Water Bill (HC Bill 146)

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(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) 5the 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
10referred to in paragraphs (a), (b), (d) and (e);

(g) enabling 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
15specified by the direction;

(h) the 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
20Authority otherwise than in connection with the consideration of the
appeal);

(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) 25the recovery of the CMA’s costs.

Consideration 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) 30Provision under sub-paragraph (1)(a) may include in particular—

(a) provision 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) 35Regulations under this Schedule may make provision about—

(a) requiring 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) 40to make representations and observations;

(d) requiring 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—

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(a) to produce a document that the person could not be compelled to
produce 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) 5to produce a written statement with respect to a matter about which
the person could not be compelled to give evidence in civil
proceedings 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
10to be issued by any member of the CMA.

5 (1) Regulations under this Schedule may provide for penalties to be imposed
where—

(a) a person fails without reasonable excuse to comply with a
requirement imposed in accordance with regulations under
15paragraph 4;

(b) having been required to produce a document in accordance with
paragraph 4, a person wilfully alters, suppresses or destroys the
document;

(c) having been required to produce a written statement in accordance
20with paragraph 4, a person makes without reasonable excuse a false
statement in the written statement produced;

(d) having 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) 25The 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
guilty 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
30court any director or other officer of the body (instead of or as well as the
body).

(4) The 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) 35on summary conviction, by a fine not exceeding the statutory
maximum;

(b) on conviction on indictment, by imprisonment for a term not
exceeding two years or by a fine, or by both.

Appeal rules

6 (1) 40The CMA may make rules regulating the conduct and disposal of appeals.

(2) The rules may include provision supplementing regulations made under
this Schedule; and that provision may, in particular, impose time limits or
other restrictions on—

(a) the taking of evidence at an oral hearing;

(b) 45the making of representations or observations at such a hearing.

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(3) The CMA must publish rules made under this paragraph in such manner as
it 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
5persons 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;

  • 10“appeal rules” means rules under paragraph 6;

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

Section 44

SCHEDULE 7 Further amendments

15Water Industry Act 1991 (c. 56)Water Industry Act 1991 (c. 56)

1 The 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
20“, water supply licensees and sewerage licensees”.

(3) In 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) 25in paragraph (e), for the words from “not eligible” to the end there is
substituted “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
30are below the consumption threshold and in the area
of 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) 35In subsection (2DB) (inserted by section 22), in paragraph (b) (meaning of
sewerage 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”—

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

(b) in paragraph (b), for “by sewerage undertakers” there is substituted
“either by sewerage undertakers or by sewerage licensees acting in
5their capacity as such”.

(8) In subsection (6)—

(a) in 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
10substituted “contained in—

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

(ii) any of sections 37A to 38, 38ZA, 39, 39ZA, 39B,
39C, 40B to 40F, 66B, 66CA, 66D, 66DA to
1566EA, 66F to 66H, 66K to 66M, 95, 95ZA, 96,
96ZA, 110C to 110G, 117E to 117N, 117Q,
117R, 153,;

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

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

3 20In 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 In section 12 (determinations under conditions of appointment), in
subsection (3B) (application of certain provisions to references to
25competition 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) Section 17B (provision supplementary to section 17A) is amended as
follows.

(2) 30For 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) Subsection (9) (references to a licensed water supplier) is repealed.

7 In section 17C (meaning of “household premises”), in subsection (1) for
35“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) In subsection (1) (purpose of section 17D)—

(a) for “section 17A(3)(b) above” there is substituted “paragraph 7(b) of
40Schedule 2A”;

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

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

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

(6) Subsection (6) (application of guidance provision to threshold requirement)
is repealed.

(7) In subsection (7) (regulations as to entering into an undertaking to supply
water)—

(a) 10for “The Secretary of State” there is substituted “The Welsh
Ministers”;

(b) for “licensed water supplier” there is substituted “water supply
licensee”;

(c) the words “(subject to subsection (12) below)” are repealed.

(8) 15In subsection (8) (regulations to alter the threshold)—

(a) for “The Secretary of State” there is substituted “The Welsh
Ministers”;

(b) the words “(subject to subsection (12) below)” are repealed.

(9) In subsection (10) (procedure), for “each House of Parliament” there is
20substituted “the Assembly”.

(10) In subsection (11) (consultation before making regulations)—

(a) for “the Secretary of State”, in the first place where those words
occur, there is substituted “the Welsh Ministers”;

(b) for “the Secretary of State thinks” there is substituted “the Welsh
25Ministers think”.

(11) Subsections (12) and (13) (exercise of powers by Welsh Ministers) are
repealed.

9 After section 17D there is inserted—

17DA Guidance

30The Authority must publish guidance issued from time to time
under—

(a) section 17D(3),

(b) paragraph 10 of Schedule 2A, or

(c) paragraph 4 of Schedule 2B,

35in such manner as the Authority considers appropriate for the
purpose of bringing it to the attention of persons likely to be affected
by it.

10 (1) Section 17E (determinations by the Authority) is amended as follows.

(2) For subsection (1) there is substituted—

(1) 40The Authority may determine, in a case referred to it by—

(a) a water supply licensee or a potential customer of a water
supply licensee, or

(b) a sewerage licensee or a potential customer of a sewerage
licensee,

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whether a proposed supply of water to, or proposed sewerage
services for, the customer would be in accordance with what is
authorised by the licensee’s licence.

(3) In subsection (2)—

(a) 5in paragraph (a), for “section 17A(3) above” there is substituted
“paragraph 4 or 7(a) or (b) of Schedule 2A”;

(b) after paragraph (a) there is inserted—

(aa) the extent of the premises to be served for the
purposes of paragraph 2 of Schedule 2B;;

(c) 10in paragraph (b), after “to be supplied” there is inserted “or served”.

11 (1) Section 17F (procedure for granting water supply licences) is amended as
follows.

(2) In the title, after “water supply” there is inserted “and sewerage”.

(3) In subsection (4)—

(a) 15the words “the Secretary of State or” are repealed;

(b) the words “he or”, in each place they occur, are repealed.

(4) In subsection (7)—

(a) the words “the Secretary of State or” are repealed;

(b) for paragraph (g) there is substituted—

(g) 20on each water supply licensee and sewerage licensee
(other than the holder of the licence in question);;

(c) paragraph (h) is repealed;

(d) in paragraph (i), the words “if the licence or variation is granted by
the Authority,” are repealed.

(5) 25In subsection (8), the words “by the Secretary of State or” are repealed.

12 (1) Section 17G (water supply licence conditions) is amended as follows.

(2) For the title there is substituted “Licence conditions”.

(3) In subsection (1) (conditions to be included)—

(a) for “A water supply licence” there is substituted “A licence under
30this Chapter”;

(b) in paragraph (a), the words “the Secretary of State or, as the case may
be,” are repealed;

(c) in paragraph (a), the words “him or” are repealed;

(d) in paragraph (b), for “the Secretary of State” there is substituted “the
35Authority”;

(e) in paragraph (b), for “water supply licence” there is substituted
“licence under this Chapter”.

(4) After subsection (2) there is inserted—

(2A) Conditions may be included by virtue of subsection (1)(a) in a
40sewerage licence whether or not they are connected with—

(a) effectual dealing with the contents of sewers, or

(b) the use of the sewerage system of a sewerage undertaker.

(5) In subsection (3) (directions and determinations), for “water supply licence”
there is substituted “licence under this Chapter”.

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(6) In subsection (4) (persons who may give directions etc), in paragraph (a)(iii),
at the beginning there is inserted “so far as subsection (3) applies to water
supply licences,”.

(7) In subsection (5) (duration and modification of conditions), for “water
5supply licence” there is substituted “licence under this Chapter”.

(8) In subsection (7) (payments received by Secretary of State paid into the
Consolidated Fund), for “the Secretary of State” there is substituted “the
Authority”.

13 (1) Section 17H (standard conditions of water supply licences) is amended as
10follows.

(2) For subsections (1) to (3) there is substituted—

(1) The Secretary of State may determine the conditions that are to be the
standard conditions of water supply licences granted by the
Authority.

(1A) 15Before determining the standard conditions, the Secretary of State
must consult the Welsh Ministers as regards conditions relating to a
restricted retail authorisation or a supplementary authorisation.

(1B) The Secretary of State is to publish the standard conditions in such
manner as the Secretary of State considers appropriate.

(2) 20The standard conditions may be different depending on the different
authorisations or combinations of authorisations to which the
conditions are to relate.

(3) The power to determine standard conditions in relation to water
supply licences giving a particular authorisation or a particular
25combination of authorisations may be exercised only before the
grant of the first licence to give that authorisation or that particular
combination of authorisations (but this is without prejudice to the
power to modify standard conditions in accordance with the
provisions of this Chapter).

(3) 30In subsection (4) (general provision about standard conditions), for “of
either description” there is substituted “giving any particular authorisation
or combination of authorisations”.

(4) In subsection (6) (power to exclude or modify standard conditions in a
particular case)—

(a) 35the words “the Secretary of State or” are repealed;

(b) the words “he or” are repealed.

(5) In subsection (7) (steps before exercising power in subsection (6))—

(a) the words “the Secretary of State or” are repealed;

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

(c) 40in paragraph (b), the words “he or” are repealed.

(6) In subsection (8) (publication of notice of intention to modify standard
conditions)—

(a) in paragraph (a), the words “the Secretary of State or (as the case may
be)” are repealed;

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(b) for paragraph (b)(i) there is substituted—

(i) if the notice relates to a water supply licence
giving a restricted retail authorisation or a
restricted retail authorisation and a
5supplementary authorisation, on the Welsh
Ministers;;

(c) paragraph (b)(iii) is repealed;

(d) in paragraph (b)(iv), the words “if the notice is published by the
Authority,” are repealed;

(e) 10after paragraph (b)(iv) there is inserted—

(v) on the Water Industry Commission for
Scotland.

(7) In subsection (9) (direction not to exclude or modify a standard condition),
for “the Assembly” there is substituted “the Welsh Ministers in a case where
15notice was served on them under subsection (8)(b)(i)”.

(8) In subsection (10) (power under subsection (6) not to be exercised in certain
circumstances)—

(a) the words “Secretary of State or the” are repealed;

(b) the words “he or” are repealed.

14 20After section 17H there is inserted—

17HA Standard conditions of sewerage licences

(1) The Secretary of State may determine the conditions that are to be the
standard conditions of sewerage licences granted by the Authority.

(2) The Secretary of State is to publish the standard conditions in such
25manner as the Secretary of State considers appropriate.

(3) The standard conditions may be different depending on the different
authorisations or combinations of authorisations to which the
conditions are to relate.

(4) The power to determine standard conditions in relation to sewerage
30licences giving a particular authorisation or a particular combination
of authorisations may be exercised only before the grant of the first
licence to give that authorisation or that particular combination of
authorisations (but this is without prejudice to the power to modify
standard conditions in accordance with the provisions of this
35Chapter).

(5) The standard conditions for the purposes of sewerage licences giving
any particular authorisation or combination of authorisations may
contain provision—

(a) for any standard condition included in a licence of that
40description not to have effect until brought into operation in
such manner and in such circumstances as may be specified
in or determined under the standard conditions;

(b) for the effect of any standard condition included in such a
licence to be suspended in such manner, and in such
45circumstances, as may be so specified or determined; and

(c) for any standard condition included in such a licence which
is for the time being suspended to be brought back into

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operation in such manner and in such circumstances as may
be so specified or determined.

(6) Subject to subsection (7), each condition which is a standard
condition is to be incorporated by reference in each sewerage licence
5(or in each such licence to which the standard condition applies).

(7) Subject to the following provisions of this section, the Authority
may, in granting a licence, exclude or modify any of the standard
conditions to such extent as the Authority considers requisite to meet
the circumstances of a particular case.

(8) 10Before excluding any standard conditions or making any
modifications under subsection (7), the Authority must give notice—

(a) stating that the Authority proposes to exclude the conditions
or make the modifications and setting out the effect of so
doing;

(b) 15stating the reasons why the Authority proposes to exclude
the conditions or make the modifications; 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 proposed exclusions or
20modifications may be made,

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

(9) A notice under subsection (8) must be given—

(a) by publishing the notice in such manner as the Authority
25considers appropriate for the purpose of bringing the notice
to the attention of persons likely to be affected by the making
of the exclusions or modifications; and

(b) by serving a copy of the notice—

(i) on the Secretary of State;

(ii) 30on the Environment Agency;

(iii) on the NRBW;

(iv) on the Water Industry Commission for Scotland.

(10) If, within the time specified in the notice under subsection (8), the
Secretary of State directs the Authority not to exclude or modify any
35standard condition, the Authority must comply with the direction.

(11) The Authority may not exclude any conditions, or make any
modifications, under subsection (7) unless the Authority is of the
opinion that the exclusions or modifications are such that—

(a) the licence holder would not be unduly disadvantaged in
40competing with other holders of sewerage licences; and

(b) no other holder of a sewerage licence would be unduly
disadvantaged in competing with other holders of such
licences (including the holder of the licence being granted).

(12) The modification under subsection (7) of part of a standard condition
45is not to prevent any other part of the condition from continuing to
be treated as a standard condition for the purposes of this Chapter.

15 (1) Section 17I (modification of licences by agreement) is amended as follows.

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(2) For the title there is substituted “Modification of licences by agreement”.

(3) In subsection (1) (power of Authority to modify licence), for the words from
“conditions of” to the end there is substituted “conditions of—

(a) a particular water supply licence, or

(b) 5a particular sewerage licence.

(4) In subsection (2)(b) (modification not to cause undue disadvantage)—

(a) in sub-paragraph (i), after “water supply licences” there is inserted
“or, as the case may be, sewerage licences”;

(b) in sub-paragraph (ii), after “a water supply licence” there is inserted
10“or, as the case may be, a sewerage licence”.

(5) In subsection (4)(b) (persons to be served with notice of proposed
modifications), in sub-paragraph (iv), at the beginning there is inserted “if
the notice relates to a water supply licence,”.

(6) In subsection (5) (direction not to modify a condition), the words “(after
15consulting the Assembly)” are repealed.

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

(5A) The Secretary of State is to consult the Welsh Ministers before giving
a direction under subsection (5) in relation to a water supply licence.

16 (1) Section 17J (general modification of standard conditions) is amended as
20follows.

(2) For the title there is substituted “Modification of standard conditions”.

(3) In subsection (1) (power of Authority to modify standard conditions), for the
words from “may modify” to the end there is substituted “may modify—

(a) the standard conditions of water supply licences, or

(b) 25the standard conditions of sewerage licences.

(4) After subsection (1) there is inserted—

(1A) Modifications may relate to—

(a) standard conditions contained in all water supply licences or
sewerage licences, or

(b) 30standard conditions contained in those water supply licences
or sewerage licences that grant a particular authorisation or
combination of authorisations.

(5) In subsection (2) (power to make incidental and consequential
modifications)—

(a) 35for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) for “any licence of that description” there is substituted “any licence
so affected”.

(6) In subsection (4)(b) (persons to be served with notice of proposed
40modifications), in sub-paragraph (iv), at the beginning there is inserted “if
the notice relates to a water supply licence,“.

(7) In subsection (5) (direction not to modify a standard condition), the words
“(after consulting the Assembly)” are repealed.