Environmental Protection PART 1 General Citation, commencement and interpretation 1 1 This Order may be cited as the Water Act 2014 (Consequential Amendments etc.) Order 2017 and comes into force on the day after the day on which it is made. 2 In this Order— “the 1991 Act” means the Water Industry Act 1991 ; “the 2014 Act” means the Water Act 2014. PART 2 Consequential amendments to primary legislation Telecommunications Act 1984 2 In section 101(3)(j) of the Telecommunications Act 1984 , at the end insert “or the Water Act 2014”. Airports Act 1986 3 In section 74(3)(k) of the Airports Act 1986 , at the end insert “or the Water Act 2014”. Water Act 1989 4 In section 174(2) of the Water Act 1989 — a in paragraph (a), after “the Water Act 2003” insert “, the Water Act 2014”; b in paragraph (b), after “by or under this Act” insert “, the Water Act 2014”; c in paragraph (j), after “the Water Act 2003” insert “, the Water Act 2014”. Food Safety Act 1990 5 In section 55(b) of the Food Safety Act 1990 , for “licensed water supplier” substitute “water supply licensee”. The 1991 Act 6 1 The 1991 Act is amended as follows. 2 In sections 2A(9) and 2B(9) , for “section 2(1)(b)” substitute “section 2(1)”. 3 In section 22A(1)(b) — a at the end of sub-paragraph (i) omit “or”; b at the end of sub-paragraph (ii) insert— or iii has failed or is failing to achieve any standard of performance prescribed under section 38ZA or 95ZA , . 4 In section 66J(2)(a) , for “licensed water supplier” substitute “water supply licensee”. 5 In section 185 — a in subsection (4), for “as the undertaker may reasonably require” substitute “as charging rules allow and the undertaker requires”; b omit subsections (6) and (7). 6 In section 206(3) — a in paragraph (a), after “the Water Act 2003” insert “, the Water Act 2014”; b in paragraph (b)— i omit “Chapter 4 of Part 1 of”; ii at the end insert “, the Water Act 2003 or the Water Act 2014”; c in paragraph (j)— i after “the Water Act 2003”, in the first place it occurs, insert “, the Water Act 2014”; ii for “or the Water Act 2003” substitute “, the Water Act 2003 or the Water Act 2014”. Water Resources Act 1991 7 In section 204(2) of the Water Resources Act 1991 — a in paragraph (a), after “the Water Act 2003,” insert “the Water Act 2014”; b in paragraph (b), for “or the Water Act 2003” substitute “, the Water Act 2003 or the Water Act 2014”; c in paragraph (j)— i after “the Water Act 2003”, in the first place it occurs, insert “, the Water Act 2014”; ii for “or the Water Act 2003” substitute “, the Water Act 2003 or the Water Act 2014”. Railways Act 1993 8 In section 145 of the Railways Act 1993 — a for subsection (2)(b)(vi) substitute— vi the Water Services Regulation Authority, ; b in subsection (3), after paragraph (t) insert— u the Water Act 2003; v the Water Act 2014. . Coal Industry Act 1994 9 In section 59(4) of the Coal Industry Act 1994 , after paragraph (s) insert— t the Water Act 2014. . Environment Act 1995 10 1 The Environment Act 1995 is amended as follows. 2 In section 108(15) — a in the definition of “local enforcing authority”, in paragraph (d), at the end insert “or regulations under section 61 of the Water Act 2014”; b in the definition of ““pollution control functions”, in relation to the Agency, the Natural Resources Body for Wales or SEPA”, in the words after paragraph (n), after “the Pollution Prevention and Control Act 1999” insert “or regulations under section 61 of the Water Act 2014”. 3 In section 113(5) , in the definition of “local enforcing authority”, in paragraph (aa), at the end insert “or regulations under section 61 of the Water Act 2014”. 4 In section 114(2)(a)(viii) — a as it applies to England and Wales, at the end insert “or regulations under section 61 of the Water Act 2014 extending to England and Wales”; b as it applies to Scotland, after “extending to Scotland” insert “, under section 61 of the Water Act 2014 extending to Scotland”. Greater London Authority Act 1999 11 In section 235 of the Greater London Authority Act 1999 — a for subsection (2)(c)(vi) substitute— vi the Water Services Regulation Authority, ; b in subsection (3)— i after paragraph (rt) insert— rta the Water Act 2003; ; ii after paragraph (u) insert— v the Water Act 2014. . Utilities Act 2000 12 In section 105(6)(l) of the Utilities Act 2000 , at the end insert “or the Water Act 2014”. Transport Act 2000 13 In paragraph 3(3) of Schedule 9 to the Transport Act 2000 , after paragraph (rg) insert— rh the Water Act 2014; . Enterprise Act 2002 14 In Schedule 15 to the Enterprise Act 2002 , after the entry relating to the Energy Act 2013 insert— Water Act 2014. . Regulatory Enforcement and Sanctions Act 2008 15 In Schedule 7 to the Regulatory Enforcement and Sanctions Act 2008 , after the entry relating to the Vehicle Excise and Registration Act 1994 insert— Water Act 2014 (c. 21) , section 61 . Civil Aviation Act 2012 16 In paragraph 4(3) of Schedule 6 to the Civil Aviation Act 2012 , after the entry for the Enterprise and Regulatory Reform Act 2013 insert— Water Act 2014; . PART 3 Consequential amendments and modifications to secondary legislation The Water Supply (Water Fittings) Regulations 1999 17 In regulations 2, 3, 5 and 12(1)(aa) of, and Schedules 1 and 2 to, the Water Supply (Water Fittings) Regulations 1999 , for “licensed water supplier”, in each place it occurs, substitute “water supply licensee”. The Drinking Water (Undertakings) (England and Wales) Regulations 2000 18 1 The Drinking Water (Undertakings) (England and Wales) Regulations 2000 are amended as follows. 2 In regulation 1(3)— a for the definition of “licensed water supplier” substitute— “water supply licensee” is to be construed in accordance with section 17A(1) of the Water Industry Act 1991 ; b in the definition of “the relevant enforcement authority”, for paragraph (a) substitute— a in relation to a company whose area of appointment as a water undertaker is wholly or mainly in Wales or a person who is a water supply licensee as regards licensed activities using the supply system of any such water undertaker, the Welsh Ministers; . 3 In regulation 3(1)— a for “company”, in both places it occurs, substitute “person”; b in sub-paragraph (e), for “company’s” substitute “person’s”. 4 In regulation 4(d), for “company” substitute “person”. The Water Industry (Determination of Turnover for Penalties) Order 2005 19 1 The Water Industry (Determination of Turnover for Penalties) Order 2005 is amended as follows. 2 In article 2— a in paragraph (1)— i in paragraph (b) of the definition of “business year”, for “licensed water supplier” substitute “water supply licensee or sewerage licensee”; ii omit the definition of “company”; iii for the definition of “regulated activities” substitute— “regulated activities” means— in the case of a person holding an appointment as a water undertaker, its functions as a water undertaker; in the case of a person holding an appointment as a sewerage undertaker, its functions as a sewerage undertaker; in the case of a water supply licensee, the activities authorised by its water supply licence; or in the case of a sewerage licensee, the activities authorised by its sewerage licence; ; iv at the appropriate places insert— “person” means a relevant undertaker or a water supply licensee or a sewerage licensee; ; “sewerage licence” is to be construed in accordance with section 17BA(1) of the Act ;” . b in paragraph (2)— i for “company”, in each place it occurs, substitute “person”; ii for “company’s”, in both places it occurs, substitute “person’s”. 3 In article 3— a for “company”, in both places it occurs, substitute “person”; b in paragraph (4)— i in sub-paragraph (a) omit “or”; ii at the end of sub-paragraph (b) insert— or c a sewerage licence, . The Water Supply (Fluoridation Indemnities) (England) Regulations 2005 20 1 The Water Supply (Fluoridation Indemnities) (England) Regulations 2005 are amended as follows. 2 In regulation 1(2), for “licensed water suppliers” substitute “water supply licensees”. 3 In regulation 2(2), for “licensed water supplier” substitute “water supply licensee”. 4 In Schedule 2— a in the heading, for “LICENSED WATER SUPPLIERS” substitute “WATER SUPPLY LICENSEES”; b for “licensed water supplier”, in each place it occurs, substitute “water supply licensee”. The Water Supply (Exceptions from Supply System Prohibitions) Regulations 2005 21 In regulation 3(3)(a)(i) of the Water Supply (Exceptions from Supply System Prohibitions) Regulations 2005 , for “licensed water supplier” substitute “water supply licensee”. The Water Supply Licence (New Customer Exception) Regulations 2005 22 1 The Water Supply Licence (New Customer Exception) Regulations 2005 are amended as follows. 2 In regulation 3(1), for “licensed water supplier”, in both places it occurs, substitute “water supply licensee”. 3 In regulation 4, for “with the approval of the Secretary of State” substitute “from time to time with the approval of the Welsh Ministers”. 4 In regulation 5(1), for “licensed water supplier”, in each place it occurs, substitute “water supply licensee”. The Water Resale Order 2006 23 In the Water Resale Order 2006 made under section 150 of the 1991 Act by the Director General of Water Services — a in paragraph 4, “licensed water supplier” has effect as if it read “water supply licensee or sewerage services provided by a sewerage licensee”; b in paragraph 5, the definition of “Licensed water supplier” has effect as if it read— “Water supply licensee or sewerage licensee” is to be construed in accordance with section 17A(1) or 17BA(1) of the Act. ; c in paragraphs 6 and 9, “licensed water supplier”, in each place it occurs, has effect as if it read “water supply licensee or sewerage licensee”. The Cross-Border Insolvency Regulations 2006 24 In Article 1 of Schedule 1 to the Cross-Border Insolvency Regulations 2006 , in paragraph 2(a), for “licensed water supplier” substitute “water supply licensee”. The Water Industry (Special Administration) Rules 2009 25 In rules 3(1), 7(3) and (4)(b) and 8(1)(a) of the Water Industry (Special Administration) Rules 2009 , for “licensed water supplier” substitute “water supply licensee”. The Flood Risk Regulations 2009 26 In regulation 36(3)(e) of the Flood Risk Regulations 2009 , after “the Water Industry Act 1991 or” insert “a person who holds”. The Private Water Supplies (Wales) Regulations 2010 27 1 Regulation 8 of the Private Water Supplies (Wales) Regulations 2010 is amended as follows— a in the English language text— i in the heading, for “licensed water suppliers” substitute “water supply licensees”; ii for “licensed water supplier”, in both places it occurs, substitute “water supply licensee”; b in the Welsh language text— i in the heading, for “gyflenwyr dŵr trwyddedig” substitute “drwyddedeion cyflenwi dŵr”; ii for “gyflenwr dŵr trwyddedig”, in both places it occurs, substitute “drwyddedai cyflenwi dŵr”. The Water Supply (Water Quality) Regulations 2010 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Postal Services Act 2011 (Disclosure of Information) Order 2012 29 In article 4 of the Postal Services Act 2011 (Disclosure of Information) Order 2012 , after the entry for the Energy Act 2013 insert— the Water Act 2014; . The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 30 1 The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 are amended as follows. 2 In regulation 3— a for paragraph (3)(a) and (b) substitute— a in subsection (1) (when the general duties of the Secretary of State and the Authority apply), after “by virtue of”, there were inserted “the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 or”; b in subsection (2A) (primary duties) — i the “and” following paragraph (d) were repealed; ii for paragraph (e), there were substituted— e to further the resilience objective; f to secure that the functions of a licensed infrastructure provider are properly carried out; and g to secure that relevant licensed infrastructure providers are able (in particular, by securing reasonable returns on their capital) to finance the proper carrying out of those function” ; b omit paragraph (3)(f); c in paragraph (5)— i for “section 2(1)(a)” substitute “section 2(1)”; ii for “licensed water suppliers” substitute “water supply licensees and sewerage licensees”. 3 Schedule 1 is amended in accordance with paragraphs (4) to (16). 4 In paragraph 1(1)(a), after “paragraphs” insert “1A,”. 5 After paragraph 1 insert— Strategic priorities and objectives 1A Section 2A (strategic priorities and objectives: England) applies without modification. . 6 In paragraph 2— a for “licensed water supplier” substitute “water supply licensee or sewerage licensee”; b for ““supplier”” substitute ““sewerage licensee””. 7 In paragraph 3— a in sub-paragraph (1), for “(licensing of water suppliers)” substitute “(water supply licences)”; b in sub-paragraph (3)(b)(ii)(aa), for “licensed water supplier” substitute “sewerage licensee”; c for sub-paragraph (3)(b)(ii)(bb) substitute— bb for paragraph (b), there were substituted— b it is proposed that on and after the relevant date another company (“the transferee”) should carry on— i where the transferor is a qualifying water supply licensee, activities relating to the introduction or introductions of water mentioned in section 23(6)(b) of this Act which were carried on by the transferor until that date; ii where the transferor is a qualifying sewerage licensee, 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; or iii where the transferor is a licensed infrastructure provider, functions formerly carried on by the transferor in its capacity as a licensed infrastructure provider ; d for sub-paragraph (3)(b)(iv)(aa) substitute— aa in the definition of “other relevant companies”— i in paragraph (a), after “this Act” there were inserted “or, as the case may be, the functions to which its project licence relates; ii in paragraph (b), after “this Act” there were inserted “or, as the case may be, the functions to which its project licence relates” . 8 In paragraph 5— a in sub-paragraph (1), for “water supply licences” substitute “licences”; b in sub-paragraph (2)— i in the words before paragraph (a), for “(water supply licences: modification references to the CMA)” substitute “(modification references to competition authority)”; ii omit paragraph (a); iii in paragraph (b), for “after “a particular licence”” until the end substitute “after “a particular water supply or sewerage licence” there were inserted “or project licence granted under this Chapter””; iv in paragraph (c)(i), omit “, (iv)”; c in sub-paragraph (4)— i in the words before paragraph (a), omit “water supply licences:”; ii omit paragraph (a); iii in paragraph (b)(i), for “each of sub-paragraphs (ii) and (iv)” substitute “sub-paragraph (ii)”; d in sub-paragraph (5)— i in the words before paragraph (a), for “(water supply licences: modification following report)” substitute “(modification of licences following report)”; ii omit paragraph (a); iii in paragraph (b)(i), omit “, (iii)”; e in sub-paragraph (6)— i in the words before paragraph (a), for “(water supply licences: CMA’s power of veto following report)” substitute “(power of veto following report)”; ii omit paragraph (a); iii in paragraph (b)(i), omit “, (v)”; f in sub-paragraph (8)— i in the words before paragraph (a), for “(water supply licences: modification by order under the Enterprise Act 2002 )” substitute “(modification by order under other enactments)”; ii omit paragraph (a); iii in paragraph (b), for “combined licence” in both places it occurs, substitute “sewerage licence”. 9 In paragraph 6— a in sub-paragraph (1), for “licensed water supplier” substitute “water supply licensee or sewerage licensee”; b for “company”, in each place it occurs, substitute “person”. 10 In paragraph 7— a for “licensed water supplier”, in each place it occurs, substitute “water supply licensee”; b in sub-paragraph (2)(b), for “licensed water suppliers” substitute “water supply licensees”. 11 In paragraph 8— a in sub-paragraph (a)(i), for ““licensed water suppliers”” substitute ““sewerage licensees””; b for sub-paragraph (c)(ii), substitute— ii after “(see sections 17A and 17BA )” there were inserted “or project licences” . 12 In paragraph 11— a in sub-paragraph (2)(b)(ii) omit “and”; b after sub-paragraph (2)(b) insert— ba in subsection (6) (power of Authority to direct in relation to compliance of a charges scheme) — i in the words before paragraph (a), after “relevant undertaker’s”, there were inserted “or a licensed infrastructure provider’s”; ii in the words after paragraph (d), after “the undertaker”, there were inserted “or the licensed infrastructure provider”; bb in subsection (6B) (consultation with the Council about a charges scheme), after “relevant undertaker”, there were inserted “or a licensed infrastructure provider”; bc in subsection (6C) (power of Authority to direct in relation to compliance of a charges scheme with rules), after “relevant undertaker”, there were inserted “or a licensed infrastructure provider”; bd in subsection (6D) (duty to comply with a direction), after “relevant undertaker”, there were inserted “or a licensed infrastructure provider”; be after subsection (6D), there were inserted— 6E Rules (and revised rules) issued by the Authority under this section in relation to relevant undertakers have effect as if they were issued in relation to licensed infrastructure providers and apply to licensed infrastructure providers as they apply to relevant undertakers, unless otherwise stated. ; c omit sub-paragraph (2)(c); d after sub-paragraph (2) insert— 2A Section 143B (rules about charges schemes) applies as if— a in subsection (7), after “relevant undertakers”, there were inserted “or licensed infrastructure providers”; b after subsection (10), there were inserted— 11 Rules (and revised rules) issued by the Authority under this section in relation to relevant undertakers have effect as if they were issued in relation to licensed infrastructure providers and apply to licensed infrastructure providers as they apply to undertakers, unless otherwise stated.” 2B Section 143C (rules under section 143B: procedure) applies as if in subsection (6)(a), after “England”, there were inserted “or licensed infrastructure providers”. 2C Section 143D (rules under section 143B: minor or urgent revisions) applies without modification. 2D Section 143E (rules under section 143B: guidance) applies as if in subsection (7)(a), after “England”, there were inserted “or licensed infrastructure providers;” e in sub-paragraph (3)(a), in the text of section 144(1A)(b) of the 1991 Act as it has effect as inserted by that sub-paragraph, for “licensed water supplier” substitute “water supply licensee or sewerage licensee”; f after sub-paragraph (3) insert— 3A Section 144ZE (general guidance on charges) applies as if— a in subsection (13)(a), after “England”, there were inserted “or licensed infrastructure providers”; b after subsection (13), there were inserted— 14 Guidance (and revised guidance) issued by the Secretary of State under this section which applies to the Authority in relation to relevant undertakers whose areas are wholly or mainly in England has effect as if it was issued in relation to licensed infrastructure providers and applies to licensed infrastructure providers as it applies to the Authority in relation to relevant undertakers whose areas are wholly or mainly in England, unless otherwise stated. 3B Section 144ZF (guidance under section 144ZE: procedure) applies without modification. 13 In paragraph 13(1)(c)(ii), omit the words “in the first place it occurs,”. 14 In paragraph 14— a omit sub-paragraph (1)(a); b in sub-paragraph (6)— i for “licensed water suppliers”, in both places it occurs, substitute “water supply licensees and sewerage licensees”; ii in paragraph (c), for “licensed water supplier”, in both places it occurs, substitute “sewerage licensee”; c omit sub-paragraph (7)(a); d after sub-paragraph (7)(b) insert— c in subsection (8) (definition of “the Minister”), after paragraph (a)(ii), there were inserted— iii any licensed infrastructure provider carrying out functions using the supply system or sewerage system of any such undertaker” 15 In paragraph 15— a in sub-paragraph (a)— i in paragraph (i), for “licensed water supplier”, in both places it occurs, substitute “sewerage licensee”; ii in paragraph (ii), for “supplier”, in both places it occurs, substitute “licensee”; b in sub-paragraph (b)— i in paragraph (i), for “licensed water supplier”, in both places it occurs, substitute “sewerage licensee”; ii in paragraph (ii), for “supplier”, in both places it occurs, substitute “licensee”; and c in sub-paragraph (c)— i for “licensed water suppliers” substitute “water supply licensees and sewerage licensees”; ii for “licensed water supplier”, in both places it occurs, substitute “sewerage licensee”. 16 In paragraph 16(2)(a)(i), in paragraph (a)(i) of the definition of “customer or potential customer” as it has effect as substituted by that paragraph, for “licensed water supplier” substitute “water supply licensee or sewerage licensee”. The Insolvency (Protection of Essential Supplies) Order 2015 31 In article 2 of the Insolvency (Protection of Essential Supplies) Order 2015 , omit paragraph (4). The Water Supply (Water Quality) Regulations 2016 32 1 The Water Supply (Water Quality) Regulations 2016 are amended as follows. 2 In regulations 1(2)(b) and (3)(c), 19(3), 21, 26(2), 28(6), 34(1) and 36(2)(b), for “licensed water supplier”, in each place it occurs, substitute “water supply licensee”. 3 In regulation 2— a omit the definition of “combined licensee”; b in the definition of “relevant supplier”, for “licensed water supplier” substitute “water supply licensee”; c for the definition of “retail licensee” substitute— “retail licensee” means a person who is the holder of a water supply licence with a retail authorisation within the meaning of Schedule 2A to the Act; ; d in the definition of “water of a relevant description”, for “combined licensee” substitute “wholesale licensee”; e in the definition of “water supply zone”, for “licensed water supplier” substitute “water supply licensee”; f at the appropriate place insert— “wholesale licensee” means a person who is the holder of a water supply licence with a wholesale authorisation within the meaning of Schedule 2A to the Act ; . 4 In regulations 5(5), 8(3) and (4), 12(2), 13(1) and (4), 14 to 18, 19(1) and (2), 22(3) and (4), 26 to 28, 29(2) and (4), 31 to 34 and 37(2), for “combined licensee”, in each place it occurs, substitute “wholesale licensee”. 5 In regulation 34(2), after sub-paragraph (c) insert— ca particulars of all consumer contacts made in relation to the discharge of duties under these Regulations; . The Private Water Supplies (England) Regulations 2016 33 1 The Private Water Supplies (England) Regulations 2016 are amended as follows. 2 In regulation 2(1), in the definition of “private water supply” and “private supply of water”, for “licensed water supplier” substitute “water supply licensee”. 3 In regulation 8— a in the heading, for “licensed water suppliers” substitute “water supply licensees”; b for “licensed water supplier”, in both places it occurs, substitute “water supply licensee”. PART 4 Transitional provision The 1991 Act 34 The amendments made to section 185 of the 1991 Act by article 6(5) do not have effect— a in relation to water undertakers and sewerage undertakers whose areas are wholly or mainly in England until section 20 of the 2014 Act is brought into force by the Secretary of State; b in relation to water undertakers and sewerage undertakers whose areas are wholly or mainly in Wales until section 20 of the 2014 Act is brought into force by the Welsh Ministers. Thérèse Coffey Parliamentary Under Secretary of State Department for Environment, Food and Rural Affairs 30th March 2017