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(a) provide that section 66(5) and Schedule 5 do not apply to
byelaws made under section 66 by internal drainage boards for
internal drainage districts which are neither wholly nor partly
in Wales, and

(b) 5make provision about the procedure for the making and coming
into force of such byelaws.

(2) The regulations may, in particular, include provision about—

(a) consultation to be undertaken before a byelaw is made;

(b) publicising a byelaw after it is made.

(3) 10The regulations may make such incidental, consequential, transitional
or supplemental provision (including provision amending or repealing
any provision of this Act) as the Secretary of State considers
appropriate.

(4) Regulations may not be made under subsection (1) unless a draft of the
15instrument containing the regulations has been laid before, and
approved by a resolution of, each House of Parliament.

50 Publication requirements under the Land Drainage Act 1991

Schedule 9 (amendments of the Land Drainage Act 1991 to remove certain
restrictions on the way in which documents have to be published) has effect.

51 20Amendments relating to Regional Flood and Coastal Committees

Schedule 10 (amendments relating to Regional Flood and Coastal Committees)
has effect.

Part 6 General and final

52 25Power to make consequential provision

(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) 30to 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
35Parliament, 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.

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53 Transitional, transitory or saving provision

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
5Act.

54 Financial provisions

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
10out of money so provided.

55 Extent

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

(2) Sections 44 and 45 and Schedule 8 extend also to Scotland, but only so far as
required for the purposes of regulations applying as mentioned in section
1544(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.

56 20Commencement

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

(a) sections 52, 53, 54 and 55;

(b) this section;

(c) 25section 57.

(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 22;

(c) 30section 31;

(d) section 41;

(e) paragraph 4 of Schedule 7 (and section 40 so far as relating to paragraph
4);

(f) paragraph 88 of Schedule 7 (and section 40 so far as relating to
35paragraph 88).

(3) Section 5 and Schedule 5 come into force on such day as the Welsh Ministers
may by order made by statutory instrument appoint.

(4) A statutory instrument containing an order to be made by the Welsh Ministers
under subsection (3) may not be made unless a draft has been laid before and
40approved by a resolution of the National Assembly for Wales.

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(5) Section 7 comes into force on such day as the Scottish Ministers may by order
appoint.

(6) The remaining provisions of this Act come into force on such day as the
Secretary of State may by order made by statutory instrument appoint.

(7) 5An order under this section made by the Secretary of State or the Scottish
Ministers may appoint different days for different purposes.

57 Short title

This Act may be cited as the Water Act 2013.

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SCHEDULES

Section 1

SCHEDULE 1 Water supply licences: authorisations

Operation of the authorisations in England and Wales

1 5In 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.

2 10In 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.

15Retail authorisation

3 A 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) 20persons associated with the licensee, or

(c) the licensee’s customers.

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

Wholesale authorisation

5 25A 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
30licensee’s) is to take place, and

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

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Restricted retail authorisation

6 A 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
5licensee’s customers.

7 The 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
10defined in section 17C);

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

Supplementary authorisation

8 A supplementary authorisation given by a water supply licence is an
15authorisation 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
20intended supply.

Enforcement and guidance

9 The 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
25State, 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.

30Interpretation

11 For 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) 35where 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.

12 40In 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 13 as they apply for the purposes of Part 10 of that Act.”

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Section 1

SCHEDULE 2 Water undertakers’ duties as regards water supply licensees

1 For sections 66A to 66C of the Water Industry Act 1991, and the Chapter
heading and italic heading preceding section 66A, there is substituted—

5Supply duties etc: water supply licensees

Duties of undertakers to supply water supply licensees etc

66A Use of water undertaker’s supply system

(1) This section applies where a water supply licensee with a retail
authorisation (“L”) requests a water undertaker to permit the use of
10the undertaker’s supply system for the purpose of supplying water
to premises that—

(a) L is to supply in accordance with L’s retail authorisation, and

(b) are in the area of the undertaker.

(2) This section also applies where a water supply licensee with a
15restricted retail authorisation (“R”) requests a water undertaker to
permit the use of the undertaker’s supply system for the purpose of
supplying water to premises that—

(a) R is to supply in accordance with R’s restricted retail
authorisation, and

(b) 20are in the area of the undertaker.

(3) Where this section applies, the undertaker must in accordance with
a section 66D agreement take such steps—

(a) for the purpose of connecting the premises in question with
the undertaker’s supply system, or

(b) 25in respect of that system,

as may be provided for in that agreement in order to enable the
requested use of the undertaker’s supply system.

(4) A water undertaker is not required by this section to permit the use
of its supply system, or to take any steps to enable its use, if the first
30or second ground applies.

(5) The first ground is that—

(a) in the case of a request under subsection (1), the water supply
licensee has not secured by means of—

(i) a request under section 66AA(1) made by the licensee,

(ii) 35a request under section 66B(1) or 66C(1), (2) or (3)
made by the licensee or another water supply
licensee, or

(iii) a combination of such requests,

a supply of water, or the introduction of a supply of water, in
40connection with which the premises in question are to be
supplied;

(b) in the case of a request under subsection (2), the water supply
licensee has not secured by means of—

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(i) a request under section 66AA(2), 66B(2) or (3) or
66C(4), or

(ii) a combination of such requests,

a supply of water, or the introduction of a supply of water, in
5connection with which the premises in question are to be
supplied.

(6) The second ground is that there is in relation to the water fittings
used or to be used in connection with—

(a) the supply of water to the premises in question, or

(b) 10the use of water in those premises,

a contravention of such of the requirements of regulations under
section 74 as are prescribed for the purposes of this subsection.

(7) Where—

(a) a request has been made by a water supply licensee for the
15purposes of subsection (1) or (2), and

(b) the steps which the undertaker is required to take by virtue
of that request include steps for the purpose of obtaining any
necessary authority for, or agreement to, any exercise by it of
any of its powers or the carrying out by it of any works,

20the failure of the undertaker to acquire the necessary authority or
agreement does not affect the liability of the licensee to reimburse the
undertaker in respect of some or all of expenses incurred by it in
taking those steps, if the section 66D agreement provides for such
liability as regards those steps.

(8) 25In this section and sections 66AA to 66C—

(a) “prescribed” means, in relation to a water undertaker whose
area is wholly or mainly in Wales, prescribed by regulations
made by the Welsh Ministers by statutory instrument, which
is subject to annulment in pursuance of a resolution of the
30Assembly;

(b) a reference to the supply system of a water undertaker is to
be construed in accordance with section 17B;

(c) references to a retail authorisation or a restricted retail
authorisation are to be construed in accordance with
35Schedule 2A.

66AA Water supply from water undertaker

(1) This section applies where a water supply licensee with a retail
authorisation (“L”) requests a water undertaker to provide L with a
supply of water for the purpose of supplying water to premises
40that—

(a) L is to supply in accordance with L’s retail authorisation, and

(b) are in the area of the undertaker.

(2) This section also applies where a water supply licensee with a
restricted retail authorisation (“R”) requests a water undertaker to
45provide R with a supply of water for the purpose of supplying water
to premises that—

(a) R is to supply in accordance with R’s restricted retail
authorisation, and

(b) are in the area of the undertaker.

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(3) Where this section applies, the undertaker must in accordance with
a section 66D agreement—

(a) take such steps in respect of the undertaker’s supply system
as may be provided for in that agreement in order to enable
5the use of the undertaker’s supply system for the purpose in
subsection (1) or, as the case may be, subsection (2), and

(b) having taken such steps, provide the requested supply of
water.

(4) A water undertaker is not required by this section to provide a
10supply of water if both of the first and second grounds apply.

(5) The first ground is that—

(a) the premises to be supplied by L or, as the case may be, R do
not consist in the whole or any part of a building, or

(b) the supply to be made by L or, as the case may be, R to those
15premises is for purposes other than domestic purposes.

(6) The second ground is that provision of a supply of water by the
water undertaker would—

(a) require the undertaker, in order to meet all its existing
obligations to supply water for domestic or other purposes,
20together with its probable future obligations to supply
buildings and parts of buildings with water for domestic
purposes, to incur unreasonable expenditure in carrying out
works, or

(b) otherwise put at risk its ability to meet any of the existing or
25probable future obligations mentioned in paragraph (a).

(7) Where—

(a) a request has been made by a water supply licensee for the
purposes of subsection (1) or (2), and

(b) the steps which the undertaker is required to take by virtue
30of that request include steps for the purpose of obtaining any
necessary authority for, or agreement to, any exercise by it of
any of its powers or the carrying out by it of any works,

the failure of the undertaker to acquire the necessary authority or
agreement does not affect the liability of the licensee to reimburse the
35undertaker in respect of some or all of expenses incurred by it in
taking those steps, if the section 66D agreement provides for such
liability as regards those steps.

66B Introduction of water into water undertaker’s supply system

(1) This section applies where—

(a) 40a water supply licensee with a wholesale authorisation (“L”)
requests a water undertaker to permit L to introduce water
into the undertaker’s supply system, with a view to the use
of that system, in connection with that introduction of water,
to supply water to particular premises in accordance with a
45retail authorisation (whether L’s or another’s), and

(b) the premises in issue are in the area of the undertaker.

(2) This section also applies where—

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(a) a water supply licensee with a supplementary authorisation
(“R1”) requests a water undertaker to permit R1 to introduce
water into the undertaker’s supply system, with a view to the
use of that system, in connection with that introduction of
5water, to supply water to particular premises in accordance
with R1’s restricted retail authorisation, and

(b) the premises in issue are in the area of the undertaker.

(3) This section also applies where—

(a) a water undertaker agrees to permit a water supply licensee
10with a supplementary authorisation (“R2”) to introduce
water into the undertaker’s treatment works,

(b) in connection with that introduction, R2 requests the
undertaker to permit R2 to introduce water into the
undertaker’s supply system, with a view to the use of that
15system to supply water to particular premises in accordance
with R2’s restricted retail authorisation, and

(c) the premises in issue are in the area of the undertaker.

(4) Where this section applies, the undertaker must in accordance with
a section 66D agreement—

(a) 20in a case falling within subsection (1), take such steps—

(i) for the purpose of connecting L’s source of water with
the undertaker’s supply system, or

(ii) in respect of the undertaker’s supply system,

as may be provided for in that agreement in order to enable
25L to make the requested introduction of water into the supply
system;

(b) in a case falling within subsection (2), take such steps—

(i) for the purpose of connecting R1’s treatment works
with the undertaker’s supply system,

(ii) 30for the purpose of connecting with the undertaker’s
supply system any source used by R1 for the purpose
of supplying water other than for domestic or food
purposes, or

(iii) in respect of the undertaker’s supply system,

35as may be provided for in that agreement in order to enable
R1 to make the requested introduction of water into the
supply system;

(c) in a case falling within subsection (3), take such steps in
respect of the undertaker’s supply system as may be
40provided for in that agreement in order to enable R2 to make
the requested introduction of water into the supply system;

(d) having taken steps under paragraph (a), (b) or (c) (as the case
may be), permit the requested introduction of water into that
supply system.

(5) 45A water undertaker is not required by this section to permit the
introduction of water into its supply system, or to take any steps to
enable such an introduction of water, if permitting the introduction
of water into the undertaker’s supply system would—

(a) require the undertaker, in order to meet all its existing
50obligations to supply water for domestic or other purposes,

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together with its probable future obligations to supply
buildings and parts of buildings with water for domestic
purposes, to incur unreasonable expenditure in carrying out
works, or

(b) 5otherwise put at risk its ability to meet any of the existing or
probable future obligations mentioned in paragraph (a).

(6) Where—

(a) a request has been made by a water supply licensee for the
purposes of subsection (1), (2) or (3), and

(b) 10the steps which the undertaker is required to take by virtue
of that request include steps for the purpose of obtaining any
necessary authority for, or agreement to, any exercise by it of
any of its powers or the carrying out by it of any works,

the failure of the undertaker to acquire the necessary authority or
15agreement does not affect the liability of the licensee to reimburse the
undertaker in respect of some or all of expenses incurred by it in
taking those steps, if the terms and conditions of the section 66D
agreement provide for such liability as regards those steps.

(7) In this section “treatment works” means—

(a) 20in relation to a water undertaker whose area is wholly or
mainly in Wales, the works designated as treatment works by
the Secretary of State for the purposes of section 17B(6);

(b) in relation to a water supply licensee, the works designated
from time to time by the Welsh Ministers as treatment works
25for the purposes of this paragraph.

(8) A list of any works designated for the purposes of subsection (7)(b)
must be published from time to time by the Welsh Ministers in such
manner as the Welsh Ministers consider appropriate for the purpose
of bringing the designations to the attention of persons likely to be
30affected by them.

(9) A pipe laid because of subsection (4)(a)(i) or (b)(i) or (ii) is to be
regarded as a water main for the purposes of this Act, subject to any
provision to the contrary.

(10) In this section and section 66C—

(a) 35a reference to a wholesale authorisation is to be construed in
accordance with Schedule 2A;

(b) a reference to a supplementary authorisation is to be
construed in accordance with Schedule 2A.

66C Introduction of water provided by secondary water undertaker

(1) 40This section applies where a water supply licensee with a wholesale
authorisation (“L1”)—

(a) requests a water undertaker other than L1’s primary water
undertaker (the “secondary water undertaker”) to provide a
supply of water so that water may be supplied to particular
45premises, using the primary water undertaker’s supply
system and in accordance with a retail authorisation
(whether L1’s or another’s), and

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