Water Bill (HC Bill 146)

Act relating to a suspected infringement of the Chapter 2
prohibition imposed by section 18(1) of that Act.

(9) In this Chapter a reference to a section 117E agreement is a reference
to—

(a) 5an agreement for the performance of a duty under sections
117A to 117D by a sewerage undertaker, or

(b) an order deemed to be such an agreement under subsection
(3), or

(c) an agreement varied by order under subsection (4).

117F 10Codes in respect of section 117E agreements

(1) The Authority may issue one or more codes in respect of section 117E
agreements.

(2) A code may make provision about—

(a) procedures in connection with making a section 117E
15agreement;

(b) procedures in connection with varying or terminating a
section 117E agreement;

(c) the terms and conditions of a section 117E agreement,
including terms as to the duration of such an agreement;

(d) 20principles for determining the terms and conditions that
should or should not be incorporated into a section 117E
agreement.

(3) A code may make provision about the steps to be taken by the
Authority in determining for the purposes of section 117E(2)
25whether a sewerage undertaker is, in the particular case, required to
perform a duty under sections 117A to 117D.

(4) If the Authority considers that a sewerage undertaker or a sewerage
licensee is not acting as required by a code, the Authority may give
the undertaker or the licensee a direction to do, or not to do, a thing
30specified in the direction.

(5) The Authority may not give a direction under subsection (4)
requiring a person to enter into, vary or terminate an agreement.

(6) It is the duty of a sewerage undertaker or a sewerage licensee to
comply with a direction under subsection (4), and this duty is
35enforceable by the Authority under section 18.

(7) A code may make—

(a) different provision for different persons or descriptions of
person;

(b) different provision for different duties under sections 117A to
40117D.

(8) The Authority may from time to time revise a code issued under this
section and issue a revised code.

(9) A revised code may include provision for applying any of its
revisions to section 117E agreements made before the revised code
45comes into effect.

117G Codes under section 117F: procedure

(1) Before issuing a code under section 117F, the Authority must—

(a) prepare a draft of the proposed code under section 117F, and

(b) consult persons in accordance with subsections (2) and (3).

(2) 5The relevant persons are—

(a) the Secretary of State;

(b) the appropriate agency;

(c) the Council;

(d) any sewerage undertakers likely to be affected by the
10proposed code;

(e) any sewerage licensees likely to be affected by the proposed
code;

(f) such other persons as the Authority thinks appropriate.

(3) The Authority must specify the period (“the consultation period”)
15within which a person may make representations about the
proposed code.

(4) Before a code under section 117F prepared by the Authority is issued
for the first time, the Secretary of State may direct the Authority—

(a) not to issue the code, or

(b) 20to issue the code with specified modifications.

(5) A direction under subsection (4) must be given within the period of
28 days beginning with the day after the end of the consultation
period, and the code prepared by the Authority may not be issued
before that period of 28 days has expired.

(6) 25In this section “the appropriate agency” means—

(a) the Environment Agency, in relation to section 117E
agreements made with sewerage undertakers whose areas
are wholly in England;

(b) both the Environment Agency and the NRBW, in relation to
30section 117E agreements made with sewerage undertakers
whose areas are partly in England and partly in Wales.

(7) This section is subject to section 117H.

117H Codes under section 117F: minor or urgent revisions

(1) This section applies if the Authority proposes to issue a revised code
35under section 117F and, in the view of the Authority, the revision or
each of the revisions proposed to be made is—

(a) a revision for which consultation is unnecessary, or

(b) a revision that it is necessary or desirable to make without
delay.

(2) 40Section 117G does not apply to the proposed revised code.

(3) Once the Authority has issued the revised code, it must give notice
as soon as reasonably practicable of—

(a) the issuing of the revised code, and

(b) as regards each revision contained in it, whether in the view
of the Authority the revision falls within paragraph (a) or (b)
of subsection (1).

(4) Notice under subsection (3) is to be given to such persons as the
5Authority considers appropriate.

(5) Unless the Authority gives notice that a revision in a revised code is
in the view of the Authority a revision falling within subsection
(1)(a), the revision ceases to have effect at the end of the period of six
months beginning with the day after that on which the revised code
10is issued.

117I Rules about charges

(1) The Authority must issue rules about charges that may be imposed
by sewerage undertakers under a section 117E agreement.

(2) The rules may in particular make provision about—

(a) 15the types of charges that may be imposed;

(b) the amount or the maximum amount, or methods for
determining the amount or maximum amount, of any type of
charge;

(c) principles for determining what types of charges may or may
20not be imposed;

(d) principles for determining the amount of any charge that
may be imposed;

(e) publication of the charges that may be imposed.

(3) The rules must include provision for and in connection with
25requiring a sewerage undertaker to impose on a sewerage licensee
only such charges as would enable the licensee, where the services it
provides to a person under its retail authorisation are services to
which a section 142(2)(b) agreement would apply if the undertaker
had continued to provide the services, to charge for those services at
30the same rate or rates as would have applied if the section 142(2)(b)
agreement had applied.

(4) In subsection (3) “section 142(2)(b) agreement” means an agreement
to which section 142(2)(b) applies.

(5) If the Authority considers that a sewerage undertaker is not acting as
35required by rules under this section, the Authority may—

(a) give the undertaker a direction to do, or not to do, a thing
specified in the direction, or

(b) in a case where a section 117E agreement to which the
undertaker is party requires modification in order to conform
40to the rules, give a direction to the undertaker and the
sewerage licensee in question to modify the agreement.

(6) It is the duty of a sewerage undertaker or a sewerage licensee to
comply with a direction under subsection (5), and this duty is
enforceable by the Authority under section 18.

(7) 45The rules may—

(a) make different provision for different persons or descriptions
of person;

(b) make different provision for different purposes;

(c) make provision subject to exceptions.

(8) The Authority may from time to time revise rules issued under this
section and issue revised rules.

(9) 5The Authority must issue revised rules if—

(a) guidance is issued under section 117M, and

(b) the Authority, having regard to that guidance, considers that
it is appropriate to revise the rules.

(10) Revised rules may include provision for applying any of the
10revisions to section 117E agreements made before the revised rules
come into effect.

117J Rules about charges: provision about the reduction of charges

(1) Rules under section 117I may provide for the reduction of charges
payable under a section 117E agreement where—

(a) 15a sewerage licensee that has a retail authorisation is party to
the section 117E agreement, and

(b) other conditions specified by the rules are satisfied.

(2) Rules made by virtue of subsection (1) may in particular—

(a) specify conditions relating to any party to the section 117E
20agreement;

(b) specify conditions about persons taking steps for the purpose
of reducing or managing demand for sewerage services;

(c) specify conditions about the premises by reference to which
such steps are to be taken;

(d) 25specify conditions about reducing charges payable by a
person who—

(i) is not party to the section 117E agreement, and

(ii) takes or proposes to take such steps as satisfy or
would satisfy a condition specified under paragraph
30(b).

(3) The rules may provide that, where a charge falls to be reduced in
accordance with rules made by virtue of subsection (1), the sewerage
undertaker to which the charges are payable must give notice of that
reduction to the Authority.

(4) 35Rules made by virtue of subsection (3) may—

(a) make provision as to the content of the notice;

(b) specify the period within which an undertaker is to give
notice to the Authority.

(5) Provision under subsection (4)(a) may in particular require the notice
40to specify—

(a) the amount of the charge, with and without the reduction;

(b) the period for which the reduction has effect.

117K Rules under section 117I: procedure

(1) Before issuing rules under section 117I, the Authority must—

(a) 45prepare a draft of the proposed rules, and

(b) consult the relevant persons about the draft.

(2) The relevant persons are—

(a) the Secretary of State;

(b) the appropriate agency;

(c) 5the Council;

(d) any sewerage undertakers likely to be affected by the
proposed rules;

(e) any sewerage licensees likely to be affected by the proposed
rules;

(f) 10such other persons as the Authority thinks appropriate.

(3) The Authority must specify the period (“the consultation period”)
within which persons may make representations about the proposed
rules.

(4) The Authority must have regard to guidance issued under section
15117M in making rules under section 117I.

(5) Before rules under section 117I prepared by the Authority are issued,
the Secretary of State may direct the Authority not to issue the rules.

(6) A direction under subsection (5) must be given within the period of
28 days beginning with the day after the end of the consultation
20period, and rules may not be issued before that period of 28 days has
expired.

(7) In this section “the appropriate agency” means—

(a) the Environment Agency, in relation to section 117E
agreements made with sewerage undertakers whose areas
25are wholly in England;

(b) both the Environment Agency and the NRBW, in relation to
section 117E agreements made with sewerage undertakers
whose areas are partly in England and partly in Wales.

(8) This section is subject to section 117L.

117L 30Rules under section 117I: minor or urgent revisions

(1) This section applies if the Authority proposes to issue revised rules
under section 117I and, in the view of the Authority, the revision or
each of the revisions proposed to be made is—

(a) a revision for which consultation is unnecessary, or

(b) 35a revision that it is necessary or desirable to make without
delay.

(2) Section 117K does not apply to the proposed revised rules.

(3) Before issuing the revised rules, the Authority must give notice to the
Secretary of State of its intention to issue revised rules.

(4) 40Before the revised rules are issued, the Secretary of State may direct
the Authority not to issue the revised rules.

(5) A direction under subsection (4) must be given within the period of
14 days beginning with the day after the day on which notice is given
under subsection (3), and the Authority may not issue the revised
45rules in question before—

(a) that period of 14 days expires, or

(b) the Secretary of State notifies the Authority that no direction
under subsection (4) will be given in relation to the revised
rules,

5whichever is the sooner.

(6) Once the Authority has issued the revised rules, it must give notice
as soon as reasonably practicable of—

(a) the issuing of the revised rules, and

(b) as regards each revision contained in them, whether in the
10view of the Authority the revision falls within paragraph (a)
or (b) of subsection (1).

(7) Notice under subsection (6) is to be given to such persons as the
Authority considers appropriate.

(8) Unless the Authority gives notice that a revision in revised rules is in
15the view of the Authority a revision falling within subsection (1)(a),
the revision ceases to have effect at the end of the period of six
months beginning with the day after that on which the revised rules
are issued.

117M Rules under section 117I: guidance

(1) 20The Minister may issue guidance as to the content of rules under
section 117I.

(2) Before issuing the guidance, the Minister must—

(a) prepare a draft of the proposed guidance;

(b) consult the relevant persons about the draft.

(3) 25The relevant persons are such persons as the Minister thinks fit.

(4) The Minister may from time to time revise the guidance and issue
revised guidance.

(5) Subsections (2) and (3) apply to revised guidance as they apply to the
original guidance.

(6) 30The Minister must arrange for the publication of guidance issued
under this section.

(7) In this section “the Minister” means the Secretary of State.

117N Designation of strategic sewerage provision

(1) Subsection (2) applies if at any time the Authority determines that
35the removal of matter from a sewerage undertaker’s sewerage
system that the undertaker is required to permit under section 117C
or 117D in accordance with a section 117E agreement constitutes
strategic sewerage provision.

(2) The Authority must designate the removal of matter as strategic
40sewerage provision.

(3) Subsection (4) applies if—

(a) a sewerage undertaker requests the Authority to make a
determination that a particular removal of matter constitutes

strategic sewerage provision for the purposes of subsection
(1), or

(b) the Authority otherwise proposes to make a determination
that a particular removal of matter constitutes strategic
5sewerage provision for the purposes of subsection (1).

(4) The Authority must give notice of the request or proposed
determination to—

(a) the Secretary of State;

(b) the appropriate agency;

(c) 10the other party or parties, or the parties, to the section 117E
agreement; and

(d) such other persons (if any) as the Authority thinks it
appropriate to notify.

(5) A notice under subsection (4) must specify the time within which
15representations or objections with respect to the request or proposed
determination may be made.

The time specified may not be less than 28 days from the date on
which the notice was given.

The time specified may not be less than 28 days from the date on
20which the notice was given.

(6) The Authority must consider any representations or objections
which are duly made and not withdrawn.

(7) If the Authority determines that a particular removal of matter
designated under this section as strategic sewerage provision no
25longer constitutes such provision, it must cancel its designation.

(8) If the Authority proposes to make a determination under subsection
(7) that a particular removal of matter no longer constitutes strategic
sewerage provision, it must give notice of the proposed
determination to—

(a) 30the Secretary of State;

(b) the appropriate agency;

(c) the parties to the section 117E agreements in question.

(9) Subsection (5) applies to a notice under subsection (8) as it applies to
a notice under subsection (4), and subsection (6) applies accordingly.

(10) 35For the purposes of this section, a removal of matter from a sewerage
system is strategic sewerage provision if, without that removal of
matter, there is a substantial risk that the sewerage undertaker
would be unable—

(a) to maintain its services to its own customers, and

(b) 40to fulfil its obligations under section 117B to deal with matter
in its sewerage system.

(11) In this section and section 117O “the appropriate agency”, in relation
to a determination in respect of the removal of matter from a
sewerage undertaker’s system, means—

(a) 45the Environment Agency, in a case where the undertaker’s
area is wholly in England;

(b) both the Environment Agency and the NRBW, in a case
where the undertaker’s area is partly in England and partly
in Wales.

117O Designation of collective strategic sewerage provision

(1) Subsection (2) applies if at any time the Authority determines that
two or more cases of the removal of matter from a sewerage
system—

(a) 5each of which is a removal by a sewerage licensee, and

(b) each of which is a removal that a sewerage undertaker is
required to permit under section 117C or 117D in accordance
with a section 117E agreement,

constitute collective strategic sewerage provision.

(2) 10The Authority must designate the cases of the removal of matter as a
collective strategic sewerage provision.

(3) Subsection (4) applies if—

(a) a sewerage undertaker requests the Authority to make a
determination that two or more cases of the removal of
15matter from a sewerage system constitute collective strategic
sewerage provision for the purposes of subsection (1), or

(b) the Authority otherwise proposes to make a determination
that two or more cases of the removal of matter from a
sewerage system constitute collective strategic sewerage
20provision for the purposes of subsection (1).

(4) The Authority must give notice of the request or proposed
determination to—

(a) the Secretary of State;

(b) the appropriate agency;

(c) 25the other party or parties, or the parties, to the section 117E
agreements in question; and

(d) such other persons (if any) as the Authority thinks it
appropriate to notify.

(5) A notice under subsection (4) must specify the time within which
30representations or objections with respect to the request or proposed
determination may be made.

The time specified may not be less than 28 days from the date on
which the notice was given.

The time specified may not be less than 28 days from the date on
35which the notice was given.

(6) The Authority must consider any representations or objections
which are duly made and not withdrawn.

(7) If the Authority determines that the cases of the removal of matter
from a sewerage system designated under this section as collective
40strategic sewerage provision no longer constitute such provision, it
must cancel their designation.

(8) If the Authority proposes to make a determination under subsection
(7) that the cases of the removal of matter from a sewerage system no
longer constitute collective strategic sewerage provision, it must give
45notice of the proposed determination to—

(a) the Secretary of State;

(b) the appropriate agency; and

(c) the parties to the section 117E agreements in question.

(9) Subsection (5) applies to a notice under subsection (8) as it applies to
a notice under subsection (4), and subsection (6) applies accordingly.

(10) For the purposes of this section, two or more cases of the removal of
matter from a sewerage system are collective strategic sewerage
5provision if, without those cases of the removal of matter, there is a
substantial risk that the sewerage undertaker would be unable—

(a) to maintain its services to its own customers, and

(b) to fulfil its obligations under section 117B to deal with matter
in its sewerage system.

10Offences

117P Prohibition on unauthorised use of sewerage system

(1) No person may use the sewerage system of a sewerage undertaker
whose area is wholly or mainly in England for the purpose of taking
away matter discharged from the premises of—

(a) 15a customer,

(b) the person so using that system, or

(c) a person associated with that person.

(2) Subsection (1) is subject to subsections (3) and (4) and section 117R.

(3) Subsection (1) does not apply where that use of the system is made
20by—

(a) the sewerage undertaker, or

(b) a sewerage licensee in pursuance of its sewerage licence.

(4) The Secretary of State may by regulations specify further
circumstances in which subsection (1) does not apply.

(5) 25A person who contravenes subsection (1) is guilty of an offence.

(6) An undertaking entered into which involves a contravention of
subsection (1) is unenforceable.

(7) A person guilty of an offence under this section is liable—

(a) on summary conviction, to a fine not exceeding the statutory
30maximum;

(b) on conviction on indictment, to a fine.

(8) Proceedings for an offence under this section may not be instituted
except by—

(a) the Secretary of State, or

(b) 35the Authority.

(9) For the purposes of this section, a person (A) is associated with
another person (B) if they would be associated with each other for the
purposes of Schedule 2B if A were a sewerage licensee.

(10) In this section and sections 117Q and 117R, references to the
40sewerage system of a sewerage undertaker are to be construed in
accordance with section 17BA(7).

117Q Prohibition on unauthorised removal of matter from sewerage system

(1) No person other than the undertaker may remove matter from the
sewerage system of a sewerage undertaker whose area is wholly or
mainly in England.

(2) 5Subsection (1) is subject to subsections (3) and (4) and section 117R.

(3) Subsection (1) does not apply where —

(a) matter is removed by a sewerage licensee in pursuance of its
sewerage licence, or

(b) matter is removed by another sewerage undertaker under a
10main connection agreement (within the meaning of section
110B).

(4) The Secretary of State may by regulations specify further
circumstances in which subsection (1) does not apply.

(5) An undertaking entered into which involves a contravention of
15subsection (1) is unenforceable.

(6) A person who contravenes subsection (1) is guilty of an offence.

(7) A person guilty of an offence under this section is liable—

(a) on summary conviction, to a fine not exceeding £20,000;

(b) on conviction on indictment, to a fine.

(8) 20For the purposes of section 210, the penalty on conviction on
indictment of an offence under this section is to be deemed to include
imprisonment for a term not exceeding two years (in addition to or
instead of a fine).

(9) Proceedings for an offence under this section may not be instituted
25except by—

(a) the Secretary of State, or

(b) the Authority.

117R Sections 117P and 117Q: exemptions

(1) The Secretary of State may by order made by statutory instrument
30grant exemption from section 117P(1) or 117Q(1) to—

(a) a person or persons of a class;

(b) generally or to such extent as may be specified in the order;

(c) unconditionally or subject to such conditions as may be
specified in the order.

(2) 35Before making an order under subsection (1), the Secretary of State
must give notice—

(a) stating that the Secretary of State proposes to make such an
order and setting out the terms of the proposed order;

(b) stating the reasons why the Secretary of State proposes to
40make the order in the terms proposed; and

(c) specifying the time (not being less than 28 days from the date
of publication of the notice) within which representations or
objections with respect to the proposals may be made,

and must consider any representations or objections which are duly
45made and not withdrawn.