Document:

EX-10.1.5

 

Exhibit 10.1.5

WATER ACT 2003

MODIFICATION OF THE CONDITIONS OF APPOINTMENT OF

[ALL WATER AND SEWERAGE UNDERTAKERS

AND ALL WATER UNDERTAKERS]

Made on
10 August 2006

Coming into effect on 1 September 2006

The Water Services Regulation Authority, in exercise of the power conferred on him by paragraph 4
of Schedule 4 to the Water Act 2003, after consulting [the undertaker concerned] and other
appropriate persons as required by that paragraph, hereby modifies with effect on and from 1
September 2006 the conditions of the appointment of [the undertaker concerned] under Chapter I of
Part II of the Water Industry Act 1991 as follows:

	1.	 	Condition R is deleted and replaced with the following:
	 
	 	 	“Condition R: Provision of combined and wholesale water supplies
	 
	 	 	The Access Code
	 
	 	 	1.—(1) The Appointee shall have an Access Code which complies with paragraphs 2 to 4 of
this condition.
	 
	 	 	(2) The Appointee shall comply with its Access Code.
	 
	 	 	2.—(1) The Access Code shall –

(a) conform to the guidance for the time being issued under section 66D(4); and

(b) set out –

(i) the Appointee’s procedure (including timetables) for dealing
with a request made to it by a licensed water supplier under
sections 66A, 66B or 66C (which procedure shall itself conform to
any relevant guidance);

(ii) the types of feasibility studies which the Appointee may undertake in
response to any of those possible applications, including the method of
calculation of any costs associated with any such study with a view to
recovering them from any such applicant (all of which feasibility studies
and the method of calculation shall themselves conform to any relevant
guidance); and

(iii) the terms (including the basis for calculating charges in
accordance with the costs principle in section 66E) upon which the
Appointee will offer to perform each duty under sections 66A to 66C
and indicative charges for performing each duty under sections 66A and
66B (which indicative charges shall themselves be calculated in
accordance with any relevant guidance).

(2) In this paragraph and in paragraph 3 below, “relevant guidance” means guidance—

(a) in relation to the matters specified in sub-paragraph (1)(b) above;

 

 

(b) for the time being issued by the Authority where —

(i) before issuing such guidance, the Authority has consulted such
persons as it considers appropriate; and

(ii) the Authority has published such guidance in such a manner as it
considers appropriate for the purpose of bringing it to the attention of
persons likely to be affected by it.

3.—(1) Subject to sub-paragraph (2), the Appointee —

(a) shall review its Access Code, and make any revisions to its Access Code
consequent upon that review, annually not later than 15 October in each year; and

(b) may also at any other time revise it.

(2) If the Authority revises its guidance under section 66D(4), the Appointee shall revise its
Access Code to conform to the revised guidance within the timescales set out by the Authority.

(3) If the Authority revises any relevant guidance, the Appointee shall revise its Access Code to
conform to such revised relevant guidance, within the timescales set out by the Authority, provided
that the Authority has —

(a) consulted such persons as it considers appropriate before revising that
relevant guidance; and

(b) published that revised relevant guidance in such a manner as it considers
appropriate for the purpose of bringing it to the attention of persons likely to be
affected by it.

4.—(1) The Appointee shall —

(a) include the text of its Access Code, as revised from time to time, on any
Internet website which it may maintain; and

(b) in response to any request, provide a copy of it free of charge.

(2) The Appointee shall provide to the Authority —

(a) free of charge a copy of its Access Code; and

(b) within seven days of making them, written particulars of any modifications of
it.

Anti-competitive behaviour

5.—(1) If and for so long as the Appointee is related to any licensed water supplier —

(a) it shall not without the consent of the Authority sell (or otherwise make
available) to that licensed water supplier any water, or any of its other assets;
and

(b) otherwise, it shall ensure that every other transaction between the
Appointed Business and that licensed water supplier is at arm’s length.

(2) For the purpose of this paragraph the Appointee is related to a licensed water supplier if
their enterprises are under common ownership or common control (within the meaning those
expressions have in section 26(1) of the Enterprise Act 2002).

 

 

(3) The Appointee shall by notice inform the Authority if at any time it becomes, or ceases to be,
related to a licensed water supplier.

(4) This paragraph is without prejudice to anything contained in paragraph 6 of Condition F
(Transactions entered into by the Appointee or the Appointed Business with or for the benefit of
Associated Companies or other businesses or activities of the Appointee).

6.— The Appointee shall not show undue preference towards, or undue discrimination
against —

(a) customers or potential customers (or classes of customers) of a licensed water
supplier, as compared with either the Appointee’s own customers or potential
customers (or classes of customers) or the customers or potential customers (or
classes of customers) of any other licensed water supplier; or

(b) a licensed water supplier, as compared with any other licensed water
supplier or the Appointee itself.

Obligations about information

7.— (1) Whenever the Appointee is —

(a) negotiating with a licensed water supplier the period for which and terms and
conditions on which it might discharge any of its duties under sections 66A to 66C;
or

(b) discharging any of those duties,

it shall ensure that legally enforceable terms exist about the confidentiality of
information provided to or by it for those purposes.

(2) Without prejudice to the generality of sub-paragraph (1) above, the Appointee shall not use or
disclose information received from a licensed water supplier in the course or contemplation of the
discharge of its duties under sections 66A to 66C or in the course or contemplation of its dealings
with that licensed water supplier under sections 66A to 66C, except —

(a) to the minimum extent necessary to discharge those duties or for those
dealings;

(b) where required or permitted by law; or

(c) where otherwise agreed with the licensed water supplier.

8.—(1) The Appointee shall provide to a licensed water supplier such information as the licensed
water supplier reasonably requires —

(a) to enable the licensed water supplier to apply for, negotiate and
conclude an agreement under section 66D;

(b) to comply with any condition of its water supply licence, or any statutory
requirement imposed in consequence of its water supply licence; or

(c) to comply with any reasonable request for information made by the
Environment Agency.

(2) The Appointee may impose reasonable conditions on the use which any licensed water
supplier makes of information provided under this paragraph.

(3) Any question as to the reasonableness of —

 

 

(a) any requirement to provide information under sub-paragraph (1); or

(b) any condition proposed by the Appointee under sub-paragraph (2);
shall be resolved by referring that question to the Authority for its
determination.

(4) A reference under sub-paragraph (3) shall have the effect of suspending the requirement so
referred pending the Authority’s determination.

(5) The Appointee shall not be required under this paragraph to disclose any information or produce
any document which it would be entitled to refuse to disclose or produce on grounds of legal
professional privilege in proceedings in the High Court.

(6)

(a) The Appointee shall immediately inform the licensed water supplier of relevant
details if the Appointee is or becomes aware that a special consumer occupies or is
likely to occupy any premises which the licensed water supplier is proposing to
supply.

(b) For the purpose of sub-paragraph (a) above, a special consumer is a
person or a member of a class of persons who —

(i) the Appointee and the relevant licensed water supplier agree; or

(ii) the Authority specifically or generally determines by relevant
notice,

regularly requires water urgently on medical or other grounds.

(7) Under sub-paragraph (6) —

(a) a determination shall not have effect unless, before making the determination,
the Authority has consulted such persons as it considers appropriate; and

(b) a “relevant notice” is a notice published in such manner as the Authority
considers appropriate and served on the Appointee.

(8)

(a) The Appointee shall immediately inform each licensed water supplier which is
supplying water to premises in its Water Supply Area of every actual or potential
incident which affects adversely, or is likely to affect adversely —

(i) water quality;

(ii) water pressure;

(iii) continuity of supply; or

(iv) any other matter related to the Appointee’s supply system as
defined in section 17B(5);

but the foregoing obligation applies only if and to the extent that the supply or
supplies being made by such licensed water supplier to premises in the Appointee’s
Water Supply Area is or are, or is or are likely to be, affected by any such actual
or potential incident;

 

 

and

(b) information provided by the Appointee under sub-paragraph (a) above shall be
as detailed as the information which the Appointee uses or intends to use or would
use, when dealing with complaints from its own customers arising out of the same
matters.

(9) For the purposes of sub-paragraph (8), an incident includes regulatory infringements which may
put the Appointee or relevant licensed water supplier at risk of supplying water which is
unwholesome as determined under section 67 (standards of wholesomeness) or unfit for human
consumption within the meaning of section 70 (offence of supplying water unfit for human
consumption).

9.— In so far as the provision of information to the Appointee is not provided for by or under any
enactment, the Appointee shall not seek —

(a) from a licensed water supplier; or

(b) from a person supplied or seeking to be supplied by a licensed water supplier;

more information than the Appointee reasonably requires —

(i) for the purposes of carrying out its functions;

(ii) to ascertain whether the licensed water supplier has sufficient
product and public liability insurance for the activities authorised by its
water supply licence;

(iii) to comply with any condition of the Appointee’s appointment;

(iv) in relation to national security or civil emergencies; or

(v) to comply with any reasonable request for information made
by the Environment Agency.

General

10.—(1) Until the coming fully into force of section 36(1) of the Water Act 2003 (transfer to the
Water Services Regulation Authority and the Consumer Council for Water of functions, property etc),
any reference to the Authority in this Condition shall have effect as if it were a reference to the
Director.

(2) Unless the contrary intention appears, references in this Condition to sections are references
to sections of the Water Industry Act 1991.

[Application

11.—(1) This Condition shall not apply to the Appointee in the circumstances and to the extent set
out in this paragraph.

(2) Paragraphs 1 to 9 of this Condition shall not apply if and for so long as the Appointee has no
supply system, as defined in section 17B(5).

(3) Subject to sub-paragraph (4), the Appointee shall notify the Authority as soon as it has
a supply system, as defined in section 17B(5).

(4) If the Appointee has a supply system, as defined in section 17B(5), on 15 September 2005, it
shall be deemed to have notified the Authority that it has a supply system at that date.

(5) If and for such time as the Appointee has a supply system, as defined in section 17B(5) —

 

 

(a) the Appointee shall notify the Authority immediately of the fact and terms of
each request the Appointee receives from a licensed water supplier to provide a
supply of water or to permit the introduction of water into the Appointee’s supply
system pursuant to section 66A, 66B or 66C; and

(b) paragraphs 1 to 9 of this Condition shall apply only from and for such time
and to such extent as may be specified by the Authority from time to time by
relevant notice.

(6) Under sub-paragraph (5)(a) —

(a) a relevant notice shall not have effect unless, before making the relevant
notice, the Authority has consulted the Appointee and such persons as it considers
appropriate; and

(b) a “relevant notice” is a notice published in such manner as the
Authority considers appropriate and served on the Appointee.]”

[Paragraph 11 of Condition R above is only included in the conditions of the
appointments of Albion Water Ltd and Cholderton and District Water Company Ltd]

Signed for and on behalf of the

Water Services Regulation Authority

Keith Mason

Director of Regulatory Finance and CompetitionEX-10.1.6

 

Exhibit
10.1.6

WATER INDUSTRY ACT 1991, SECTION 13(1)

MODIFICATION OF THE CONDITIONS OF APPOINTMENT OF BOURNEMOUTH

AND WEST HAMPSHIRE WATER PLC

Made on 1 December 2006

Coming into effect on 15 December 2006

The Conditions or the Appointment of Bournemouth and West Hampshire Water Plc are modified as
follows:

Condition F: Accounts and Accounting Information

	1.	 	After sub-paragraph 6A.5B of Condition F there is inserted:
	 
	 	 	“6A.6(1) The Appointee shall use all reasonable endeavours to ensure that it, or any
Associated Company as issuer of corporate debt on its behalf, maintains at all times an
Issuer credit rating which is an Investment grade rating.
	 
	 	 	6A.6(2) “Investment grade rating” means a rating recognised as investment grade by Standard
and Poor’s Rating Group (or any of its subsidiaries), by Moody’s Investors Services
Incorporated (or any of its subsidiaries) or by Fitch Rating Limited, or any equivalent
rating from any other reputable credit rating agency which has comparable standing in the
United Kingdom and the United States of America;
	 
	 	 	“Issuer credit rating” means a credit rating assigned to Bournemouth and West Hampshire
Water plc, as an issuer of corporate debt by Standard and Poor’s Rating Group (or any of its
subsidiaries), by Moody’s Investors Services Incorporated (or any of its subsidiaries) or by
Fitch Rating Limited, or any other reputable credit rating agency which has comparable
standing in the United Kingdom and the United States of America.”

Condition P: The role of the Appointee’s Ultimate Controller and UK holding company

	2.	 	Condition P is deleted and replaced with the following:

“Condition P: The role of the Appointee’s Ultimate Controller and UK holding company

	1(1) 	 	The Appointee shall, not later than the effective date of this modification (or, in the event
of a subsequent change of control of the Appointee, the date on which each such change of
control takes effect), procure from the Ultimate Controller of the Appointee and, when the
Ultimate Controller is not the UK holding company, procure from the UK holding company of the
Appointee, legally enforceable undertakings in favour of the Appointee in a form specified by
the Water Services Regulation Authority and expressed to remain in force for as long as the
Appointee retains the Appointment.
	 
	1(2)	 	 The undertakings referred to in paragraph (1) above shall provide that:

	 	(a)	 	those persons providing the undertakings will, and will procure that each of
their subsidiaries (other than the Appointee and its subsidiaries) will, give to the
Appointee all such information as may be necessary to enable the Appointee to comply
with its obligations under the Act or the conditions of the

 

	 	 	 	Appointment;

	 	(b)	 	those persons providing the undertakings will, and will procure that each of
their subsidiaries (other than the Appointee and its subsidiaries) will, refrain from
any action which would or may cause the Appointee to breach any of its obligations
under the Act or the conditions of the Appointment; and
	 
	 	(c)	 	those persons providing the undertakings will ensure that at all times the
Board of the Appointee contains not less than three independent non-executive
Directors, who shall be persons of standing with relevant experience and who shall
collectively have connections with and knowledge of the areas within which the
Appointee holds the Appointment and an understanding of the interests of the customers
of the Appointee and how these can be respected and protected.

	2.	 	The Appointee shall, not later than the date referred to in paragraph 1(1) above, produce to
the Water Services Regulation Authority the original of each of the undertakings given to it
in accordance with paragraph 1 of this Condition and provide to it such certified copies of
those undertakings as the Water Services Regulation Authority may require.
	 
	3.	 	The Appointee shall immediately inform the Water Services Regulation Authority in writing if
it becomes aware that any one of the undertakings referred to in paragraph 1 of this Condition
has ceased to be legally enforceable or that there has been any breach of its terms.
	 
	4.	 	The Appointee shall not, except with the written consent of the Water Services Regulation
Authority, enter (directly or indirectly) into any contract or arrangement with the Ultimate
Controller of the Appointee (or the UK holding company of the Appointee as the case may be) or
any Associated Company (other than subsidiaries of the Appointee) at a time when:

	 	(i)	 	any one of the undertakings complying with paragraph 1 of this Condition does
not subsist; or
	 
	 	(ii)	 	there is an unremedied breach of any one of those undertakings.

	5.	 	For the purposes of this Condition P, “Ultimate Controller” means any person who or which
(alone or jointly with others and whether directly or indirectly) is (in the reasonable
opinion of the Water Services Regulation Authority) in a position to control, or to exercise
material influence over, the policy or affairs of the Appointee or of any holding company of
the Appointee.

	6.	 	For the purposes of this Condition P “person” includes, without limitation, a corporate
body.”

Signed for and on behalf of the

Water Services Regulation Authority

Regina Finn

Chief Executive

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