Water Bill

Amendments
to be moved
in committee

Clause 1

LORD WHITTY

 

Page 2, line 2, at end insert—

“( )     Granting of an authorisation of a retail or restricted retail authorisation for
supply to non domestic sector customers must be done in such a way and
on such terms that it does not disadvantage domestic customers.”

VISCOUNT HANWORTH

 

Page 2, line 13, at end insert—

“(7A)    The Secretary of State shall following consultation issue rules for
the designation of the market operator for the retail non household
market, setting out the procedures, responsibilities, status and
governance of such market operator.”

LORD WHITTY

 

Page 2, line 20, at end insert—

“(e)   the Consumer Council for Water or other appropriate
statutory consumer body”

 

Page 2, line 28, at end insert—

“(g)   the Consumer Council for Water or other appropriate
statutory consumer body”

Schedule 1

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 125, line 29, after “undertaker” insert “for the purpose of, or in relation to, its
participation in arrangements made by the undertaker for the introduction of
water into its supply system”

 

Page 125, line 30, leave out sub-paragraphs (a) and (b)

 

Page 126, line 16, after “undertaker” insert “for the purpose of, or in relation to, its
participation in arrangements made by the undertaker for the introduction of
water into its supply system”

 

Page 126, line 17, leave out sub-paragraphs (a) and (b)

Schedule 2

LORD WHITTY

LORD GRANTCHESTER

 

Page 127, line 27, at end insert—

“( )     The rules must include provision for and in connection with
ensuring that there are no variations between charges, or the
amount of charges, imposed by a water undertaker under
different section 66D agreements in consequence of the location
at which the duty or duties to be performed by that undertaker
under such agreements fall to be performed.”

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 127, leave out lines 35 to 38

 

Page 128, line 1, leave out from “66B(2)” to end of line 3

LORD DE MAULEY

 

Page 128, line 24, at end insert—

“(7A)    For the purposes of this section and sections 66AA to 66C—

(a)   premises which are outside a water undertaker’s area are
to be treated as being within that area if they are supplied
with water using the undertaker’s supply system, and

(b)   any pipes of the water undertaker which are used for the
purpose of supplying premises as mentioned in
paragraph (a) are to be treated as being part of the
undertaker’s supply system (if they would not otherwise
be part of it).”

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 129, line 41, leave out “introduce” and insert “participate in arrangements
made by the undertaker for the introduction of”

 

Page 129, line 42, leave out from “system” to end of line 46 and insert “by the
holders of such authorisations”

 

Page 130, line 2, leave out “introduce” and insert “participate in arrangements
made by the undertaker for the introduction of”

 

Page 130, line 3, leave out from “system” to end of line 7 and insert “by the holders
of such authorisations”

 

Page 130, line 10, leave out “introduce” and insert “participate in arrangements
made by the undertaker for the introduction of”

 

Page 130, line 11, at end insert “and”

 

Page 130, line 12, leave out “that” and insert “such”

 

Page 130, line 13, leave out “introduce” and insert “participate in the arrangements
for the introduction of”

 

Page 130, line 14, leave out from “system” to end of line 17

 

Page 131, line 44, leave out from “that” to “and” in line 47 and insert “L1 may
participate in arrangements made for the holders of such authorisations”

 

Page 132, line 2, leave out “introduce that” and insert “participate in arrangements
made by the primary water undertaker for the introduction of”

 

Page 132, leave out lines 6 and 7

 

Page 132, line 13, leave out from “may” to “, and” in line 16 and insert “participate
in arrangements made for the holders of such authorisations”

 

Page 132, line 18, leave out “introduce that” and insert “participate in
arrangements made by the primary water undertaker for the introduction of”

 

Page 132, leave out lines 20 and 21

 

Page 132, line 27, leave out from “that” to end of line 32 and insert “L2 may
participate in arrangements made for the holders of such authorisations, and”

 

Page 132, line 34, leave out “introduce that” and insert “participate in
arrangements made by the primary water undertaker for the introduction of”

 

Page 132, leave out lines 36 and 37

 

Page 132, line 42, leave out from “may” to “, and” in line 45 and insert “participate
in arrangements made for holders of such authorisations”

 

Page 132, line 47, leave out “introduce that” and insert “participate in
arrangements made by the primary water undertaker for the introduction of”

 

Page 132, leave out lines 49 and 50

 

Page 134, line 13, leave out from “making” to end of line 14 and insert “a supply of
water to premises”

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Page 136, line 24, leave out “section 66D agreements” and insert “duties under
sections 66A to 66C

 

Page 136, line 25, leave out “section 66D agreements” and insert “duties under
sections 66A to 66C”

 

Page 136, line 30, at end insert—

“(f)   the amount of charges that the undertaker may impose in
respect of any or all classes of customer”

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 136, line 36, at end insert—

“(e)   principles for determining the provisions that should or
should not be incorporated into arrangements of the sort
contemplated in paragraphs 5 and 8 of Schedule 2A
together with a procedure for making and modifying
such arrangements”

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Page 136, line 36, at end insert—

“(e)   common arrangements among persons including one or
more relevant undertakers and water supply licensees
relating in particular to—

(i)   the participation of water supply licensees in the
provision of water services;

(ii)   the provision or exchange of information about
customers or potential customers of water supply
licensees”

LORD WHITTY

LORD GRANTCHESTER

 

Page 139, leave out lines 31 to 38 and insert—

“(3)     The rules will in particular include principles in the rules to—

(a)   ensure household customers and other ineligible
premises are no worse off from increases in charges
resulting from the introduction of a competitive market
in water or sewerage services (or both);

(b)   ensure access charges are set to protect household
customers and other ineligible premises from further de-
averaging within an undertaker’s area, due to their
geographical location, as a result of upstream
competition.”

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 140, line 26, at end insert—

“(c)   the costs which would be incurred by a water undertaker
in performing any of the duties to which the section 66D
agreement relates are also reduced”

After Clause 3

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Separation of retail and wholesale activities

Any company granted a water supply licence under section 17A of the
Water Industry Act 1991, prior to the passing of this Act, must establish
separate legal identities for its—

(a)   retail activities, and

(b)   wholesale activities,

within one year of Royal Assent of this Act.”

Schedule 3

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 145, line 6, leave out “where” and insert “for the purpose of, or in relation to,
its participation in arrangements made by the undertaker for the removal of matter
from the undertaker’s sewerage system by the holders of such authorisations”

 

Page 145, line 7, leave out sub-paragraphs (a) and (b)

Schedule 4

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 146, leave out lines 26 and 27

LORD DE MAULEY

 

Page 146, line 43, at end insert—

“(4A)    For the purposes of this section and sections 117B and 117C—

(a)   premises which are outside a sewerage undertaker’s area
are to be treated as being within that area if they are
provided with sewerage services using the undertaker’s
sewerage system, and

(b)   any sewers or drains of the sewerage undertaker which
are used for the purpose of serving premises as
mentioned in paragraph (a) are to be treated as being part
of the undertaker’s sewerage system (if they would not
otherwise be part of it).”

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 147, line 38, leave out “remove certain qualities” and insert “participate in
arrangements made by the undertaker for the removal”

 

Page 147, line 39, leave out from “system” to end of line 45 and insert “by the
holders of such authorisations”

 

Page 150, line 10, leave out “section 117E agreements” and insert “duties under
sections 117A to 117D

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Page 150, line 11, leave out “section 117E agreements” and insert “duties under
section 117A to 117D”

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 150, line 22, at end insert—

“(e)   principles for determining the provisions that should or should
not be incorporated into arrangements of the sort contemplated
in paragraph 5 of Schedule 2B together with a procedure for
making and modifying such arrangements”

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Page 150, line 22, at end insert—

“(e)   common arrangements among persons including one or more
relevant undertakers and sewerage licensees in particular to—

(i)   the participation of sewerage licensees in the provision of
sewerage services;

(ii)   the provision or exchange of information about
customers or potential customers of sewerage licensees”

 

Page 152, line 23, at end insert—

“(f)   the amount of charges that the undertaker may impose in respect
of any or all classes of customer”

THE EARL OF SELBORNE

LORD MOYNIHAN

 

Page 153, line 17, at end insert—

“(c)   the costs which would be incurred by a sewerage undertaker in
performing any of the duties to which the section 117E
agreement relates are also reduced”

Clause 8

BARONESS PARMINTER

LORD SHIPLEY

 

Page 10, line 32, at end insert—

“( )     In relation to any agreement for the supply of water in bulk
between a water undertaker and a qualifying person—

(a)   the Authority and any party to an agreement shall at any
time if so requested provide such information as the
Environment Agency or NRBW may require in relation to
the volume and source of any water to be abstracted or
supplied and the timing of such abstraction or supply under
the agreement;

(b)   the Environment Agency or NRBW may at any time certify
to the Authority that it is necessary or expedient for the
purpose of—to vary or terminate an agreement, the Authority must seek
a variation or termination of that agreement;

(i)   conserving, redistributing or otherwise augmenting
water resources in England and Wales;

(ii)   securing the proper use of water resources in
England and Wales; and

(iii)   securing the conservation of flora and fauna which
are dependent on an aquatic environment;

  to vary or terminate an agreement, the Authority must seek a variation or termination of that agreement;

(c)   if the Authority is satisfied that the variation or termination
cannot be achieved by agreement between the parties
within a reasonable time it must by order vary or terminate
that agreement accordingly.”

 

Page 12, line 10, at end insert—

(2A)    A code must make provision about procedures for consulting the
Environment Agency or NRBW for the purpose of ensuring that
any bulk supply agreement contributes to—

(a)   conserving, redistributing or otherwise augmenting water
resources in England and Wales;

(b)   securing the proper use of water resources in England and
Wales; and

(c)   securing the conservation of flora and fauna which are
dependent on an aquatic environment.”

After Clause 15

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Market choice limitation

A company granted a water supply licence under section 17A of the Water
Industry Act 1991, prior to the passing of this Act, may choose to provide
to—

(a)   the retail market, or

(b)   the wholesale market only.”

 

Insert the following new Clause—

“Retail exit

(1)     The Secretary of State may by regulations make provision about the
transfer of an undertaker’s assets and liabilities associated with its non-
household retail business into a separate company.

(2)     Regulations under this section are to be made by statutory instrument.

(3)     Regulations under subsection (1) may, in particular, make provision for
any such transfer to be subject to—

(a)   approval by the Secretary of State;

(b)   any such safeguards as may be specified in the regulations;

(c)   the transferee company holding a licence containing a retail
authorisation pursuant to section 17A of the Water Industry Act
1991;

(d)   the provision of any information or other such assistance from the
relevant undertaker as may be required by the Secretary of State for
the purposes of approving the transfer.”

Clause 16

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Page 52, line 33, after “143B,” insert “66E or 117I,”

 

Page 52, line 38, at end insert—

“( )     In section 142 of the Water Industry Act 1991 (powers of undertakers to
charge)—

(a)   in subsection (2)—

(i)   the word “and” is omitted, and

(ii)   after “(3A)” the words “and (3B)” are inserted;

(b)   after subsection (3A) there is inserted—

“(3B)    Subject to subsection (3C) below, the power of a relevant
undertaker to charge, by virtue of subsection (1) above, for
any services provided in the course of carrying out its duties
under sections 66A, 66AA, 117A and 117B above shall be
exercisable only by or in accordance with a charges scheme
under section 143 below.

(3C)    Subsection (3B) shall not have effect in relation to reduced
charges payable in accordance with rules made by virtue of
section 66EA(1) or section 117J(1).”

( )     In section 143(5)(a) of the Water Industry Act 1991, after “within section
142(2A)” the words “or section 142(3B)” are inserted.”

LORD WHITTY

LORD GRANTCHESTER

 

Page 53, line 16, at end insert—

“( )     The rules under this section will require water and sewerage
undertakers to consult with the Council on their draft charges
scheme.”

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Page 53, line 28, at end insert “and sections 66E and 117l”

After Clause 20

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Abstraction reform

(1)     The Secretary of State may by order (the “commencement order”) appoint
a day on which section 1 is to come into force.

(2)     The Secretary of State may only make an order under subsection (1) if—

(a)   new primary legislation on the licensing of abstraction has been
passed; and

(b)   5 years has expired since the passage of any legislation under
paragraph (a).”

 

Insert the following new Clause—

“Standardised terms and conditions for new entrants

Any company granted a water supply licence under section 17A of the
Water Industry Act 1991, following the passing of this Act, must be—

(a)   offered comparable terms and conditions as any company granted
a water supply licence prior to the passing of this Act; and

(b)   all terms and conditions must be subject to scrutiny by the
regulator.”

After Clause 21

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Insert the following new Clause—

“Voluntary transfer of assets, liabilities etc

Arrangements for voluntary transfer of assets, liabilities etc. by an undertaker

Schedule (Arrangements for voluntary transfer of assets, liabilities etc by an
undertaker
) (which contains provisions in connection with the voluntary
transfer of certain assets, liabilities etc. of a relevant undertaker) shall have
effect.”

Before Clause 22

LORD WHITTY

 

Insert the following new Clause—

“Consumer Objective

In section 2(2B) of the Water Industry Act 1991, after “interests of” insert
“current and future”.

After Clause 22

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Primary duty of sustainable development

(1)     Section 2 of the Water Industry Act 1991 (general duties with respect to
water industry) is amended as follows.

(2)     In subsection (2A)—

(a)   omit the “and” at the end of paragraph (c);

(b)   after paragraph (d) insert “; and

(e)   to contribute to the achievement of sustainable
development.”

(3)     In subsection (3) omit paragraph (e).”

Clause 23

THE EARL OF SELBORNE

LORD MOYNIHAN

LORD WHITTY

LORD GRANTCHESTER

 

Page 64, line 16, at end insert—

“(2)     In section 2 of the Water Industry Act 1991 (general duties of the Secretary
of State and the Water Services Regulation Authority with respect to the
water industry), in subsection (3) (general considerations in exercising
powers and duties), after paragraph (e) there is inserted—

“(f)   to secure the provision of services by licensed water
suppliers and licensed sewerage suppliers in a manner that
is not detrimental to the exercise of the functions referred to
in subsection (2A)(b) above.”.”

After Clause 23

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Insert the following new Clause—

“Duty to facilitate competition

(1)     Section 37 of the Water Industry Act 1991 (general duty to maintain water
supply system etc.) is amended as follows.

(2)     In the heading, after “system” insert “and facilitate competition”.

(3)     After subsection (1) insert—

“(1A)    It shall be the duty of every water undertaker—

(a)   to fulfil its duties under Chapter 2A of Part 3 in a way which
does not prevent, restrict or distort competition in the
provision of water services; and

(b)   without prejudice to the generality of subsection (1A)(a), to
ensure that no undue preference is shown (including for
itself) and that there is no undue discrimination in the
relationship between its monopoly business, its competitive
business and a water supply licensee.

(1B)    For the purposes of subsection (1A) above—

(a)   an undertaker’s monopoly business comprises all of the
activities carried on by it within the scope of its
appointment, with the exception of its competitive business;

(b)   an undertaker’s competitive business comprises those
activities carried on by it within the scope of its
appointment, but which, in the absence of such an
appointment, could only be carried on by it with the benefit
of a water supply licence and the business of any associated
water supply licensee; and

(c)   a water supply licence is a licence granted under section
17A, water supply licensee shall be construed accordingly
and associated shall have the meaning set out in paragraph
11 of Schedule 2A.”

(4)     In subsection (2) for “duty” there is inserted “duties”.”

 

Insert the following new Clause—

“Duty to facilitate competition

(1)     Section 94 of the Water Industry Act 1991 (General duty to provide
sewerage system) is amended as follows.

(2)     In the heading, after “system” insert “and facilitate competition”.

(3)     After subsection (1) insert—

“(1A)    It shall be the duty of every sewerage undertaker—

(a)   to fulfil its duties under Chapter 2A of Part 4 in a way which
does not prevent, restrict or distort competition in the
provision of sewerage services; and

(b)   without prejudice to the generality of subsection (1A)(a), to
ensure that no undue preference is shown (including for
itself) and that there is no undue discrimination in the
relationship between its monopoly business, its competitive
business and a sewerage licensee.

(1B)    For the purposes of subsection (1A) above—

(a)   an undertaker’s monopoly business comprises all of the
activities carried on by it within the scope of its
appointment, with the exception of its competitive business;

(b)   an undertaker’s competitive business comprises those
activities carried on by it within the scope of its
appointment, but which, in the absence of such
appointment, could only be carried on by it with the benefit
of a sewerage licence and the business of any associated
sewerage licensee; and

(c)   a sewerage licence is a licence granted under section 17BA,
sewerage licensee shall be construed accordingly and
associated shall have the meaning set out in paragraph 8 of
Schedule 2B.”

(4)     In subsection (3) for “duty” there is substituted “duties”.

(5)     In subsection (3) for “subsection” there is substituted “subsections”.

(6)     In subsection (3) after “(1)” insert “and (1A)”.”

After Clause 24

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Billing information: affordability

Any company providing water services to a residential household must
include on its bills—

(a)   details of any tariffs provided by that company;

(b)   a recommendation of the lowest possible tariff for each residential
household; and

(c)   information regarding eligibility criteria and how to make an
application for assistance under Water Sure.”

 

Insert the following new Clause—

“National Affordability Scheme

(1)     The Secretary of State must, by order, introduce a National Affordability
Scheme for water.

(2)     The National Affordability Scheme must include an eligibility criteria,
determined by the Secretary of State, in consultation with—

(a)   the Water Services Regulation Authority; and

(b)   the Consumer Council for Water.

(3)     An order under this section—

(a)   shall be made by statutory instrument, and

(b)   may not be made unless a draft of the order has been laid before and
approved by resolution of each House of Parliament.”

 

Insert the following new Clause—

“Provision of information to water companies

(1)     The Water Industry Act 1991 is amended as follows.

(2)     After section 207 (provision of false information) there is inserted—

“207A            Provision of information to water companies: landlords

Where a water company does not have information about a resident
in a property that is using water, if the occupants of that property
are tenants, the landlord must, on request, provide to the water
company contact details for the tenants.””

 

Insert the following new Clause—

“Oversight of charges

In section 2 of the Water Industry Act 1991 (general duties with respect to
water industry), after subsection (2C) there is inserted—

“(2CA)   For the purposes of subsection (2A)(a) above the Secretary of State
or, as the case may be, the Authority shall have regard to the rates
of charges to—

(a)   household premises; and

(b)   non-household premises.””

 

Insert the following new Clause—

“Prohibition of losses to water companies

(1)     The Secretary of State, or the Authority, may prohibit losses to a water
company due to non-payment of bills from being recovered through
charges on customers.

(2)     This section comes into force on the day after the Secretary of State has laid
before Parliament a report setting out how water companies have failed to
take action on these matters.”

Clause 27

LORD WHITTY

 

Page 67, line 30, at end insert “or to meet water quality, environmental or other
resilience standards”

Clause 28

LORD WHITTY

 

Page 69, line 9, at end insert—

“(4A)    Once water resource management plans have been approved and
published in accordance with this section it shall be—

(a)   the duty of the Authority to conduct price reviews in manner
designed to fulfil the objectives of that plan;

(b)   the duty of the Environment Agency to conduct its regulatory and
management activities in a manner designed to fulfil the objectives
of that plan.”

Before Schedule 6

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Insert the following new Schedule—

“SCHEDULE

ARRANGEMENTS FOR VOLUNTARY TRANSFER OF ASSETS, LIABILITIES ETC. BY AN
UNDERTAKER

Circumstances in which this Schedule has effect

1 The provisions of this Schedule have effect in relation to a company
holding an appointment immediately before the passing of this Act as
the water or sewerage undertaker for any area of England and Wales
which makes either or both of the nominations mentioned in paragraph
2.

Nomination by relevant undertaker

2 A relevant undertaker shall be entitled to nominate—

(a)   an associate which holds a water supply licence with a retail
authorisation;

(b)   an associate (which may be the same company as that specified
in paragraph (a)) which holds a sewerage licence with a retail
authorisation;

for the purpose of facilitating the carrying on by relevant transferee(s) of the activities authorised by its (or their) licence(s).

for the purpose of facilitating the carrying on by relevant transferee(s) of the activities authorised by its (or their) licence(s).

Transfer schemes

3 A relevant undertaker may make a scheme transferring such of its
property (including rights) and liabilities to the undertaking as are
necessary for the purposes of or in connection with a nomination
mentioned in paragraph 2.

4 A transfer by virtue of paragraph 3 may be—

(a)   to such extent; and

(b)   subject to such conditions,

as the transferor may, with the consent of the Secretary of State, determine.

as the transferor may, with the consent of the Secretary of State, determine.

5 A transfer by virtue of paragraph 3—

(a)   has effect in relation to any property and liabilities to which it
applies despite any provision (of whatever nature) which would
otherwise prevent, penalise or prohibit the transfer of the
property or liabilities; and

(b)   has the effect of vesting in the undertaking any property or
liabilities to which it applies.

Secretary of State’s powers in relation to transfer schemes

6 A transfer scheme shall not take effect unless it is approved by the
Secretary of State.

7 The Secretary of State may only approve a transfer scheme if he is
satisfied that the making of the scheme does not amount to a means by
which the transferor would discharge a divestment obligation.

8 The Secretary of State may if he thinks fit, before approving a transfer
scheme, make such modifications of the scheme as he considers
appropriate for the purpose of securing that the scheme makes only such
provision as he considers to be requisite or expedient for the purposes of
this Schedule.

9 The powers of the Secretary of State under paragraphs 6, 7 and 8 may in
particular be exercised with a view to ensuring that a proposed transfer
scheme does not operate against the public interest. In considering
whether such a proposed transfer scheme may operate against the public
interest, the Secretary of State shall have regard, amongst other things,
to the context within which it is proposed to operate including the extent
to which there are arrangements in place (whether by virtue of
conditions included in the transferee’s licence or otherwise) designed to
secure that occupiers of eligible premises within the area of the
transferor—

(a)   are entitled in future to be supplied with water by a water supply
licensee and/or provided with a sewerage service by a sewerage
licensee, in either case on reasonable terms;

(b)   do not experience a deterioration in the quality of, or increase in
the prices payable for, the supply of water and/or provision of
sewerage service by virtue of becoming customers of the
transferee as a consequence of a transfer under paragraph 3.

10 It shall be the duty of the transferor to provide the Secretary of State with
all such information and other assistance as he may require for the
purposes of or in connection with the exercise of any function conferred
on him by paragraphs 6 and 8.

Employees

11 The contract of employment of a person transferred by virtue of a
transfer scheme—

(a)   is not terminated by the transfer; and

(b)   has effect from the date of transfer as if originally made between
the person and the transferee.

12 Without prejudice to paragraph 11, where a person is transferred to the
employment of a transferee by virtue of that paragraph—

(a)   all the rights, powers, duties and liabilities of the transferor
under or in connection with the person’s contract of employment
are transferred to the transferee on the date of transfer; and

(b)   anything done before that date by or in relation to the transferor
in respect of the person or that contract is to be treated from that
date as having been done by or in relation to the transferee.

13 Paragraphs 11 and 12 do not affect any right of any person to terminate
the person’s contract of employment if the terms and conditions of
employment are changed substantially to the detriment of the person;
but such a change is not to be taken to have occurred by reason only that
the identity of the person’s employer changes by virtue of those
subsections.

Interpretation

14 In this Schedule—

“divestment obligation” means, in relation to a transfer scheme, any
duty or obligation imposed upon a transferor by (or undertaken
by a transferor to) the Competition and Markets Authority to
effect a disposal or restructuring in whole or in part of any
property or liabilities to which the scheme relates;

“transfer scheme” means a scheme under paragraph 3;

“transferee” means the transferee under a transfer scheme;

“transferor” means the person who makes a transfer scheme;

“eligible premises” means premises to which the holder of a water
supply licence with a retail authorisation is entitled to supply
water or, as the case may be, premises in respect of which the
holder of a sewerage licence with a retail authorisation is entitled
to provide sewerage services.

15 For the purposes of this Schedule a company is an associate of the
transferor if—

(a)   the transferee is a wholly owned subsidiary of the transferor;

(b)   the transferor is a wholly owned subsidiary of the transferee; or

(c)   the transferor and the transferee are both wholly owned
subsidiaries of another company.

16 The references in paragraph 15 to a wholly owned subsidiary shall be
construed in accordance with section 1159 of the Companies Act 2006.”

After Clause 38

BARONESS PARMINTER

LORD SHIPLEY

 

Insert the following new Clause—

“Restriction on undertakers’ power to require fixing of charges by reference to
volume

(1)     The Water Industry Act 1991 is amended as follows.

(2)     In section 144B (restriction on undertakers’ power to require fixing of
charges by reference to volume), after subsection (1) insert—

“(1A)    Subsection (2) below shall not apply where the water undertaker
considers that the fixing of charges by reference to volume is
required to allow it to meet its duties under section 37(1)(a)
(providing supplies of water) or section 93A (duty to promote the
efficient use of water) and that measures for fixing of charges by
reference to volume have been included in both the water
undertaker’s draft water resources management plan as set out in
section 37B and any such plan published as set out in section
37B(8)(a).””

Clause 42

LORD WHITTY

 

Page 93, line 31, after “complaints” insert “whether from individual customers or
a group of customers collectively”

 

Page 93, line 37, after “which” insert “can provide redress on either an individual
or a collective basis”

After Clause 42

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Consumer complaints

(1)     Section 29 of the Water Industry Act 1991 (consumer complaints) is
amended as follows.

(2)     After subsection (11) there is inserted—

“(11A)   Following the production of a report under subsection (10), the
Council will have the right to—

(a)   be consulted on a water company’s charging scheme, and
any changes to it, and

(b)   to investigate and resolve matters as it sees fit.”.”

 

Insert the following new Clause—

“General duties with respect to water industry

In pursuit of its duty under section 2 (general duties with respect to water
industry) of the Water Industry Act 1991 the Authority must—

(a)   take into account all information provided by section (Duties of
undertakers to furnish the Secretary of State with information:
annual review); and

(b)   may consider such information when determining whether
reopening a review of prices would further the consumer objective,
set out in paragraph (2A)(a) of the 1991 Act.”

Clause 43

LORD MOYNIHAN

THE EARL OF SELBORNE

 

Page 94, line 22, at end insert—

“( )     References in this section to the new market arrangements are to new
arrangements relating to the participation of water supply licensees and
sewerage licensees in the market for the provision of water and sewerage
services.”

 

Page 94, line 26, after “so” insert “—

(a)   for the purpose of implementing the new market arrangements, or

(b)   ”

 

Page 94, line 27, at end insert “, including although not limited to, those provisions
of the Water Industry Act 1991 which are made or modified by this Part”

 

Page 94, line 30, after “so” insert “—

(a)   for the purpose of implementing the new market
arrangements, or

(b)   ”

 

Page 94, line 30, at end insert “, including although not limited to, those provisions
of the Water Industry Act 1991 which are made or modified by this Part”

 

Page 95, line 1, leave out “two” and insert “three”

 

Page 95, line 2, leave out “the provision in question comes into force” and insert
“this Act is passed”

 

Page 95, line 26, at end insert—

“( )     The power of the Authority to modify the conditions of a company’s
appointment under subsection (2) or the conditions of a person’s licence
under subsection (3), may be exercised in relation to—

(a)   any particular appointment or licence;

(b)   all appointments, all licences or all appointments and licences; or

(c)   any group of appointments or licences that the Authority may
specify.”

After Clause 44

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Duties of undertakers to furnish the Secretary of State with information:
annual review

(1)     Section 202 of the Water Industry Act 1991 (duties of undertakers to furnish
the Secretary of State with information) is amended as follows.

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

“(1B)    Any company with a duty under subsections (1) and (1A) must
furnish the Secretary of State and the Authority with an annual
review which provides information about—

(a)   their performance;

(b)   the total amount of investment;

(c)   their taxation structure;

(d)   their corporate structure; and

(e)   the total amount of dividends paid to shareholders.

(1C)    Information under subsection (1B) must be provided prior to the
publication of the annual statement of the Secretary of State under
section 2A.”.”

Clause 47

LORD WHITTY

 

Page 102, line 40, leave out subsection (1)

After Clause 50

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Onshore oil or gas activities: effect on water environment

In Part 1 of Schedule 5 to the Environmental Permitting (England and
Wales) Regulations 2010 there shall be inserted after paragraph 13 the
following—

“Onshore oil or gas activities—effect on water environment

13A   (1)  Without prejudice to the operation of Regulation 35(2) and
paragraph 5(1)(d) of Schedule 10 and of Regulation 35(2) and
paragraph 7(j) of Schedule 20, the regulator shall refuse an
application for the grant or variation of an environmental permit
or for the transfer in whole or in part of an environmental permit
if—

(a)   the regulated facility to which the application for or
transfer of the environmental permit relates is to be
carried on as part of an onshore oil or gas activity; and

(b)   the regulator is not satisfied that the applicant or the
proposed transferee has made or will make adequate
financial provision for preventing or mitigating pollution
of the water environment, by ensuring all of the
following—

(i)   operation of the regulated facility in accordance
with the environmental permit;

(ii)   compliance with any enforcement notice or
suspension notice or prohibition notice or mining
waste facility closure notice or landfill closure
notice which may be served on the applicant or
transferee by the regulator under these
Regulations;

(iii)   compliance with any order of the High Court
which may be obtained against the applicant or
transferee under Regulation 42 for the purpose of
securing compliance with any of the notices listed
in sub-paragraph (ii);

(iv)   compliance with any order of any court issued
under Regulation 44 against the applicant or
transferee; and

(v)   recovery by the regulator of its costs upon any
exercise of its power against the applicant or
transferee under Regulation 57;

(c)   for the purpose of this paragraph “onshore oil or gas
activity” means any activity for the purpose of
exploration for or extraction of onshore oil and gas;

(d)   for the purpose of this paragraph “adequate provision by
way of financial security” means financial provision
which is sufficient in value, secure and available when
required.”.”

Clause 51

LORD WHITTY

LORD GRANTCHESTER

 

Page 107, line 21, at end insert—

“(8)     Prior to making any regulations under subsection (5), the Secretary of State
shall require the Committee on Climate Change to provide current and
projected estimates of the number of properties that would be eligible for—

(a)   inclusion in the Flood Reinsurance Scheme;

(b)   the value of levy required under section (Scheme funding); and

(c)   the likelihood of additional levy or contributions being needed
from time to time.”

Clause 54

LORD DE MAULEY

 

Page 109, line 30, after “persons” insert “, or descriptions of persons,”

Clause 58

LORD WHITTY

LORD GRANTCHESTER

 

Page 112, line 15, at end insert—

“(7)     In prescribing a target number the Secretary of State shall refer to the
advice of the Committee on Climate Change given under section (Flood
Reinsurance Scheme
)(8).”

After Clause 59

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Flood Reinsurance Scheme: commencement

(1)     The Secretary of State may by order (the “commencement order”) appoint
a day on which section (Flood Reinsurance Scheme) is to come into force.

(2)     An order under subsection (1)—

(a)   shall be made by statutory instrument; and

(b)   may not be made unless a draft has been laid before and approved
by resolution of each House of Parliament.

(3)     The Secretary of State may only make an order under subsection (1) if a
Flood Reinsurance Scheme national database has been established.

(4)     Any Flood Reinsurance Scheme national database must—

(a)   be accessible by the public;

(b)   outline a property’s risk of flooding; and

(c)   indicate if the property is covered by the Flood Reinsurance
Scheme.”

 

Insert the following new Clause—

“Flood Reinsurance Scheme: report

(1)     The Secretary of State must prepare and publish a report on—

(a)   how many properties are not eligible for the Flood Reinsurance
Scheme; and

(b)   the cost of including properties under paragraph (a) in the Flood
Reinsurance Scheme prior to it coming into effect,

and must lay a copy of the report before Parliament.

(2)     The report shall include a breakdown of the cost of including properties
that fall under the category—

(a)   Council Tax band H;

(b)   built between 1 January 2009 and 31 December 2012; and

(c)   built after 1 January 2013.”

After Clause 63

LORD WHITTY

LORD GRANTCHESTER

 

Insert the following new Clause—

“Flood Reinsurance Scheme:

(1)     The Secretary of State shall by order establish a right of appeal for a
household which has been removed from the Flood Reinsurance Scheme.

(2)     The Financial Conduct Authority shall be responsible for the hearing and
administration of appeals under subsection (1).

(3)     An order under subsection (1)—

(a)   shall be made by statutory instrument; and

(b)   may not be made unless a draft has been laid before and approved
by resolution of each House of Parliament.

(4)     An order under subsection (1) must be made before the Flood Reinsurance
Scheme has been implemented.”

Clause 70

LORD DE MAULEY

 

Page 120, line 26, leave out paragraph (b) and insert—

“(b)   the revocation of a scheme’s designation under section 51(1)(b)
without a new designation being made under that provision, at any
time before sections 51 to 56 are repealed,”

 

Page 120, line 37, at end insert—

“(4A)    Before making an order under subsection (3)(a)(i) or (b) which includes
provision for the transfer of an amount of the reserves of the FR Scheme,
the Secretary of State must consult the FR Scheme administrator about the
amount to be transferred.

(4B)    The Secretary of State may by regulations define “reserves” for the
purposes of subsection (4A).”

Prepared 31st January 2014