Environment Bill

Explanatory Notes

New section 12I Determination of appeal by CMA: supplementary

745 Subsection (1) sets out how the CMA must set out the determination of an appeal (in an order), what should be included in it, when and how it should be published, and whom the CMA must notify.

746 Subsection (2) allows the CMA not to publish any commercial information that could harm the business interests of an undertaking to which the determination relates, or any information that relates to an individual and could harm their interests.

747 Subsection (3) requires Ofwat to take any steps needed to comply with an order issued by the CMA.

748 Subsection (4) provides that Ofwat must comply with any order issued by the CMA by the time specified in the order or, if no time is specified, within a reasonable time.

749 Subsection (5) provides that new section 12C, under which a consequential change to other conditions linked with the original change could be made, applies as it applies where a condition of a licence is modified under new section 12A. Under new section 12G, Ofwat may be required to reconsider and redetermine a licence modification decision if an appeal is allowed by the CMA.

750 Subsection (3) of clause 78 inserts a new heading before section 13 of the Water Industry Act 1991 to read "Modification of appointment conditions: Wales". This clarifies that, following the amendments made by this Bill, sections 13 to 16B of the Water Industry Act 1991 will apply solely to undertakers whose appointments areas are wholly or mainly in Wales. The current process for modification of licence conditions by agreement will effectively continue for Wales only.

751 Subsection (4) of clause 78 inserts a new subsection (A1) into section 13 of the Water Industry Act 1991, clarifying that that sections 13 to 16B apply only to undertakers whose areas of appointment are wholly or mainly in Wales.

752 Subsection (5) of clause 78 inserts a new heading before section 17 of the Water Industry Act 1991 to clarify that section 17 applies to the modification of conditions in both England and Wales.

753 Subsection (6) of clause 78 inserts a new Schedule 2ZA into the Water Industry Act 1991, which details the procedure for appeals made under section 12D of the Water Industry Act 1991.

754 Members of the CMA Panel will consider appeals made to the CMA in respect of water and sewerage undertaker licence modification decisions. Subsection (7) makes a consequential amendment to the CMA Panels provision in Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (paragraph 35(3)), to ensure that appeals to the CMA under new section 12D of the Water Industry Act 1991 will meet the definition of a "specialist utility function" in the Enterprise and Regulatory Reform Act 2013. This will ensure that CMA panel experts are able to carry out new section 12D functions.

Clause 79: Electronic service of documents

755 Clause 79 inserts new subsections into section 216 (service of documents) of the Water Industry Act 1991, enabling the electronic service of documents served under that Act.

756 Subsection (4A) allows any document required or permitted to be served under the Water Industry Act 1991 to be served by electronic means.

757 Subsection (4B) provides that where the document is to be served on a consumer, it can only be served electronically where (a) a person has consented in writing to receiving documents electronically and has not withdrawn that consent, and (b) the document is sent electronically to the electronic address that the consumer has most recently provided to the sender.

758 Subsection (4C) defines the meaning of "consumer", as a person liable to pay charges in respect of (a) the supply of water any premises, or (b) the provision of sewerage services in respect of any premises, excluding any water or sewerage undertaker, water supply or sewerage licensee, or Ofwat (the Authority).

759 This clause forms part of the law of England and Wales and applies to England and Wales.

Clause 80: Water abstraction: no compensation for certain licence modifications

760 Clause 80 inserts new sections 61ZA and 61ZB into the Water Resources Act 1991, and makes consequential modifications to section 27 of the Water Act 2003 and Schedule 8 to the Water Act 2014. The purpose of the two new sections is to allow permanent licences in England to be varied or revoked on or after 1 January 2028 where the change is necessary to protect the environment or to remove excess headroom.

761 Subsection (1) inserts two new sections 61ZA and 61ZB after section 61 of the Water Resources Act 1991.

 

Prepared 29th January 2020