(8) 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.”

(9) In subsection (6) (modification conditional on views of relevant licence
5holders), for “retail licences or combined licences” there is substituted
“water supply licences or sewerage licences”.

(10) In subsection (8) (preconditions for modification of standard condition), in
paragraph (c) after “a water supply licence” there is inserted “or, as the case
may be, a sewerage licence”.

(11) 10In subsection (10) (consultation with Welsh Ministers), after “subsection (6)
above” there is inserted “in relation to the standard conditions of water
supply licences”.

(12) In subsection (12) (changed standard conditions to be used in new
licences)—

(a) 15for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

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

20“Where the Authority modifies the standard conditions of
water supply licences or sewerage licences that grant
particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
same authorisations or combinations of authorisations.”

(13) 25In subsection (13) (meaning of “relevant licence holder”), for “retail licences
or combined licences” there is substituted “water supply licences or
sewerage licences or of such of those licences as grant a particular
authorisation or combination of authorisations”.

17 (1) Section 17K (references to competition authority in relation to the
30modification of licences) is amended as follows.

(2) For the title there is substituted “Modification references to competition
authority”.

(3) In subsection (1) (reference of a particular licence), in paragraph (a)(i), for “a
particular licence” there is substituted “a particular water supply or
35sewerage licence”.

(4) In subsection (2) (general matters that may be referred), in paragraph (a)(i),
for “retail licences or combined licences” there is substituted “water supply
licences or sewerage licences that grant a particular authorisation or
combination of authorisations”.

(5) 40In subsection (5)(b) (persons to be served with copy of reference or
variation), in sub-paragraph (iv), at the beginning there is inserted “in a case
relating to a water supply licence or licences,”.

18 (1) Section 17N (reports on modification references) is amended as follows.

(2) For the title there is substituted “Reports on modification references”.

(3) In subsection (10)(a) (persons to be served with report relating to a particular
licence), in sub-paragraph (iv), at the beginning there is inserted “if the
report relates to a water supply licence,”.

(4) In subsection (11)(a) (persons to be served with report relating to a standard
5condition), in sub-paragraph (ii), at the beginning there is inserted “if the
report relates to water supply licences,”.

(5) In subsection (12) (meaning of “relevant time”), in paragraph (a), after
“Secretary of State and” there is inserted “, if the report relates to water
supply licences,”.

19 (1) 10Section 17O (modification of licences following report) is amended as
follows.

(2) For the title there is substituted “Modification of licences following report”.

(3) In subsection (2) (power to make incidental and consequential
modifications), for “the standard conditions of retail licences or combined
15licences” there is substituted “—

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

(b) the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
20of authorisations,”.

(4) In subsection (5)(c)(iii), at the beginning there is inserted “in a case relating
to a water supply licence or licences,”.

(5) In subsection (10) (changed standard conditions to be used in new
licences)—

(a) 25for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

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

30“Where the Authority modifies the standard conditions of
water supply licences or sewerage licences that grant
particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
same authorisations or combinations of authorisations.”

20 (1) 35Section 17P (competition authority’s power of veto following report) is
amended as follows.

(2) For the title there is substituted “Power of veto following report”.

(3) In subsection (7)(b) (persons to be served with notice of modifications
proposed), in sub-paragraph (v), at the beginning there is inserted “if the
40reference relates to water supply licences,”.

(4) In subsection (10) (power to make incidental and consequential
modifications), for “the standard conditions of retail licences or combined
licences” there is substituted “—

“(a) the standard conditions of water supply licences or sewerage
45licences, or

(b) the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
of authorisations,”.

(5) In subsection (11) (changed standard conditions to be used in new
5licences)—

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

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

(c) 10after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of
water supply licences or sewerage licences that grant
particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
15same authorisations or combinations of authorisations.”

21 (1) Section 17R (modification of licences by order under other enactments) is
amended as follows.

(2) For the title there is substituted “Modification by order under other
enactments”.

(3) 20In subsection (1) (power for the competition authorities and the Secretary of
State to modify standard conditions in order to give effect to orders under
the Enterprise Act 2002), for paragraphs (a) and (b) there is substituted—

“(a) the conditions of a particular water supply or sewerage
licence,

(b) 25the standard conditions of water supply licences or sewerage
licences, or

(c) the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
of authorisations,”.

(4) 30In subsection (2) (identification of orders under the Enterprise Act 2002)—

(a) in paragraph (a)(i), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”;

(b) in paragraph (a)(ii), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”;

(c) 35in paragraph (b), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”.

(5) In subsection (4) (changed standard conditions to be included in new
licences and power to make incidental and consequential modifications of
existing licences)—

(a) 40for “subsection (1)(b)” there is substituted “subsection (1)(b) or (c)”;

(b) for “the standard conditions of retail licences or combined licences”
there is substituted “the standard conditions of water supply licences
or sewerage licences or of water supply licences or sewerage licences
that grant a particular authorisation or combination of
45authorisations”.

(6) In subsection (5) (publication of modifications), for “retail licences or
combined licences” there is substituted “water supply licences or sewerage
licences”.

22 (1) Section 18 (orders for securing compliance with certain provisions) is
amended as follows.

(2) In subsection (1)—

(a) after “Part or” there is inserted “any person holding”;

(b) 5in paragraph (a), after “that company” there is inserted “or that
person”;

(c) in paragraph (a)(i), after “appointment or” there is inserted “the
person’s”;

(d) in paragraph (b), after “that company” there is inserted “or that
10person”.

(3) In subsection (1A)—

(a) in paragraph (a)(i), for “a company” there is substituted “a person”;

(b) in paragraph (b), for “any company” there is substituted “any
person”;

(c) 15in that paragraph, for “the company” there is substituted “the
person”.

(4) In subsection (2), after “Part or” there is inserted “any person holding”.

(5) In subsection (6)(a), after “Part or” there is inserted “a person holding”.

23 In section 19 (exceptions to the duty to enforce), for “company”, in each
20place, there is substituted “person”.

24 In section 20 (procedure for enforcement orders), for “company to which”,
in each place, there is substituted “person to whom”.

25 (1) Section 21 (validity of enforcement orders) is amended as follows.

(2) In subsection (1)—

(a) 25for “company to which” there is substituted “person to whom”;

(b) for “company”, in the second place it occurs, there is substituted
“person”.

(3) In subsection (2), for “company” there is substituted “person”.

26 In section 22 (effect of enforcement order), in subsection (3)—

(a) 30for “company”, in each place, there is substituted “person”;

(b) for “it” there is substituted “the person”.

27 (1) Section 22A (penalties) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a)(ii), for “company” there is substituted “person”;

(b) 35in paragraph (b), in the opening words, for “company”, in both
places, there is substituted “person”;

(c) in the closing words, for “the company” there is substituted “that
company or that person”.

(3) In subsection (2)—

(a) 40in paragraph (a)(ii), for “company” there is substituted “person”;

(b) in paragraph (b), in the opening words, for “company”, in both
places, there is substituted “person”;

(c) in the closing words, for “the company” there is substituted “that
company or that person”.

(4) In subsection (4), in the opening words, for “company” there is substituted
“person”.

(5) In subsection (6)—

(a) in the opening words, after “penalty” there is inserted “on a person”;

(b) 5in paragraph (a), for “company”, there is substituted “person”;

(c) in paragraph (d), for “company”, there is substituted “person”.

(6) In subsection (7)—

(a) for “company”, there is substituted “person on whom the penalty has
been imposed”;

(b) 10the words “on it” are repealed.

(7) In subsection (8)(b), for “company”, there is substituted “person on whom
the penalty is to be or has been imposed.”

(8) In subsection (11), for the words from “10%” to “(determined” there is
substituted “—

“(a) 1510% of the turnover of the company, or

(b) in a case where the person on whom the penalty is imposed
is not a company, 10% of the turnover of the business of the
person,

(determined”.

28 (1) 20Section 22C (time limits on the imposition of financial penalties) is amended
as follows.

(2) In subsection (1)—

(a) in the opening words, after “penalty” there is inserted “on a person”;

(b) in paragraph (a), for “company” there is substituted “person”;

(c) 25in paragraph (b), for “company” there is substituted “person”.

(3) In subsection (2), in the opening words—

(a) after the first “penalty” there is inserted “on a person”;

(b) for “company” there is substituted “person”.

29 (1) Section 22E (appeals) is amended as follows.

(2) 30In subsection (1), for “company on which” there is substituted “person on
whom”.

(3) In subsections (2)(a) and (b) (in both places) and (4)(b), for “company” there
is substituted “person”.

30 In section 22F (recovery of penalties), for “company” there is substituted
35“person”.

31 (1) Section 23 (meaning and effect of special administration orders) is amended
as follows.

(2) In subsection (1), for “a qualifying licensed water supplier” there is
substituted “a qualifying water supply licensee or a qualifying sewerage
40licensee”.

(3) In subsection (2A)—

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

(b) for “subsection (6)(b)” there is substituted “subsection (7)”.

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

“(2AA) The purposes of a special administration order made in relation to a
company which is a qualifying sewerage licensee must be—

(a) 5the transfer to another company or companies, as a going
concern, of so much of the company’s undertaking as it is
necessary to transfer in order to secure that the activities
relating to the removal or removals of matter mentioned in
subsection (9) may be properly carried on, and

(b) 10the carrying on of those activities pending the making of the
transfer.”

(5) In subsection (2B)(b)—

(a) in the opening words, for “or (2A)(a)” there is substituted “, (2A)(a)
or (2AA)(a)”;

(b) 15in sub-paragraph (ii), for “or (2A)(a)” there is substituted “, (2A)(a) or
(2AA)(a)”.

(6) In subsection (2C), for “and (2A)(b)” there is substituted “, (2A)(b) and
(2AA)(b)”.

(7) In subsection (4), for paragraph (b) there is substituted—

“(b) 20a company carries on activities relating to—

(i) the introduction or introductions of water mentioned
in subsection (7) formerly carried on by another
company; or

(ii) the removal or removals of matter mentioned in
25subsection (9) formerly carried on by another
company,”.

(8) In subsection (6)—

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

(b) 30for “qualifying licensed water supplier” there is substituted
“qualifying water supply licensee”;

(c) for paragraphs (a) and (b) there is substituted—

“(a) it is the holder of a water supply licence giving it a
wholesale or supplementary authorisation (within
35the meaning of Chapter 1A of this Part), and

(b) the condition in subsection (7) is satisfied in relation
to it.”

(9) After subsection (6) there is inserted—

“(7) The condition in this subsection is that—

(a) 40the introduction of water by the licence holder which is
permitted under section 66B or 66C is designated as a
strategic supply under section 66G, or

(b) the introductions of water by the licence holder which are
permitted under section 66B or 66C are designated as a
45collective strategic supply under section 66H.”

(10) After subsection (7) (inserted by sub-paragraph (9)) there is inserted—

“(8) For the purposes of this section, sections 24 to 26 and Schedule 2, a
sewerage licensee is a qualifying sewerage licensee if—

(a) it is the holder of a sewerage licence giving it a wholesale or
5disposal authorisation (within the meaning of Chapter 1A of
this Part), and

(b) the condition in subsection (9) is satisfied in relation to it

(9) The condition in this subsection is that—

(a) the removal of matter by the licence holder which is
10permitted under section 117C or 117D is designated as
strategic sewerage provision under section 117M, or

(b) the removals of matter by the licence holder which are
permitted under section 117C or 117D are designated as
collective strategic sewerage provision under section 117N.”

32 (1) 15Section 24 (special administration orders made on special petitions) is
amended as follows.

(2) In subsection (1A)—

(a) in paragraphs (a) and (b), the words “(after consulting the
Assembly)” are repealed;

(b) 20in paragraph (b), before “the Authority” there is inserted “by”;

(c) in the words following paragraph (b), for “qualifying licensed water
supplier” there is substituted “qualifying water supply licensee or
qualifying sewerage licensee”.

(3) After subsection (1A) there is inserted—

“(1B) 25Before presenting a petition under subsection (1A) in relation to a
qualifying water supply licensee whose licence gives it a
supplementary authorisation, the Secretary of State or the Authority
(as the case may be) must consult the Welsh Ministers.”

(4) In subsection (2)—

(a) 30in paragraph (bb), for “qualifying licensed water supplier” there is
substituted “qualifying water supply licensee”;

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

“(bc) in the case of a company which is a qualifying
sewerage licensee, that—

(i) 35action taken by the company has caused a
contravention by a sewerage undertaker of
any principal duty; and

(ii) that action is serious enough to make it
inappropriate for the company to continue to
40hold its licence;”;

(c) in paragraph (d), for “qualifying licensed water supplier” there is
substituted “qualifying water supply licensee or a qualifying
sewerage licensee”.

(5) In subsection (7)(b), for “qualifying licensed water supplier” there is
45substituted “qualifying water supply licensee or a qualifying sewerage
licensee”.

33 In section 25 (power to make special administration order on winding-up
petition) for “qualifying licensed water supplier”, in both places, there is
substituted “qualifying water supply licensee or a qualifying sewerage
licensee”.

34 5In section 26 (restrictions on voluntary winding up and insolvency
proceedings), in subsection (1), for “qualifying licensed water supplier”
there is substituted “qualifying water supply licensee or a qualifying
sewerage licensee”.

35 (1) Section 27 (general duty of Authority to keep matters under review) is
10amended as follows.

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

(3) In subsection (2)—

(a) in paragraph (aa), for “companies” there is substituted “persons”;

(b) 15in paragraph (b), after “company” there is inserted “or person”.

(4) In subsection (4)—

(a) in paragraph (c), for the words from “retail” to “Part)” there is
substituted “the authorisations or combinations of authorisations
given by licences under Chapter 1A of this Part (see sections 17A and
2017BA)”;

(b) in paragraph (d), for “company” there is substituted “person”.

36 In section 27A (establishment of the Council and committees), in subsection
(13), in the definition of “the interests of consumers”—

(a) in paragraph (a), for “licensed water suppliers” there is substituted
25“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”.

37 (1) Section 27C (the interests of consumers) is amended as follows.

(2) 30In subsection (1)—

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

(b) in 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) 35customers, 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
of a relevant undertaker whose area is wholly or
mainly in Wales,”.

(3) 40In subsection (2), for the words from “not eligible” to “the total quantity”
there is substituted “below the consumption threshold if the total quantity”.

38 In section 27E (provision of advice and information to public authorities), in
subsection (1), for “licensed water suppliers” there is substituted “water
supply licensees, sewerage licensees”.

39 (1) 45Section 27H (provision of information to the Council) is amended as follows.

(2) In subsection (1)—

(a) the “or” at the end of paragraph (b) is repealed;

(b) in paragraph (c) for “a licensed water supplier” there is substituted
“a water supply licensee, or”;

(c) 5after paragraph (c) there is inserted—

“(d) a sewerage licensee,”.

(3) In subsections (2), (3) and (4), after “body”, in each place, there is inserted “or
person”.

(4) In subsection (4)—

(a) 10for “it” there is substituted “the body or person”;

(b) for “its” there is substituted “the”.

40 (1) Section 27K (sections 27H to 27J: supplementary) is amended as follows.

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

(3) 15In subsection (5), for “and a licensed water supplier” there is substituted “, a
water supply licensee and a sewerage licensee”.

41 (1) Section 29 (consumer complaints) is amended as follows.

(2) In subsection (1)—

(a) for “or a licensed water supplier” there is substituted “, a water
20supply licensee or a sewerage licensee”;

(b) for “by that licensed water supplier” there is substituted “by that
water supply licensee or that sewerage licensee”.

(3) In subsection (5)(a), for the words from “by a licensed water supplier” to
“Wales” there is substituted “—

“(i) 25by a water supply licensee using the supply system of
a water undertaker whose area is wholly or mainly in
Wales, or

(ii) by a sewerage licensee using the supply system of a
sewerage undertaker whose area is wholly or mainly
30in Wales”.

(4) In subsections (8)(a) and (b) and (9), for “or the licensed water supplier”
there is substituted “, the water supply licensee or the sewerage licensee”.

42 For the heading to Chapter 1 of Part 3 (general duties of water undertakers)
at the end there is inserted “etc”.

43 35In section 37A (water resources management plans: preparation and
review)—

(a) in subsection (3)(b), for “licensed water suppliers” there is
substituted “water supply licensees”;

(b) in subsection (8)(d) for “licensed water supplier” there is substituted
40“water supply licensee”.

44 In section 37C (water resources management plans: provision of
information)—

(a) for “licensed water supplier”, in each place, there is substituted
“water supply licensee”;

(b) in the closing words to subsection (3), for “licensed water supplier’s”
there is substituted “water supply licensee’s”.

45 In section 37D (water resources management plans: supplementary), in
subsection (3)(b), for “licensed water supplier” there is substituted “water
5supply licensee”.

46 In section 38B (publication of statistical information about complaints)—

(a) in subsection (1), for “licensed water suppliers” there is substituted
“water supply licensees”;

(b) in subsection (2), for “licensed water suppliers” there is substituted
10“water supply licensees”.

47 (1) Section 39A (information to be given to customers about performance) is
amended as follows.

(2) In subsections (1) and (2A), for “licensed water suppliers”, in both places,
there is substituted “water supply licensees”.

(3) 15After subsection (1) there is inserted—

“(1A) Each water supply licensee must, in such form and manner as the
Authority may direct, take steps to inform the licensee’s customers
of—

(a) the standards of overall performance established under
20section 38ZA(1) which are applicable to that licensee;

(b) that licensee’s level of performance as regards those
standards.”

(4) In subsection (2), after “any such direction” there is inserted “under
subsection (1) or (1A)”.

(5) 25In subsection (3) for “licensed water supplier” there is substituted “water
supply licensee”.

48 In section 39B (drought plans: preparation and review)—

(a) in subsection (4)(b), for “licensed water suppliers” there is
substituted “water supply licensees”;

(b) 30in subsection (7)(d), for “licensed water supplier” there is substituted
“water supply licensee”.

49 In section 39C (drought plans: provision of information)—

(a) for “licensed water supplier”, in each place, there is substituted
“water supply licensee”;

(b) 35in the closing words to subsection (3), for “licensed water supplier’s”
there is substituted “water supply licensee’s”.

50 In section 42 (financial conditions for compliance with the duty in section
41), subsection (7) (terms defined in sections 43 and 43A) is repealed.

51 Sections 43 and 43A (calculations for the purpose of section 42) are repealed.

52 40In section 47 (conditions of connection with water main), in subsection (1),
for “sections 48 to” substitute “sections 49 and”.

53 Section 48 (interest on sums provided by way of security) is repealed.

54 (1) Section 52 (domestic supply duty) is amended as follows.