Environment Bill (HC Bill 3)

(5) The regulations may make provision for the purposes of ensuring that
persons likely to be affected by the plan or proposal have a reasonable
opportunity to make representations to the Minister.

(6) The regulations may make provision about how representations (and
5any comments on them by the water undertaker) are to be dealt with,
and in respect of a plan mentioned in subsection (1)(a) or (b), the
regulations may provide for—

(a) the Minister to cause an inquiry or other hearing to be held in
connection with the plan, and

(b) 10section 250(2) to (5) of the Local Government Act 1972 (local
inquiries: evidence and costs) to apply to such an inquiry or
hearing (with or without modifications).

(7) The regulations may make provision about commercially confidential
information and its publication.

(8) 15In this section “the Minister” means—

(a) the Secretary of State, in relation to water undertakers whose
areas are wholly or mainly in England, and

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

39G 20Regulations under section 39F: directions

(1) Regulations made under section 39F may confer on the Minister power
to make provision by directions.

(2) Those directions are to be given by an instrument in writing.

(3) They may be—

(a) 25general directions applying to all water undertakers, or

(b) directions applying only to one or more water undertakers
specified in the directions.

(4) Each water undertaker to whom a direction applies must comply with
the direction.

(5) 30The duties of a water undertaker under this section are enforceable by
the Minister under section 18.

(6) In this section “the Minister” has the same meaning as in section 39F.

39H Regulations under section 39F: supplementary

(1) Regulations under section 39F are to be made by statutory instrument.

(2) 35A statutory instrument containing regulations under section 39F is
subject to annulment in pursuance of a resolution of—

(a) either House of Parliament, in the case of regulations made by
the Secretary of State;

(b) the Assembly, in the case of regulations made by the Welsh
40Ministers.

(3) Subsection (4) applies in relation to a statutory instrument containing
both—

(a) regulations made by the Secretary of State under section 39F,
and

(b) regulations made by the Welsh Ministers under section 39F.

(4) If in accordance with subsection (2)(a) or (b) (negative resolution
procedure)—

(a) either House of Parliament resolves that an address be
5presented to Her Majesty praying that an instrument containing
regulations made by the Secretary of State be annulled, or

(b) the Assembly resolves that an instrument containing
regulations made by the Welsh Ministers be annulled,

the instrument is to have no further effect and Her Majesty may by
10Order in Council revoke the instrument.

(5) Section 213(2) to (2B) applies to regulations made by the Welsh
Ministers under section 39F as it applies to regulations made by the
Secretary of State.”

74 Drainage and sewerage management plans

15In the Water Industry Act 1991, after section 94 insert—

“94A Drainage and sewerage management plans: preparation and review

(1) Each sewerage undertaker must prepare, publish and maintain a
drainage and sewerage management plan.

(2) A drainage and sewerage management plan is a plan for how the
20sewerage undertaker will manage and develop its drainage system and
sewerage system so as to be able, and continue to be able, to meet its
obligations under this Part.

(3) A drainage and sewerage management plan must address in
particular—

(a) 25the capacity of the undertaker’s drainage system and sewerage
system,

(b) an assessment of the current and future demands on the
undertaker’s drainage system and sewerage system,

(c) the resilience of the undertaker’s drainage system and sewerage
30system,

(d) the measures the undertaker intends to take or continue for the
purpose in subsection (2),

(e) the likely sequence and timing for implementing those
measures,

(f) 35relevant environmental risks and how those risks are to be
mitigated, and

(g) any other matters specified by the Minister in directions.

(4) Section 94C contains provision about the preparation and publication
of a drainage and sewerage management plan (including a revised
40plan).

(5) Before each anniversary of the date when its plan (or revised plan) was
last published, the sewerage undertaker must—

(a) review its plan, and

(b) send a statement of the conclusions of its review to the Minister.

(6) The sewerage undertaker must prepare and publish a revised plan in
each of the following cases—

(a) following conclusion of its annual review, if the review
indicated a material change of circumstances;

(b) 5if directed to do so by the Minister;

(c) in any event, not later than the end of the period of 5 years
beginning with the date when the plan (or the revised plan) was
last published.

(7) The Minister may give directions specifying—

(a) 10the form which a drainage and sewerage management plan
must take;

(b) the planning period to which a drainage and sewerage
management plan must relate.

(8) The duties of a sewerage undertaker under this section are enforceable
15by the Minister under section 18.

(9) In this section references—

(a) to a drainage system of a sewerage undertaker, are to any
drainage system (within the meaning of section 114A)
maintained or operated by the sewerage undertaker which is
20not part of its sewerage system;

(b) to the sewerage system of a sewerage undertaker, have the
same meaning as in Chapter 1A of Part 2 (see section 17BA(7)).

(10) In this section “the Minister” means—

(a) the Secretary of State, in relation to sewerage undertakers
25whose areas are wholly or mainly in England, and

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

94B Drainage and sewerage management plans: power to amend period

(1) The Minister may by order made by statutory instrument amend the
30period for the time being specified in section 94A(6)(c).

(2) In subsection (1) “the Minister” means—

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

(b) the Welsh Ministers, in relation to sewerage undertakers whose
35areas are wholly or mainly in Wales.

(3) A statutory instrument containing an order under subsection (1) is
subject to annulment in pursuance of a resolution of—

(a) either House of Parliament, in the case of an order made by the
Secretary of State;

(b) 40the Assembly, in the case of an order made by the Welsh
Ministers.

(4) Subsection (5) applies in relation to a statutory instrument containing
both—

(a) an order made by the Secretary of State under subsection (1),
45and

(b) an order made by the Welsh Ministers under subsection (1).

(5) If in accordance with subsection (3)(a) or (b) (negative resolution
procedure)—

(a) either House of Parliament resolves that an address be
presented to Her Majesty praying that an instrument containing
5regulations made by the Secretary of State be annulled, or

(b) the Assembly resolves that an instrument containing
regulations made by the Welsh Ministers be annulled,

the instrument is to have no further effect and Her Majesty may by
Order in Council revoke the instrument.

94C 10Drainage and sewerage management plans: regulations about
procedure

(1) The Minister may by regulations make provision about the procedure
for preparing and publishing a drainage and sewerage management
plan (including a revised plan).

(2) 15The regulations may provide for the sharing of information and, in
particular, may require a sewerage licensee to share such information
with a sewerage undertaker as may be reasonably requested.

(3) The regulations may make provision about consultation to be carried
out by sewerage undertakers, including provision about—

(a) 20the persons to be consulted,

(b) the frequency and timing of any consultation, and

(c) the publication of statements relating to any consultation.

(4) The regulations may make provision about the preparation and
circulation of draft plans, including provision for the Minister to
25require changes to a draft plan.

(5) The regulations may make provision for the purposes of ensuring that
persons likely to be affected by the plan have a reasonable opportunity
to make representations to the Minister.

(6) The regulations may make provision about how representations (and
30any comments on them by the sewerage undertaker) are to be dealt
with, including provision for—

(a) the Minister to cause an inquiry or other hearing to be held in
connection with the plan, and

(b) section 250(2) to (5) of the Local Government Act 1972 (local
35inquiries: evidence and costs) to apply to such an inquiry or
hearing (with or without modifications).

(7) The regulations may make provision about commercially confidential
information and its publication.

(8) The regulations may confer on the Minister power to make provision
40by directions.

(9) In this section “the Minister” means—

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

(b) the Welsh Ministers, in relation to sewerage undertakers whose
45areas are wholly or mainly in Wales.

94D Regulations under section 94C: supplementary

(1) Regulations under section 94C are to be made by statutory instrument.

(2) A statutory instrument containing regulations under section 94C is
subject to annulment in pursuance of a resolution of—

(a) 5either House of Parliament, in the case of regulations made by
the Secretary of State, and

(b) the Assembly, in the case of regulations made by the Welsh
Ministers.

(3) Subsection (4) applies in relation to a statutory instrument containing
10both—

(a) regulations made by the Secretary of State under section 94C,
and

(b) regulations made by the Welsh Ministers under section 94C.

(4) If in accordance with subsection (2)(a) or (b) (negative resolution
15procedure)—

(a) either House of Parliament resolves that an address be
presented to Her Majesty praying that an instrument containing
regulations made by the Secretary of State be annulled, or

(b) the Assembly resolves that an instrument containing
20regulations made by the Welsh Ministers be annulled,

the instrument is to have no further effect and Her Majesty may by
Order in Council revoke the instrument.

(5) Section 213(2) to (2B) applies to regulations made by the Welsh
Ministers under section 94C as it applies to regulations made by the
25Secretary of State.

94E Drainage and sewerage management plans: directions

(1) In this section “directions” means directions given under—

(a) section 94A, or

(b) regulations under section 94C.

(2) 30Directions are to be given by an instrument in writing.

(3) Directions may be—

(a) general directions applying to all sewerage undertakers, or

(b) directions applying only to one or more sewerage undertakers
specified in the directions.

(4) 35Each sewerage undertaker to whom a direction applies must comply
with the direction.

(5) The duties of a sewerage undertaker under this section are enforceable
under section 18 by—

(a) the Secretary of State, in the case of directions given by the
40Secretary of State, and

(b) the Welsh Ministers, in the case of directions given by the Welsh
Ministers.”

Regulation of water and sewerage undertakers

75 Authority’s power to require information

In the Water Industry Act 1991, after section 27 insert—

“27ZA Power to require information for purpose of monitoring

(1) 5The Authority may, for the purpose of performing its duty under
section 27(1) or (2), serve a notice under subsection (2) on—

(a) a water undertaker or sewerage undertaker;

(b) a water supply licensee or sewerage licensee.

(2) A notice under this subsection is a notice which requires the person on
10whom it is served—

(a) to produce to the Authority, at a time and place specified in the
notice (which must be reasonable), any documents specified or
described in the notice which are in that person’s custody or
under that person’s control, or

(b) 15to provide to the Authority, at a time and place and in the form
and manner specified in the notice (which must be reasonable),
information specified or described in the notice.

(3) The requirements imposed by a notice under subsection (2) are
enforceable by the Authority under section 18.

(4) 20Nothing in this section requires a disclosure of information which,
although made in compliance with the duty imposed by this section,
would contravene the data protection legislation.

(5) In subsection (4) “the data protection legislation” has the same meaning
as in the Data Protection Act 2018 (see section 3(9) of that Act).”

76 25Water and sewerage undertakers in England: modifying appointments

(1) Part 2 of the Water Industry Act 1991 (appointment and regulation of
undertakers) is amended as follows.

(2) After section 12 insert—

““Modification of appointment conditions: England

12A Modification by the Authority

(1) 30This section and sections 12B to 12I apply in relation to a company
appointed under this Chapter whose area is wholly or mainly in
England.

(2) The Authority may make modifications of the conditions of the
company’s appointment under this Chapter.

(3) 35Before making any modifications under this section, the Authority
must give notice—

(a) stating that it proposes to make modifications,

(b) setting out the proposed modifications and their effect,

(c) stating the reasons why it proposes to make the modifications,
40and

(d) specifying the time within which representations with respect
to the proposed modifications may be made.

(4) That time must not be less than 42 days from the date of publication of
the notice.

(5) 5A notice under subsection (3) must be given—

(a) by publishing the notice in a way the Authority considers
appropriate for bringing it to the attention of persons likely to
be affected by the modifications, and

(b) by sending a copy of it to—

(i) 10each company holding an appointment under this
Chapter the conditions of which the Authority proposes
to modify,

(ii) any other company holding an appointment under this
Chapter, water supply licensee or sewerage licensee
15whose interests the Authority considers are likely to be
materially affected by the modifications,

(iii) the Secretary of State,

(iv) any person whose functions are or include representing
those within sub-paragraph (i) or (ii) in respect of
20interests of theirs that the Authority considers are likely
to be materially affected by the modifications, and

(v) the Consumer Council for Water.

(6) The Authority must consider any representations which are duly
made.

(7) 25If, within the time specified under subsection (3)(d), the Secretary of
State directs the Authority not to make the modification, the Authority
must comply with the direction.

(8) Subsections (9) to (11) apply where, having complied with subsections
(3) to (6), the Authority decides to proceed with making modifications.

(9) 30The Authority must—

(a) publish the decision and the modifications in a way the
Authority considers appropriate for bringing it to the attention
of persons likely to be affected by the modifications,

(b) state the effect of the modifications,

(c) 35state how it has taken account of any representations duly
made, and

(d) state the reason for any differences between the modifications
and those set out in the notice under subsection (3).

(10) Each modification has effect from the date specified by the Authority in
40relation to that modification (subject to the giving of a direction under
paragraph 2 of Schedule 2ZA).

(11) The date specified may not be less than 56 days from publication of the
decision to make the modification (except as provided in section 12B).

12B Modification of conditions of appointment: early effective date

(1) 45The date specified by virtue of section 12A(10) in relation to a
modification under that section may be less than 56 days from the
publication of the decision to make the modification if—

(a) the Authority considers it necessary or expedient for the
modification to have effect before the 56 days expire, and

(b) the consultation condition is satisfied.

(2) The consultation condition is that the notice under section 12A relating
5to the modification—

(a) stated the date from which the Authority proposed that the
modification should have effect,

(b) stated the Authority’s reasons for proposing that the
modification should have effect from a date less than 56 days
10from the decision to modify, and

(c) explained why, in the Authority’s view, that would not have a
material adverse effect on any person holding an appointment
under this Chapter.

12C Modifications of conditions under section 12A: supplementary

(1) 15This section applies where under section 12A the Authority modifies
the conditions of any appointment under this Chapter.

(2) The Authority may make such incidental or consequential
modifications of the conditions of any appointments as it considers
necessary or expedient.

(3) 20The modification of a condition of an appointment has effect subject to
the giving of a direction under paragraph 2 of Schedule 2ZA in relation
to the decision to which the modification relates.

12D Appeal to the CMA

(1) An appeal lies to the CMA against a decision by the Authority to
25proceed with the modification under section 12A of a condition of an
appointment under this Chapter.

(2) An appeal may be brought under this section only by—

(a) a company holding an appointment under this Chapter the
conditions of which the Authority has decided to modify,

(b) 30any other company holding an appointment under this
Chapter, water supply licensee or sewerage licensee whose
interests are materially affected by the decision,

(c) a person whose functions are or include representing those
within paragraph (a) or (b) in respect of interests of theirs which
35are materially affected by the decision, or

(d) the Consumer Council for Water.

(3) The permission of the CMA is required for the bringing of an appeal
under this section.

(4) The CMA may refuse permission only on one of the following
40grounds—

(a) in relation to an appeal brought by a company, water supply
licensee or sewerage licensee within subsection (2)(b), that the
interests of the company or licensee are not materially affected
by the decision;

(b) 45in relation to an appeal brought by a person within subsection
(2)(c), that the interests of the person represented are not
materially affected by the decision;

(c) in relation to any appeal, that the appeal is brought for reasons
that are trivial or vexatious, or has no reasonable prospect of
success.

12E Procedure on appeal to CMA

(1) 5Schedule 2ZA makes provision about the procedure for appeals under
section 12D.

(2) Except where specified otherwise in that Schedule, the functions of the
CMA with respect to an appeal under section 12D are to be carried out
by a group constituted for that purpose by the chair of the CMA under
10Schedule 4 to the Enterprise and Regulatory Reform Act 2013.

12F Determination by CMA of appeal

(1) This section applies to an appeal brought under section 12D.

(2) In determining an appeal, the CMA must have regard, to the same
extent as is required of the Authority, to—

(a) 15the Authority’s duties under section 2, and

(b) the Authority’s strategic priorities and objectives as set out in a
statement under section 2A.

(3) In determining the appeal the CMA—

(a) may have regard to any matter to which the Authority was not
20able to have regard in relation to the decision which is the
subject of the appeal, but

(b) must not, in the exercise of that power, have regard to any
matter to which the Authority would not have been entitled to
have regard in reaching its decision had it had the opportunity
25of doing so.

(4) The CMA may allow the appeal only to the extent that it is satisfied that
the decision appealed against was wrong on one or more of the
following grounds—

(a) that the Authority failed properly to have regard to any matter
30mentioned in subsection (2),

(b) that the Authority failed to give appropriate weight to any
matter mentioned in subsection (2),

(c) that the decision was based, wholly or partly, on an error of fact,

(d) that the modifications fail to achieve, in whole or in part, the
35effect stated by the Authority by virtue of section 12A(9)(b),

(e) that the Authority did not follow the procedure required by
sections 12A to 12C, or

(f) that the decision was otherwise wrong in law.

(5) To the extent that the CMA does not allow the appeal, it must confirm
40the decision appealed against.

12G CMA’s powers on allowing an appeal

(1) Where the CMA allows an appeal under section 12D to any extent, it
must do one or both of the following—

(a) quash the decision (to the extent that the appeal is allowed);

(b) remit the matter back to the Authority for reconsideration and
determination in accordance with any directions given by the
CMA.

(2) A direction under subsection (1) must not require the Authority to do
5anything that it would not have power to do (apart from the direction).

(3) The Authority must comply with a direction given to it under that
subsection.

12H Time limits for CMA to determine an appeal

(1) The CMA must determine an appeal within the period of 4 months
10beginning with the permission date, unless subsection (2) applies.

(2) This subsection applies where—

(a) the CMA has received representations on the timing of the
determination from a party to the appeal, and

(b) it is satisfied that there are special reasons why the
15determination cannot be made within the period specified in
subsection (1).

(3) Where subsection (2) applies, the CMA must determine an appeal
within the period specified by it, not being longer than the period of 5
months beginning with the permission date.

(4) 20Where subsection (2) applies, the CMA must also—

(a) inform the parties to the appeal of the time limit for determining
the appeal, and

(b) publish that time limit in a way it considers appropriate to bring
it to the attention of any other persons likely to be affected by
25the determination.

(5) References in this section to the permission date are to the date on
which the CMA gave permission to bring the appeal in accordance with
section 12D(3).

(6) In this section and in section 12I any reference to a party to an appeal is
30to be read in accordance with Schedule 2ZA.

12I Determination of appeal by CMA: supplementary

(1) A determination by the CMA on an appeal—

(a) must be contained in an order made by the CMA;

(b) must set out the reasons for the determination;

(c) 35takes effect at the time specified in the order or determined in
accordance with provision made in the order;

(d) must be notified by the CMA to the parties to the appeal;

(e) must be published by the CMA—

(i) as soon as reasonably practicable after the
40determination is made;

(ii) in a way the CMA considers appropriate to bring it to
the attention of any person likely to be affected by it
(other than a party to the appeal).

(2) The CMA may exclude from publication any information it is satisfied
45is—