14201.12-15

House of Commons

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Lords Amendments to the Water Bill

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(3)
Exit regulations may make provision for requiring the WSRA or the CMA

to obtain the consent of the Secretary of State—

(a)
before exercising a function so as to require a relevant undertaker

to make an exit application, or

(b)
before exercising a function in a way that is likely to result in a

relevant undertaker making an exit application.”
60
Insert the following new Clause—

“Modification of appointment and licence conditions

(1)
Exit regulations may provide for the WSRA to modify the conditions of

appointment of a relevant undertaker where it considers it necessary or

expedient to do so in consequence of the transfer of part of the relevant

undertaker’s undertaking under the regulations.

(2)
Exit regulations may provide for the WSRA to modify the conditions of a

licence under Chapter 1A of Part 2 of the Water Industry Act 1991 where it

considers it necessary or expedient to do so in consequence of the transfer

to the holder of that licence of part of a relevant undertaker’s undertaking

under the regulations.

(3)
Exit regulations may provide for the WSRA, where it modifies conditions

under subsection (1) or (2), to make such incidental or consequential

modifications of other conditions of the appointment or, as the case may be,

other conditions of the licence as it considers necessary or expedient.

(4)
Provision made by exit regulations as regards the modification of

conditions under this section may include—

(a)
provision for the Secretary of State to give consent to a modification

proposed by the WSRA;

(b)
provision as to the period during which a modification may be

made.

(5)
Provision under subsection (4)(b) may not allow a modification to be made

after the end of the period of one year beginning with the day on which the

transfer in question takes place.”
61
Insert the following new Clause—

“General directions

(1)
Exit regulations may make provision for the Secretary of State to publish,

from time to time, a statement setting out general directions for the WSRA

and the CMA as regards the carrying out of their relevant functions in

circumstances where the WSRA or the CMA, in carrying out those

functions, might be able—

(a)
to require or bring about an exit application, or

(b)
to have an effect as regards the making of an exit application.

(2)
Exit regulations may require the WSRA and the CMA to carry out their

relevant functions in accordance with any statement published under the

regulations.

(3)
Exit regulations may make provision about formulating a statement to be

published under the regulations, and may in particular—

(a)
require the Secretary of State to have regard to—

13

(i)
the duties of the WSRA mentioned in section 2(1)(b) of the

Water Industry Act 1991,

(ii)
the duties of the CMA under the Competition Act 1998 or

the Enterprise Act 2002, and

(iii)
the protection of the interests of consumers (within the

meaning of section 2 of the Water Industry Act 1991), and

(b)
enable the Secretary of State to have regard to such other matters as

the Secretary of State thinks fit.

(4)
Exit regulations may make provision for the Secretary of State, before

publishing a statement under the regulations, to consult—

(a)
the WSRA,

(b)
the CMA,

(c)
the Consumer Council for Water,

(d)
relevant undertakers,

(e)
water supply licensees and sewerage licensees,

(f)
the Welsh Ministers, and

(g)
anyone else the Secretary of State thinks appropriate.

(5)
Exit regulations may—

(a)
require the Secretary of State to lay a draft of a statement before

Parliament before publishing it;

(b)
require the Secretary of State to wait for a period specified in or

determined under the regulations after laying the draft statement

under paragraph (a);

(c)
prohibit the Secretary of State from publishing it if, within that

period, either House of Parliament resolves not to approve it.

(6)
In this section “relevant function” means—

(a)
in relation to the WSRA, a function mentioned in section 2(1)(b) of

the Water Industry Act 1991;

(b)
in relation to the CMA, a function of the CMA under the

Competition Act 1998 or the Enterprise Act 2002.”
62
Insert the following new Clause—

“Exit regulations: general

(1)
Exit regulations may make such provision as the Secretary of State

considers appropriate—

(a)
for modifying a person’s duties and powers, and

(b)
for imposing new duties and conferring new powers on a person.

(2)
The persons in relation to whom provision under subsection (1) may be

made include—

(a)
the Secretary of State;

(b)
the Chief Inspector of Drinking Water;

(c)
the Welsh Ministers;

(d)
the Chief Inspector of Drinking Water for Wales, if there is one, or

the Chief Inspector of Drinking Water if section 86(1B)(b) of the

Water Industry Act 1991 applies;

(e)
the WSRA;

(f)
the CMA;

(g)
the Environment Agency;

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(h)
the NRBW;

(i)
the Consumer Council for Water;

(j)
relevant undertakers;

(k)
water supply licensees and sewerage licensees.

(3)
Exit regulations may—

(a)
apply enactments, with or without such modifications as the

Secretary of State thinks fit;

(b)
amend, repeal or revoke enactments.

(4)
The provision that may be made by exit regulations includes provision

conferring power to make subordinate legislation.

(5)
Exit regulations may—

(a)
contain such consequential, incidental, supplementary, transitional

or saving provisions (including provisions amending, repealing or

revoking enactments) as the Secretary of State considers

appropriate, and

(b)
make different provision for different cases, including different

provision in relation to different persons, circumstances or areas.

(6)
In this section “enactment”—

(a)
includes an Act or Measure of the National Assembly for Wales;

(b)
includes an enactment contained in this Act, other than this

Chapter.”
63
Insert the following new Clause—

“Interpretation

(1)
In this Chapter—

“the CMA” means the Competition and Markets Authority;

“eligible licensee” has the meaning given by section (Eligible licensees);

“exit application” means an application under section (Retail exit: non-

household premises)(1)(a);

“the NRBW” means the Natural Resources Body for Wales;

“non-household customer” means a person who is the customer as

regards a service provided in respect of non-household premises;

“non-household premises” means premises other than household

premises as defined in section 17C of the Water Industry Act 1991;

“retail exit area” has the meaning given by section (Retail exit: non-

household premises);

“the WSRA” means the Water Services Regulation Authority.

(2)
Except in so far as the context otherwise requires, terms used in this

Chapter have the same meaning as in the Water Industry Act 1991.”
64
Insert the following new Clause—

“Procedure

(1)
Before making exit regulations, the Secretary of State is to consult—

(a)
the Welsh Ministers;

(b)
the WSRA;

(c)
the CMA;

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(d)
the Consumer Council for Water;

(e)
relevant undertakers whose areas are wholly or mainly in England;

(f)
water supply licensees and sewerage licensees;

(g)
persons whom the Secretary of State considers to represent the

interests of investors in the water industry.

(2)
The power to make exit regulations is to be exercised by statutory

instrument.

(3)
A statutory instrument containing exit regulations made by the Secretary

of State may not be made unless a draft of the instrument has been laid

before, and approved by a resolution of, each House of Parliament.”
Before Clause 45
65
Insert the following new Clause—

“Report on water abstraction reform

(1)
The Secretary of State must prepare a report setting out progress made in

reforming the arrangements for managing water abstraction in England.

(2)
The Secretary of State must lay before Parliament a copy of the report.

(3)
The report must be prepared and laid before the end of the period of five

years beginning with the day on which this Act is passed.”
Clause 49
66
Page 106, line 22, leave out subsection (12) and insert—

“(12)
If the statutory instrument contains any regulations which, on their own,

would make the instrument subject to the affirmative resolution

procedure, the instrument is subject to that procedure.”
Clause 51
67
Page 107, line 4, leave out “relating to flooding” and insert “arising from a flood”
68
Page 107, line 10, leave out subsections (3) to (5) and insert—

“(3)
The Secretary of State may by regulations make provision as to levels of

reinsurance premiums payable by relevant insurers under the FR Scheme,

and may make different provision for different purposes.”
69
Page 107, line 19, leave out from “different” to end of line 20 and insert “purposes

by reference to the value of the household premises insured.”
70
Page 107, line 20, at end insert—

“( )
In this section “flood insurance” means insurance in respect of risks arising

from a flood.”
Clause 53
71
Page 108, leave out line 12 and insert “obtain the consent of the FR Scheme

administrator, which is not to be unreasonably withheld.”