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(3) The notice required by subsection (2) is to be given—

(a) by serving a copy of it on the Authority, and

(b) by publishing it in such manner as the Secretary of State
considers appropriate for bringing it to the attention of those
5likely to be affected by the proposed order.

(4) Notice of an exemption granted to a particular person is to be
given—

(a) by serving a copy of the exemption on the person, and

(b) by publishing the exemption in such manner as the Secretary
10of State considers appropriate for bringing it to the attention
of other persons who may be affected by it.

(5) Notice of an exemption granted to persons of a particular class is to
be given by publishing the exemption in such manner as the
Secretary of State considers appropriate for bringing it to the
15attention of—

(a) persons of that class, and

(b) other persons who may be affected by it.

(6) An exemption may be granted—

(a) indefinitely, or

(b) 20for a period specified in, or determined by or under, the
exemption.

(7) The conditions that may be specified may, in particular, require any
person carrying on any activity allowed by the exemption—

(a) to comply with any direction given by the Secretary of State
25or the Authority as to such matters as are specified in the
exemption or are of a description so specified;

(b) except in so far as the Secretary of State or the Authority
consents to the person’s doing or not doing them, not to do
or to do such things as are specified in the exemption or are
30of a description so specified;

(c) to refer for determination by the Secretary of State or the
Authority such questions arising under the exemption as are
specified in the exemption or are of a description so specified.

117S Section 117R: supplementary

(1) 35The Secretary of State may by order made by statutory instrument
revoke an order by which an exemption was granted to a particular
person under section 117R(1) or vary an order by which more than
one exemption was so granted so as to terminate any of the
exemptions—

(a) 40at the person’s request,

(b) in accordance with any provision of the order by which the
exemption was granted, or

(c) if it appears to the Secretary of State inappropriate that the
exemption should continue to have effect.

(2) 45The Secretary of State may by order made by statutory instrument
revoke an order by which an exemption was granted to persons of a
particular class under section 117R(1) or vary an order by which

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more than one exemption was so granted so as to terminate any of
the exemptions—

(a) in accordance with any provision of the order by which the
exemption was granted, or

(b) 5if it appears to the Secretary of State inappropriate that the
exemption should continue to have effect.

(3) The Secretary of State may by direction withdraw an exemption
granted to persons of a particular class under section 117R(1) from
any person of that class—

(a) 10at the person’s request,

(b) in accordance with any provision of the order by which the
exemption was granted, or

(c) if it appears to the Secretary of State inappropriate that the
exemption should continue to have effect in the case of the
15person.

(4) Before making an order under subsection (1)(b) or (c) or (2) or giving
a direction under subsection (3)(b) or (c), the Secretary of State
must—

(a) consult the Authority, and

(b) 20give notice—

(i) stating that the Secretary of State proposes to make
such an order or give such a direction,

(ii) stating the reasons why the Secretary of State
proposes to make such an order or give such a
25direction, and

(iii) 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,

30and must consider any representations or objections which are duly
made and not withdrawn.

(5) The notice required by subsection (4)(b) is to be given—

(a) where the Secretary of State is proposing to make an order
under subsection (1)(b) or (c), by serving a copy of it on the
35person to whom the exemption was granted;

(b) where the Secretary of State is proposing to make an order
under subsection (2), by publishing it in such manner as the
Secretary of State considers appropriate for bringing it to the
attention of persons of the class of persons to whom the
40exemption was granted;

(c) where the Secretary of State is proposing to give a direction
under subsection (3)(b) or (c), by serving a copy of it on the
person from whom the Secretary of State proposes to
withdraw the exemption.

(6) 45A statutory instrument containing—

(a) an order under subsection (1) or (2), or

(b) an order under section 117R(1),

is subject to annulment in pursuance of a resolution of either House
of Parliament.

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Section 5

SCHEDULE 5 Extension of licensing provisions in relation to Wales

1 The Water Industry Act 1991 is amended as follows.

2 In section 2 (general duties with respect to water industry) (as amended by
5Schedule 7)—

(a) in subsection (2C)—

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

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

(b) subsection (2D) is repealed.

3 (1) 10Section 17A (water supply licences) (as substituted by section 1) is amended
as follows.

(2) In subsection (2)—

(a) the words from “one or more” to “combination of authorisations” are
repealed;

(b) 15after paragraph (b) there is inserted “or

(ba) a retail authorisation and a wholesale authorisation.

(c) paragraphs (c) and (d) are repealed.

(3) In subsection (3), the words “(including their operation in England and
Wales)” are repealed.

4 (1) 20Section 17AA (water supply licences: restrictions on grants) (as substituted
by section 1) is amended as follows.

(2) In subsection (1), after paragraph (b) there is inserted—

(c) the Welsh Ministers;

(d) the Chief Inspector of Drinking Water for Wales if there is
25one.

(3) Subsection (2) is repealed.

(4) In subsection (5), paragraphs (b) and (c) are repealed.

5 In section 17B (guidance and interpretation) (as amended by section 2)—

(a) in subsection (4A), the words “, in the case of an undertaker whose
30area is wholly or mainly in England,” are repealed;

(b) subsections (5) to (8) are repealed.

6 (1) Section 17BA (sewerage licences) (inserted by section 4) is amended as
follows.

(2) In subsection (1), the words “whose area is wholly or mainly in England” are
35repealed.

(3) After subsection (5) there is inserted—

(5A) Before giving a general authorisation, the Secretary of State must
consult the Welsh Ministers.

7 In section 17BB (sewerage licences: restrictions on grants) (inserted by
40section 4), in subsection (1), after “of State” there is inserted “, the Welsh
Ministers”.

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8 In section 17C (meaning of household premises) (as amended by Schedule
7), in subsection (1), for “paragraphs 4 and 7(a)” there is substituted
“paragraph 4”.

9 Section 17D (the threshold requirement) is repealed (if not previously
5repealed by an order under section 3).

10 (1) Section 17DA (guidance) (inserted by Schedule 7) is amended as follows.

(2) Subsection (1)(a) is repealed.

(3) In subsection (2), after “Schedule 2A” there is inserted “or paragraph 4 of
Schedule 2B”.

11 10In section 17E (determinations by the Authority) (as amended by Schedule
7), in subsection (2)—

(a) in paragraph (a) the words “or 7(a) or (b)” are repealed;

(b) paragraph (c) is repealed.

12 (1) Section 17FA (arrangements with the Water Industry Commission for
15Scotland) (inserted by section 6) is amended as follows.

(2) In subsection (1)(a), the words “or a restricted retail authorisation or both”
are repealed.

(3) In subsection (2)(a), the words “or particular authorisations” are repealed.

13 In section 17G (water supply licence conditions) (as amended by Schedule
207), in subsection (4)(a)(iii), the words “so far as subsection (3) applies to
water supply licences,” are repealed.

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

(2) In subsection (2), for the words from “the different” to the end there is
25substituted “whether the conditions are to relate to a retail authorisation or
a wholesale authorisation or both types of authorisation.”

(3) In subsection (3)—

(a) for “giving a particular authorisation or a particular combination of
authorisations” there is substituted “giving a retail authorisation or a
30wholesale authorisation or both authorisations”;

(b) for “that particular combination of authorisations” there is
substituted “those authorisations”.

(4) In subsection (4), for “any particular authorisation or combination of
authorisations” there is substituted “one or other or both authorisations”.

(5) 35In 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) Section 17HA (standard conditions of sewerage licences) (inserted by
40Schedule 7) is amended as follows.

(2) In subsection (9)(b), after sub-paragraph (i) there is inserted—

(ia) on the Welsh Ministers.

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(3) In subsection (10), after “of State” there is inserted “(after consulting the
Welsh Ministers)”.

16 In section 17I (modifications of water supply licences by agreement) (as
amended by Schedule 7)—

(a) 5in subsection (4)(b)(iv), the words from the beginning to “supply
licence,” are repealed;

(b) in 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)
10(as amended by Schedule 7) is amended as follows.

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

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

(4) 15In subsection (10), the words “in relation to the standard conditions of water
supply licences” are repealed.

18 In 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) 20Section 17N (water supply licences: reports on modification references) (as
amended by Schedule 7) is amended as follows.

(2) In 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
25repealed.

(4) In subsection (12), the words “, if the report relates to water supply licences,”
are 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
30licences,” are repealed.

21 In section 17P (water supply licences: Commission’s power of veto
following 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
35amended 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
amended by Schedule 7), in subsection (1B), the words from “in relation to”
to “supplementary authorisation,” are repealed.

24 40In section 27C (the interests of consumers) (as amended by Schedule 7)—

(a) in subsection (1)—

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

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

(b) subsection (2) is repealed.

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

26 In section 55 (supplies for non-domestic purposes), in subsection (1A)(b), the
words from “or, in the case” to “that subsection” are repealed.

27 (1) 5Section 66A (use of water undertaker’s supply system) (inserted by
Schedule 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
10(1),” are repealed;

(b) paragraph (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.

28 (1) 15Section 66AA (water supply from water undertaker) (inserted by Schedule
2) 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) 20In subsection (5)—

(a) in 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.

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

(2) Subsections (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) 30paragraphs (b) and (c) are repealed;

(c) in 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) 35In subsection (9), the words “or (b)(i) or (ii)” are repealed.

(7) Subsection (10)(b) is repealed.

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

(2) In subsection (1), the words from “A request under paragraph (a)” to the end
40are repealed.

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(3) Subsections (2) to (4) are repealed.

(4) In subsection (5), the words “by virtue of subsection (1), (2) or (4)” are
repealed.

(5) In subsection (6)(a), the words “, L2, L3 or R” are repealed.

(6) 5In 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.

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

32 10In 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.

33 In section 66G (designation of strategic supply) (as amended by Schedule 2),
in subsection (11), the words from “or a restricted retail authorisation” to the
15end are repealed.

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

35 (1) Section 68 (duties of water undertakers and licensed water suppliers with
20respect 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
repealed;

(b) in paragraph (b), the words “or restricted retail authorisation” are
25repealed.

(3) In subsection (6), the words “or a restricted retail authorisation,” are
repealed.

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

(2) 30In subsection (2), after paragraph (a) there is inserted—

(aa) the Welsh Ministers;.

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

(4) Before a code under section 117F prepared by the Authority is
issued, the Minister may direct the Authority—

(a) 35not 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) the Secretary of State, so far as a code prepared by the
40Authority relates to section 117E agreements made with
sewerage undertakers whose areas are wholly or mainly in
England;

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(b) the Welsh Ministers, 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
Wales.

(4C) 5The power under subsection (4) may not be exercised more than once
by the Secretary of State or the Welsh Ministers.

(4D) If 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
10Ministers, it may not be exercised by the Secretary of State or (as the
case may be) the Welsh Ministers on a later occasion.

(4) In 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) 15the NRBW, in relation to section 117E agreements made with
sewerage undertakers whose areas are wholly in Wales;.

(6) The 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) 20the Secretary of State exercised the power to give a direction under
section 117G(4) of the Water Industry Act 1991 (inserted by Schedule
4), or

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

37 (1) 25Section 117K (rules under section 117I: 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 (5) there is substituted—

(5) 30Before rules under section 117I prepared by the Authority are issued,
the Minister may direct the Authority not to issue the rules.

(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
35sewerage 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
undertakers whose areas are wholly or mainly in Wales.

(4) 40In 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;.

38 (1) Section 117L (rules under section 117I: minor or urgent revisions) (inserted
by Schedule 4) is amended as follows.

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(2) In subsections (3), (4) and (5)(b), for “the Secretary of State” there is
substituted “the Minister”.

(3) After subsection (8) there is inserted—

(9) In this section “the Minister” has the meaning given by section
5117K.

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

(2) In subsection (3), for the words from “are such” to the end there is
substituted “are—

(a) 10the Secretary of State;

(b) the Welsh Ministers;

(c) such other persons as the Minister thinks appropriate.

(3) In subsection (7), for “means the Secretary of State.” there is substituted
“means—

(a) 15the Secretary of State, in relation to sewerage undertakers
whose areas are wholly or mainly in England;

(b) the Welsh Ministers, in relation to sewerage undertakers
whose areas are wholly or mainly in Wales.

40 (1) Section 117N (designation of strategic sewerage provision) (inserted by
20Schedule 4) is amended as follows.

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

(aa) the Welsh Ministers;.

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

(aa) the Welsh Ministers;.

(4) 25In subsection (11), after paragraph (a) there is inserted—

(aa) the NRBW, in a case where the undertaker’s area is wholly in
Wales;.

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

(2) 30In subsection (4), after paragraph (a) there is inserted—

(aa) the Welsh Ministers;;

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

(aa) the Welsh Ministers;;

42 In section 117P (prohibition on unauthorised use of sewerage system)
35(inserted by Schedule 4), in subsection (1), the words “whose area is wholly
or mainly in England” are repealed.

43 In section 117Q (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.

44 40In section 117S (section 117R: supplementary) (inserted by Schedule 4), at
the end there is inserted—

(7) The power to—

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(a) make an order under subsection (1) or (2) or section 117R(1),
or

(b) give a direction under subsection (3),

is exercisable by the Welsh Ministers (and not by the Secretary of
5State) 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 117R apply in relation
to 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
10direction 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
pursuance of a resolution of the Assembly.

45 In section 207E (exercise of adjudication functions by other persons)
15(inserted by section 39), in subsection (5), in paragraph (b) of the definition
of “the Minister”—

(a) the “or” following sub-paragraph (i) is repealed;

(b) after sub-paragraph (ii) there is inserted “, or

(iii) in relation to a sewerage licensee using the
20sewerage system of such an undertaker (see
section 17BA);.

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

(2) Paragraphs 1 and 2 are repealed.

(3) 25Paragraphs 6 to 8 are repealed.

(4) In 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 37

SCHEDULE 6 30Procedure on appeals under section 207A of the Water Industry Act 1991

Regulations 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 35Regulations under this Schedule may in particular make provision about—

(a) making an application for permission to bring an appeal;

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