c)
information about when the premises were constructed;
(d)
the National Land and Property Gazetteer unique property reference number for the premises;
(e)
the unique address reference number allocated to the premises by the Valuation Office of Her Majesty's Revenue and Customs.
 

(4)The Secretary of State may by regulations amend the definition of “relevant HMRC council tax information” in subsection (3).                  

(5)If the Secretary of State by regulations under subsection (4) amends the definition of “relevant HMRC council tax information”                        to add further descriptions of information, those regulations may include the provision described in subsection (6).                  

(6)The regulations may provide that if a person discloses, in contravention of subsection (2)(b), information which is relevant                        HMRC council tax information by virtue of the regulations and which relates to a person whose identity—                  

(a)is specified in the disclosure, or                  

(b)can be deduced from it,                  

section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) applies in relation to that disclosure                     as it applies in relation to a disclosure, in contravention of section 20(9) of that Act, of revenue and customs information                     relating to a person whose identity is specified in the disclosure or can be deduced from it.                  

(7)The Secretary of State must consult the Commissioners for Her Majesty's Revenue and Customs before making regulations under                        subsection (4).                  

Prospective

### Flood insurance obligationsU.K.

#### 70Flood insurance obligationsU.K.

(1)The Secretary of State may by regulations require a relevant insurer to issue in a prescribed period insurance policies that                           provide cover against a prescribed description of risk for a prescribed number of registered premises.                     

(2)The regulations may prescribe different numbers of registered premises for different descriptions of risk.                     

(3)The descriptions of risks that may be prescribed are those arising from a flood.                     

(4)The regulations may provide for a prescribed number relating to a relevant insurer to be determined by reference to factors                           that include in particular—                     

(a)a target number (see section 71);                     

(b)the relevant insurer's share of insurance business of a prescribed description.                     

(5)The regulations may—                     

(a)make provision about determining the size of a relevant insurer's share of insurance business of a prescribed description;                     

(b)provide for a relevant insurer to be exempt from the obligation described in subsection (1) in prescribed circumstances, whether                           wholly or so far as regards a particular description of risk, including circumstances relating to the amount of insurance                           business done by the relevant insurer;                     

(c)make provision about the circumstances in which a relevant insurer ceases to be subject to the obligation described in subsection                           (1), whether wholly or so far as regards a particular description of risk;                     

(d)make provision about the cases in which issuing an insurance policy is not to count towards discharging an obligation imposed                           on a relevant insurer by the regulations, including cases in which an insurance policy is not to count because of the content                           of its terms;                     

(e)make provision for allowing an insurance policy issued by another insurer to count towards the discharge of an obligation                           to issue a number of insurance policies imposed on a relevant insurer by the regulations;                     

(f)make provision about determining the number of registered premises for which a relevant insurer has issued insurance policies,                           including provision for varying, by reference to the risk band applicable to the particular registered premises, the extent                           to which insuring those premises counts in determining that number.                     

(6)Provision under subsection (5)(a) may require an insurer, in determining the insurer's share of insurance business of a prescribed                           description, to use information about that insurance business held by—                     

(a)the Secretary of State,                     

(b)a person acting on behalf of the Secretary of State, or                     

(c)the FCA.                     

(7)Subsection (5)(e) is not to be taken as requiring a change in the person who is the insurer in relation to an insurance policy.                     

(8)Regulations under this section may include provision in respect of cases where an insurer has not provided such information                           as is required by regulations under section 72 including—                     

(a)provision for determining whether the insurer is a relevant insurer,                     

(b)provision for determining whether an exemption applies, and                     

(c)provision for determining what share of insurance business of a prescribed description the insurer is to be treated as having.                     

(9)Before making regulations under this section, the Secretary of State must consult such persons as the Secretary of State considers                           appropriate.                     

(10)In this section “prescribed” means specified in or determined in accordance with regulations under this section.                     

#### 71Target numberU.K.

(1)The Secretary of State may, from time to time, by regulations prescribe a number to be a target number for the purposes of                           regulations under section 70.                     

(2)A target number is the number of registered premises to be covered against a prescribed description of risk by insurance policies                           issued in a prescribed period by those relevant insurers upon whom obligations are imposed by regulations under section 70.                     

(3)The regulations may prescribe different target numbers for different descriptions of risk.                     

(4)The regulations may in particular provide for a target number to be expressed as a percentage of the number of registered                           premises.                     

(5)The regulations may, at any one time, prescribe target numbers for two or more consecutive prescribed periods.                     

(6)In this section “prescribed” means specified in or determined in accordance with regulations under this section.                     

#### 72InformationU.K.

(1)The Secretary of State may by regulations make provision about—                     

(a)the provision of information, and                     

(b)the production of documents,                     

by insurers for the purposes of regulations under section 70.

(2)The regulations may in particular require an insurer to provide information of a prescribed description or produce documents                           of a prescribed description for the purpose of showing, in relation to a prescribed period—                     

(a)whether or not an insurer is a relevant insurer;                     

(b)whether or not an exemption applies (see section 70(5)(b)).                     

(3)The regulations may in particular require an insurer to provide information or produce documents about—                     

(a)the insurance policies issued by it in a prescribed period that provide cover against prescribed descriptions of risk;                     

(b)the value of the insurance policies so issued;                     

(c)insurance policies so issued that do not remain in force to the end of the period of cover;                     

(d)the value of such insurance policies.                     

(4)The regulations may provide for information to be provided or documents to be produced to the Secretary of State or a person                           acting on behalf of the Secretary of State.                     

(5)The regulations may make provision—                     

(a)about the time within which information must be provided or documents produced;                     

(b)about the form in which information is to be provided;                     

(c)about the place where documents are to be produced;                     

(d)requiring information to be verified in a prescribed manner;                     

(e)requiring documents to be authenticated in a prescribed manner.                     

(6)The regulations may make provision about—                     

(a)the persons to whom, and the purposes for which, information supplied by an insurer may be disclosed;                     

(b)the publication of information by the Secretary of State about the amount of insurance business of a prescribed description                           done by insurers, taken together.                     

(7)In this section “prescribed” means specified in or determined in accordance with regulations under this section.                     

#### 73Section 72: further provisionU.K.

(1)The Secretary of State may by regulations make provision for and in connection with enforcing compliance with obligations                           imposed by regulations under section 72.                     

(2)The regulations may in particular include—                     

(a)provision about the sanctions, including civil penalties, that may be imposed by the Secretary of State or a person acting                           on behalf of the Secretary of State for non-compliance with the obligations;                     

(b)provision about the procedure to be followed when imposing a sanction;                     

(c)provision about the recovery of costs incurred in connection with imposing a sanction up to the time of its imposition;                     

(d)provision enabling an appeal to the First-tier Tribunal against the imposition of a sanction or a requirement to pay costs.                     

(3)Provision under subsection (2)(a) may in particular include—                     

(a)provision for civil penalties of a fixed amount;                     

(b)provision for further amounts to be payable by way of civil penalty where an insurer continues to fail to comply with the                           obligation in question;                     

(c)provision about how a civil penalty or an amount of costs may be recovered.                     

(4)Provision under subsection (2)(d) may include provision as to the grounds on which an appeal may be made.                     

#### 74Register of premises subject to greater flood riskU.K.

(1)The Secretary of State may by regulations provide for the creation and maintenance of a register of household premises in                           the United Kingdom that are subject to greater flood risk for the purposes of regulations under section 70.                     

(2)The regulations may provide for the levels of flood risk to which premises are subject to be divided into two or more bands                           (“risk bands”), and may prescribe the upper and lower limits of each band.                     

(3)The regulations may provide for the register to specify the level of flood risk to which particular household premises are                           subject by specifying the risk band applicable to the premises.                     

(4)The regulations may provide for premises of a description specified in the regulations to be excluded from the register, and                           the premises excluded may include in particular premises where construction is completed on or after a date specified in the                           regulations.                     

(5)The regulations may—                     

(a)specify the information to be contained in the register;                     

(b)make provision about access to the information contained in the register;                     

(c)provide for the publication of the register in whole or in part;                     

(d)provide for the disclosure of information contained in the register;                     

(e)provide for notification if premises are entered in, or omitted from, the register.                     

(6)Regulations made under subsection (5)(d) may provide for—                     

(a)the persons to whom information or any description of information contained in the register may be disclosed;                     

(b)the imposition of conditions on persons to whom information contained in the register is disclosed, including conditions limiting                           further disclosure;                     

(c)penalties for non-compliance with conditions imposed under paragraph (b).                     

(7)The regulations may require applications for premises to be entered in the register to be made by or on behalf of a person                           who has the qualifying interest in the premises.                     

(8)The regulations may provide for premises to be omitted from the register at the request of a person who has the qualifying                           interest in the premises.                     

(9)Before making regulations under this section the Secretary of State must consult—                     

(a)the Welsh Ministers;                     

(b)the Scottish Ministers;                     

(c)the Department of Agriculture and Rural Development in Northern Ireland.                     

#### 75Functions of relevant bodiesU.K.

(1)Regulations under section 74 may provide for a relevant body to carry out functions in connection with—                     

(a)the creation and maintenance of the register;                     

(b)giving access to information contained in the register;                     

(c)publication of the register;                     

(d)disclosure of information contained in the register;                     

(e)notification when premises are entered in, or omitted from, the register.                     

(2)The following are relevant bodies for the purposes of this Part—                     

(a)the Environment Agency;                     

(b)the Scottish Environment Protection Agency, in relation to Scotland;                     

(c)the Natural Resources Body for Wales, in relation to Wales;                     

(d)the Department of Agriculture and Rural Development in Northern Ireland, in relation to Northern Ireland.                     

(3)The regulations may provide for the Environment Agency—                     

(a)to coordinate the carrying out of functions conferred or imposed under subsection (1);                     

(b)to promote consistency in the carrying out of those functions.                     

(4)The regulations may—                     

(a)require the relevant bodies to cooperate with each other as regards the functions conferred or imposed on any of them under                           subsection (1);                     

(b)require the relevant bodies (other than the Environment Agency) to cooperate with the Environment Agency as regards the carrying                           out of functions conferred or imposed on the Environment Agency under subsection (3).                     

(5)Regulations under section 74 may provide for the Commissioners for Her Majesty's Revenue and Customs, or a person authorised                           by them, to disclose information held for council tax purposes by the Valuation Office to—                     

(a)the Environment Agency, or                     

(b)the Natural Resources Body for Wales,                     

for use in identifying premises to be excluded from the register by reference to the date of completion of construction (see                        section 74(4)).                     

(6)The regulations may include provision restricting the use or further disclosure of information disclosed under subsection                           (5).                     

#### 76Reviews and appealsU.K.

(1)Regulations under section 74 may make provision for a person with the qualifying interest in particular premises—                     

(a)to request a review of a decision by a relevant body that the premises are not eligible to be entered in the register;                     

(b)to appeal against a decision by a relevant body that the premises are not eligible to be entered in the register to—                     

(i)the sheriff, in relation to Scotland,                     

(ii)the Water Appeals Commission for Northern Ireland, in relation to Northern Ireland, or                     

(iii)the First-tier Tribunal, in any other case.                     

(2)For “relevant body”, see section 75(2).                     

#### 77Expenses of relevant bodiesU.K.

(1)The Secretary of State may, with the consent of the Treasury, by regulations provide for a levy to be payable to the Secretary                           of State by insurers of a description specified in the regulations.                     

(2)The regulations may—                     

(a)specify the rate of the levy or the method by which it is to be calculated;                     

(b)make provision as to the times when, and the manner in which, payments are to be made in respect of the levy.                     

(3)The regulations may in particular make provision for determining the amount of the levy by reference to the qualifying expenses                           of the relevant bodies and the Secretary of State.                     

(4)The regulations may make provision for amounts payable by way of levy under the regulations to be recoverable summarily (or                           in Scotland recoverable) as a civil debt.                     

(5)Before making regulations under this section the Secretary of State must consult—                     

(a)the Welsh Ministers;                     

(b)the Scottish Ministers;                     

(c)the Department of Agriculture and Rural Development in Northern Ireland.                     

(6)In this section “qualifying expenses” means—                     

(a)in relation to a relevant body, such proportion of the expenses of the relevant body as the Secretary of State considers reasonable                           having regard to the functions exercisable by that body under regulations under section 74;                     

(b)in relation to the Secretary of State, the expenses of the Secretary of State attributable to the exercise of functions conferred                           by or under this section.                     

(7)For “relevant body”, see section 75(2).                     

#### 78Compliance reportsU.K.

(1)The Secretary of State may by regulations make provision about reporting compliance with obligations imposed by regulations                           under section 70.                     

(2)The regulations may require a relevant insurer to make a report—                     

(a)stating the extent to which it has complied with obligations imposed on it by regulations under section 70 in relation to                           a prescribed period;                     

(b)providing prescribed details about the basis on which it considers that it has complied with those obligations to that extent.                     

(3)The regulations may provide for reports to be given to the FCA.                     

(4)In this section “prescribed” means specified in or determined in accordance with regulations under this section.                     

#### 79Functions of the FCAU.K.

(1)The Treasury may by regulations provide for the FCA to take action for monitoring and enforcing compliance with—                     

(a)such of the obligations imposed on relevant insurers by regulations under section 70 or 78 as may be specified in the regulations;                     

(b)such description of those obligations as may be specified in the regulations.                     

(2)The regulations may provide for the FCA to take action for enforcing compliance with—                     

(a)such of the obligations imposed on insurers by regulations under section 72 as may be specified in the regulations;                     

(b)such description of those obligations as may be specified in the regulations.                     

(3)Regulations under subsection (2) may only provide for the FCA to take action as regards cases where—                     

(a)the failure to comply, if proved, would consist in or involve providing information that is not true or producing a document                           that is not correct, or                     

(b)measures available under section 73 have been taken without securing compliance.                     

(4)The regulations may apply, or make provision corresponding to, any of the provisions of the Financial Services and Markets                           Act 2000 or the Financial Services Act 2012, with or without modification.                     

(5)The provisions of the Financial Services and Markets Act 2000 and the Financial Services Act 2012 referred to in subsection                           (4) include in particular—                     

(a)provisions about gathering information and investigating, including provisions as to powers of entry and search;                     

(b)provisions as to criminal offences and disciplinary measures;                     

(c)provisions for the grant of an injunction in relation to a contravention or anticipated contravention;                     

(d)provisions giving the Treasury or the FCA powers to make subordinate legislation;                     

(e)provisions for the FCA to charge fees;                     

(f)provisions restricting liability in damages in relation to the discharge of functions of the FCA.                     

(6)The regulations may make provision enabling the FCA, to such extent as the regulations may prescribe, to make arrangements                           for the performance of functions on its behalf.                     

#### 80Reports by the FCAU.K.

(1)The Treasury may by regulations provide for the FCA to prepare reports on its discharge of the functions conferred on it under                           section 79.                     

(2)The regulations may—                     

(a)make provision about the contents of the reports;                     

(b)make provision about the timing of the reports;                     

(c)provide for copies of the report to be given to the Secretary of State and such other persons as the regulations may specify;                     

(d)provide for publication of the reports.                     

#### 81Intervention by the FCA or the PRAU.K.

(1)The Treasury may by regulations confer on a regulator the power to disapply or modify, in relation to a relevant insurer,                           an obligation imposed by regulations under—                     

(a)section 70 (flood insurance obligations),                     

(b)section 72 (information), or                     

(c)section 78 (compliance reports).                     

(2)In this section “the intervention power” means the power conferred by regulations under subsection (1).                     

(3)The regulations may specify which obligations, or which descriptions of obligations, a regulator may disapply or modify under                           the intervention power.                     

(4)The regulations may specify what modifications, or what descriptions of modifications, may be made by a regulator under the                           intervention power.                     

(5)The regulations may specify the circumstances in which, and the conditions subject to which, a regulator may exercise the                           intervention power.                     

(6)Provision under subsection (5) may in particular provide for a regulator to exercise the intervention power in relation to                           a relevant insurer—                     

(a)where the relevant insurer is failing, or is likely to fail, to satisfy the threshold conditions for which the regulator is                           responsible,                     

(b)in connection with advancing—                     

(i)if the regulator is the FCA, one or more of the FCA's operational objectives, or                     

(ii)if the regulator is the PRA, one or more of the PRA's objectives,                     

(c)in conjunction with the exercise by the regulator, in respect of the relevant insurer, of a power that is conferred on the                           regulator by or under an enactment and is specified in the regulations, or                     

(d)at the request of, or for the purpose of assisting, an overseas regulator of a kind specified in the regulations.                     

(7)The regulations may—                     

(a)make provision about the procedure to be followed when exercising the intervention power, including provision about consulting                           such persons as may be specified in the regulations about a proposed exercise of the power;                     

(b)make provision requiring a regulator to give a relevant insurer notice in writing specifying how the intervention power has                           been exercised in relation to that relevant insurer;                     

(c)make provision about when an exercise of the intervention power takes effect;                     

(d)make provision about the period for which a provision of regulations may be disapplied or modified under the intervention                           power, including—                     

(i)provision enabling a regulator to specify the period for which a provision of regulations is disapplied or modified;                     

(ii)provision for disapplying or modifying a provision of regulations until a regulator provides for it to apply again or to apply                           again without modification;                     

(e)make provision requiring a regulator—                     

(i)to send copies of a notice under paragraph (b) to the Secretary of State and such other persons as may be specified in the                           regulations;                     

(ii)to notify such persons as may be specified in the regulations of the exercise of the intervention power;                     

(f)make provision requiring a regulator to publish such details about the exercise of the intervention power as may be specified                           in the regulations;                     

(g)make provision requiring a regulator to keep under review each case in which a provision of regulations is disapplied or modified;                     

(h)make provision about the matters to which a regulator is to have regard in exercising its functions under the regulations.                     

(8)Provision under subsection (7)(e) or (f) may allow for the omission of information publication of which would in the opinion                           of the regulator be against the public interest.                     

(9)The intervention power may be exercised in respect of an obligation imposed by regulations under section 70(1) only so as                           to disapply the obligation (and not so as to modify it).                     

(10)The regulations may apply, or make provision corresponding to, any of the provisions of the Financial Services and Markets                           Act 2000 or the Financial Services Act 2012, with or without modification.                     

(11)The provisions of the Financial Services and Markets Act 2000 or the Financial Services Act 2012 referred to in subsection                           (10) include in particular—                     

(a)provisions about gathering information and investigating, including provisions as to powers of entry and search;                     

(b)provisions as to criminal offences and disciplinary measures;                     

(c)provisions for the grant of an injunction in relation to a contravention or anticipated contravention;                     

(d)provisions giving the Treasury, the FCA or the PRA powers to make subordinate legislation;                     

(e)provisions for the FCA or the PRA to charge fees;                     

(f)provisions restricting liability in damages in relation to the discharge of functions of the FCA or the PRA.                     

(12)In this section “regulator” means the FCA or the PRA.                     

(13)For—                     
            -  “objective of the PRA”, see section 2F of the Financial Services and Markets Act 2000; 
            -  “operational objective of the FCA”, see section 1B(3) of that Act; 
            -  “overseas regulator”, see section 55Q of that Act; 
            -  “threshold condition”, see section 55B of that Act. 

### GeneralU.K.

#### 82InterpretationU.K.

(1)In this Part “insurer” means—                  

(a)a person who—                  

(i)is authorised for the purposes of the Financial Services and Markets Act 2000 (see section 31 of that Act), and                  

(ii)has permission to carry on the activities specified in Article 10 of the Financial Services and Markets (Regulated Activities)                        Order 2001 (S.I. 2001/544), or                  

(b)a member of the Society (within the meaning of the Lloyd's Act 1982).                  

(2)The Secretary of State may by regulations amend the definition of “insurer” in subsection (1).                  

(3)The Secretary of State may by regulations define “relevant insurer” for the purposes of this Part.                  

(4)Before making regulations under subsection (3) as to the meaning of “relevant insurer”, the Secretary of State must consult                        such persons as the Secretary of State thinks appropriate.                  

(5)The Secretary of State may by regulations define for the purposes of sections 64 to 69—                  
          -  “flood”; 
          -  “flood risk”; 
          -  “household premises”. 

(6)The Secretary of State may by regulations define for the purposes of sections 70 to 81—                  
          -  “flood”; 
          -  “flood risk”; 
          -  “greater flood risk”; 
          -  “household premises”; 
          -  “insurance policy”; 
          -  “issue”, in relation to an insurance policy;                         
          -  “the qualifying interest”, in relation to household premises.                         

(7)Regulations under subsection (5) or (6) as to the meaning of “flood” may specify descriptions of water that are, or are not,                        to be taken into account.                  

(8)In sections 70 to 81—                  
          -  “the FCA” means the Financial Conduct Authority;                         
          -  “the PRA” means the Prudential Regulation Authority;                         
          -  “registered premises” means premises registered in the register maintained under section 74;                         
          -  “risk band” has the meaning given by section 74(2).                         

#### 83Period of operationU.K.

(1)Sections 64 to 81 are repealed at the end of the period of 25 years beginning with the day on which this Act is passed.                  

(2)The Secretary of State may by order amend subsection (1) so as to bring forward the day on which—                  

(a)sections 64 to 69 are repealed;                  

(b)sections 70 to 78 are repealed.                  

(3)The Secretary of State may by order make provision in connection with—                  

(a)the repeal of—                  

(i)sections 64 to 69, or                  

(ii)sections 70 to 78, or                  

(b)the revocation of a scheme's designation under section 64(1)(b) without a new designation being made under that provision,                        at any time before sections 64 to 69 are repealed,                  

including provision amending or repealing an enactment.

(4)Provision made in an order by virtue of subsection (3) may, in particular, include—                  

(a)such provision for the transfer of property, rights and liabilities (whether or not otherwise capable of being transferred,                        and including pension liabilities in respect of staff) relating to the FR Scheme as the Secretary of State thinks fit;                  

(b)provision about legal proceedings relating to anything done in connection with the FR Scheme;                  

(c)provision about the accounts of the FR Scheme;                  

(d)provision about information held by the FR Scheme administrator.                  

(5)Before making an order under subsection (3)(a)(i) or (b) which includes provision for the transfer of an amount of the reserves                        of the FR Scheme, the Secretary of State must consult the FR Scheme administrator about the amount to be transferred.                  

(6)The Secretary of State may by regulations define “reserves” for the purposes of subsection (5).                  

(7)The Treasury may by order amend subsection (1) so as to bring forward the day on which sections 79 to 81 are repealed.                  

(8)The Treasury may by order make provision in consequence of the repeal of sections 79 to 81, including provision amending or                        repealing an enactment.                  

#### 84Regulations and ordersU.K.

(1)A power to make regulations or an order under this Part is exercisable by statutory instrument.                  

(2)Subsection (1) does not apply in relation to an order under section 83(3) if the only provision made by the order is provision                        for, or in connection with, the transfer of property, rights and liabilities.                  

(3)A power to make regulations or an order under this Part includes power to make different provision for different purposes                        and different areas.                  

(4)A power to make regulations or an order under this Part includes power to make incidental, supplementary, consequential, transitional                        or transitory provision or savings.                  

(5)Subject to subsection (6), a statutory instrument containing regulations or an order made under this Part is subject to annulment                        in pursuance of a resolution of either House of Parliament.                  

(6)A statutory instrument containing—                  

(a)regulations under section 64 (the Flood Reinsurance Scheme),                  

(b)regulations under section 65 (scheme administrator),                  

(c)regulations under section 66 (scheme funding),                  

(d)regulations under section 67 (scheme administration),                  

(e)regulations under section 69 (disclosure of HMRC council tax information),                  

(f)regulations under section 70 (flood insurance obligations),                  

(g)the first regulations to be made under section 71 (target number),                  

(h)regulations under section 72 or 73 (information),                  

(i)the first regulations to be made under section 74 (register of premises subject to greater flood risk),                  

(j)regulations under section 77 (expenses of relevant bodies),                  

(k)regulations under section 78 (compliance reports),                  

(l)regulations under section 79 (functions of FCA),                  

(m)regulations under section 81 (intervention by FCA or PRA),                  

(n)regulations under section 82 (interpretation), or                  

(o)an order under section 83 (period of operation),                  

may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(7)If a draft of an instrument containing an order under section 83(3) would, apart from this subsection, be treated for the                        purposes of the Standing Orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if                        it were not a hybrid instrument.                  

## **Part 5**E+WMiscellaneous

### 85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### 87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

Prospective

### 88Sustainable drainage systems: non-performance bondsE+W

Prospective

### 89Amendments relating to Regional Flood and Coastal CommitteesE+W

## **Part 6**U.K.General and final

### 90Power to make consequential provisionU.K.

(1)The Secretary of State may by order made by statutory instrument make such provision as the Secretary of State considers appropriate                        in consequence of this Act.                  

(2)The power conferred by subsection (1) includes power—                  

(a)to make transitional, transitory or saving provision;                  

(b)to amend, repeal, revoke or otherwise modify any provision made by or under an enactment (whenever passed or made).                  

(3)A statutory instrument containing (whether alone or with other provision) an order under this section which amends or repeals                        any provision of an Act of Parliament, or of an Act or Measure of the National Assembly for Wales, is not to be made unless                        a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.                  

(4)A statutory instrument containing any other order under this section is subject to annulment in pursuance of a resolution                        of either House of Parliament.                  

### 91Transitional, transitory or saving provisionU.K.

(1)The Secretary of State may by order made by statutory instrument make such transitional, transitory or saving provision as                        the Secretary of State considers appropriate in connection with the coming into force of any provision of this Act.                  

(2)Subsection (1) does not apply if or to the extent that subsection (3) or (4) applies.                  

(3)If a provision of this Act is brought into force to any extent by the Welsh Ministers acting alone under section 94(3), the                        Welsh Ministers may by order made by statutory instrument make such transitional, transitory or saving provision as the Welsh                        Ministers consider appropriate in connection with the coming into force of so much of that provision as is so brought into                        force.                  

(4)If a provision of this Act is brought into force to any extent by the Secretary of State and the Welsh Ministers acting jointly                        under section 94(3), the Secretary of State and the Welsh Ministers may, acting jointly, by order made by statutory instrument                        make such transitional, transitory or saving provision as they, together, consider appropriate in connection with the coming                        into force of so much of that provision as is so brought into force.                  

(5)Schedule 11 (further provision about orders under this section) has effect.                  

### 92Financial provisionsU.K.

There shall be paid out of money provided by Parliament—

(a)expenditure incurred under or by virtue of this Act by the Secretary of State;                  

(b)any increase attributable to this Act in the sums payable under any other Act out of money so provided.                  

### 93ExtentU.K.

(1)This Act extends to England and Wales only, subject as follows.                  

(2)Sections 61 and 62 and Schedule 8 extend also to Scotland, but only so far as required for the purposes of regulations applying                        as mentioned in section 61(11)(b).                  

(3)Part 4 and this Part extend to England and Wales, Scotland and Northern Ireland.                  

(4)An amendment or repeal made by this Act has the same extent as the enactment to which it relates.                  

### 94CommencementU.K.

(1)The following provisions of this Act come into force on the day on which it is passed—                  

(a)section 69, so far as relating to the power to disclose information under section 69(1)(a);                  

(b)section 90;                  

(c)section 91 and Schedule 11;                  

(d)sections 92 and 93;                  

(e)this section and Schedule 12;                  

(f)section 95.                  

(2)The following provisions of this Act come into force at the end of the period of two months beginning with the day on which                        it is passed—                  

(a)section 3;                  

(b)section 13;                  

(c)section 15;                  

(d)section 21;                  

(e)section 22, so far as relating to water or sewerage undertakers whose areas are wholly or mainly in England;                  

(f)section 25(3);                  

(g)sections 26 to 28;                  

(h)section 33;                  

(i)section 34(1) and (2);                  

(j)sections 35 and 36;                  

(k)section 57;                  

(l)section 58;                  

(m)section 60;                  

(n)sections 61 and 62 and Schedule 8;                  

(o)section 63;                  

(p)sections 85 to 87;                  

(q)section 88;                  

(r)section 89 and Schedule 10;                  

(s)paragraph 8 of Schedule 7 (and section 56 so far as relating to paragraph 8);                  

(t)paragraph 107 of Schedule 7 (and section 56 so far as relating to paragraph 107).                  

(3)The remaining provisions of this Act come into force on such day as the appropriate authority may by order appoint.                  

(4)The power of the Secretary of State or the Welsh Ministers to make an order under subsection (3) is to be exercisable by statutory                        instrument.                  

(5)Different days may be appointed for different purposes.                  

(6)Except as stated in the table in Schedule 12, the appropriate authority for the purposes of subsection (3) is the Secretary                        of State.                  

### 95Short titleU.K.

This Act may be cited as the Water Act 2014.

# SCHEDULES

 Section 1

## SCHEDULE 1E+WWater supply licences: authorisations

### “SCHEDULE 2AE+WWATER SUPPLY LICENCES: AUTHORISATIONS

#### Operation of the authorisations in England and WalesE+W

1In the descriptions of the following authorisations, a reference to the supply system of a water undertaker is a reference                           to the supply system of a water undertaker whose area is wholly or mainly in England—

(a)a retail authorisation;                  

(b)a wholesale authorisation.                  

2In the descriptions of the following authorisations, a reference to the supply system of a water undertaker is a reference                           to the supply system of a water undertaker whose area is wholly or mainly in Wales—

(a)a restricted retail authorisation;                  

(b)a supplementary authorisation.                  

#### Retail authorisationE+W

3A retail authorisation given by a water supply licence is an authorisation to the water supply licensee to use the supply                           system of a water undertaker for the purpose of supplying water to the premises of—

(a)the licensee,                  

(b)persons associated with the licensee, or                  

(c)the licensee's customers.                  

4None of the premises supplied by a water supply licensee under a retail authorisation may be household premises (as defined                           in section 17C).

#### Wholesale authorisationE+W

5A wholesale authorisation given by a water supply licence is an authorisation to the water supply licensee to introduce water                           into the supply system of a water undertaker—

(a)by means of which system any particular supply in accordance with a retail authorisation (whether the licensee's or another                           water supply licensee's) is to take place, and                  

(b)where that introduction is to be made in connection with that intended supply.                  

#### Restricted retail authorisationE+W

6A restricted retail authorisation given by a water supply licence is an authorisation to the water supply licensee to use                           the supply system of a water undertaker for the purpose of supplying water to the premises of the licensee's customers.

7The following requirements must be satisfied in relation to each of the premises to be supplied by a water supply licensee                           under a restricted retail authorisation—

(a)the requirement that the premises are not household premises (as defined in section 17C);                  

(b)the threshold requirement (construed in accordance with section 17D).                  

#### Supplementary authorisationE+W

8A supplementary authorisation given by a water supply licence is an authorisation to the water supply licensee to introduce                           water into the supply system of a water undertaker—

(a)by means of which system any particular supply in accordance with the licensee's restricted retail authorisation is to take                           place, and                  

(b)where that introduction is to be made in connection with that intended supply.                  

#### Enforcement and guidanceE+W

9The requirements in paragraphs 4 and 7 are enforceable by the Authority under section 18.

10(1)The Authority may from time to time, with the approval of the Secretary of State, issue guidance as to the factors that are,                           or are not, to be taken into account in determining the extent of any premises for the purposes of paragraphs 4 and 7.                  

(2)Before giving approval under sub-paragraph (1) the Secretary of State must consult the Welsh Ministers.                  

#### InterpretationE+W

11For the purposes of this Schedule, a person (A) is associated with a water supply licensee (L) if—

(a)where A and L are bodies corporate, one of them is a subsidiary of the other or both are subsidiaries of the same body corporate;                  

(b)where A or L is an individual or an unincorporated association and the other is a body corporate, that individual or unincorporated                           association controls the other or a body corporate of which the other is a subsidiary;                  

(c)A is a partnership of which L is a member.                  

12In paragraph 11 “subsidiary” has the meaning given by section 1159 of the Companies Act 2006; and sections 450(1) to (4) and 451(1) to (3) of the Corporation                           Taxes Act 2010 (control of a company) apply for the purposes of paragraph 11 as they apply for the purposes of Part 10 of                           that Act.””

 Section 1

## SCHEDULE 2E+WWater undertakers' duties as regards water supply licensees

1E+WFor sections 66A to 66C of the Water Industry Act 1991, and the Chapter heading and italic heading preceding section 66A,                        there is substituted— “Supply duties etc: water supply licensees 

### Duties of undertakers to supply water supply licensees etcE+W

#### 66AUse of water undertaker's supply system

#### 66AAWater supply from water undertaker

#### 66BIntroduction of water into water undertaker's supply system

#### 66CIntroduction of water provided by secondary water undertaker

2E+WAfter section 66C (substituted by paragraph 1) there is inserted—

### “66CADeterminations by Authority

3E+WFor section 66D of the Water Industry Act 1991 (determinations and agreements) there is substituted—

### “66DAgreements as to duties under sections 66A to 66C

4E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6E+WSection 66F (section 66D: supplementary) is repealed.

7(1)Section 66G (designation of strategic supply) is amended as follows.E+W

(2)In subsection (1), for “an agreement under section 66D above” there is substituted “ a section 66D agreement ”.

(3)In subsection (4)(d), for “the agreement under section 66D above” there is substituted “ the section 66D agreement ”.

(4)In subsection (10)—

(a)for “section 66A” there is substituted “ section 66AA ”;

(b)for “customers of the licensed water supplier in question” there is substituted “ relevant customers of a water supply licensee ”.

(5)After subsection (10) there is inserted—

“(11)A person is a relevant customer of a water supply licensee if the introduction of water in question is made by reference to                           the supply of water to that person's premises in accordance with—                  

(a)a retail authorisation (whether that retail authorisation is an authorisation of the licensee requesting the introduction                           of water or another water supply licensee's authorisation), or                  

(b)a restricted retail authorisation of the licensee requesting the introduction of water.”                  

8(1)Section 66H (designation of collective strategic supply) is amended as follows.E+W

(2)In subsection (1)(b), for “agreements under section 66D above” there is substituted “ section 66D agreements ”.

(3)In subsection (4)(d), for “the agreements under section 66D above” there is substituted “ the section 66D agreements ”.

(4)In subsection (10)—

(a)for “section 66A” there is substituted “ section 66AA ”;

(b)for “customers of the licensed water supplier in question” there is substituted “ relevant customers of a water supply licensee ”.

(5)After subsection (10) there is inserted—

“(11)A person is a relevant customer of a water supply licensee if an introduction of water is made by reference to the supply                           of water to that person's premises in accordance with—                  

(a)a retail authorisation (whether that retail authorisation is an authorisation of the licensee requesting the introduction                           of water or another water supply licensee's authorisation), or                  

(b)a restricted retail authorisation of the licensee requesting the introduction of water.”                  

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

 Section 4

## SCHEDULE 3E+WSewerage licences: authorisations

### “SCHEDULE 2BE+WSEWERAGE LICENCES: AUTHORISATIONS

#### Retail authorisationE+W

1A retail authorisation given by a sewerage licence is an authorisation to the sewerage licensee to use the sewerage system                           of a sewerage undertaker for the purpose of enabling the licensee to provide sewerage services in respect of the premises                           of—

(a)the licensee,                  

(b)persons associated with the licensee, or                  

(c)the licensee's customers.                  

2None of the premises served by a sewerage licensee under a retail authorisation may be household premises (as defined in section                           17C).

3The requirement in paragraph 2 is enforceable by the Authority under section 18.

4The Authority may from time to time, with the approval of the Secretary of State, issue guidance as to the factors which are,                           or are not, to be taken into account in determining the extent of any premises for the purposes of paragraph 2.

#### Wholesale authorisationE+W

5A wholesale authorisation given by a sewerage licence is an authorisation to the sewerage licensee to remove matter from the                           sewerage system of a sewerage undertaker where—

(a)the sewerage system is being used to enable a sewerage licensee (whether the licensee or another sewerage licensee) to provide                           sewerage services in respect of premises in accordance with a retail authorisation, and                  

(b)the removing of matter from the sewerage system is done in connection with sewerage services so provided.                  

#### Disposal authorisationE+W

6A disposal authorisation given by a sewerage licence is an authorisation to the sewerage licensee to remove matter from the                           sewerage system of a sewerage undertaker.

7If a sewerage licensee with a disposal authorisation has, or a person associated with the licensee has, a retail authorisation—

(a)the licensee or the person associated with it, or both of them, must obtain a wholesale authorisation, and                  

(b)neither the licensee nor the person associated with it (if that person has a disposal authorisation) may remove matter from                           a sewerage system in accordance with the disposal authorisation (or either disposal authorisation, if both have such an authorisation)                           while matter may be removed in accordance with the wholesale authorisation (or either wholesale authorisation, if both have                           such an authorisation).                  

#### InterpretationE+W

8For the purposes of this Schedule, a person (A) is associated with a sewerage licensee (L) if—

(a)where A and L are bodies corporate, one of them is a subsidiary of the other or both are subsidiaries of the same body corporate;                  

(b)where A or L is an individual or an unincorporated association and the other is a body corporate, that individual or unincorporated                           association controls the other or a body corporate of which the other is a subsidiary;                  

(c)A is a partnership of which L is a member.                  

9In paragraph 8 “subsidiary” has the meaning given by section 1159 of the Companies Act 2006; and sections 450(1) to (4) and 451(1) to (3) of the Corporation                           Taxes Act 2010 (control of a company) apply for the purposes of paragraph 8 as they apply for the purposes of Part 10 of that                           Act.”

 Section 4

## SCHEDULE 4E+WSewerage undertakers' duties as regards sewerage licensees

Prospective

### 

Prospective

 Section 5

## SCHEDULE 5E+WExtension of licensing provisions in relation to Wales

1E+WThe Water Industry Act 1991 is amended as follows.

2E+WIn section 2 (general duties with respect to water industry) (as amended by Schedule 7)—

(a)in subsection (2C)—

(i)after paragraph (d) there is inserted “and”;

(ii)paragraph (f) and the “and” preceding it are repealed;

(b)subsection (2D) is repealed.

3E+WIn section 2B (strategic priorities and objectives: Wales) (as inserted by section 24 and amended by Schedule 7), in subsection                           (4)(d), after “water supply licensees” there is inserted “ and sewerage licensees ”.

4(1)Section 17A (water supply licences) (as substituted by section 1) is amended as follows.E+W

(2)In subsection (2)—

(a)the words from “one or more” to “combination of authorisations” are repealed;

(b)after paragraph (b) there is inserted “or 

(ba)a retail authorisation and a wholesale authorisation.”;                     

(c)paragraphs (c) and (d) are repealed.

(3)In subsection (3), the words “(including their operation in England and Wales)” are repealed.

5(1)Section 17AA (water supply licences: restrictions on grants) (as substituted by section 1) is amended as follows.E+W

(2)In subsection (1), after paragraph (b) there is inserted—

“(ba)the Welsh Ministers;                     

(bb)the Chief Inspector of Drinking Water for Wales if there is one;”.                     

(3)Subsection (2) is repealed.

(4)In subsection (5), paragraphs (b) and (c) are repealed.

6E+WIn section 17B (guidance and interpretation) (as amended by section 2)—

(a)in subsection (4A), the words “, in the case of an undertaker whose area is wholly or mainly in England,” are repealed;

(b)subsections (5) to (8) are repealed.

7(1)Section 17BA (sewerage licences) (inserted by section 4) is amended as follows.E+W

(2)In subsection (1), the words “whose area is wholly or mainly in England” are repealed.

(3)After subsection (5) there is inserted—

“(5A)Before giving a general authorisation, the Secretary of State must consult the Welsh Ministers.”                     

8E+WIn section 17BB (sewerage licences: restrictions on grants) (inserted by section 4), in subsection (1), after “of State” there                           is inserted “ , the Welsh Ministers ”.

9E+WIn section 17C (meaning of household premises) (as amended by Schedule 7), in subsection (1), for “paragraphs 4 and 7(a)”                           there is substituted “ paragraph 4 ”.

10E+WSection 17D (the threshold requirement) is repealed (if not previously repealed by an order under section 3).

11E+WIn section 17DA (guidance) (inserted by Schedule 7), paragraph (a) is repealed.

12E+WIn section 17E (determinations by the Authority) (as amended by Schedule 7), in subsection (2)—

(a)in paragraph (a), the words “or 7(a) or (b)” are repealed;

(b)paragraph (c) is repealed.

13(1)Section 17FA (arrangements with the Water Industry Commission for Scotland) (inserted by section 6) is amended as follows.E+W

(2)In subsection (1)(a), the words “or a restricted retail authorisation or both” are repealed.

(3)In subsection (2)(a), the words “or particular authorisations” are repealed.

14E+WIn section 17G (water supply licence conditions) (as amended by Schedule 7), in subsection (4)(a)(iii), the words “so far                           as subsection (3) applies to water supply licences,” are repealed.

15(1)Section 17H (standard conditions of water supply licences) (as amended by Schedule 7) is amended as follows.E+W

(2)Subsection (1A) is repealed.

(3)In subsection (2), for the words from “the different” to the end there is substituted “ whether the conditions are to relate to a retail authorisation or a wholesale authorisation or both types of authorisation.                              ”

(4)In subsection (3)—

(a)for “giving a particular authorisation or a particular combination of authorisations” there is substituted “ giving a retail authorisation or a wholesale authorisation or both authorisations ”;

(b)for “that particular combination of authorisations” there is substituted “ those authorisations ”.

(5)In subsection (4), for “any particular authorisation or combination of authorisations” there is substituted “ one or other or both authorisations ”.

(6)In subsection (8)(b)(i), the words from “if the” to “supplementary authorisation,” are repealed.

(7)In subsection (9), the words from “in a case” to “subsection (8)(b)(i)” are repealed.

16(1)Section 17HA (standard conditions of sewerage licences) (inserted by Schedule 7) is amended as follows.E+W

(2)In subsection (9)(b), after sub-paragraph (i) there is inserted—

“(ia)on the Welsh Ministers.”                     

(3)In subsection (10), after “of State” there is inserted “ (after consulting the Welsh Ministers) ”.

17E+WIn section 17I (modifications of water supply licences by agreement) (as amended by Schedule 7)—

(a)in subsection (4)(b)(iv), the words from the beginning to “supply licence,” are repealed;

(b)in subsection (5A), the words “in relation to a water supply licence” are repealed.

18(1)Section 17J (modification of standard conditions of water supply licences) (as amended by Schedule 7) is amended as follows.E+W

(2)In subsection (4)(b)(iv), the words from the beginning to “licence,” are repealed.

(3)In subsection (5A), the words “in relation to a water supply licence” are repealed.

(4)In subsection (10), the words “in relation to the standard conditions of water supply licences” are repealed.

19E+WIn section 17K (water supply licences: modification references to Competition Commission) (as amended by Schedule 7), in subsection                           (5)(b)(iv), the words from the beginning to “licences,” are repealed.

20(1)Section 17N (water supply licences: reports on modification references) (as amended by Schedule 7) is amended as follows.E+W

(2)In subsection (10)(a)(iv), the words from the beginning to “licence,” are repealed.

(3)In subsection (11)(a)(ii), the words from the beginning to “licences,” are repealed.

(4)In subsection (12), the words “, if the report relates to water supply licences,” are repealed.

21E+WIn section 17O (modification of licences following report) (as amended by Schedule 7), in subsection (5)(c)(iii), the words                           from the beginning to “or licences,” are repealed.

22E+WIn section 17P (water supply licences: Commission's power of veto following report) (as amended by Schedule 7), in subsection                           (7)(b)(v), the words from the beginning to “licences,” are repealed.

23E+WIn section 23 (meaning and effect of special administration order) (as amended by Schedule 7), in subsection (6)(a), the words                           “or supplementary” are repealed.

24E+WIn section 24 (special administration orders made on special petitions) (as amended by Schedule 7), in subsection (1B), the                           words from “in relation to” to “supplementary authorisation,” are repealed.

25E+WIn section 27C (the interests of consumers) (as amended by Schedule 7)—

(a)in subsection (1)—

(i)after paragraph (d) there is inserted “and”;

(ii)paragraph (f) and the “and” preceding it are repealed;

(b)subsection (2) is repealed.

26(1)Section 38ZA (standards of performance in connection with the supply of water: water supply licensees) (inserted by section                           29) is amended as follows.E+W

(2)In subsection (1), the words “or restricted retail authorisations” are repealed.

(3)In subsection (6), for the definition of “the Minister” there is substituted—

““the Minister” means—                     

(a)the Secretary of State, in respect of the supply of water by a water supply licensee in accordance with the licensee's retail                              authorisation using the supply system of a water undertaker whose area is wholly or mainly in England;                     

(b)the Welsh Ministers, in respect of the supply of water by a water supply licensee in accordance with the licensee's retail                              authorisation using the supply system of a water undertaker whose area is wholly or mainly in Wales;”.                     

27E+WIn section 52 (the domestic supply duty) (as amended by Schedule 7), in subsection (4A)—

(a)after paragraph (a) there is inserted “and”;

(b)paragraph (c) and the “and” preceding it are repealed.

28E+WIn section 55 (supplies for non-domestic purposes) (as amended by Schedule 7), in subsection (1A)(b), the words from “or,                           in the case” to “that subsection” are repealed.

29E+WIn section 63AC(4) (as substituted by section 31), the words “ or a restricted retail authorisation ” are repealed.

30(1)Section 66A (use of water undertaker's supply system) (inserted by Schedule 2) is amended as follows.E+W

(2)Subsection (2) is repealed.

(3)In subsection (5)—

(a)in paragraph (a), the words “in the case of a request under subsection (1),” are repealed;

(b)paragraph (b) is repealed.

(4)In subsection (7)(a), the words “or (2)” are repealed.

(5)In subsection (9)(c), the words “or a restricted retail authorisation” are repealed.

31(1)Section 66AA (water supply from water undertaker) (inserted by Schedule 2) is amended as follows.E+W

(2)Subsection (2) is repealed.

(3)In subsection (3)(a), the words “or, as the case may be, subsection (2)” are repealed.

(4)In subsection (5)—

(a)in paragraph (a), the words “or, as the case may be, R” are repealed;

(b)in paragraph (b), the words “or, as the case may be, R” are repealed.

(5)In subsection (7)(a), the words “or (2)” are repealed.

32(1)Section 66B (introduction of water into water undertaker's supply system) (inserted by Schedule 2) is amended as follows.E+W

(2)Subsections (2) and (3) are repealed.

(3)In subsection (4)—

(a)in paragraph (a), the words “in a case falling within subsection (1),” are repealed;

(b)paragraphs (b) and (c) are repealed;

(c)in paragraph (d), for “steps under paragraphs (a), (b) or (c) (as the case may be)” there is substituted “ such steps ”.

(4)In subsection (6)(a), the words “, (2) or (3)” are repealed.

(5)Subsections (7) and (8) are repealed.

(6)In subsection (9), the words “or (b)(i) or (ii)” are repealed.

(7)Subsection (10)(b) is repealed.

33(1)Section 66C (introduction of water provided by secondary undertaker) (inserted by Schedule 2) is amended as follows.E+W

(2)In subsection (1), the words from “A request under paragraph (a)” to the end are repealed.

(3)Subsections (2) to (4) are repealed.

(4)In subsection (5), the words “by virtue of subsection (1), (2) or (4)” are repealed.

(5)In subsection (6)(a), the words “, L2, L3 or R” are repealed.

(6)In subsection (7), the words “, L2 or R” are repealed.

(7)In subsection (9)(a), the words “, (2), (3) or (4)” are repealed.

(8)In subsection (11), the words “, (2), (3) or (4)” are repealed.

34E+WIn section 66E (rules about charges) (inserted by Schedule 2), in subsection (3), the words “or restricted retail authorisation”                           are repealed.

35E+WIn section 66EA (rules about charges: provision about reduction in charges) (inserted by Schedule 2), in subsection (1)(a),                           the words “or a restricted retail authorisation” are repealed.

36E+WIn section 66G (designation of strategic supply) (as amended by Schedule 2), in subsection (11), paragraph (b) and the “or”                           preceding it are repealed.

37E+WIn section 66H (designation of collective strategic supply) (as amended by Schedule 2), in subsection (11), paragraph (b)                           and the “or” preceding it are repealed.

38(1)Section 68 (duties of water undertakers and licensed water suppliers with respect to water quality) (as amended by Schedule                           7) is amended as follows.E+W

(2)In subsection (1A)—

(a)in paragraph (a), the words “or restricted retail authorisation” are repealed;

(b)in paragraph (b), the words “or restricted retail authorisation” are repealed.

(3)In subsection (6), the words “or a restricted retail authorisation” are repealed.

39(1)Section 95ZA (standards of performance in connection with provision of sewerage services: sewerage licensees) (inserted by                           section 30) is amended as follows.E+W

(2)In the following places—

(a)the opening words of subsection (1),

(b)subsection (1)(b)(i), and

(c)subsection (2),

for “Secretary of State” there is substituted “ Minister ”.                     

(3)In subsection (2), for “Secretary of State's” there is substituted “Minister's”.

(4)After subsection (5) there is inserted—

“(6)In this section—                     
            -  “the Minister” means—                             (a)
the Secretary of State, in respect of the provision of services by a sewerage licensee in accordance with the licensee's retail                                          authorisation using the sewerage system of a sewerage undertaker whose area is wholly or mainly in England;                                    
(b)
the Welsh Ministers, in respect of the provision of services by a sewerage licensee in accordance with the licensee's retail                                          authorisation using the sewerage system of a sewerage undertaker whose area is wholly or mainly in Wales;                                    
 
            -  “prescribed” means prescribed by regulations made by the Minister.”                            

40E+WIn section 96ZA (procedure for regulations under section 95ZA) (inserted by section 30), for subsection (2) there is substituted—

“(2)In the application of section 96 by virtue of subsection (1)—                     

(a)a reference to a sewerage undertaker is to be treated as a reference to a sewerage licensee, and                     

(b)a reference to the Secretary of State is to be treated as a reference to the Minister (as defined in section 95ZA(6)).                     

(3)Regulations under section 95ZA are to be made by statutory instrument.                     

(4)A statutory instrument containing regulations under section 95ZA is subject to annulment in pursuance of a resolution of—                     

(a)either House of Parliament, in the case of regulations made by the Secretary of State;                     

(b)the Assembly, in the case of regulations made by the Welsh Ministers.                     

(5)Section 213(2) to (2B) applies to regulations made by the Welsh Ministers under section 95ZA as it applies to regulations                              made by the Secretary of State.”                     

41(1)Section 117G (codes under section 117F: procedure) (inserted by Schedule 4) is amended as follows.E+W

(2)In subsection (2), after paragraph (a) there is inserted—

“(aa)the Welsh Ministers;”.                     

(3)For subsection (4) there is substituted—

“(4)Before a code under section 117F prepared by the Authority is issued, the Minister may direct the Authority—                     

(a)not to issue the code, or                     

(b)to issue the code with specified modifications.                     

(4A)Subsection (4) is subject to subsections (4C) and (4D).                     

(4B)In subsection (4) “the Minister” means—                     

(a)the Secretary of State, so far as a code prepared by the Authority relates to section 117E agreements made with sewerage undertakers                              whose areas are wholly or mainly in England;                     

(b)the Welsh Ministers, so far as a code prepared by the Authority relates to section 117E agreements made with sewerage undertakers                              whose areas are wholly or mainly in Wales.                     

(4C)The power under subsection (4) may not be exercised more than once by the Secretary of State or the Welsh Ministers.                     

(4D)If the power under subsection (4) is not exercised by the Secretary of State or the Welsh Ministers on the first occasion                              on which it may be exercised by the Secretary of State or (as the case may be) the Welsh Ministers, it may not be exercised                              by the Secretary of State or (as the case may be) the Welsh Ministers on a later occasion.”                     

(4)In subsection (6), after paragraph (a) there is inserted—

“(aa)the NRBW, in relation to section 117E agreements made with sewerage undertakers whose areas are wholly in Wales;”.                     

(5)The power to give a direction under section 117G(4) of the Water Industry Act 1991 (as substituted by this paragraph) may                           not be exercised by the Secretary of State if, before the coming into force of this paragraph—

(a)the Secretary of State exercised the power to give a direction under section 117G(4) of the Water Industry Act 1991 (inserted                           by Schedule 4), or

(b)the Secretary of State omitted to exercise that power to give a direction.

42(1)Section 117K (rules under section 117I: procedure) (inserted by Schedule 4) is amended as follows.E+W

(2)In subsection (2), after paragraph (a) there is inserted—

“(aa)the Welsh Ministers;”.                     

(3)For subsection (5) there is substituted—

“(5)Before rules under section 117I prepared by the Authority are issued, the Minister may direct the Authority not to issue the                              rules.                     

(5A)In subsection (5) “the Minister” means—                     

(a)the Secretary of State, so far as rules prepared by the Authority relate to section 117E agreements made with sewerage undertakers                              whose areas are wholly or mainly in England;                     

(b)the Welsh Ministers, so far as rules prepared by the Authority relate to section 117E agreements made with sewerage undertakers                              whose areas are wholly or mainly in Wales.”                     

(4)In subsection (7), after paragraph (a) there is inserted—

“(aa)the NRBW, in relation to section 117E agreements made with sewerage undertakers whose areas are wholly in Wales;”.                     

43(1)Section 117L (rules under section 117I: minor or urgent revisions) (inserted by Schedule 4) is amended as follows.E+W

(2)In subsections (3), (4) and (5)(b), for “the Secretary of State” there is substituted “ the Minister ”.

(3)After subsection (8) there is inserted—

“(9)In this section “the Minister” has the meaning given by section 117K.”                     

44(1)Section 117M (rules under section 117I: guidance) (inserted by Schedule 4) is amended as follows.E+W

(2)In subsection (3), for the words from “are such” to the end there is substituted “are— 

(a)the Secretary of State;                     

(b)the Welsh Ministers;                     

(c)such other persons as the Minister thinks appropriate.”                     

(3)In subsection (7), for “means the Secretary of State.” there is substituted “means— 

(a)the Secretary of State, in relation to sewerage undertakers whose areas are wholly or mainly in England;                     

(b)the Welsh Ministers, in relation to sewerage undertakers whose areas are wholly or mainly in Wales.”                     

45(1)Section 117N (designation of strategic sewerage provision) (inserted by Schedule 4) is amended as follows.E+W

(2)In subsection (4), after paragraph (a) there is inserted—

“(aa)the Welsh Ministers;”.                     

(3)In subsection (8), after paragraph (a) there is inserted—

“(aa)the Welsh Ministers;”.                     

(4)In subsection (11), after paragraph (a) there is inserted—

“(aa)the NRBW, in a case where the undertaker's area is wholly in Wales;”.                     

46(1)Section 117O (designation of collective strategic sewerage provision) (inserted by Schedule 4) is amended as follows.E+W

(2)In subsection (4), after paragraph (a) there is inserted—

“(aa)the Welsh Ministers;”.                     

(3)In subsection (8), after paragraph (a) there is inserted—

“(aa)the Welsh Ministers;”.                     

47E+WIn section 117P (prohibition on unauthorised use of sewerage system) (inserted by Schedule 4), in subsection (1), the words                           “whose area is wholly or mainly in England” are repealed.

48E+WIn section 117Q (prohibition on unauthorised removal of matter from sewerage system) (inserted by Schedule 4), in subsection                           (1), the words “whose area is wholly or mainly in England” are repealed.

49E+WIn section 117S (section 117R: supplementary) (inserted by Schedule 4), at the end there is inserted—

“(7)The power to—                     

(a)make an order under subsection (1) or (2) or section 117R(1), or                     

(b)give a direction under subsection (3),                     

is exercisable by the Welsh Ministers (and not by the Secretary of State) in relation to any supply system of a sewerage undertaker                           whose area is wholly or mainly in Wales.                     

(8)Accordingly, subsections (1) to (5) and section 117R apply in relation to an order made or a direction given by the Welsh                              Ministers by virtue of subsection (7) as they apply in relation to an order made or direction given by the Secretary of State.                     

(9)A statutory instrument containing an order made by the Welsh Ministers by virtue of subsection (7) is subject to annulment                              in pursuance of a resolution of the Assembly.”                     

50E+WIn section 158 (powers to lay pipes in streets), in subsection (7)(a), the following words are repealed—

(a)“or (b)(i)”;

(b)“or laid in pursuance of section 66B(4)(b)(ii)”.

51E+WIn section 195(3AA) (the Authority's register: consultation as regards water supply licensees) (as amended by Schedule 7),                           after “water supply licensee” there is inserted “ or a sewerage licensee ”.

52E+WIn section 207D (exercise of adjudication functions by other persons) (inserted by section 39), in subsection (5), in paragraph                           (b) of the definition of “the Minister”—

(a)the “or” following sub-paragraph (i) is repealed;

(b)after sub-paragraph (ii) there is inserted “, or 

(iii)in relation to a sewerage licensee using the sewerage system of such an undertaker (see section 17BA);”.                     

53E+WIn section 213 (powers to make regulations), subsection (1ZA) (inserted by Schedule 7) is repealed (if not previously repealed                           by an order under section 3).

54(1)Schedule 2A (water supply licences: authorisations) (inserted by Schedule 1) is amended as follows.E+W

(2)Paragraphs 1 and 2 are repealed.

(3)Paragraphs 6 to 8 are repealed.

(4)In paragraph 9, for “requirements in paragraphs 4 and 7 are” there is substituted “ requirement in paragraph 4 is ”.

(5)In paragraph 10, for “paragraphs 4 and 7” there is substituted “ paragraph 4 ”.

 Section 37

## SCHEDULE 6E+WProcedure on appeals under section 207A of the Water Industry Act 1991

### “SCHEDULE 16E+WPROCEDURE ON APPEALS UNDER SECTION 207A

#### Regulations as to procedureE+W

1The Secretary of State may by regulations make provision about the procedure applying to appeals under section 207A.

#### Particular provisionE+W

2Regulations under this Schedule may in particular make provision about—

(a)making an application for permission to bring an appeal;                  

(b)imposing conditions on the granting of permission to appeal (including conditions requiring an appeal to be considered together                           with other appeals, whether relating to the same revision or the same code or not);                  

(c)the persons who may be party to an appeal;                  

(d)making an application for permission to be made party to an appeal;                  

(e)imposing conditions on the granting of permission to become party to an appeal;                  

(f)enabling a member of the CMA to make decisions as to the matters referred to in paragraphs (a), (b), (d) and (e);                  

(g)enabling a member of the CMA to direct, pending the determination of the appeal, that the code in question—                  

(i)is to have effect without the revision, or                  

(ii)is to have effect with the revision but with modifications specified by the direction;                  

(h)the number of persons in a group constituted to hear an appeal;                  

(i)the making of a decision by the group;                  

(j)the participation of the Authority in the appeal (including provision as to the making of representations and observations                           by the Authority otherwise than in connection with the consideration of the appeal);                  

(k)the imposing of time limits (including provision for time limits to be waived in certain cases by a member of the CMA);                  

(l)orders for costs;                  

(m)the recovery of the CMA's costs.                  

#### Consideration and determination of appealsE+W

3(1)Regulations under this Schedule may make provision about—                  

(a)the consideration and determination of the appeal;                  

(b)giving effect to the determination.                  

(2)Provision under sub-paragraph (1)(a) may include in particular—                  

(a)provision for disregarding, when determining an appeal, matters not raised as required by the regulations;                  

(b)provision as to the time within which an appeal is to be determined.                  

#### EvidenceE+W

4(1)Regulations under this Schedule may make provision about—                  

(a)requiring the production of documents;                  

(b)requiring persons to attend an oral hearing;                  

(c)requiring persons attending an oral hearing—                  

(i)to give evidence at the hearing;                  

(ii)to make representations and observations;                  

(d)requiring persons—                  

(i)to produce a written statement;                  

(ii)to verify the statement by a statement of truth.                  

(2)No person is to be compelled under the regulations—                  

(a)to produce a document that the person could not be compelled to produce in civil proceedings in the High Court;                  

(b)to give evidence which the person could not be compelled to give in civil proceedings in the High Court;                  

(c)to produce a written statement with respect to a matter about which the person could not be compelled to give evidence in                           civil proceedings in the High Court.                  

(3)The regulations may provide for a notice requiring the production of documents, attendance of a person, or the production                           of a written statement to be issued by any member of the CMA.                  

5(1)Regulations under this Schedule may provide for penalties to be imposed where—                  

(a)a person fails without reasonable excuse to comply with a requirement imposed in accordance with regulations under paragraph                           4;                  

(b)having been required to produce a document in accordance with paragraph 4, a person wilfully alters, suppresses or destroys                           the document;                  

(c)having been required to produce a written statement in accordance with paragraph 4, a person makes without reasonable excuse                           a false statement in the written statement produced;                  

(d)having been required by appeal rules to verify information with a statement of truth, a person provides without reasonable                           excuse information that is false in a material particular.                  

(2)The regulations may provide for conduct falling within sub-paragraph (1)(a), (c) or (d) to be punished by the High Court as                           if the person had been guilty of contempt.                  

(3)The regulations may provide that, where a body corporate may be punished for contempt of court, the High Court has power to                           punish for contempt of court any director or other officer of the body (instead of or as well as the body).                  

(4)The regulations may provide for conduct falling within sub-paragraph (1)(b) to be an offence triable either summarily or on                           indictment.                  

(5)The regulations may provide for such an offence to be punishable—                  

(a)on summary conviction, by a fine not exceeding the statutory maximum;                  

(b)on conviction on indictment, by imprisonment for a term not exceeding two years or by a fine, or by both.                  

#### Appeal rulesE+W

6(1)The CMA may make rules regulating the conduct and disposal of appeals.                  

(2)The rules may include provision supplementing regulations made under this Schedule; and that provision may, in particular,                           impose time limits or other restrictions on—                  

(a)the taking of evidence at an oral hearing;                  

(b)the making of representations or observations at such a hearing.                  

(3)The CMA must publish rules made under this paragraph in such manner as it considers appropriate for the purpose of bringing                           them to the attention of those likely to be affected by them.                  

(4)Before making rules under this paragraph, the CMA must consult such persons as it considers appropriate.                  

(5)Rules under this paragraph may make different provision for different cases.                  

#### InterpretationE+W

7In this Schedule—
          -  “appeal” means an appeal under section 207A;                         
          -  “appeal rules” means rules under paragraph 6;                         
          -  “statement of truth” means a statement that the person producing the document believes the facts stated in the document to be true.”                         

 Section 56

## SCHEDULE 7E+WFurther amendments

### Water Act 1989 (c. 15)E+W

1(1)Section 174 of the Water Act 1989 (general restrictions on disclosure of information) is amended as follows.E+W

(2)In subsection (2)(b)—

(a)for “company” there is substituted “ person ”;

(b)for “on it” there is substituted “ on the undertaker or, as the case may be, the person ”.

(3)In subsection (6)(a)—

(a)for “company” there is substituted “ person ”;

(b)for “its licence” there is substituted “ the person's licence ”.

### Water Industry Act 1991 (c. 56)E+W

2E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

4E+WIn section 2A (strategic priorities and objectives: England) (inserted by section 24), in subsection (4)(d), for “licensed                        water suppliers” there is substituted “ water supply licensees and sewerage licensees ”.

5E+WIn section 2B (strategic priorities and objectives: Wales) (inserted by section 24), in subsection (4)(d), for “licensed water                        suppliers” there is substituted “ water supply licensees ”.

6E+WIn section 6 (appointment of relevant undertakers), in subsection (5A), for “a licensed water supplier” there is substituted                        “ a water supply licensee or sewerage licensee ”.

7(1)Section 10 (transitional provision with respect to replacement appointments) is amended as follows.E+W

(2)In subsection (2), for “and (4)” there is substituted “ to (4) ”.

(3)After subsection (3) there is inserted—

“(3A)To the extent that charging rules issued under section 144ZA relate to charges imposed or security required by a relevant                           undertaker under section 185, those rules are to apply in relation to the new undertaker as if the appointment or variation                           had come into force.”                  

8E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9E+WFor the heading of Chapter 1A of Part 2 there is substituted— “ Water supply licences and sewerage licences ”.

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

11E+WIn section 17C (meaning of “household premises”), in subsection (1), for “section 17A(3)(a) above” there is substituted “ paragraphs 4 and 7(a) of Schedule 2A and paragraph 2 of Schedule 2B ”.

12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

13E+WAfter section 17D there is inserted—

#### “17DAGuidance

14(1)Section 17E (determinations by the Authority) is amended as follows.E+W

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

“(1)The Authority may determine, in a case referred to it by—                  

(a)a water supply licensee or a potential customer of a water supply licensee, or                  

(b)a sewerage licensee or a potential customer of a sewerage licensee,                  

whether a proposed supply of water to, or proposed sewerage services for, the customer would be in accordance with what is                        authorised by the licensee's licence.”                  

(3)In subsection (2)—

(a)in paragraph (a), for “section 17A(3) above” there is substituted “ paragraph 4 or 7(a) or (b) of Schedule 2A ”;

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

“(aa)the extent of the premises to be served for the purposes of paragraph 2 of Schedule 2B;”;                  

(c)in paragraph (b), after “to be supplied” there is inserted “ or served ”.

15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

16(1)Section 17G (water supply licence conditions) is amended as follows.E+W

(2)For the title there is substituted “ Licence conditions ”.

(3)In subsection (1) (conditions to be included)—

(a)for “A water supply licence” there is substituted “ A licence under this Chapter ”;

(b)in paragraph (a), the words “the Secretary of State or, as the case may be,” are repealed;

(c)in paragraph (a), the words “him or” are repealed;

(d)in paragraph (b), for “the Secretary of State” there is substituted “ the Authority ”;

(e)in paragraph (b), for “water supply licence” there is substituted “ licence under this Chapter ”.

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

“(2A)Conditions may be included by virtue of subsection (1)(a) in a sewerage licence whether or not they are connected with—                  

(a)effectual dealing with the contents of sewers, or                  

(b)the use of the sewerage system of a sewerage undertaker.”                  

(5)In subsection (3) (directions and determinations), for “water supply licence” there is substituted “ licence under this Chapter ”.

(6)In subsection (4) (persons who may give directions etc), in paragraph (a)(iii), at the beginning there is inserted “so far                        as subsection (3) applies to water supply licences,”.

(7)In subsection (5) (duration and modification of conditions), for “water supply licence” there is substituted “ licence under this Chapter ”.

(8)In subsection (7) (payments received by Secretary of State paid into the Consolidated Fund), for “the Secretary of State”                        there is substituted “ the Authority ”.

17(1)Section 17H (standard conditions of water supply licences) is amended as follows.E+W

(2)For subsections (1) to (3) there is substituted—

“(1)The Secretary of State may determine the conditions that are to be the standard conditions of water supply licences granted                           by the Authority.                  

(1A)Before determining the standard conditions, the Secretary of State must consult the Welsh Ministers as regards conditions                           relating to a restricted retail authorisation or a supplementary authorisation.                  

(1B)The Secretary of State is to publish the standard conditions in such manner as the Secretary of State considers appropriate.                  

(2)The standard conditions may be different depending on the different authorisations or combinations of authorisations to which                           the conditions are to relate.                  

(3)The power to determine standard conditions in relation to water supply licences giving a particular authorisation or a particular                           combination of authorisations may be exercised only before the grant of the first licence to give that authorisation or that                           particular combination of authorisations (but this is without prejudice to the power to modify standard conditions in accordance                           with the provisions of this Chapter).”                  

(3)In subsection (4) (general provision about standard conditions), for “of either description” there is substituted “ giving any particular authorisation or combination of authorisations ”.

(4)In subsection (6) (power to exclude or modify standard conditions in a particular case)—

(a)the words “the Secretary of State or” are repealed;

(b)the words “he or” are repealed.

(5)In subsection (7) (steps before exercising power in subsection (6))—

(a)the words “the Secretary of State or” are repealed;

(b)in paragraph (a), the words “he or” are repealed;

(c)in paragraph (b), the words “he or” are repealed.

(6)In subsection (8) (publication of notice of intention to modify standard conditions)—

(a)in paragraph (a), the words “the Secretary of State or (as the case may be)” are repealed;

(b)for paragraph (b)(i) there is substituted—

“(i)if the notice relates to a water supply licence giving a restricted retail authorisation or a restricted retail authorisation                           and a supplementary authorisation, on the Welsh Ministers;”;                  

(c)paragraph (b)(iii) is repealed;

(d)in paragraph (b)(iv), the words “if the notice is published by the Authority,” are repealed;

(e)after paragraph (b)(iv) there is inserted—

“(v)on the Water Industry Commission for Scotland.”                  

(7)In subsection (9) (direction not to exclude or modify a standard condition), for “the Assembly” there is substituted “ the Welsh Ministers in a case where notice was served on them under subsection (8)(b)(i) ”.

(8)In subsection (10) (power under subsection (6) not to be exercised in certain circumstances)—

(a)the words “Secretary of State or the” are repealed;

(b)the words “he or” are repealed.

18E+WAfter section 17H there is inserted—

#### “17HAStandard conditions of sewerage licences

19(1)Section 17I (modification of licences by agreement) is amended as follows.E+W

(2)For the title there is substituted “ Modification of licences by agreement ”.

(3)In subsection (1) (power of Authority to modify licence), for the words from “conditions of” to the end there is substituted                        “conditions of— 

(a)a particular water supply licence, or                  

(b)a particular sewerage licence.”                  

(4)In subsection (2)(b) (modification not to cause undue disadvantage)—

(a)in sub-paragraph (i), after “water supply licences” there is inserted “ or, as the case may be, sewerage licences ”;

(b)in sub-paragraph (ii), after “a water supply licence” there is inserted “ or, as the case may be, a sewerage licence ”.

(5)In subsection (4)(b) (persons to be served with notice of proposed modifications), in sub-paragraph (iv), at the beginning                        there is inserted “if the notice relates to a water supply licence,”.

(6)In subsection (5) (direction not to modify a condition), the words “(after consulting the Assembly)” are repealed.

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

“(5A)The Secretary of State is to consult the Welsh Ministers before giving a direction under subsection (5) in relation to a water                           supply licence.”                  

20(1)Section 17J (general modification of standard conditions) is amended as follows.E+W

(2)For the title there is substituted “ Modification of standard conditions ”.

(3)In subsection (1) (power of Authority to modify standard conditions), for the words from “may modify” to the end there is                        substituted “may modify— 

(a)the standard conditions of water supply licences, or                  

(b)the standard conditions of sewerage licences.”                  

(4)After subsection (1) there is inserted—

“(1A)Modifications may relate to—                  

(a)standard conditions contained in all water supply licences or sewerage licences, or                  

(b)standard conditions contained in those water supply licences or sewerage licences that grant a particular authorisation or                           combination of authorisations.”                  

(5)In subsection (2) (power to make incidental and consequential modifications)—

(a)for “retail licences or combined licences” there is substituted “ water supply licences or sewerage licences ”;

(b)for “any licence of that description” there is substituted “ any licence so affected ”.

(6)In subsection (4)(b) (persons to be served with notice of proposed modifications), in sub-paragraph (iv), at the beginning                        there is inserted “if the notice relates to a water supply licence,”.

(7)In subsection (5) (direction not to modify a standard condition), the words “(after consulting the Assembly)” are repealed.

(8)After subsection (5) there is inserted—

“(5A)The Secretary of State is to consult the Welsh Ministers before giving a direction under subsection (5) in relation to a water                           supply licence.”                  

(9)In subsection (6) (modification conditional on views of relevant licence holders), for “retail licences or combined licences”                        there is substituted “ water supply licences or sewerage licences ”.

(10)In subsection (8) (preconditions for modification of standard condition), in paragraph (c), after “a water supply licence”                        there is inserted “ or, as the case may be, a sewerage licence ”.

(11)In subsection (10) (consultation with Welsh Ministers), after “subsection (6) above” there is inserted “ in relation to the standard conditions of water supply licences ”.

(12)In subsection (12) (changed standard conditions to be used in new licences)—

(a)for “retail licences or combined licences” there is substituted “ water supply licences or sewerage licences ”;

(b)in paragraph (a), for “licences of that description” there is substituted “ water supply licences or, as the case may be, sewerage licences ”;

(c)after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations                        or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations                        of authorisations.”                  

(13)In subsection (13) (meaning of “relevant licence holder”), for “retail licences or combined licences” there is substituted                        “ water supply licences or sewerage licences or of such of those licences as grant a particular authorisation or combination                           of authorisations ”.

21(1)Section 17K (references to competition authority in relation to the modification of licences) is amended as follows.E+W

(2)For the title there is substituted “ Modification references to competition authority ”.

(3)In subsection (1) (reference of a particular licence), in paragraph (a)(i), for “a particular licence” there is substituted                        “ a particular water supply or sewerage licence ”.

(4)In subsection (2) (general matters that may be referred), in paragraph (a)(i), for “retail licences or combined licences”                        there is substituted “ water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations ”.

(5)In subsection (5)(b) (persons to be served with copy of reference or variation), in sub-paragraph (iv), at the beginning there                        is inserted “in a case relating to a water supply licence or licences,”.

22(1)Section 17N (reports on modification references) is amended as follows.E+W

(2)For the title there is substituted “ Reports on modification references ”.

(3)In subsection (10)(a) (persons to be served with report relating to a particular licence), in sub-paragraph (iv), at the beginning                        there is inserted “if the report relates to a water supply licence,”.

(4)In subsection (11)(a) (persons to be served with report relating to a standard condition), in sub-paragraph (ii), at the beginning                        there is inserted “if the report relates to water supply licences,”.

(5)In subsection (12) (meaning of “relevant time”), in paragraph (a), after “Secretary of State and” there is inserted “ , if the report relates to water supply licences, ”.

23(1)Section 17O (modification of licences following report) is amended as follows.E+W

(2)For the title there is substituted “ Modification of licences following report ”.

(3)In subsection (2) (power to make incidental and consequential modifications), for “the standard conditions of retail licences                        or combined licences” there is substituted “— 

(a)the standard conditions of water supply licences or sewerage licences, or                  

(b)the standard conditions of water supply licences or sewerage licences that grant a particular authorisation or combination                           of authorisations,”.                  

(4)In subsection (5)(c)(iii), at the beginning there is inserted “in a case relating to a water supply licence or licences,”.

(5)In subsection (10) (changed standard conditions to be used in new licences)—

(a)for “retail licences or combined licences” there is substituted “ water supply licences or sewerage licences ”;

(b)in paragraph (a), for “licences of that description” there is substituted “ water supply licences or, as the case may be, sewerage licences ”;

(c)after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations                        or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations                        of authorisations.”                  

24(1)Section 17P (competition authority's power of veto following report) is amended as follows.E+W

(2)For the title there is substituted “ Power of veto following report ”.

(3)In subsection (7)(b) (persons to be served with notice of modifications proposed), in sub-paragraph (v), at the beginning                        there is inserted “if the reference relates to water supply licences,”.

(4)In subsection (10) (power to make incidental and consequential modifications), for “the standard conditions of retail licences                        or combined licences” there is substituted “— 

(a)the standard conditions of water supply licences or sewerage licences, or                  

(b)the standard conditions of water supply licences or sewerage licences that grant a particular authorisation or combination                           of authorisations,”.                  

(5)In subsection (11) (changed standard conditions to be used in new licences)—

(a)for “retail licences or combined licences” there is substituted “ water supply licences or sewerage licences ”;

(b)in paragraph (a), for “licences of that description” there is substituted “ water supply licences or, as the case may be, sewerage licences ”;

(c)after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations                        or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations                        of authorisations.”                  

25(1)Section 17R (modification of licences by order under other enactments) is amended as follows.E+W

(2)For the title there is substituted “ Modification by order under other enactments ”.

(3)In subsection (1) (power for the competition authorities and the Secretary of State to modify standard conditions in order                        to give effect to orders under the Enterprise Act 2002), for paragraphs (a) and (b) there is substituted—

“(a)the conditions of a particular water supply or sewerage licence,                  

(b)the standard conditions of water supply licences or sewerage licences, or                  

(c)the standard conditions of water supply licences or sewerage licences that grant a particular authorisation or combination                           of authorisations,”.                  

(4)In subsection (2) (identification of orders under the Enterprise Act 2002)—

(a)in paragraph (a)(i), for “a retail licence or combined licence” there is substituted “ a water supply licence or sewerage licence ”;

(b)in paragraph (a)(ii), for “a retail licence or combined licence” there is substituted “ a water supply licence or sewerage licence ”;

(c)in paragraph (b), for “a retail licence or combined licence” there is substituted “ a water supply licence or sewerage licence ”.

(5)In subsection (4) (changed standard conditions to be included in new licences and power to make incidental and consequential                        modifications of existing licences)—

(a)for “subsection (1)(b)” there is substituted “ subsection (1)(b) or (c) ”;

(b)for “the standard conditions of retail licences or combined licences” there is substituted “ the standard conditions of water supply licences or sewerage licences or of water supply licences or sewerage licences that                           grant a particular authorisation or combination of authorisations ”.

(6)In subsection (5) (publication of modifications), for “retail licences or combined licences” there is substituted “ water supply licences or sewerage licences ”.

26(1)Section 18 (orders for securing compliance with certain provisions) is amended as follows.E+W

(2)In subsection (1)—

(a)after “Part or” there is inserted “ any person holding ”;

(b)in paragraph (a), after “that company” there is inserted “ or that person ”;

(c)in paragraph (a)(i), after “appointment or” there is inserted “the person's”;

(d)in paragraph (b), after “that company” there is inserted “ or that person ”.

(3)In subsection (1A)—

(a)in paragraph (a)(i), for “a company” there is substituted “ a person ”;

(b)in paragraph (b), for “any company” there is substituted “ any person ”;

(c)in that paragraph, for “the company” there is substituted “ the person ”.

(4)In subsection (2), after “Part or” there is inserted “ any person holding ”.

(5)In subsection (6)(a), after “Part or” there is inserted “ a person holding ”.

27E+WIn section 19 (exceptions to the duty to enforce), for “company”, in each place, there is substituted “ person ”.

28E+WIn section 20 (procedure for enforcement orders), for “company to which”, in each place, there is substituted “ person to whom ”.

29(1)Section 21 (validity of enforcement orders) is amended as follows.E+W

(2)In subsection (1)—

(a)for “company to which” there is substituted “ person to whom ”;

(b)for “company”, in the second place it occurs, there is substituted “ person ”.

(3)In subsection (2), for “company” there is substituted “ person ”.

30E+WIn section 22 (effect of enforcement order), in subsection (3)—

(a)for “company”, in each place, there is substituted “ person ”;

(b)for “it” there is substituted “ the person ”.

31(1)Section 22A (penalties) is amended as follows.E+W

(2)In subsection (1)—

(a)in paragraph (a)(ii), for “company” there is substituted “ person ”;

(b)in paragraph (b), in the opening words, for “company”, in both places, there is substituted “ person ”;

(c)in the closing words, for “the company” there is substituted “ that company or that person ”.

(3)In subsection (2)—

(a)in paragraph (a)(ii), for “company” there is substituted “ person ”;

(b)in paragraph (b), in the opening words, for “company”, in both places, there is substituted “ person ”;

(c)in the closing words, for “the company” there is substituted “ that company or that person ”.

(4)In subsection (4), in the opening words, for “company” there is substituted “ person ”.

(5)In subsection (6)—

(a)in the opening words, after “penalty” there is inserted “ on a person ”;

(b)in paragraph (a), for “company”, there is substituted “ person ”;

(c)in paragraph (d), for “company”, there is substituted “ person ”.

(6)In subsection (7)—

(a)for “company”, there is substituted “ person on whom the penalty has been imposed ”;

(b)the words “on it” are repealed.

(7)In subsection (8)(b), for “company”, there is substituted “ person on whom the penalty is to be or has been imposed ”.

(8)In subsection (11), for the words from “10%” to “(determined” there is substituted “— 

(a)10% of the turnover of the company, or                  

(b)in a case where the person on whom the penalty is imposed is not a company, 10% of the turnover of the business of the person,                  

(determined”.                  

32(1)Section 22C (time limits on the imposition of financial penalties) is amended as follows.E+W

(2)In subsection (1)—

(a)in the opening words, after “penalty” there is inserted “ on a person ”;

(b)in paragraph (a), for “company” there is substituted “ person ”;

(c)in paragraph (b), for “company” there is substituted “ person ”.

(3)In subsection (2), in the opening words—

(a)after the first “penalty” there is inserted “ on a person ”;

(b)for “company” there is substituted “ person ”.

33(1)Section 22E (appeals) is amended as follows.E+W

(2)In subsection (1), for “company on which” there is substituted “ person on whom ”.

(3)In subsections (2)(a) and (b) (in both places) and (4)(b), for “company” there is substituted “ person ”.

34E+WIn section 22F (recovery of penalties), for “company” there is substituted “ person ”.

35(1)Section 23 (meaning and effect of special administration orders) is amended as follows.E+W

(2)In subsection (1), for “a qualifying licensed water supplier” there is substituted “ a qualifying water supply licensee or a qualifying sewerage licensee ”.

(3)In subsection (2A)—

(a)for “a qualifying licensed water supplier” there is substituted “ a qualifying water supply licensee ”;

(b)for “subsection (6)(b)” there is substituted “ subsection (7) ”.

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

“(2AA)The purposes of a special administration order made in relation to a company which is a qualifying sewerage licensee must                           be—                  

(a)the transfer to another company or companies, as a going concern, of so much of the company's undertaking as it is necessary                           to transfer in order to secure that the activities relating to the removal or removals of matter mentioned in subsection (9)                           may be properly carried on, and                  

(b)the carrying on of those activities pending the making of the transfer.”                  

(5)In subsection (2B)(b)—

(a)in the opening words, for “or (2A)(a)” there is substituted “ , (2A)(a) or (2AA)(a) ”;

(b)in sub-paragraph (ii), for “or (2A)(a)” there is substituted “ , (2A)(a) or (2AA)(a) ”.

(6)In subsection (2C), for “and (2A)(b)” there is substituted “ , (2A)(b) and (2AA)(b) ”.

(7)In subsection (4), for paragraph (b) there is substituted—

“(b)a company carries on activities relating to—                  

(i)the introduction or introductions of water mentioned in subsection (7) formerly carried on by another company; or                  

(ii)the removal or removals of matter mentioned in subsection (9) formerly carried on by another company,”.                  

(8)In subsection (6)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “qualifying licensed water supplier” there is substituted “ qualifying water supply licensee ”;

(c)for paragraphs (a) and (b) there is substituted—

“(a)it is the holder of a water supply licence giving it a wholesale or supplementary authorisation (within the meaning of Chapter                           1A of this Part), and                  

(b)the condition in subsection (7) is satisfied in relation to it.”                  

(9)After subsection (6) there is inserted—

“(7)The condition in this subsection is that—                  

(a)the introduction of water by the licence holder which is permitted under section 66B or 66C is designated as a strategic supply                           under section 66G, or                  

(b)the introductions of water by the licence holder which are permitted under section 66B or 66C are designated as a collective                           strategic supply under section 66H.”                  

(10)After subsection (7) (inserted by sub-paragraph (9)) there is inserted—

“(8)For the purposes of this section, sections 24 to 26 and Schedule 2, a sewerage licensee is a qualifying sewerage licensee                           if—                  

(a)it is the holder of a sewerage licence giving it a wholesale or disposal authorisation (within the meaning of Chapter 1A of                           this Part), and                  

(b)the condition in subsection (9) is satisfied in relation to it.                  

(9)The condition in this subsection is that—                  

(a)the removal of matter by the licence holder which is permitted under section 117C or 117D is designated as strategic sewerage                           provision under section 117N, or                  

(b)the removals of matter by the licence holder which are permitted under section 117C or 117D are designated as collective strategic                           sewerage provision under section 117O.”                  

36(1)Section 24 (special administration orders made on special petitions) is amended as follows.E+W

(2)In subsection (1A)—

(a)in paragraphs (a) and (b), the words “(after consulting the Assembly)” are repealed;

(b)in paragraph (b), before “the Authority” there is inserted “by”;

(c)in the words following paragraph (b), for “qualifying licensed water supplier” there is substituted “ qualifying water supply licensee or qualifying sewerage licensee ”.

(3)After subsection (1A) there is inserted—

“(1B)Before presenting a petition under subsection (1A) in relation to a qualifying water supply licensee whose licence gives it                           a supplementary authorisation, the Secretary of State or the Authority (as the case may be) must consult the Welsh Ministers.”                  

(4)In subsection (2)—

(a)in paragraph (bb), for “qualifying licensed water supplier” there is substituted “ qualifying water supply licensee ”;

(b)after paragraph (bb) there is inserted—

“(bc)in the case of a company which is a qualifying sewerage licensee, that—                  

(i)action taken by the company has caused a contravention by a sewerage undertaker of any principal duty; and                  

(ii)that action is serious enough to make it inappropriate for the company to continue to hold its licence;”;                  

(c)in paragraph (d), for “qualifying licensed water supplier” there is substituted “ qualifying water supply licensee or a qualifying sewerage licensee ”.

(5)In subsection (7)(b), for “qualifying licensed water supplier” there is substituted “ qualifying water supply licensee or a qualifying sewerage licensee ”.

37E+WIn section 25 (power to make special administration order on winding-up petition) for “qualifying licensed water supplier”,                        in both places, there is substituted “ qualifying water supply licensee or a qualifying sewerage licensee ”.

38E+WIn section 26 (restrictions on voluntary winding up and insolvency proceedings), in subsection (1), for “qualifying licensed                        water supplier” there is substituted “ qualifying water supply licensee or a qualifying sewerage licensee ”.

39(1)Section 27 (general duty of Authority to keep matters under review) is amended as follows.E+W

(2)In subsection (1)(b), for “licensed water suppliers” there is substituted “ water supply licensees or sewerage licensees ”.

(3)In subsection (2)—

(a)in paragraph (aa), for “companies” there is substituted “ persons ”;

(b)in paragraph (b), after “company” there is inserted “ or person ”.

(4)In subsection (4)—

(a)in paragraph (c), for the words from “retail” to “Part)” there is substituted “ the authorisations or combinations of authorisations given by licences under Chapter 1A of this Part (see sections 17A and                           17BA) ”;

(b)in paragraph (d), for “company” there is substituted “ person ”.

40E+WIn section 27A (establishment of the Council and committees), in subsection (13), in the definition of “the interests of consumers”—

(a)in paragraph (a), for “licensed water suppliers” there is substituted “ water supply licensees ”;

(b)in paragraph (b), for “by sewerage undertakers” there is substituted “ either by sewerage undertakers or by sewerage licensees acting in their capacity as such ”.

41(1)Section 27C (the interests of consumers) is amended as follows.E+W

(2)In subsection (1)—

(a)the “and” after paragraph (d) is repealed;

(b)in paragraph (e), for the words from “not eligible” to the end there is substituted “ household premises (as defined in section 17C) ”;

(c)after paragraph (e) there is inserted “; and 

(f)customers, of companies holding an appointment under Chapter 1 of Part 2 of this Act, whose premises are below the consumption                           threshold and in the area of a relevant undertaker whose area is wholly or mainly in Wales,”.                  

(3)In subsection (2), for the words from “not eligible” to “the total quantity” there is substituted “ below the consumption threshold if the total quantity ”.

42E+WIn section 27E (provision of advice and information to public authorities), in subsection (1), for “licensed water suppliers”                        there is substituted “ water supply licensees, sewerage licensees ”.

43(1)Section 27H (provision of information to the Council) is amended as follows.E+W

(2)In subsection (1)—

(a)the “or” at the end of paragraph (b) is repealed;

(b)in paragraph (c), for “a licensed water supplier” there is substituted “ a water supply licensee, or ”;

(c)after paragraph (c) there is inserted—

“(d)a sewerage licensee,”.                  

(3)In subsections (2), (3) and (4), after “body”, in each place, there is inserted “ or person ”.

(4)In subsection (4)—

(a)for “it” there is substituted “ the body or person ”;

(b)for “its” there is substituted “ the ”.

44(1)Section 27K (sections 27H to 27J: supplementary) is amended as follows.E+W

(2)In subsection (2), for “or a licensed water supplier” there is substituted “ , a water supply licensee or a sewerage licensee ”.

(3)In subsection (5), for “and a licensed water supplier” there is substituted “ , a water supply licensee and a sewerage licensee ”.

45(1)Section 29 (consumer complaints) is amended as follows.E+W

(2)In subsection (1)—

(a)for “or a licensed water supplier” there is substituted “ , a water supply licensee or a sewerage licensee ”;

(b)for “by that licensed water supplier” there is substituted “ by that water supply licensee or that sewerage licensee ”.

(3)In subsection (5)(a), for the words from “by a licensed water supplier” to “Wales” there is substituted “— 

(i)by a water supply licensee using the supply system of a water undertaker whose area is wholly or mainly in Wales, or                  

(ii)by a sewerage licensee using the supply system of a sewerage undertaker whose area is wholly or mainly in Wales”.                  

(4)In subsections (8)(a) and (b) and (9), for “or the licensed water supplier” there is substituted “ , the water supply licensee or the sewerage licensee ”.

46E+WIn the heading to Chapter 1 of Part 3 (general duties of water undertakers) at the end there is inserted “etc”.

47E+WIn section 37A (water resources management plans: preparation and review)—

(a)in subsection (3)(b), for “licensed water suppliers” there is substituted “ water supply licensees ”;

(b)in subsection (8)(d) for “licensed water supplier” there is substituted “ water supply licensee ”.

48E+WIn section 37C (water resources management plans: provision of information)—

(a)for “licensed water supplier”, in each place, there is substituted “ water supply licensee ”;

(b)in the closing words to subsection (3), for “licensed water supplier's” there is substituted “water supply licensee's”.

49E+WIn section 37D (water resources management plans: supplementary), in subsection (3)(b), for “licensed water supplier” there                        is substituted “ water supply licensee ”.

50E+WIn section 38B (publication of statistical information about complaints)—

(a)in subsection (1), for “licensed water suppliers” there is substituted “ water supply licensees ”;

(b)in subsection (2), for “licensed water suppliers” there is substituted “ water supply licensees ”.

51(1)Section 39A (information to be given to customers about performance) is amended as follows.E+W

(2)In subsections (1) and (2A), for “licensed water suppliers”, in both places, there is substituted “ water supply licensees ”.

(3)After subsection (1) there is inserted—

“(1A)Each water supply licensee must, in such form and manner and with such frequency as the Authority may direct, take steps to                           inform the licensee's customers of—                  

(a)the standards of overall performance established under section 38ZA(1) which are applicable to that licensee;                  

(b)that licensee's level of performance as regards those standards.                  

(1B)The Authority may direct that the requirement in subsection (1A) is not to apply to such water supply licensees as may be                           specified in the direction.”                  

(4)In subsection (2), for “any such direction” there is substituted “ a direction under subsection (1) or (1A) ”.

(5)In subsection (2B), for “section 17B(5)” there is substituted “ section 17B ”.

(6)In subsection (3), for “licensed water supplier” there is substituted “ water supply licensee ”.

52E+WIn section 39B (drought plans: preparation and review)—

(a)in subsection (4)(b), for “licensed water suppliers” there is substituted “ water supply licensees ”;

(b)in subsection (7)(d), for “licensed water supplier” there is substituted “ water supply licensee ”.

53E+WIn section 39C (drought plans: provision of information)—

(a)for “licensed water supplier”, in each place, there is substituted “ water supply licensee ”;

(b)in the closing words to subsection (3), for “licensed water supplier's” there is substituted “water supply licensee's”.

54E+WIn section 42 (financial conditions for compliance with the duty in section 41), subsection (7) (terms defined in sections                        43 and 43A) is repealed.

55E+WSections 43 and 43A (calculations for the purpose of section 42) are repealed.

56E+WIn section 47 (conditions of connection with water main), in subsection (1), for “sections 48 to” there is substituted “ sections 49 and ”.

57E+WSection 48 (interest on sums provided by way of security) is repealed.

58(1)Section 52 (domestic supply duty) is amended as follows.E+W

(2)In subsection (4A) (exclusion of certain premises), in paragraph (c), at the beginning, there is inserted “in the case of                        premises to be supplied using the supply system of a water undertaker whose area is wholly or mainly in Wales,”.

59E+WIn section 55 (supplies for non-domestic purposes), in subsection (1A)(b), after “17C above) or” there is inserted “ , in the case of premises to be supplied using the supply system of a water undertaker whose area is wholly or mainly in                           Wales, ”.

60(1)Section 61 (disconnections for non-payment of charges) is amended as follows.E+W

(2)In subsection (1)—

(a)for “the following provisions of this section” there is substituted “ subsections (1A) to (6) ”;

(b)after “cut off a supply of water to any premises,” there is inserted “if subsection (1ZA) or (1ZB) applies.

“(1ZA) This subsection applies”.                  

(3)After the subsection (1ZA) so formed there is inserted—

“(1ZB)This subsection applies if a water supply licensee requests the undertaker to disconnect the service pipe or otherwise cut                           off the supply of water to the premises.                  

(1ZC)A water supply licensee may make a request under subsection (1ZB) only if—                  

(a)the occupier of the premises is liable under an agreement with the licensee to pay charges to the licensee in respect of the                           supply of water to the premises,                  

(b)the licensee has served notice on the occupier requiring payment of charges due,                  

(c)the occupier has failed to pay the charges before the end of the period of seven days beginning with the day after the notice                           was served, and                  

(d)that period has expired.”                  

(4)In subsection (2)—

(a)in paragraph (a), for “subsection (1)” there is substituted “ subsection (1ZA) ”;

(b)in the words following paragraph (b), for “that subsection” there is substituted “ subsection (1) ”.

(5)After subsection (2) there is inserted—

“(2A)Where—                  

(a)a water supply licensee has served a notice for the purposes of subsection (1ZC)(b) on a person, and                  

(b)within the period of seven days mentioned in subsection (1ZC)(c), the person serves a counter-notice on the licensee stating                           that he disputes his liability to pay the charges in question,                  

the licensee may not make a request under subsection (1ZB) in relation to the premises except at a time when that person is                        the occupier of the premises and those charges are enforceable against that person in a manner specified in subsection (3).”                  

(6)In subsection (3)—

(a)after “subsection (2)” there is inserted “ or (2A) ”;

(b)in paragraph (a), after “the undertaker” there is inserted “ or, as the case may be, the licensee ”;

(c)in paragraph (b), after “the undertaker” there is inserted “ or, as the case may be, the licensee ”.

(7)In subsection (4)—

(a)the words “, from the person in respect of whose liability the power is exercised,” are repealed;

(b)at the end there is inserted “— 

(a)from the person in respect of whose liability the power is exercised, in a case where the power is exercised in the circumstances                           mentioned in subsection (1ZA);                  

(b)from the water supply licensee who made the request, in a case where the power is exercised in the circumstances mentioned                           in subsection (1ZB).”                  

(8)In subsection (5)—

(a)in paragraph (b)—

(i)after “those premises” there is inserted “ (“the primary premises”) ”;

(ii)after “other premises” there is inserted “ (“the secondary premises”) ”;

(b)in the words after paragraph (b)—

(i)for “those other premises” there is substituted “ the secondary premises ”;

(ii)for “the premises in relation to which the charges are due” there is substituted “ the primary premises ”;

(iii)for “the other premises” there is substituted “ the secondary premises ”.

(9)After subsection (5) there is inserted—

“(6)The undertaker may not cut off the supply to the secondary premises in reliance on subsection (5) if—                  

(a)in a case where the undertaker is exercising the power in subsection (1) because charges are due to it, the secondary premises                           are supplied by a person other than the undertaker;                  

(b)in a case where the undertaker is exercising the power in subsection (1) because of a request for disconnection under subsection                           (1ZB), the secondary premises are supplied by a person other than the licensee which made that request.”                  

61E+WIn section 63 (general duties of undertakers with respect to disconnections), after subsection (3) there is inserted—

“(3A)A water undertaker is not guilty of an offence under subsection (3) where it disconnects a service pipe or otherwise cuts                           off a supply of water under section 61 in the circumstances mentioned in section 61(1ZB) (request from water supply licensee).”                  

62E+WIn the italic heading preceding section 63AA, for “licensed water supplier” there is substituted “ water supply licensee ”.

63(1)Section 63AA (supply by licensed water supplier: domestic supply duty) is amended as follows.E+W

(2)In the title, for “licensed water supplier” there is substituted “ water supply licensee ”.

(3)In subsection (1)(a), for “licensed water supplier” there is substituted “ water supply licensee ”.

64(1)Section 63AB (supply by licensed water supplier: non-domestic supply) is amended as follows.E+W

(2)In the title, for “licensed water supplier” there is substituted “ water supply licensee ”.

(3)In subsection (1), in the opening words, after “above” there is inserted “ or section 63AC(2) ”.

(4)In subsection (1)(a), for “licensed water supplier” there is substituted “ water supply licensee ”.

65(1)Section 63AC (interim duty of water undertaker: domestic and non-domestic supply) is amended as follows.E+W

(2)In subsections (1)(a) and (2), for “licensed water supplier” there is substituted “ water supply licensee ”.

66E+WIn the italic heading preceding section 68, for “licensed water suppliers” there is substituted “ water supply licensees ”.

67(1)Section 68 (duties with respect to water quality) is amended as follows.E+W

(2)In the title, for “licensed water suppliers” there is substituted “ water supply licensees ”.

(3)In subsection (1A)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)in paragraph (a), for “its retail authorisation” there is substituted “ the licensee's retail authorisation or restricted retail authorisation ”;

(c)in paragraph (b), for “that supplier” there is substituted “ that licensee ”;

(d)in paragraph (b), for “its retail authorisation” there is substituted “ the licensee's retail authorisation or restricted retail authorisation ”;

(e)the words following paragraph (b) are repealed.

(4)In subsection (3A)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)in paragraph (b), for “the supplier” there is substituted “ the licensee ”.

(5)In subsection (3B), for “licensed water supplier” there is substituted “ water supply licensee ”.

(6)In subsection (5), for “licensed water supplier” there is substituted “ water supply licensee ”.

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

“(6)References in this section to a retail authorisation or a restricted retail authorisation are to be construed in accordance                           with Schedule 2A.                  

(7)In this section “prescribed” means—                  

(a)in relation to a water undertaker whose area is wholly or mainly in Wales, and                  

(b)in relation to a water supply licensee so far as relating to licensed activities using the supply system of such a water undertaker,                  

prescribed by regulations made by the Welsh Ministers by statutory instrument, which is subject to annulment in pursuance                        of a resolution of the Assembly.”                  

68(1)Section 69 (regulations for preserving water quality) is amended as follows.E+W

(2)In subsections (1), (2), (5)(aa), (6)(b) and (c) and (7)(a)(ii) and (b), for “licensed water supplier”, in each place, there                        is substituted “ water supply licensee ”.

(3)In subsections (3) and (4)(a) and (b), for “licensed water suppliers”, in each place, there is substituted “ water supply licensees ”.

(4)In subsection (5)(aa), for “that supplier” there is substituted “ that licensee ”.

(5)In subsections (5)(b) and (6)(b), for “or supplier”, in both places, there is substituted “ or licensee ”.

69E+WIn section 72 (contamination of water sources), in subsection (5)(c) for “licensed water supplier” there is substituted “ water supply licensee ”.

70E+WIn section 73 (offences of contaminating, wasting and misusing water etc), in subsection (1)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)in paragraph (b), for “supplier” there is substituted “ licensee ”.

71(1)Section 74 (regulations for preventing contamination, waste etc and with respect to water fittings) is amended as follows.E+W

(2)In subsection (1)(b) and (d), for “licensed water supplier”, in each place, there is substituted “ water supply licensee ”.

(3)In subsection (1)(c), for “a licensed water supplier” there is substituted “ that or another water supply licensee ”.

72(1)Section 75 (power to prevent damage and to take steps to prevent contamination, waste etc) is amended as follows.E+W

(2)In subsection (1A), for “licensed water supplier” there is substituted “ water supply licensee ”.

(3)In subsection (11)(b), for “licensed water supplier” there is substituted “ water supply licensee ”.

(4)In subsection (12), for “section 17B(5)” there is substituted “ section 17B ”.

73E+WIn section 76 (temporary bans on use)—

(a)in subsection (1), for “by it” there is substituted “ by means of its supply system ”;

(b)after subsection (7) there is inserted—

“(8)The reference in subsection (1) to the supply system of a water undertaker is to be construed in accordance with section 17B.”                  

74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

75(1)Section 86 (assessors for the enforcement of water quality) is amended as follows.E+W

(2)In subsections (2)(a)(i), (3), (4)(c)(i) and (6), for “licensed water supplier”, in each place, there is substituted “ water supply licensee ”.

(3)In subsection (4)(c)(i), for “or supplier” there is substituted “ or licensee ”.

(4)In subsection (6), for “it” there is substituted “ that person ”.

76E+WIn section 87 (fluoridation of water supplies at request of relevant authorities), in subsections (2)(b) and (3)(b), for “licensed                        water supplier” there is substituted “ water supply licensee ”.

77E+WIn section 87C (fluoridation arrangements: compliance), in subsection (4)(b), for “licensed water supplier” there is substituted                        “ water supply licensee ”.

78E+WIn section 90 (indemnities in respect of fluoridation), in subsection (2)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “it”, in both places, there is substituted “ the licensee ”.

79E+WIn section 93 (interpretation of Part 3), in subsection (1), in the definition of “private supply”, for “licensed water supplier”                        there is substituted “ water supply licensee ”.

80(1)In section 93A (duty to promote the efficient use of water)—E+W

(a)in subsections (1), (2) and (3), for “licensed water supplier”, in each place, there is substituted “ water supply licensee ”;

(b)in subsections (1) and (3), for “its customers” there is substituted “ that person's customers ”.

81(1)Section 93B (power of Authority to impose requirements on water undertakers) is amended as follows.E+W

(2)In subsections (1), (2), (3), (4), (5) and (6), for “licensed water supplier”, in each place, there is substituted “ water supply licensee ”.

(3)In subsection (1), for “its performance of its duty” there is substituted “ the performance of that undertaker's or licensee's duty ”.

(4)In subsections (2), (4), (5) and (6), for “or supplier”, in each place, there is substituted “ or licensee ”.

(5)In subsection (2), for “its duty” there is substituted “ the undertaker's or licensee's duty ”.

(6)In subsections (3) and (6), for “its customers”, in each place, there is substituted “ that person's customers ”.

82(1)Section 93C (publicity of requirements imposed under section 93B) is amended as follows.E+W

(2)In subsection (1)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “or supplier's” there is substituted “or licensee's”.

(3)In subsection (2)(b), for “or supplier” there is substituted “ or licensee ”.

83(1)Section 93D (information as to compliance with requirements under section 93B) is amended as follows.E+W

(2)In subsections (1), (3) and (4), for “licensed water supplier”, in each place, there is substituted “ water supply licensee ”.

(3)In subsections (1), (2)(b) and (3), for “or supplier”, in each place, there is substituted “ or licensee ”.

(4)In subsection (3), for “or supplier's” there is substituted “or licensee's”.

84E+WIn the heading to Chapter 1 of Part 4 (general functions of sewerage undertakers), at the end there is inserted “etc”.

85E+WIn section 95B (publication of statistical information about complaints)—

(a)in subsection (1), after “undertakers” there is inserted “ or sewerage licensees ”;

(b)in subsection (2), after “undertakers” there is inserted “ or sewerage licensees ”.

86(1)Section 96A (information to be given to customers about overall performance) is amended as follows.E+W

(2)In subsection (1), after “customers” there is inserted “ , and, if the direction so specifies, sewerage licensees using the undertaker's sewerage system for the purpose of providing                           sewerage services to the premises of customers, ”.

(3)After subsection (1) there is inserted—

“(1A)Each sewerage licensee must, in such form and manner and with such frequency as the Authority may direct, take steps to inform                           the licensee's customers of—                  

(a)the standards of overall performance established under section 95ZA(1) which are applicable to that licensee;                  

(b)that licensee's level of performance as regards those standards.                  

(1B)The Authority may direct that the requirement in subsection (1A) is not to apply to such sewerage licensees as may be specified                           in the direction.”                  

(4)In subsection (2), for “any such direction” there is substituted “ a direction under subsection (1) or (1A) ”.

(5)After subsection (2) there is inserted—

“(2A)The sewerage licensees referred to in subsection (1) shall, if the Authority so directs, pass on the information about the                           matters mentioned in that subsection to their customers.                  

(2B)In subsection (1), the reference to the sewerage undertaker's sewerage system is to be construed in accordance with section                           17BA(7).”                  

(6)In subsection (3), after “undertaker” there is inserted “ or sewerage licensee ”.

87E+WIn section 99 (financial conditions for compliance with the duty in section 98), subsection (7) (terms defined in sections                        100 and 100A) is repealed.

88E+WSections 100 and 100A (calculations for the purposes of section 99) are repealed.

89E+WIn section 101B (power to provide lateral drain following provision of public sewer) (as amended by section 19)—

(a)in subsection (3), for “water” there is substituted “ sewerage ”;

(b)in subsection (4), the “or” following paragraph (a) is repealed.

90E+WIn section 102 (adoption of sewers and disposal works), in subsection (4) (sewerage undertaker to give notice of proposal),                        after “under this section—” there is inserted—

“(za)shall give notice of its proposal to any sewerage licensee which uses, or removes matter from, the undertaker's sewerage system                           in accordance with a retail, wholesale or disposal authorisation;”.                  

Prospective

91E+WIn section 104 (agreements to adopt sewers, etc), subsection (9) (inserted by section 42(3) of the Flood and Water Management                           Act 2010) is repealed.

92E+WIn section 105 (appeals with respect to adoption)—

(a)subsection (2) is repealed;

(b)in subsection (4), paragraph (b) and the “or” preceding it are repealed;

(c)subsection (6) is repealed;

(d)in subsection (7), the words from “and for” to the end are repealed.

93E+WIn section 105C (adoption schemes: supplementary), in subsection (2), after paragraph (a) insert—

“(aa)any sewerage licensee which uses, or removes matter from, the sewerage system of any such sewerage undertaker in accordance                           with a retail, wholesale or disposal authorisation;”.                  

Prospective

94E+WIn section 106B (requirement to enter into agreement before connection charges etc), after subsection (3) (no charges for                           vesting declaration) there is inserted—

“(3A)A reference in this section to an agreement entered into under section 104 includes a reference to—                     

(a)an order under section 105ZA which is deemed to be an agreement by virtue of section 105ZA(5), and                     

(b)an agreement which has been varied by order under section 105ZB(1).”                     

95E+WIn section 107 (right of sewerage undertaker to undertake the making of communications with public sewers), after subsection                        (6) there is inserted—

“(7)A reference in this section to an agreement under section 104 includes a reference to—                  

(a)an order under section 105ZA which is deemed to be an agreement by virtue of section 105ZA(5), and                  

(b)an agreement which has been varied by order under section 105ZB(1).”                  

96E+WIn section 113 (power to alter drainage system of premises in an area), in subsection (3), for the words from “notice of its                        proposals to” to the end of the subsection there is substituted “notice of its proposals to— 

(a)the owner of the premises in question, and                  

(b)any sewerage licensee providing sewerage services to those premises.”                  

97E+WIn section 117 (interpretation of Chapter 2), in subsection (5)(a), after “the Water Resources Act 1991” there is inserted                        “ or the Environmental Permitting (England and Wales) Regulations 2010 (S.I. 2010/675) ”.

98. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

99E+WIn section 147 (charging for use of emergency water), in subsection (1), after “undertaker” there is inserted “ or water supply licensee ”.

100E+WIn section 148 (restriction on charging for metering works), in subsection (2)(cc), after “section 66D” there is inserted                        “ or 117E ”.

101E+WIn section 150 (fixing maximum charges for services provided with the help of undertakers' services), for subsection (1A)                        there is substituted—

“(1A)This section does not apply to—                  

(a)water supplies provided by a water supply licensee, or                  

(b)sewerage services provided by a sewerage licensee,                  

to premises of customers in accordance with Chapter 1A of Part 2.”                  

102E+WIn section 152 (grants for national security purposes), in subsection (1), for “and licensed water suppliers” there is substituted                        “ , water supply licensees and sewerage licensees ”.

103(1)Section 154A (financial assistance to reduce charges of relevant undertakers and water supply licensees) is amended as follows.E+W

(2)In subsection (1)—

(a)the “or” following paragraph (a) is repealed;

(b)in paragraph (b), for “licensed water supplier” there is substituted “ water supply licensee ”;

(c)in paragraph (b), for “its” there is substituted “the licensee's”;

(d)at the end of paragraph (b) there is inserted “, or 

(c)a sewerage licensee that serves premises in accordance with the licensee's retail authorisation using the sewerage system                           of an English undertaker.”                  

(3)In subsection (6)—

(a)the “or” following paragraph (a) is repealed;

(b)in paragraph (b), for “licensed water supplier” there is substituted “ water supply licensee ”;

(c)at the end of paragraph (b) there is inserted “, or 

(c)to a sewerage licensee by means of an arrangement made by the Secretary of State with an English undertaker that is a sewerage                           undertaker.”                  

(4)In subsection (7)—

(a)in paragraph (a), for “a licensed water supplier” there is substituted “ a water supply licensee or a sewerage licensee ”;

(b)the “or” following paragraph (a) is repealed;

(c)in paragraph (b), for “licensed water supplier” there is substituted “ water supply licensee ”;

(d)in paragraph (b), for “its” there is substituted “the licensee's”;

(e)at the end of paragraph (b) there is inserted “, or 

(c)a person whose premises are served by a sewerage licensee in accordance with the licensee's retail authorisation using the                           undertaker's sewerage system.”                  

(5)In subsection (8)—

(a)for “of a licensed water supplier” there is substituted “ of a water supply licensee or of a sewerage licensee ”;

(b)for “section 17A(2)” there is substituted “ Schedule 2A or Schedule 2B, as the case may be, ”.

Prospective

104E+WIn section 158 (powers to lay pipes in streets), in subsection (7)(a), for the words from “section 66B(3)(a)(ii) above” to                           “section 66B(3)(a)(iii) above” there is substituted “ section 66B(4)(a)(i) or (b)(i) which is used for the purpose of supplying water other than for domestic or food production                              purposes or laid in pursuance of section 66B(4)(b)(ii) ”.

105. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

Prospective

106E+WIn section 163 (power to fit stopcocks), in subsection (1), for “a licensed water supplier” there is substituted “ a water supply licensee ”.

107E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

109(1)Section 175 (offence of tampering with meter) is amended as follows.E+W

(2)In subsection (1) (offence of tampering) for “or licensed water supplier” there is substituted “ , water supply licensee or sewerage licensee ”.

(3)In subsection (3) (meaning of “appropriate consent”)—

(a)for paragraph (b) there is substituted—

“(b)if the meter is used by one water supply licensee, the consent of that licensee;                  

(ba)if the meter is used by one sewerage licensee, the consent of that licensee;”;                  

(b)in paragraph (c), for sub-paragraph (ii) there is substituted—

“(ii)a water supply licensee;                  

(iii)a sewerage licensee,”.                  

110E+WIn section 179 (vesting of works in undertaker), in subsection (1A) (when persons may agree to vest pipes etc in a person                        other than the undertaker), the words from “but no agreement” to the end are repealed.

111(1)Section 195 (the Authority's register) is amended as follows.E+W

(2)In subsection (2)—

(a)in paragraph (bc), for “66D(1)” there is substituted “ 66CA(1) ”;

(b)in paragraph (g), for “or 66H above” there is substituted “ , 66H, 117N or 117O ”.

(3)In subsection (3AA), for “licensed water supplier” there is substituted “ water supply licensee ”.

(4)Subsection (3A) is repealed.

112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

113(1)Section 201 (publication of certain information and advice) is amended as follows.E+W

(2)In subsection (1)(b), for “company” there is substituted “ person ”.

(3)In subsection (2), after “Part II of this Act or” there is inserted “ a person holding ”.

114(1)Section 202 (duties of undertakers to furnish the Secretary of State with information) is amended as follows.E+W

(2)In subsection (1A), for “company”, in both places, there is substituted “ person ”.

(3)In subsection (3), for “company”, in each place, there is substituted “ person ”.

(4)In subsection (4)(c)—

(a)after “particular company” there is inserted “ or person ”;

(b)after “to companies” there is inserted “ or persons ”;

(c)for “description or” there is substituted “ description, ”;

(d)after “Part II of this Act or” there is inserted “ to all the persons holding ”.

(5)In subsection (5), for “or licensed water supplier” there is substituted “ , water supply licensee or sewerage licensee ”.

115E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

116(1)Section 206 (restriction on disclosure of information) is amended as follows.E+W

(2)In subsection (3)(b), for “a licensed water supplier of any of the duties imposed on it” there is substituted “ a water supply licensee or sewerage licensee of any of the duties imposed on the licensee ”.

(3)In subsection (5)(a), for “a licensed water supplier of activities under its licence” there is substituted “ a water supply licensee or sewerage licensee of activities under the licence held by the licensee ”.

117(1)Section 208 (directions in the interests of national security) is amended as follows.E+W

(2)In subsection (1)—

(a)for “or licensed water supplier” there is substituted “ , water supply licensee or sewerage licensee ”;

(b)for “or supplier” there is substituted “ or licensee ”.

(3)In subsection (2)—

(a)for “or licensed water supplier” there is substituted “ , water supply licensee or sewerage licensee ”;

(b)for “or supplier” there is substituted “ or licensee ”;

(c)for “requiring it” there is substituted “ requiring that undertaker or licensee ”.

(4)In subsection (3)—

(a)for “or licensed water supplier”, in both places, there is substituted “ , water supply licensee or sewerage licensee ”;

(b)for “on it” there is substituted “ on that undertaker or licensee ”;

(c)for “to it” there is substituted “ to that undertaker or licensee ”.

118E+WIn section 211 (limitation on right to prosecute in respect of sewerage offences), in paragraph (b), after “undertaker;” there                        is inserted—

“(ba)a sewerage licensee;”.                  

119(1)Section 213 (powers to make regulations) is amended as follows.E+W

(2)In subsection (1)—

(a)the words “17D(8),” (inserted by section 35(2) of the Flood and Water Management Act 2010) are repealed;

(b)the words “or 17D(8)” (inserted by paragraph 49 of Schedule 8 to the Water Act 2003) are repealed (if they remain in force                        to any extent);

(c)before “or 105A” there is inserted “, 66M”.

(3)After subsection (1) there is inserted—

“(1ZA)The requirement in subsection (1) does not apply in the case of regulations made by the Welsh Ministers under section 17D(8).”                  

(4)In subsection (2)(a), for “or sewerage undertaker or licensed water supplier” there is substituted “ , sewerage undertaker, water supply licensee or sewerage licensee ”.

120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

121E+WIn Schedule 1A (the Water Services Regulation Authority), in paragraph 9(3), for paragraph (f) (and the “and” following it)                        there is substituted—

“(f)water supply licensees;                  

(fa)sewerage licensees; and”.                  

122(1)Schedule 2 (transitional provision on termination of appointments) is amended as follows.E+W

(2)In paragraph 1—

(a)in sub-paragraph (3A)(a), for “a qualifying licensed water supplier” there is substituted “ a qualifying water supply licensee or a qualifying sewerage licensee ”;

(b)in sub-paragraph (3A)(b), for “carry on activities” there is substituted “carry on— 

(i)activities”;                  

(c)in sub-paragraph (3A)(b), after the sub-paragraph (i) so formed there is inserted “; or 

(ii)activities relating to the removal or removals of matter mentioned in section 23(9) of this Act which were carried on by the                           transferor until that date (as the case may be).”;                  

(d)in sub-paragraph (4), in the definition of “other relevant companies”, for “to be holding” there is substituted “to be— 

(a)holding”;                  

(e)in sub-paragraph (4), in that definition, after the paragraph (a) so formed there is inserted “or 

(b)holding appointments as sewerage undertakers for any area in which, or in part of which, the activities relating to the removal                           or removals of matter mentioned in section 23(9) of this Act will be carried on by the transferee (as the case may be);”.                  

(3)In paragraph 2(7A)(b), for “licensed water supplier” there is substituted “ water supply licensee or sewerage licensee ”.

123E+WIn Schedule 8 (pre-1989 Act transitional authority for trade effluent discharges etc), after paragraph 2(3) there is inserted—

“(3A)If a sewerage undertaker serves a notice under sub-paragraph (2) in relation to premises in respect of which a sewerage licensee                           provides sewerage services, the sewerage undertaker must send a copy of the notice to the sewerage licensee.”                  

### Water Resources Act 1991 (c. 57)E+W

124E+WThe Water Resources Act 1991 is amended as follows.

125(1)Section 203 (exchange of information with respect to pollution incidents etc) is amended as follows.E+W

(2)In subsection (1A)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “supplier” there is substituted “ licensee ”;

(c)for “its licence” there is substituted “ the licensee's licence ”.

(3)In subsection (2A)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “supplier” there is substituted “ licensee ”.

(4)In subsection (3)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “supplier” there is substituted “ licensee ”.

(5)In subsection (4), for “licensed water supplier” there is substituted “ water supply licensee ”.

(6)In subsection (5)(b), for “licensed water supplier” there is substituted “ water supply licensee ”.

(7)In subsection (8)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “a company” there is substituted “ a person ”.

126(1)Section 204 (restriction on disclosure of information) is amended as follows.E+W

(2)In subsection (2)(b)—

(a)for “company” there is substituted “ person ”;

(b)for “on it” there is substituted “ on the undertaker or, as the case may be, the person ”.

(3)In subsection (4)(a)—

(a)for “a company” there is substituted “ a person ”;

(b)for “its licence” there is substituted “ the person's licence ”.

### The National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672)E+W

127E+WIn Schedule 1 to the National Assembly for Wales (Transfer of Functions) Order 1999, in the entry relating to the Water Industry                        Act 1991—

(a)for “licensed water suppliers” there is substituted “ water supply licensees ”;

(b)for “licensed water supplier”, in each place those words occur, there is substituted “ water supply licensee ”.

### Enterprise Act 2002 (c. 40)E+W

128E+WThe Enterprise Act 2002 is amended as follows.

129(1)Section 168 (regulated markets) is amended as follows.E+W

(2)In subsection (3)(ff), after “section 66D” there is inserted “ or 117E ”.

(3)In subsection (4)(ff), after “section 66D”, in both places, there is inserted “ or 117E ”.

130E+WIn section 249 (special administration regime), in subsection (1)(aa)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)after “administration order)” there is inserted “ or a qualifying sewerage licensee within the meaning of subsection (8) of that section ”.

### Water Act 2003 (c. 37)E+W

131E+WThe Water Act 2003 is amended as follows.

Prospective

132E+WSection 40 (which inserted the section 2A of the Water Industry Act 1991 that is being replaced by section 24 of this Act)                           is repealed.

133(1)Section 52 (co-operation between water regulators) is amended as follows.E+W

(2)In subsection (3)—

(a)in paragraph (a), for “and licensed water suppliers” there is substituted “ , water supply licensees and sewerage licensees ”;

(b)in paragraph (b), for “licensed water suppliers” there is substituted “ water supply licensees ”;

(c)in paragraph (c), for “and licensed water suppliers” there is substituted “ , water supply licensees and sewerage licensees ”.

(3)After subsection (8) there is inserted—

“(9)In this section—                  
          -  “sewerage licensee” means a person holding a sewerage licence under Chapter 1A of Part 2 of the Water Industry Act 1991;                         
          -  “water supply licensee” means a person holding a water supply licence under Chapter 1A of Part 2 of the Water Industry Act 1991.”                         

134(1)Section 58 (fluoridation of water supplies) is amended as follows, to the extent that it is not in force on the day on which                        paragraphs 76 to 78 come into force.E+W

(2)In subsection (2)—

(a)in the inserted section 87 of the Water Industry Act 1991 (fluoridation of water supplies at request of relevant authorities),                        in subsections (2)(b) and (3)(b), for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)in the inserted section 87C of the Water Industry Act 1991 (fluoridation arrangements: compliance), in subsection (4)(b),                        for “licensed water supplier” there is substituted “ water supply licensee ”.

(3)In subsection (6), in the inserted section 90 of the Water Industry Act 1991 (indemnities in respect of fluoridation), in                        subsection (2)—

(a)for “licensed water supplier” there is substituted “ water supply licensee ”;

(b)for “it”, in both places, there is substituted “ the licensee ”.

### Government of Wales Act 2006 (c. 32)E+W

135E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

### Consumers, Estate Agents and Redress Act 2007 (c. 17)E+W

136E+WThe Consumers, Estate Agents and Redress Act 2007 is amended as follows.

137E+WIn section 4 (meaning of “designated consumers”), in subsection (3)—

(a)for “or a licensed water supplier” there is substituted “ , a water supply licensee or a sewerage licensee ”;

(b)for “its capacity” there is substituted “ the undertaker's or licensee's capacity ”.

138(1)Section 25 (enforcement by regulator of section 24 notice) is amended as follows.E+W

(2)In subsection (2), for “its capacity” there is substituted “ the person's capacity ”.

(3)In subsection (3), in the table, for “or licensed water supplier” there is substituted “ , water supply licensee or sewerage licensee ”.

(4)In subsection (7), for “or licensed water supplier” there is substituted “ , water supply licensee or sewerage licensee ”.

139E+WIn section 33 (supplementary provision about transfer and abolition orders), in subsection (10)—

(a)for “or a licensed water supplier” there is substituted “ , a water supply licensee or a sewerage licensee ”;

(b)for “its capacity” there is substituted “ the undertaker's or licensee's capacity ”.

140E+WIn section 41 (interpretation of Part 1), in subsection (1)—

(a)the definition of “licensed water supplier” is repealed;

(b)at the appropriate place there is inserted—

““sewerage licensee” means a person holding a sewerage licence under Chapter 1A of Part 2 of the Water Industry Act 1991;”;                  

““water supply licensee” means a person holding a water supply licence under Chapter 1A of Part 2 of the Water Industry Act 1991.”                  

141(1)Section 42 (interpretation of Part 2) is amended as follows.E+W

(2)In subsection (1), in the table—

(a)in the first column, for “or licensed water supplier” there is substituted “ , water supply licensee or sewerage licensee ”;

(b)in the second column, for “or licensed water supplier in its capacity” there is substituted “ , water supply licensee or sewerage licensee in the undertaker's or licensee's capacity ”.

(3)In subsection (2)—

(a)the definition of “licensed water supplier” is repealed;

(b)at the appropriate place there is inserted—

““sewerage licensee” has the same meaning as in Part 1;”;                  

““water supply licensee” has the same meaning as in Part 1.”                  

142E+WIn section 52 (enforcement of requirements imposed under Part 2), in subsection (3), for “or licensed water supplier” there                        is substituted “ , water supply licensee or sewerage licensee ”.

### Flood and Water Management Act 2010 (c. 29)E+W

143E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

144E+WIn section 6 (other Part 1 definitions), in subsection (11) (“water company”)—

(a)in the opening words, the words “a company which holds” are repealed;

(b)in paragraph (a), at the beginning there is inserted “a company which holds”;

(c)in paragraph (b), at the beginning there is inserted “a person who holds”.

Prospective

145E+WIn section 35 (provision of infrastructure), in subsection (2), in the words inserted into section 213(1) of the Water Industry                           Act 1991, the words “17D(8),” are repealed (if section 35(2) remains to be brought into force to any extent).

Prospective

146E+WIn section 42 (agreements on new drainage systems)—

(a)subsection (2) (which substitutes section 105(2) of the Water Industry Act 1991) is repealed;

(b)subsection (3) (which inserts section 104(9) of the Water Industry Act 1991) is repealed.

147E+WIn section 44 (social tariffs in charges schemes), in subsection (3), for the words from “in connection with” to “1991 Act)”                        there is substituted “under the Water Industry Act 1991 in connection with undertakers' charges schemes under section 143                        of that Act”.

 Section 61

## SCHEDULE 8E+W+SRegulation of the water environment

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 87

## SCHEDULE 9U.K.Publication requirements under the Land Drainage Act 1991

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 89

## SCHEDULE 10U.K.Amendments relating to Regional Flood and Coastal Committees

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 91(5)

## SCHEDULE 11U.K.Orders under section 91: further provision

### IntroductoryU.K.

1(1)The provision that may be made by an order under section 91 (“a section 91 order”) includes such provision as is mentioned                        in this Schedule.U.K.

(2)Nothing in this Schedule affects the generality of section 91.

### Changes in water supply licensingU.K.

2(1)A section 91 order may make provision in connection with the introduction of new water supply licences.U.K.

(2)A section 91 order may in particular—

(a)make provision for old water supply licences to continue in effect, subject to provision made by a qualifying scheme;

(b)make provision about the granting of a new water supply licence on application made by the holder of an old water supply licence.

(3)A qualifying scheme is a scheme that—

(a)is made by the Water Services Regulation Authority, and

(b)contains such provision as is described in sub-paragraph (4).

(4)The provision mentioned in sub-paragraph (3)(b) is—

(a)provision for the revocation of all old water supply licences—

(i)on the first day on which it would be possible for a new water supply licence to come into effect, or

(ii)in accordance with arrangements in the scheme and before a day specified in or determined under the scheme,

(b)provision for compensation to be paid by the Water Services Regulation Authority in connection with the revocation under the                        scheme of an old water supply licence,

(c)provision, in a case where the scheme allows a holder's old water supply licence and new water supply licence to have effect                        at the same time, for preventing the holder supplying water to premises in reliance on the old water supply licence where—

(i)the premises supplied are the premises of a person who was not a customer of the holder immediately before the grant of the                        new licence, and

(ii)the premises could be supplied with water in reliance on the new water supply licence,

(d)provision for compensation to be paid by the Water Services Regulation Authority in connection with the restriction imposed                        on an old water supply licence under paragraph (c),

(e)provision about the determination of—

(i)claims for compensation payable under the scheme, and

(ii)appeals from the determination of such claims, and

(f)provision satisfying such other requirements as may be specified in a section 91 order, including requirements about the persons                        who may claim compensation, the measure of compensation and matters by reference to which compensation may be reduced.

(5)Requirements imposed under sub-paragraph (4)(f) may allow the scheme to make provision by virtue of which the compensation                        payable in a particular case may be nil.

(6)A qualifying scheme may include provision about—

(a)the making of claims for compensation;

(b)the matters to be proved by a claimant.

(7)Sub-paragraphs (4) to (6) are not exhaustive of what may be included in a qualifying scheme.

(8)A section 91 order may make provision for a relevant person specified in the order, or appointed by the Secretary of State,                        to determine—

(a)claims for compensation payable under a qualifying scheme;

(b)appeals from the determinations of such claims.

(9)In sub-paragraph (8) “relevant person” means—

(a)the Water Services Regulation Authority, except in relation to appeals from the determination of claims for compensation,

(b)the Competition and Markets Authority, or

(c)any other public authority (within the meaning of section 6 of the Human Rights Act 1998).

(10)A section 91 order may provide for functions of the Competition and Markets Authority (“the CMA”) relating to compensation payable under a qualifying scheme to be carried out on behalf of the CMA by a group constituted                        for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.

### Modification of conditions of old water supply licencesU.K.

3(1)Where a section 91 order makes provision for old water supply licences to continue in effect, that provision may include provision                        for applying new sections 17I to 17R to old water supply licences, with such modifications as appear to the Secretary of State                        to be appropriate.U.K.

(2)Provision under sub-paragraph (1) may include provision for treating a reference to a new water supply licence as including                        a reference to an old water supply licence.

(3)Provision under sub-paragraph (1) may include provision for treating—

(a)a reference to a standard condition of a new water supply licence as including a reference to a standard condition of an old                        water supply licence, if the two conditions are in, or as nearly as may be are in, the same terms;

(b)a reference to a standard condition of a new water supply licence giving the holder a new retail authorisation as including                        a reference to a standard condition of an old water supply licence giving the holder a retail authorisation, if the two conditions                        are in, or as nearly as may be are in, the same terms;

(c)a reference to a standard condition of a new water supply licence giving the holder a new restricted retail authorisation                        as including a reference to a standard condition of an old water supply licence giving the holder a retail authorisation,                        if the two conditions are in, or as nearly as may be are in, the same terms;

(d)a reference to a standard condition of a new water supply licence giving the holder a new wholesale authorisation as including                        a reference to a standard condition of an old water supply licence giving the holder a supplementary authorisation, if the                        two conditions are in, or as nearly as may be are in, the same terms.

(e)a reference to a standard condition of a new water supply licence giving the holder a new supplementary authorisation as including                        a reference to a standard condition of an old water supply licence giving the holder a supplementary authorisation, if the                        two conditions are in, or as nearly as may be are in, the same terms.

### Changes in water supply licensing: WalesU.K.

4(1)A section 91 order may make provision in connection with the extension of new retail authorisations and new wholesale authorisations                        to the use of supply systems of water undertakers whose areas are wholly or mainly in Wales, where that extension takes place                        after the introduction of new water supply licences.U.K.

(2)A section 91 order may in particular include provision for or in relation to the payment by the Water Services Regulation                        Authority of compensation to any person holding a new water supply licence who—

(a)following the coming into force of any provision of this Act, is unable to carry on activities that had previously been authorised                        by a new restricted retail authorisation, or a new restricted retail authorisation and a new supplementary authorisation,                        given by the licence as a result of—

(i)a new retail authorisation or a new wholesale authorisation or both having been required in respect of them, and

(ii)the person's licence not having been varied to add a new retail authorisation or a new wholesale authorisation or both, because                        the person did not apply to vary the licence, or did not apply to add the appropriate authorisation or authorisations, or                        because the person's application to vary the licence was refused or granted only as to one authorisation, and

(b)has suffered loss or damage as a result of not having a licence that enables the person to carry on all those activities.

### Introduction of sewerage licensingU.K.

5(1)A section 91 order may make provision in connection with the introduction of sewerage licences.U.K.

(2)A section 91 order may in particular include provision for or in relation to the payment by the Water Services Regulation                        Authority of compensation to any person who—

(a)before 31 March 2014 was carrying on any activities in relation to the sewerage system of a sewerage undertaker,

(b)following the coming into force of any provision of this Act—

(i)is unable to continue to carry on those activities as a result of their having been prohibited,

(ii)is unable to continue to carry on those activities as a result of a sewerage licence having been required in respect of them,                        and the person's not having applied for, or the person's having been refused, a sewerage licence, or

(iii)is unable to continue to carry on those activities in the same manner as a result of the person's having been granted a sewerage                        licence the effect of which is to restrict the carrying on of the activities, and

(c)has suffered loss or damage as a result of—

(i)those activities having been prohibited,

(ii)a sewerage licence not having been granted, or

(iii)those activities having been restricted.

### New retail authorisations and the threshold requirementU.K.

6(1)A section 91 order may make provision for the threshold requirement (see section 17D of the Water Industry Act 1991) to have                        effect for a relevant period in relation to the supply of water to any premises, where the supply to those premises is made                        in connection with the introduction of water into the supply system of a water undertaker under a new wholesale authorisation.U.K.

(2)Provision under sub-paragraph (1) may in particular include such modifications of Schedule 2A to the Water Industry Act 1991                        (forms of authorisations given by water supply licences) as appear to the Secretary of State to be appropriate.

### Modifications relating to new wholesale authorisationsU.K.

7(1)Where a section 91 order makes provision as regards new wholesale authorisations, that provision may include provision for                        provisions of the Water Industry Act 1991 to have effect for a relevant period with such modifications as appear to the Secretary                        of State to be appropriate.U.K.

(2)Provision under sub-paragraph (1) may include provision for applying old provisions of the Water Industry Act 1991 with such                        modifications as appear to the Secretary of State to be appropriate.

(3)Provision under sub-paragraph (2) may in particular provide for the application of provision in old section 66D(2) to (8)                        for the purpose of determining—

(a)the period for which, and

(b)the terms and conditions on which,

a water undertaker's duties under new section 66B or 66C are to be performed.

(4)Provision under sub-paragraph (2) may in particular provide for the application of provision in old section 66E for the purpose                        of determining charges payable in respect of the performance of a water undertaker's duties under new section 66B or 66C.

(5)Provision under sub-paragraph (1) may in particular make provision about the interpretation of references to a water undertaker's                        supply system, including in particular provision for such references to be treated as references to the supply system of a                        water undertaker as it is described in old section 17B.

(6)Provision under sub-paragraph (1) may provide for modifications to have effect for different relevant periods.

(7)Provision under sub-paragraph (1) may make provision—

(a)in relation to new wholesale authorisations that authorise the introduction of water into the supply system of a water undertaker                        whose area is wholly or mainly in England,

(b)in relation to new wholesale authorisations that authorise the introduction of water into the supply system of a water undertaker                        whose area is wholly or mainly in Wales, or

(c)in relation to new wholesale authorisations that authorise the introduction of water into the supply system of any water undertaker.

(8)Before making provision falling within sub-paragraph (7)(b) or (c), the Secretary of State must consult the Welsh Ministers.

### Modifications relating to new supplementary authorisationsU.K.

8(1)Where a section 91 order makes provision as regards new supplementary authorisations, that provision may include provision                        for provisions of the Water Industry Act 1991 to have effect for a relevant period with such modifications as appear to the                        Secretary of State to be appropriate.U.K.

(2)Provision under sub-paragraph (1) may include provision for applying old provisions of the Water Industry Act 1991 with such                        modifications as appear to the Secretary of State to be appropriate.

(3)Provision under sub-paragraph (2) may in particular provide for the application of provision in old section 66D(2) to (8)                        for the purpose of determining—

(a)the period for which, and

(b)the terms and conditions on which,

a water undertaker's duties under new section 66B or 66C are to be performed.

(4)Provision under sub-paragraph (2) may in particular provide for the application of provision in old section 66E for the purpose                        of determining charges payable in respect of the performance of a water undertaker's duties under new section 66B or 66C.

(5)Provision under sub-paragraph (1) may provide for modifications to have effect for different relevant periods.

(6)Before making provision under this paragraph, the Secretary of State must consult the Welsh Ministers.

### Old section 66D agreements and new water supply licencesU.K.

9(1)A section 91 order may include provision for securing that an old section 66D agreement continues to have effect in a case                        where the person who entered into the agreement as the holder of an old water supply licence is granted a new water supply                        licence.U.K.

(2)Provision under sub-paragraph (1) may provide for the modification of the agreement and may in particular include—

(a)provision for treating a reference in the agreement to the old water supply licence as a reference to the new water supply                        licence;

(b)provision for treating a reference in the agreement to an authorisation given under the old licence as a reference to an authorisation                        or authorisations given under the new licence;

(c)provision for the Water Services Regulation Authority to vary the agreement by order, on application by a party to the agreement.

(3)Before making provision under this paragraph in relation to old section 66D agreements to which a water undertaker whose area                        is wholly or mainly in Wales is party, the Secretary of State must consult the Welsh Ministers.

### New section 66E and old section 66D agreementsU.K.

10(1)A section 91 order may provide for new section 66E (rules about charges that may be imposed under a section 66D agreement)                        to have effect as regards—U.K.

(a)charges payable under old section 66D agreements, or

(b)specified descriptions of charges payable under old section 66D agreements.

(2)Provision under sub-paragraph (1) may include provision for making such modifications of—

(a)new sections 66E to 66ED, and

(b)old sections 66A to 66D and 66F,

as appear to the Secretary of State to be appropriate.

(3)Provision under sub-paragraph (1) may provide for the modification of old section 66D agreements and may in particular include                        provision for the Water Services Regulation Authority to vary the agreement by order, on application by a party to the agreement.

(4)Before making provision under this paragraph in relation to the supply of water using the supply system of a water undertaker                        whose area is wholly or mainly in Wales, the Secretary of State must consult the Welsh Ministers.

### InterpretationU.K.

11(1)In this Schedule—U.K.
          -  “new restricted retail authorisation” means a restricted retail authorisation given by a new water supply licence;                         
          -  “new retail authorisation” means a retail authorisation given by a new water supply licence;                         
          -  “new supplementary authorisation” means a supplementary authorisation given by a new water supply licence;                         
          -  “new water supply licence” means a water supply licence granted under new section 17A;                         
          -  “new wholesale authorisation” means a wholesale authorisation given by a new water supply licence;                         
          -  “old section 66D agreement” means such agreement or determination as is mentioned in old section 66D(3);                         
          -  “old water supply licence” means a water supply licence granted under old section 17A;                         
          -  “sewerage licence” means a sewerage licence granted under section 17BA of the Water Industry Act 1991.                         

(2)In this Schedule “relevant period” means—

(a)a period specified in or determined in accordance with a section 91 order, or

(b)a period that—

(i)begins at a time specified in or determined in accordance with a section 91 order, and

(ii)ends at such time as the Secretary of State may specify by order.

(3)Before making provision under sub-paragraph (2)(a) or (b)(i) or making an order under sub-paragraph (2)(b)(ii) that affects                        provision to which paragraph 7(8), 8(6) or 10(4) applies, the Secretary of State must consult the Welsh Ministers.

(4)In this Schedule a reference to an old provision is a reference to a provision of the Water Industry Act 1991 as it has effect                        before the coming into force of an amendment or repeal of that provision made by this Act.

(5)In this Schedule a reference to a new provision is a reference to—

(a)a provision of the Water Industry Act 1991 after an amendment of that provision made by this Act has come into force, or

(b)a provision of the Water Industry Act 1991 inserted by this Act.

 Section 94(5)

## SCHEDULE 12U.K.Commencement orders: appropriate authority

1U.K.In relation to the sections and Schedules listed in the first column of this table, the appropriate authority for the purposes                        of section 94(3) is as listed in the second column (see paragraph 3 as regards interpretation of terms used in the table)—

2U.K.A statutory instrument containing an order to be made by the Welsh Ministers under section 94(3) in relation to section 5                        and Schedule 5 may not be made unless a draft has been laid before and approved by a resolution of the National Assembly for                        Wales.

3U.K.In the table in paragraph 1—

(a)“wholly or mainly English water undertakers” means water undertakers whose areas are wholly or mainly in England;

(b)“wholly or mainly English sewerage undertakers” means sewerage undertakers whose areas are wholly or mainly in England;

(c)“wholly or mainly English undertakers” means undertakers falling within paragraph (a) or (b);

(d)“wholly or mainly English water supply licensees” means water supply licensees using the supply systems of water undertakers whose areas are wholly or mainly in England;

(e)“wholly or mainly English sewerage licensees” means sewerage licensees using the sewerage systems of sewerage undertakers whose areas are wholly or mainly in England;

(f)“wholly or mainly English licensees” means licensees falling within paragraph (d) or (e);

(g)“wholly or mainly Welsh water undertakers” means water undertakers whose areas are wholly or mainly in Wales;

(h)“wholly or mainly Welsh sewerage undertakers” means sewerage undertakers whose areas are wholly or mainly in Wales;

(i)“wholly or mainly Welsh undertakers” means undertakers falling within paragraph (g) or (h);

(j)“wholly or mainly Welsh water supply licensees” means water supply licensees using the supply systems of water undertakers whose areas are wholly or mainly in Wales;

(k)“wholly or mainly Welsh sewerage licensees” means sewerage licensees using the sewerage systems of sewerage undertakers whose areas are wholly or mainly in Wales;

(l)“wholly or mainly Welsh licensees” means licensees falling within paragraph (j) or (k).

4U.K.In this Schedule—

(a)references to water undertakers' supply systems are to be construed in accordance with section 17B of the Water Industry Act                        1991;

(b)references to sewerage undertakers' sewerage systems are to be construed in accordance with section 17BA(7) of the Water Industry                        Act 1991.