Water Bill

second
marshalled
list of Amendments
to be moved
in committee

The amendments have been marshalled in accordance with the Instruction of 29th January 2014, as follows—

Clauses 22 to 37
Schedule 6
Clauses 38 to 44
Schedule 7
Clauses 45 to 48
Schedule 8
Clauses 49 to 74
Schedule 9
Clause 75
Schedule 10
Clauses 76 and 77
Schedule 11
Clauses 78 to 80
Schedule 12
Clause 81

[Amendments marked * are new or have been altered]

Before Clause 22

LORD WHITTY

LORD GRANTCHESTER

109

Insert the following new Clause—

“Consumer objective

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

BARONESS NEVILLE-ROLFE

109A*

Insert the following new Clause—

“Duties of the Secretary of State

The Secretary of State shall take such steps as are necessary to—

(a)   ensure that bodies carrying out—

(i)   the provisions of this Act;

(ii)   water and associated environmental regulations under
other Acts;

(iii)   regulations and codes made under sub-paragraphs (i) and
(ii) above; and

(iv)   equivalent regulations and requirements made under
European Union legislation,

minimise bureaucratic burdens on affected undertakings and others; and

(b)   reduce bureaucracy, overlap and waste within the various bodies
concerned with water and established by statute or by European
Union legislation by defining their respective duties clearly and
transparently in one place and on one website.”

Clause 22

LORD REDESDALE

110

Page 63, line 20, after “resilience” insert “and sustainable development”

111

Page 63, line 22, after “resilience” insert “and sustainable development”

112

Page 63, line 29, at end insert “and

(c)   to secure that undertakers take steps for the purpose of
contributing to the achievement of sustainable
development”

LORD OXBURGH

112A*

Page 63, line 33, at end insert—

“( )     In support of the measures indicated in subsection (2DA), the
Secretary of State shall be authorised to allow metering of water
supplies both in areas of water stress and areas of potential water
stress and additionally in areas where metering might generate
other social benefits.”

After Clause 22

LORD WHITTY

LORD GRANTCHESTER

113

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

114

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

115

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”.”

116

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)”.”

Clause 24

BARONESS PARMINTER

117

Page 64, line 28, leave out “may” and insert “must”

After Clause 24

LORD WHITTY

LORD GRANTCHESTER

BARONESS KENNEDY OF CRADLEY

118

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.”

119

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 a resolution of each House of Parliament.”

LORD WHITTY

LORD GRANTCHESTER

120

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.”.”

121

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.”.”

122

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

LORD GRANTCHESTER

123

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

Clause 28

LORD WHITTY

LORD GRANTCHESTER

124

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 a 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.”

Clause 31

LORD DE MAULEY

125

Page 76, line 5, at end insert—

“(7)     For the purposes of section 63AC, 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.

(8)     In subsection (7), the reference to the undertaker’s supply system is
to be construed in accordance with section 17B.”

126

Page 77, line 11, leave out “a code” and insert “the code”

Clause 32

LORD DE MAULEY

127

Page 78, line 34, leave out “or”

128

Page 78, line 36, at end insert “or

(iii)   services are provided to the premises by another
sewerage undertaker following the service of a
notice by the owner or occupier of the premises on
the undertaker providing services under subsection
(2) specifying the time after which the undertaker
will no longer be required to provide sewerage
services to the premises (see section 110M(5)),”

129

Page 79, line 35, at end insert—

“(3)     For the purposes of section 110L, 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.

(4)     In subsection (3), the reference to the undertaker’s sewerage system
is to be construed in accordance with section 17BA(7).

(5)     Section 110K(2) and (3) apply to a notice served under section
110L(6)(b)(iii) as they apply to a notice served under section 110K.”

130

Page 80, line 43, leave out “a code” and insert “the code”

Clause 33

THE EARL OF SELBORNE

131

Page 81, line 8, leave out “In section 142 (powers of undertakers to charge)”

Before Schedule 6

LORD MOYNIHAN

THE EARL OF SELBORNE

132

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).

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.

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.

10     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 or provided with a sewerage service by a sewerage
licensee (or both), and 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 or provision of
sewerage service by virtue of becoming customers of the
transferee as a consequence of a transfer under paragraph 3.

11     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

12     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.

13     Without prejudice to paragraph 12, 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.

14     Paragraphs 12 and 13 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
paragraphs.

Interpretation

15     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.

16     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.

17     The references in paragraph 16 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

LORD CURRY OF KIRKHARLE

133

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

LORD GRANTCHESTER

134

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

135

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

After Clause 42

LORD WHITTY

LORD GRANTCHESTER

136

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.””

137

Insert the following new Clause—

“General duties with respect to water industry

In pursuit of its duty under section 2 of the Water Industry Act 1991
(general duties with respect to water industry) the Authority must take into
account all information provided by section (Duties of undertakers to furnish
the Secretary of State with information: annual review
); and may consider such
information when determining whether reopening a review of prices
would further the consumer objective, set out in section 2(2A)(a) of the 1991
Act.”

Clause 43

LORD MOYNIHAN

THE EARL OF SELBORNE

138

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.”

139

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

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

(b)   ”

140

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”

141

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

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

(b)   ”

142

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”

143

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

144

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

145

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

146

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.””

Schedule 7

LORD DE MAULEY

147

Page 174, line 42, at end insert—

“3A    In section 2A (strategic priorities and objectives: England) (inserted by
section 24), in subsection (4)(d), for “licensed water suppliers” there is
substituted “water supply licensees and sewerage licensees”.

3B     In section 2B (strategic priorities and objectives: Wales) (inserted by
section 24), in subsection (4)(d), for “licensed water suppliers” there is
substituted “water supply licensees”.”

148

Page 174, line 45, at end insert—

“4A (1)     Section 10 (transitional provision with respect to replacement
appointments) is amended as follows.

(2)     In subsection (2), for “and (4)” there is substituted “to (4)”.

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

“(3A)   To the extent that charging rules issued under section 144ZA
relate to charges imposed or security required by a relevant
undertaker under section 185, those rules are to apply in relation
to the new undertaker as if the appointment or variation had
come into force.”.”

149

Page 201, line 1, leave out “(1A)(a)—” and insert “(1A)—

( )   in the opening words, for “the licensed water supplier” there is
substituted “the water supply licensee”;”

150

Page 201, line 2, leave out “sub-paragraph (i)” and insert “paragraph (a)(i)”

151

Page 201, line 7, leave out “sub-paragraph (ii)” and insert “paragraph (a)(ii)”

152

Page 203, line 1, leave out paragraph 111

Clause 47

LORD WHITTY

LORD GRANTCHESTER

153

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

After Clause 50

LORD WHITTY

LORD GRANTCHESTER

154

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—

“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

BARONESS PARMINTER

LORD SHIPLEY

154A

Page 107, line 7, leave out “and”

154B

Page 107, line 9, at end insert “, and

(c)   operate over the period of the scheme, to reduce the impact of
flooding on households”

LORD MOYNIHAN

BARONESS PARMINTER

155

Page 107, line 20, at end insert—

“( )     Within 12 months of this Act coming into force, the Secretary of State must
publish and lay before both Houses of Parliament a report on the ability of
businesses in areas of high flood risk to secure affordable insurance cover.”

LORD SHIPLEY

BARONESS PARMINTER

BARONESS BAKEWELL OF HARDINGTON MANDEVILLE

155A*

Page 107, line 20, at end insert—

“( )     Within 24 months of this Act coming into force, the Secretary of State must
review the effectiveness of the delivery of planning policy in achieving low
levels of flood risk for new developments by examining—

(a)   the system of planning policy delivery,

(b)   the role and effectiveness in reducing flood risk of those
organisations with a duty to cooperate under the Flood and Water
Management Act 2010, or their equivalents in the devolved
administrations, and

(c)   the effectiveness of the delivery of the National Flood Management
Strategy.”

LORD WHITTY

LORD GRANTCHESTER

156

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 53; and

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

Clause 54

BARONESS PARMINTER

LORD SHIPLEY

156A

Page 108, line 16, leave out “may” and insert “will”

156B

Page 108, line 25, at end insert—

“(e)   the need to cooperate with bodies with a “duty to cooperate” under
the Flood and Water Management Act 2010, and the equivalent
bodies in Northern Ireland, Scotland and Wales.”

LORD KREBS

156C*

Page 108, line 25, at end insert—

“(e)   the need to build awareness of local flood risk amongst
beneficiaries of the FR Scheme,

(f)   the need to inform beneficiaries of the FR Scheme the need to
achieve transition to risk-reflective prices as mentioned in
paragraph (d).”

LORD KREBS

BARONESS PARMINTER

LORD SHIPLEY

156D*

Page 108, line 26, leave out “may” and insert “shall”

BARONESS PARMINTER

LORD SHIPLEY

156E*

Page 108, line 28, at end insert “, having regard to the following in discharging its
functions—

(a)   the period of the review will be every 5 years, subject to earlier
review if the FR Scheme is not operating effectively,

(b)   evidence of the effectiveness of the FR Scheme and progress on
reducing flood risk will be published as part of the review.”

LORD KREBS

156F*

Page 108, line 28, at end insert—

“( )     Regulations under subsection (1) may require the FR Scheme administrator
to produce and publish, in accordance with the regulations, a plan for
minimising the long-term costs of the FR Scheme through the FR Scheme
administrator encouraging, supporting and subsidising flood risk
mitigation.”

156G*

Page 108, line 28, at end insert—

“( )     Regulations under subsection (1) may limit the maximum proportion of
insurance claims recoverable through the FR Scheme.”

LORD DE MAULEY

157

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

Clause 58

LORD WHITTY

LORD GRANTCHESTER

158

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 51(8).”

After Clause 59

LORD WHITTY

LORD GRANTCHESTER

159

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 51 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 a 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.”

160

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.”

LORD SHIPLEY

BARONESS PARMINTER

BARONESS BAKEWELL OF HARDINGTON MANDEVILLE

160A*

Insert the following new Clause—

“Flood reinsurance scheme: eligibility

The FR Scheme should be eligible for all houses built and occupied before
its introduction.”

After Clause 63

LORD WHITTY

LORD GRANTCHESTER

161

Insert the following new Clause—

“Flood Reinsurance Scheme: right of appeal

(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.”

Before Clause 69

LORD OXBURGH

161A*

Insert the following new Clause—

“Duty on bodies that issue demands for council tax

There shall be a duty on any body that issues demands for council tax in an
area designated as liable to flooding to include prominently on or with
such demands the information that the relevant property lies within a flood
risk area and information on where relevant advice on flood insurance may
be found.”

Clause 70

LORD DE MAULEY

162

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,”

163

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).”

Clause 72

LORD DE MAULEY

164

Page 121, line 28, leave out “made by the Secretary of State”

165

Page 121, line 34, leave out “made by the Secretary of State”

After Clause 75

THE EARL OF LYTTON

165A*

Insert the following new Clause—

“Liability in nuisance for a riparian owner

The Secretary of State may by regulations make provision to limit the
liability in nuisance for a riparian owner when the Environment Agency or
relevant authority withdraws from maintenance of flood defences.”

Clause 80

THE EARL OF SELBORNE

166

Page 124, line 3, at end insert—

“(za)   section 33;”

LORD DE MAULEY

167

Page 124, line 5, leave out paragraph (b) and insert—

“(b)   section 76;

“(ba)   section 77 and Schedule 11;

(bb)   sections 78 and 79;”

168

Page 124, line 6, at end insert “and Schedule 12”

THE EARL OF SELBORNE

169

Page 124, line 18, leave out paragraph (h)

Prepared 5th February 2014