(i) section 34(1) and (2);

(j) sections 35 and 36;

(k) 15section 45;

(l) section 47;

(m) sections 48 and 49 and Schedule 8;

(n) section 50;

(o) sections 72 to 74;

(p) 20section 75 and Schedule 10;

(q) paragraph 4 of Schedule 7 (and section 44 so far as relating to paragraph
4);

(r) paragraph 90 of Schedule 7 (and section 44 so far as relating to
paragraph 90).

(3) 25The remaining provisions of this Act come into force on such day as the
appropriate authority may by order appoint.

(4) Different days may be appointed for different purposes.

(5) Except as stated in the table in Schedule 11, the appropriate authority for the
purposes of subsection (3) is the Secretary of State.

81 30Short title

This Act may be cited as the Water Act 2014.

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.

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.”

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—

5 “Supply 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—

(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 the 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.

(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 the 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—