House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Public Bill Committee: 10 December 2013
202

Water Bill, continued

(a)
for “the NRBW” there is substituted “the Welsh Ministers”;

(b)
at the end there is inserted “, or such person as the Welsh Ministers may

from time to time appoint as the appropriate person in relation to such

disputes.”

(7)
After subsection (11) there is inserted—

“(12)
A person may be appointed as the appropriate person under subsection

(11)(b) only if the person is independent of the NRBW.

(13)
A person is independent of the NRBW for the purposes of subsection

(12) if the person is—

(a)
an individual who is not a member of the NRBW or the NRBW’s

staff, or

(b)
a body none of whose members is a member of the NRBW or the

NRBW’s staff.’.

Primary duty of sustainable development

Roger Williams

nc23

To move the following Clause:—

‘(1)
Section 2(3)(e) of the Water Industry Act 1991 is omitted.

(2)
In section 2(2A) of the Water Industry Act 1991, there is inserted—

“(e)
to contribute to the achievement of sustainable development”.’.

Consumer redress

Dan Rogerson

NC24

To move the following Clause:—

‘(1)
The Water Services Regulation Authority may modify the conditions of—

(a)
a pre-commencement appointment of a water or sewerage undertaker, or

(b)
a pre-commencement water supply licence,


so as to include conditions relating to the provision of a consumer redress scheme.

(2)
In subsection (1)—

(a)
“pre-commencement appointment of a water or sewerage undertaker”

means an appointment of a company under Chapter 1 of Part 2 of the

Water Industry Act 1991 to be a water or sewerage undertaker which is

made before the day on which this section comes into force, and

(b)
“pre-commencement water supply licence” means a licence under

Chapter 1A of Part 2 of the Water Industry Act 1991 granted before that

day.

Public Bill Committee: 10 December 2013
203

Water Bill, continued

(3)
In this section, “consumer redress scheme” means a scheme or other

arrangements for unresolved complaints to be investigated and determined by an

independent person.

(4)
The conditions that may under subsection (1) be included in an appointment or

licence include in particular conditions requiring the company holding the

appointment or the person holding the licence—

(a)
to secure the provision of a consumer redress scheme, or

(b)
to secure the provision of a consumer redress scheme which is of a

description specified in the conditions or which meets requirements so

specified.

(5)
Where under subsection (1) the Authority modifies conditions of an appointment

or licence, it may make such incidental or consequential modifications of other

conditions of the appointment or, as the case may be, other conditions of the

licence as it considers necessary or expedient.

(6)
The power of the Authority under subsection (1) to modify the conditions of an

appointment or licence may not be exercised after the end of the period of two

years beginning with the day on which this section comes into force.

(7)
Before making a modification under this section the Authority must consult—

(a)
the company holding the appointment or the person holding the licence;

(b)
the Secretary of State;

(c)
the Welsh Ministers;

(d)
the Consumer Council for Water;

(e)
such other persons as the Authority thinks it appropriate to consult.

(8)
The Minister may direct the Authority not to make a modification that it proposes

to make under this section; and the Authority must comply with such a direction.

(9)
In subsection (8) “the Minister” means—

(a)
the Secretary of State, in relation to—

(i)
a water or sewerage undertaker whose area is wholly or mainly

in England;

(ii)
a person who holds a licence under Chapter 1A of Part 2 of the

Water Industry Act 1991;

(b)
the Welsh Ministers, in relation to a water or sewerage undertaker whose

area is wholly or mainly in Wales.’.

Exit from the non-household retail market

Thomas Docherty

NC25

To move the following Clause:—

‘A company granted a water supply licence under section 17A of the Water

Industry Act 1991, prior to Royal Assent of this Act, may choose to provide to—

(a)
the retail market, or

(b)
the wholesale market

only.’.

Member’s explanatory statement

Public Bill Committee: 10 December 2013
204

Water Bill, continued

Enables water companies to exit the retail market.

Separation of retail and wholesale activities

Thomas Docherty

NC26

To move the following Clause:—

‘A company granted a water supply licence under section 17A of the Water

Industry Act 1991, prior to Royal Assent of this Act, must establish separate legal

identities for its—

(a)
retail activities, and

(b)
wholesale activities

within one year of Royal Assent of this Act.’.

Member’s explanatory statement

Requires the wholesale and retail arms of the water companies to be separate legal entities, within

a year of Royal Assent.

Abstraction reform

Thomas Docherty

NC27

To move the following Clause:—

‘(1)
The Secretary of State may by order (the “commencement order”) appoint a day

on which section 1 is to come into force.

(2)
The Secretary of State may only make an order under subsection (1) if—

(a)
new primary legislation on the licensing of abstraction has been passed;

and

(b)
five years has expired since the passage of any legislation under

paragraph (a).’.

Member’s explanatory statement

The Secretary of State may not implement upstream reform as set out in the Water Bill, until new

primary legislation on the licensing of abstraction has been passed, and five years has expired to

allow for its implementation.

Standardised terms and conditions for new entrants

Thomas Docherty

NC28

To move the following Clause:—

Public Bill Committee: 10 December 2013
205

Water Bill, continued

‘Any company granted a water supply licence under section 17A of the Water

Industry Act 1991, following Royal Assent of this Act, must be—

(a)
offered comparable terms and conditions as any company granted a water

supply licence prior to Royal Assent of this Act; and

(b)
all terms and conditions must be subject to scrutiny by the regulator.’.

Member’s explanatory statement

Ofwat would require each wholesaler to produce standardised terms and conditions for new

entrants.

Billing information: affordability

Thomas Docherty

NC29

To move the following Clause:—

‘Any company providing water services to a residential household must include

on its bills—

(a)
details of any tariffs provided by that company;

(b)
a recommendation of the lowest possible tariff for each residential

household; and

(c)
information regarding eligibility criteria and how to make an application

for assistance under Water Sure.’.

Member’s explanatory statement

Water companies are required to provide information regarding all tariffs and all affordability

schemes alongside customer water bills.

National Affordability Scheme

Thomas Docherty

NC30

To move the following Clause:—

‘(1)
The Secretary of State must, by order, introduce a National Affordability Scheme

for water.

(2)
The National Affordability Scheme must include an eligibility criteria,

determined by the Secretary of State, in consultation with—

(a)
the Water Services Regulation Authority; and

(b)
the Consumer Council for Water.

(3)
An order under this section—

(a)
shall be made by statutory instrument, and

(b)
may not be made unless a draft of the order has been laid before and

approved by resolution of each House of Parliament.’.

Member’s explanatory statement

The Secretary of State is required to bring forward a National Affordability Scheme, with an

eligibility criteria prescribed by the Secretary of State in the form of a statutory instrument, subject

Public Bill Committee: 10 December 2013
206

Water Bill, continued

to the approval of both Houses.

Oversight of charges

Thomas Docherty

NC31

To move the following Clause:—

‘In section 2 of the Water Industry Act 1991 (general duties with respect of the

water industry), after subsection (2C) there is inserted—

“(2CA)
For the purposes of subsection (2A)(a) above the Secretary of State or, as

the case may be, the Authority shall have regard to the rates of charges

to—

(a)
household premises; and

(b)
non-household premises.”.’.

Member’s explanatory statement

Ofwat are required to consider the rates of charges to household and non-household premises.

Primary duty of sustainable development

Thomas Docherty

NC32

To move the following Clause:—

‘(1)
Section 2 of the Water Industry Act 1991 (General duties with respect to water

industry) is amended as follows.

(2)
In subsection (2A)—

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

(b)
after paragraph (d) insert “; and

(e)
to contribute to the achievement of sustainable

development.”.

(3)
In subsection (3) omit paragraph (e).’.

Member’s explanatory statement

Elevate Ofwat’s sustainable development duty from a secondary duty to a primary duty.

Duties of undertakers to furnish the Secretary of State with information: annual review

Thomas Docherty

NC33

To move the following Clause:—

Public Bill Committee: 10 December 2013
207

Water Bill, continued

‘(1)
Section 202 of the Water Industry Act 1991 (duties of undertakers to furnish the

Secretary of State with information) is amended as follows.

(2)
After subsection (1A) there is inserted—

“(1B)
Any company with a duty under subsections (1) and (1A) must furnish

the Secretary of State and the Authority with an annual review which

provides information about—

(a)
their performance;

(b)
the total amount of investment;

(c)
their taxation structure;

(d)
their corporate structure; and

(e)
the total amount of dividends paid to shareholders.

(1C)
Information under subsection (1B) must be provided prior to the

publication of the annual statement of the Secretary of State under section

2A.”.’.

Member’s explanatory statement

Water companies are required to provide information annually to the Secretary of State regarding

their performance, investment, taxation structure, corporate structure and total amount of

dividends paid to shareholders.

Consumer redress

Thomas Docherty

NC34

To move the following Clause:—

‘(1)
Section 29 of the Water Industry Act 1991 (Consumer complaints) is amended as

follows.

(2)
After subsection (11) there is inserted—

“(11A)
Following the production of a report under subsection (10), the Council

will have the right to—

(a)
be consulted on a water company’s charging scheme, and any

changes to it, and

(b)
investigate and resolve matters as it sees fit.”.’.

Member’s explanatory statement

Enables the Consumer Council for Water to be consulted on the charging schemes of water

companies and, if necessary, to investigate and resolve customer complaints.

Onshore oil or gas activities—effect on water environment

Roger Williams

nc35

To move the following Clause:—

Public Bill Committee: 10 December 2013
208

Water Bill, continued

‘In Part 1 of Schedule 5 of the Environmental Permitting (England and Wales)

Regulations 2010 there shall be inserted after paragraph 13 the following—

“Onshore oil or gas activities—effect on water environment

13A(1)
Without prejudice to the operation of Regulation 35(2) and paragraph

5(1)(d) of Schedule 10 and of Regulation 35(2) and paragraph 7(j) of

Schedule 20, the regulator shall refuse an application for the grant or

variation of an environmental permit or for the transfer in whole or in

part of an environmental permit if—

(a)
the regulated facility to which the application for or transfer of

the environmental permit relates is to be carried on as part of

an onshore oil or gas activity; and

(b)
the regulator is not satisfied that the applicant or the proposed

transferee has made or will make adequate financial provision

for preventing or mitigating pollution of the water

environment, by ensuring all of the following—

(i)
operation of the regulated facility in accordance with

the environmental permit;

(ii)
compliance with any enforcement notice or

suspension notice or prohibition notice or mining

waste facility closure notice or landfill closure notice

which may be served on the applicant or transferee by

the regulator under these Regulations;

(iii)
compliance with any order of the High Court which

may be obtained against the applicant or transferee

under Regulation 42 for the purpose of securing

compliance with any of the notices listed in sub-

paragraph (ii).

(iv)
compliance with any order of any court issued under

Regulation 44 against the applicant or transferee; and

(v)
recovery by the regulator of its costs upon any

exercise of its power against the applicant or

transferee under Regulation 57;

(c)
for the purpose of this paragraph ‘onshore oil or gas activity’

means any activity for the purpose of exploration for or

extraction of onshore oil and gas;

(d)
for the purpose of this paragraph ‘adequate provision by way

of financial security’ means financial provision which is

sufficient in value, secure and available when required.”.’.

Exit from the non-household retail market (No. 2)

Thomas Docherty

nc36

To move the following Clause:—

‘A company appointed to be a water undertaker under section 6 of the Water

Industry Act 1991, prior to Royal Assent of this Act, may choose to provide to—

(a)
the retail market; or



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