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authorisation,” are repealed.

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repealed.

15 (1) 5Section 17HA (standard conditions of sewerage licences) (inserted by
Schedule 7) is amended as follows.

(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
10Welsh Ministers)”.

16 In 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licence,” are repealed;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) 15in subsection (5A), the words “in relation to a water supply licence”
are repealed.

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

(2) In subsection (4)(b)(iv), the words from the beginning to “licence,” are
20repealed.

(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repealed.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supply licences” are repealed.

18 25In 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(5)(b)(iv), the words from the beginning to “licences,” are repealed.

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

(2) 30In 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repealed.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repealed.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,”
35are repealed.

20 In section 17O (modification of licences following report) (as amended by
Schedule 7), in subsection (5)(c)(ii), the words from the beginning to “or
licences,” are repealed.

21 In section 17P (water supply licences: Commission’s power of veto
40following report) (as amended by Schedule 7), in subsection (7)(b)(v), the
words from the beginning to “licences,” are repealed.

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are repealed.

23 In section 24 (special administration orders made on special petitions) (as
5amended by Schedule 7), in subsection (1B), the words from “in relation to”
to “supplementary authorisation,” are repealed.

24 In section 27C (the interests of consumers) (as amended by Schedule 7)—

(a) in subsection (1)—

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

(ii) 10paragraph (f) and the “and” preceding it are repealed;

(b) subsection (2) is repealed.

25 In section 52 (the domestic supply duty), subsection (4A)(c) and the “and”
preceding it are repealed.

26 (1) Section 66A (use of water undertaker’s supply system) (inserted by
15Schedule 2) is amended as follows.

(2) Subsection (2) is repealed.

(3) In subsection (6)—

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

(b) 20paragraph (b) is repealed.

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

(5) In subsection (8)(c), the words “or a restricted retail authorisation” are
repealed.

27 (1) Section 66AA (water supply from water undertaker) (inserted by Schedule
252) is amended as follows.

(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) 30in 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.

28 (1) Section 66B (introduction of water into water undertaker’s supply system)
(inserted by Schedule 2) is amended as follows.

(2) 35Subsections (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) 40in 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.

29 (1) Section 66C (introduction of water provided by secondary undertaker)
5(inserted by Schedule 2) is amended as follows.

(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
10repealed.

(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.

30 15In section 66E (rules about charges) (inserted by Schedule 2), in subsection
(3), the words “or restricted retail authorisation” are repealed.

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

32 20In section 66G (designation of strategic supply) (as amended by Schedule 2),
in subsection (11), the words from “or a restricted retail authorisation” to the
end are repealed.

33 In section 66H (designation of collective strategic supply) (as amended by
Schedule 2), in subsection (11), the words from “or a restricted retail
25authorisation” to the end are repealed.

34 (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.

(2) In subsection (1A)—

(a) in paragraph (a), the words “or restricted retail authorisation” are
30repealed;

(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.

35 (1) 35Section 117G (codes under section 117F: procedure) (inserted by Schedule 4)
is amended as follows.

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

“(aa) the Welsh Ministers;”.

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

“(4) 40Before 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) 5the 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
10Authority 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) 15If 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) 20In subsection (5), for “the code prepared by the Authority” there is
substituted “a code in relation to which a direction may be given”.

(5) 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;”.

(6) 25The 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
304), or

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

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

(2) 35In 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—

(a) 40not to issue the rules, or

(b) to issue the rules with modifications.

(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
5undertakers 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;”.

37 (1) Section 117L (rules under section 117I: guidance) (inserted by Schedule 4) is
10amended as follows.

(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) 15such 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) 20the Welsh Ministers, in relation to sewerage undertakers
whose areas are wholly or mainly in Wales.”

38 (1) Section 117M (designation of strategic sewerage provision) (inserted by
Schedule 4) is amended as follows.

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

“(aa) 25the 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
30Wales;”.

39 (1) Section 117N (designation of collective strategic sewerage provision)
(inserted by Schedule 4) is amended as follows.

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

“(aa) the Welsh Ministers;”;

(3) 35In subsection (8), after paragraph (a) there is inserted—

“(aa) the Welsh Ministers;”;

40 In section 117O (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.

41 40In section 117P (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.

42 In section 117R (section 117Q: 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 117Q(1),
or

(b) 5give 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 117Q apply in relation
10to 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
15pursuance of a resolution of the Assembly.”

43 (1) Schedule 2A (water supply licences: authorisations) (inserted by Schedule 1)
is amended as follows.

(2) Paragraphs 1 and 2 are repealed.

(3) Paragraphs 6 to 8 are repealed.

(4) 20In 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 35

SCHEDULE 6 Procedure on appeals under section 207A of the Water Industry Act 1991

25Regulations as to procedure

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

Particular provision

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

(a) 30making 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) 35the 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) 5enabling 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) 10the 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
15appeal);

(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.

20Consideration and determination of appeals

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) 25provision 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.

Evidence

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

(a) 30requiring 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) 35requiring 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
40produce 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
45proceedings 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
5where—

(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
10paragraph 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) 15having 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
20guilty 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) 25The 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) 30on conviction on indictment, by imprisonment for a term not
exceeding two years or by a fine, or by both.

Appeal rules

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

(2) The rules may include provision supplementing regulations made under
35this 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
40it 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.

Interpretation

7 In this Schedule—

• “appeal” means an appeal under section 207A;

• “appeal rules” means rules under paragraph 6;

• 5“statement of truth” means a statement that the person producing the
  document believes the facts stated in the document to be true.”

Section 40

SCHEDULE 7 Further amendments

Water Industry Act 1991 (c. 56)Water Industry Act 1991 (c. 56)

1 10The Water Industry Act 1991 is amended as follows.

2 (1) Section 2 (general duties with respect to water industry) is amended as
follows.

(2) In subsection (1)(a), for “and of licensed water suppliers” there is substituted
“, water supply licensees and sewerage licensees”.

(3) 15In subsection (2A)(d), for “of a licensed water supplier” there is substituted
“of a water supply licensee or sewerage licensee”.

(4) In subsection (2C)—

(a) the “and” after paragraph (d) is repealed;

(b) in paragraph (e), for the words from “not eligible” to the end there is
20substituted “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
25of a relevant undertaker whose area is wholly or
mainly in Wales,”.

(5) In subsection (2D), for the words from “not eligible” to “the total quantity”
there is substituted “below the consumption threshold if the total quantity”.

(6) In subsection (2DB) (inserted by section 22), in paragraph (b) (meaning of
30sewerage systems), for the words from “a reference to the system
comprising” to the end there is substituted “to be construed in accordance
with section 17BA(7)”.

(7) In subsection (5A), in the definition of “the interests of consumers”—

(a) in paragraph (a), for “licensed water suppliers” there is substituted
35“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”.

(8) In subsection (6)—

(a) 40in paragraph (a), for “and of licensed water suppliers” there is
substituted “, water supply licensees and sewerage licensees”;

(b) in paragraph (a), for the words from “contained in” to “153,”, there is
substituted “contained in—

“(i) Part 2 of this Act (except section 27A and
Schedule 3A), or

(ii) 5any of sections 37A to 38, 38ZA, 39, 39ZA, 39B,
39C, 40B to 40F, 66B, 66CA, 66D, 66DA to
66EA, 66F to 66H, 66K to 66M, 95, 95ZA, 96,
96ZA, 110C to 110G, 117E to 117N, 117Q,
117R, 153,”;

(c) 10in paragraph (b), “43, 43A,” and “100 and 100A” are repealed;

(d) in paragraph (b), for “, 99,” there is substituted “and 99”.

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

4 15In section 12 (determinations under conditions of appointment), in
subsection (3B) (application of certain provisions to references to
competition authority under section 12) for “sections 16A and 16B” there is
substituted “sections 14A and 14B”.

5 For the heading of Chapter 1A of Part 2 there is substituted—

“Water supply licences and sewerage licences”.

6 (1) 20Section 17B (provision supplementary to section 17A) is amended as
follows.

(2) For the title there is substituted “Meaning of supply system”.

(3) Subsections (1) to (4) (provision as to guidance on extent of premises) are
repealed.

(4) 25Subsection (9) (references to a licensed water supplier) is repealed.

7 In 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”.

8 (1) Section 17D (the threshold requirement) is amended as follows.

(2) 30In subsection (1) (purpose of section 17D)—

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

(b) after “the supply of water to any premises” there is inserted “in
accordance with a restricted retail authorisation”.

(3) 35In subsection (2) (description of the requirement), for “licensed water
supplier” there is substituted “water supply licensee”.

(4) In subsection (3) (guidance on making estimate)—

(a) after “guidance issued” there is inserted “from time to time”;

(b) for “the Secretary of State” there is substituted “the Welsh Ministers”.

(5) 40Subsection (5) (duty of Secretary of State to consult the National Assembly
for Wales before issuing guidance) is repealed.