(b) send a copy of the scheme, or revised scheme, to the Authority.

(4) The Authority may give a direction that terms and conditions applying
to the provision of sewerage services in accordance with a scheme
under this section must be modified as specified in the direction.

(5) 5A direction under subsection (4) may apply—

(a) generally to terms and conditions applying in accordance with
a scheme under this section, or

(b) to terms and conditions so applying in any particular case.

(6) It is the duty of a sewerage licensee to comply with a direction under
10subsection (4), and this duty is enforceable under section 18.

110O Interim duty: code

(1) The Authority must issue a code in relation to—

(a) the provision of sewerage services under section 110L, and

(b) its power of direction under section 110L(3) (power to direct
15that eligible sewerage licensee provides interim sewerage
services).

(2) The code may, in particular, make provision about—

(a) the procedure for electing to be an eligible sewerage licensee for
the purposes of section 110L;

(b) 20the procedure for temporarily suspending such an election
under section 110L(5)(b);

(c) the circumstances in which the Authority’s power of direction
under section 110L(3) or 110N(4) may or may not be exercised;

(d) how the Authority will determine the date on which a sewerage
25licensee ceased to provide sewerage services to premises for the
purposes of section 110L;

(e) terms and conditions contained in schemes made under section
110N;

(f) eligible sewerage licensees informing owners or occupiers of
30premises of their schemes for terms and conditions made under
section 110N, before agreeing any terms and conditions as
mentioned in section 110L(7)(b)(ii);

(g) the giving of notices as mentioned in section 110L(8) (that a new
licensee is to continue the provision of the sewerage services
35provided by the previous licensee) including, in particular,
provision about—

(i) the earliest time that a notice may specify as the time
from which a new licensee is to continue the provision
of the sewerage services provided by a previous
40licensee;

(ii) the procedure for serving a notice.

(3) If the Authority considers that a sewerage licensee is not acting as
required by provision contained in a code as mentioned in subsection
(2)(e) or (f), the Authority may give the licensee a direction to do, or not
45to do, a particular thing specified in the direction.

(4) It is the duty of a sewerage licensee to comply with a direction under
subsection (3), and this duty is enforceable under section 18.

(5) The Authority must from time to time review the code and, if
appropriate, issue a revised code.

(6) References in section 110L to the code issued under this section are to
the code issued under this section that has effect at the time in
5question.”

33 Notice of agreements within section 142(2)(b)

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

(2) In section 142 (powers of undertakers to charge), after subsection (6) there is
inserted—

“(6A) 10If an undertaker makes an agreement that falls within subsection (2)(b),
it must notify the Authority of the provisions of the agreement.

(6B) The requirement in subsection (6A) is enforceable by the Authority
under section 18.”

(3) In section 195 (the Water Services Regulation Authority’s register relating to
15relevant undertakers and licensees)—

(a) in subsection (3) (power to direct that provisions of an undertaker’s
appointment etc are not entered in the register), after “any provision”
there is inserted “or, in the case of information that falls to be entered
under subsection (3B), any information”;

(b) 20in subsection (3), after “that provision” there is inserted “or that
information”;

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

“(3B) Subject to any direction given under subsection (3), the
Authority must cause to be entered on the register such
25information about an agreement falling within section 142(2)(b)
as the Authority thinks fit.

(3C) Subsection (3B) has effect in relation to agreements made after
the coming into force of section 33 of the Water Act 2014.”

34 Register relating to undertakers and licensees

(1) 30Section 195 of the Water Industry Act 1991 (the Water Services Regulation
Authority’s register relating to undertakers and licensees) is amended as
follows.

(2) In subsection (1) (register to be maintained in a certain place, in a certain form
and for certain purposes), the words from “for the purposes” to the end are
35repealed.

(3) After subsection (3C) (inserted by section 33) there is inserted—

“(3D) Subject to any direction given under subsection (3), the Authority must
cause to be entered on the register the provisions of—

(a) a notice under section 40F(3) (reduction in charges payable
40under a bulk supply agreement);

(b) a notice under section 66EA(3) (reduction in charges payable
under a section 66D agreement);

(c) a notice under section 110G(3) (reduction in charges payable
under a main connection agreement);

(d) a notice under section 117J(3) (reduction in charges payable
under a section 117E agreement).”

35 5Operation of register

In section 195 of the Water Industry Act 1991, for subsections (4) to (6)
(inspection of the register and fees for certified copies or extracts) there is
substituted—

“(4) The Authority must publish a notice setting out—

(a) 10the times at which the contents of the register are for the time
being available for inspection by the public;

(b) the fees that must be paid for, or in connection with, an
inspection of the contents of the register;

(c) the fees that must be paid for, or in connection with, the supply
15by the Authority of—

(i) a copy of the contents of the register, certified by the
Authority as being a true copy, or

(ii) an extract from the contents of the register, certified by
the Authority as being a true extract.

(4A) 20The Authority must publish the notice in such manner as the Authority
thinks appropriate for bringing it to the attention of the persons who,
in the Authority’s opinion, are likely to be affected by it.

(4B) The Authority must make the contents of the register available for
inspection by the public—

(a) 25during such hours, and

(b) on payment of such fees,

as are set out in the notice under subsection (4) that is for the time being
in force.”

36 Obtaining information for enforcement purposes

(1) 30Section 203 of the Water Industry Act 1991 (power to acquire information for
enforcement purposes) is amended as follows.

(2) For subsection (1) there is substituted—

“(1) The Minister or the Authority may serve a notice under subsection (2)
in respect of—

(a) 35a company that holds an appointment as a relevant undertaker,
if of the opinion that Condition 1 is satisfied, or

(b) a person who holds a licence under Chapter 1A of Part 2, if of
the opinion that Condition 2 is satisfied.

(1A) Condition 1 is that the company—

(a) 40may be contravening, or may have contravened, a condition of
the appointment or a statutory or other requirement
enforceable under section 18,

(b) may be causing or contributing to, or may have caused or
contributed to, a contravention by another company holding an
45appointment as a relevant undertaker of a condition of the

appointment or a statutory or other requirement enforceable
under section 18,

(c) may be causing or contributing to, or may have caused or
contributed to, a contravention by a person holding a licence
5under Chapter 1A of Part 2 of a condition of the licence or a
statutory or other requirement enforceable under section 18,

(d) has not met the standards prescribed under section 38(2) in
connection with the provision of supplies of water, or

(e) has not met the standards prescribed under section 95(2) in
10connection with the provision of sewerage services.

(1B) Condition 2 is that the person—

(a) may be contravening, or may have contravened, a condition of
the licence or a statutory or other requirement enforceable
under section 18,

(b) 15may be causing or contributing to, or may have caused or
contributed to, a contravention by a company holding an
appointment as a relevant undertaker of a condition of the
appointment or a statutory or other requirement enforceable
under section 18,

(c) 20may be causing or contributing to, or may have caused or
contributed to, a contravention by another person holding a
licence under Chapter 1A of Part 2 of a condition of the licence
or a statutory or other requirement enforceable under section
18,

(d) 25has not met the standards prescribed under section 38ZA(2) in
connection with the provision of water supplies, or

(e) has not met the standards prescribed under section 95ZA(2) in
connection with the provision of sewerage services.

(1C) The notice may be served—

(a) 30on any person;

(b) for any purpose connected with powers under Chapter 2 of Part
2.”

(3) In subsections (2) and (6), for “Secretary of State”, in each place where those
words occur, there is substituted “Minister”.

(4) 35In subsection (7), for “or licence” there is substituted “or a person holding such
a licence”.

(5) After subsection (7) there is inserted—

“(8) The Minister” means—

(a) the Secretary of State in respect of—

(i) 40any relevant undertaker whose area is wholly or mainly
in England;

(ii) any water supply licensee or sewerage licensee carrying
out licensed activities using the supply system or
sewerage system of any such undertaker;

(b) 45the Welsh Ministers in respect of—

(i) any relevant undertaker whose area is wholly or mainly
in Wales;

(ii) any water supply licensee or sewerage licensee carrying
out licensed activities using the supply system or
sewerage system of any such undertaker.

(9) In this section—

(a) 5references to the supply system of a water undertaker are to be
construed in accordance with section 17B;

(b) references to the sewerage system of a sewerage undertaker are
to be construed in accordance with section 17BA(7).”

Appeals relating to codes

37 10Appeals relating to revisions of codes

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

(2) After section 207 there is inserted—

“ Part 7A

Further provision about regulation

Appeals relating to revisions of codes

207A Appeals to the CMA

(1) 15The Secretary of State may by regulations provide for an appeal to lie
to the CMA from—

(a) a decision by the Authority to make a revision to a designated
code;

(b) a decision by the Authority, following consultation under this
20Act about a proposed revision to a designated code, not to make
the proposed revision.

(2) For the purposes of this section a designated code is a code, or a part of
a code, issued by the Authority under or by virtue of this Act that is
designated for the purposes of this section by regulations under this
25section.

(3) The regulations may specify descriptions of revisions by reference to
which an appeal under the regulations may not be brought.

(4) Regulations made under subsection (3) may provide—

(a) for the exclusion of certain descriptions of revisions to operate
30only in such cases as may be determined in accordance with the
regulations;

(b) for a determination in accordance with the regulations to be
made—

(i) by such persons,

(ii) 35in accordance with such procedures, and

(iii) by reference to such matters and the opinions of such
persons (including the Authority),

as may be provided for in the regulations.

(5) The regulations may—

(a) specify the persons or descriptions of persons eligible to bring
an appeal;

(b) specify conditions to be satisfied by a person wishing to bring
an appeal.

(6) 5Regulations made under subsection (5) may—

(a) make different provision in relation to different codes or
different parts of a code;

(b) provide for a representative body or association to bring an
appeal.

(7) 10The regulations must—

(a) provide for appeals to be brought only where the CMA grants
permission for an appeal;

(b) provide for the grounds on which the CMA may refuse
permission.

(8) 15Before making regulations under this section the Secretary of State
must consult—

(a) the Welsh Ministers;

(b) the Authority;

(c) such other persons as the Secretary of State considers
20appropriate.

207B Procedure on appeals

(1) Except where otherwise provided, the functions of the CMA with
respect to appeals under section 207A are to be carried out on behalf of
the CMA by a group constituted for the purpose by the chair of the
25CMA under Schedule 4 to the Enterprise and Regulatory Reform Act
2013.

(2) Schedule 16 (provision as to procedure on appeals) has effect.

207C Determination of appeals

(1) The Secretary of State may by regulations provide for the
30determination by the CMA of an appeal under section 207A.

(2) The regulations must require the CMA in determining the appeal to
have regard, to the same extent as is required of the Authority, to the
matters to which the Authority must have regard in exercising or
performing the powers and duties mentioned in section 2(1).

(3) 35The regulations must provide that the CMA in determining the
appeal—

(a) may have regard to any matter to which the Authority was not
able to have regard in the case of the decision appealed against,
but

(b) 40must 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 that case had it had the opportunity of doing so.

(4) The regulations may specify the grounds on which an appeal may be
allowed.

(5) 45The grounds specified by the regulations may include the following—

(a) that the Authority failed properly to have regard to the matters
mentioned in subsection (2);

(b) that the Authority failed properly to have regard to the
purposes for which the code in question is issued;

(c) 5that the Authority failed to give the appropriate weight to one
or more of those matters or purposes.

(6) The regulations may make provision for the steps that the CMA is to
take—

(a) if it allows the appeal;

(b) 10if it does not allow the appeal.

(7) Provision under subsection (6)(a) may include remitting a matter to the
Authority for reconsideration and redetermination in accordance with
directions given by the CMA.

(8) The regulations may make provision as to the decision of the CMA on
15the appeal, including in particular provision for the decision—

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

(b) to set out the reasons for the decision;

(c) to take effect—

(i) at the time specified in the order, or

(ii) 20at the time determined in accordance with provision set
out in the order;

(d) to be notified to the persons who were parties to the appeal (see
paragraph 2 of Schedule 16); and

(e) to be published.

(9) 25Provision under subsection (8)(e) may allow the CMA to exclude from
publication any information which it is satisfied is—

(a) commercial information the disclosure of which would, or
might, significantly harm the legitimate business interests of an
undertaking to which it relates;

(b) 30information relating to the private affairs of an individual the
disclosure of which would, or might, in its opinion, significantly
harm his interests.”

(3) After Schedule 15 there is inserted the Schedule set out in Schedule 6 to this
Act.

35Guidance relating to rules about charges

38 Guidance relating to rules about charges

In the Water Industry Act 1991, after section 144ZD there is inserted—

“General guidance on charges

144ZE General guidance on charges

(1) 40The Minister must issue guidance about the principles to be applied by
the Authority in determining the provisions of—

(a) rules under section 66E;

(b) rules under section 117I;

(c) rules under section 143B.

(2) The Minister may issue guidance about the principles to be applied by
the Authority in determining the provisions of—

(a) rules under section 40E;

(b) 5rules under section 51CD;

(c) rules issued in accordance with regulations under section 66M;

(d) rules under section 105ZF;

(e) rules under section 110F;

(f) rules under section 144ZA.

(3) 10Guidance under subsection (1) or (2) may include other guidance about
the provisions of any of the rules mentioned in subsection (1) or (2).

(4) The Minister may issue guidance about the principles to be applied by
the Authority in determining the contents of other documents
produced by the Authority about charges that may be imposed by
15relevant undertakers or water supply or sewerage licensees.

(5) Guidance under subsection (4) may include other guidance about the
contents of the documents mentioned in subsection (4).

(6) The Authority must have regard to guidance issued under this section
when making rules to which the guidance relates (as well as to any
20guidance relating to those rules issued under another provision of this
Act).

(7) If—

(a) the Minister issues guidance under this section in respect of
rules made under a particular provision, and

(b) 25the Authority, having regard to that guidance, considers that it
is appropriate to revise rules made by it under that provision,

the Authority must issue revised rules under that provision.

(8) Before issuing guidance under this section, the Minister must—

(a) prepare a draft of the proposed guidance;

(b) 30consult the relevant persons about the draft;

(c) comply with the requirements of section 144ZF.

(9) The relevant persons are—

(a) the Secretary of State;

(b) the Welsh Ministers;

(c) 35the Council;

(d) any relevant undertakers likely to be affected by the proposed
guidance;

(e) any water supply licensees or sewerage licensees likely to be
affected by the proposed guidance;

(f) 40such other persons as the Minister thinks appropriate.

(10) The Minister may from time to time revise guidance issued under this
section and issue revised guidance.

(11) Subsections (8) and (9) apply to revised guidance as they apply to the
original guidance.

(12) The Minister must arrange for the publication of guidance issued under
this section.

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

(a) the Secretary of State, in relation to relevant undertakers whose
5areas are wholly or mainly in England;

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

144ZF Guidance under section 144ZE: procedure

(1) Before issuing guidance under section 144ZE, the Secretary of State
10must lay a draft of the proposed guidance before both Houses of
Parliament.

(2) The Secretary of State must not issue the guidance until after the period
of 40 days beginning with—

(a) the day on which the draft is laid before both Houses of
15Parliament, or

(b) if the draft is laid before the House of Lords on one day and the
House of Commons on another, the later of those two days.

(3) If before the end of that period either House resolves that the guidance
should not be issued, the Secretary of State may not issue it.

(4) 20In reckoning any period of 40 days for the purposes of subsection (2),
no account is to be taken of any time during which—

(a) Parliament is dissolved or prorogued, or

(b) both Houses are adjourned for more than four days.

(5) Before issuing guidance under section 144ZE, the Welsh Ministers must
25lay a draft of the proposed guidance before the Assembly.

(6) The Welsh Ministers must not issue the guidance until after the period
of 40 days beginning with the day on which the draft is laid before the
Assembly.

(7) If before the end of that period the Assembly resolves that the guidance
30should not be issued, the Welsh Ministers may not issue it.

(8) In reckoning any period of 40 days for the purposes of subsection (6),
no account is to be taken of any time during which the Assembly is
dissolved or is in recess for more than four days.

(9) Nothing in this section prevents the Secretary of State and the Welsh
35Ministers issuing a single document containing guidance under section
144ZE, and preparing draft guidance accordingly.”

Adjudication functions

39 Exercise of adjudication functions by other persons

After section 207D of the Water Industry Act 1991 (inserted by section 37) there

is inserted—

“Adjudication

207E Exercise of adjudication functions by other persons

(1) The Minister may by order made by statutory instrument provide that
5any of the Authority’s adjudication functions (see subsection (4)) is to
be exercised—

(a) on the Authority’s behalf, by such person as may be specified in
the order, or

(b) either by the Authority or, on the Authority’s behalf, by such
10person as may be specified in the order, at the option of the
Authority in any particular case.

(2) An order under subsection (1) may—

(a) provide for requirements applying to the exercise of a function
by the Authority to apply to the exercise of the function by
15another person;

(b) require the Authority to produce guidance as to the exercise by
another person of one of the Authority’s adjudication functions
and to keep such guidance up to date;

(c) require a person exercising one of the Authority’s adjudication
20functions to have regard to—

(i) any guidance to which the Authority would have regard
in exercising that function;

(ii) any guidance produced by the Authority as to the
exercise of that function.

(3) 25An order under subsection (1) may—

(a) make different provision for different purposes;

(b) apply any primary or secondary legislation with or without
modifications;

(c) make supplemental, consequential and transitional provision.

(4) 30For the purposes of this section, the Authority’s adjudication functions
are—

(a) the determination of any matter referred to it for determination
under section 30A;

(b) the Authority’s functions under any of the following—

• 35regulations made by virtue of section 38(4) (power to
  prescribe by regulations standards of performance for
  water undertakers as regards water supply in
  individual cases: provision for disputes etc);

• regulations made by virtue of section 38ZA(4) (power to
  40prescribe by regulations standards of performance for
  water supply licensees as regards water supply in
  individual cases: provision for disputes etc);

• regulations made by virtue of section 95(4) (power to
  prescribe by regulations standards of performance for
  45sewerage undertakers as regards sewerage services in
  individual cases: provision for disputes etc);

• regulations made by virtue of section 95ZA(4) (power to
  prescribe by regulations standards of performance for

  Water BillPage 90

  sewerage licensees as regards sewerage services in
  individual cases: provision for disputes etc);

• section 105 (appeals with respect to adoption of sewer etc);

• section 105B (appeals relating to schemes for the adoption
  5of sewers etc);

• section 110 (determination of disputes with respect to cross
  boundary sewers);

• section 112(2) and (3) (appeal against requirement that
  proposed drain or sewer be constructed so as to form
  10part of general system);

• section 122 (appeals relating to applications to discharge
  trade effluent);

• section 126 (appeals with respect to variations of consent to
  discharge trade effluent);

• 15section 128 (application for variation of time for discharge
  of trade effluent);

• section 181 (investigation of complaints with respect to the
  exercise of works powers on private land);

but do not include any functions as to enforcement under section 18.

(5) 20In this section—

• “the Minister”, in relation to an adjudication function of the
  Authority, means—

  (a)

  the Secretary of State, to the extent that the function is to
  be exercised—

  (i)

  25in relation to a relevant undertaker whose area is
  wholly or mainly in England,

  (ii)

  in relation to a water supply licensee using the
  supply system of such an undertaker (see section
  17B), or

  (iii)

  30in relation to a sewerage licensee using the
  sewerage system of such an undertaker (see
  section 17BA);

  (b)

  the Welsh Ministers, to the extent that the function is to
  be exercised—

  (i)

  35in relation to a relevant undertaker whose area is
  wholly or mainly in Wales, or

  (ii)

  in relation to a water supply licensee using the
  supply system of such an undertaker (see section
  17B);

• 40“primary legislation” means an Act or an Act or Measure of the
  National Assembly for Wales;

• “secondary legislation” means an instrument made under primary
  legislation.

(6) A statutory instrument containing an order made by the Secretary of
45State under this section is subject to annulment in pursuance of a
resolution of either House of Parliament.

(7) A statutory instrument containing an order made by the Welsh
Ministers under this section is subject to annulment in pursuance of a
resolution of the National Assembly for Wales.

(8) Subsection (9) applies in relation to a statutory instrument containing
both—

(a) an order under this section made by the Secretary of State, and

(b) an order under this section made by the Welsh Ministers.

(9) 5If in accordance with subsection (6) or (7)—

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

(b) the National Assembly for Wales resolves that an instrument
10containing an order made by the Welsh Ministers be annulled,

nothing further is to be done under the instrument after the date of the
resolution and Her Majesty may by Order in Council revoke the
instrument.”

Drinking water inspectorate

40 15Charging of fees by assessors for the enforcement of water quality

(1) After section 86 of the Water Industry Act 1991 there is inserted—

“86ZA Charging of fees

(1) The Secretary of State may by order made by statutory instrument
confer power on the Chief Inspector of Drinking Water to charge fees
20for the exercise of a function by an inspector appointed by the Secretary
of State under section 86 (and to determine their amount).

(2) The Welsh Ministers may by order made by statutory instrument
confer power on the designated person to charge fees for the exercise of
a function by an inspector appointed by the Welsh Ministers under
25section 86 (and to determine their amount).

(3) In subsection (2) “the designated person” means—

(a) the Chief Inspector of Drinking Water for Wales, or

(b) if the same person is designated under section 86(1A) and (1B),
the Chief Inspector of Drinking Water in that person’s capacity
30as a person designated by the Welsh Ministers under section
86(1B).

(4) An order under this section may include consequential,
supplementary, incidental or transitional provision, or savings.

(5) A statutory instrument containing an order made by the Secretary of
35State under this section is subject to annulment in pursuance of a
resolution of either House of Parliament.

(6) A statutory instrument containing an order made by the Welsh
Ministers under this section is subject to annulment in pursuance of a
resolution of the National Assembly for Wales.

(7) 40Subsection (8) applies in relation to a statutory instrument containing
both—

(a) an order under this section made by the Secretary of State, and

(b) an order under this section made by the Welsh Ministers.

(8) If in accordance with subsection (5) or (6)—

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

(b) 5the National Assembly for Wales resolves that an instrument
containing an order made by the Welsh Ministers be annulled,

nothing further is to be done under the instrument after the date of the
resolution and Her Majesty may by Order in Council revoke the
instrument.”

(2) 10In the Public Bodies Act 2011—

(a) subsections (3) and (4) of section 14 (power of the Welsh Ministers to
modify by order the funding arrangements of inspectors appointed
under section 86 of the Water Industry Act 1991) are repealed;

(b) in Schedule 4 (bodies and offices where power to modify funding
15arrangements), the entry relating to inspectors appointed by the
Secretary of State under section 86 of the Water Industry Act 1991 is
repealed.

Provision of public sewers: premises in Wales

41 Disputes about the provision of public sewers: premises in Wales

(1) 20Section 101A of the Water Industry Act 1991 (further duty to provide sewers)
is amended as follows.

(2) In subsection (7)—

(a) for “Any dispute” there is substituted “Subsections (7A) and (7B) apply
where there is a dispute”;

(b) 25the words following paragraph (c) are repealed.

(3) After subsection (7) there is inserted—

“(7A) The dispute is to be determined by the appropriate person and may be
referred to the appropriate person for determination by either of the
parties to the dispute.

(7B) 30If the dispute is between a sewerage undertaker and an owner or
occupier of premises in Wales, the NRBW must provide advice in
relation to any of the matters mentioned in subsection (7)(a) to (c) if so
requested by—

(a) either of the parties to the dispute, or

(b) 35the appropriate person.

(7C) Any advice provided by the NRBW under subsection (7B) must be
provided to both parties to the dispute and to the appropriate person.”

(4) In subsections (8)(a) and (9), for “subsection (7)” there is substituted
“subsection (7A)”.

(5) 40In subsections (8), (9), (10) and (11), for “appropriate agency”, in each place
those words occur, there is substituted “appropriate person”.

(6) In subsection (11), in paragraph (b)—

(a) for “the NRBW” there is substituted “the Welsh Ministers”;

(b) at the end there is inserted “, or such person as the Welsh Ministers may
from time to time appoint as the appropriate person in relation to such
disputes.”

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

“(12) 5A person may be appointed as the appropriate person under subsection
(11)(b) only if the person is independent of the NRBW.

(13) A person is independent of the NRBW for the purposes of subsection
(12) if the person is—

(a) an individual who is not a member of the NRBW or the NRBW’s
10staff, or

(b) a body none of whose members is a member of the NRBW or the
NRBW’s staff.”

CHAPTER 4 Miscellaneous

42 Consumer redress

(1) 15The Water Services Regulation Authority may modify the conditions of—

(a) a pre-commencement appointment of a water or sewerage undertaker,
or

(b) a pre-commencement water supply licence,

so as to include conditions relating to the provision of a consumer redress
20scheme.

(2) In subsection (1)—

(a) “pre-commencement appointment of a water or sewerage undertaker”
means an appointment of a company under Chapter 1 of Part 2 of the
Water Industry Act 1991 to be a water or sewerage undertaker which is
25made before the day on which this section comes into force, and

(b) “pre-commencement water supply licence” means a licence under
Chapter 1A of Part 2 of the Water Industry Act 1991 granted before that
day.

(3) In this section, “consumer redress scheme” means a scheme or other
30arrangements for unresolved complaints to be investigated and determined by
an independent person.

(4) The conditions that may under subsection (1) be included in an appointment
or licence include in particular conditions requiring the company holding the
appointment or the person holding the licence—

(a) 35to secure the provision of a consumer redress scheme, or

(b) to secure the provision of a consumer redress scheme which is of a
description specified in the conditions or which meets requirements so
specified.

(5) Where under subsection (1) the Authority modifies conditions of an
40appointment or licence, it may make such incidental or consequential
modifications of other conditions of the appointment or, as the case may be,
other conditions of the licence as it considers necessary or expedient.

(6) The power of the Authority under subsection (1) to modify the conditions of an
appointment or licence may not be exercised after the end of the period of two
years beginning with the day on which this section comes into force.

(7) Before making a modification under this section the Authority must consult—

(a) 5the company holding the appointment or the person holding the
licence;

(b) the Secretary of State;

(c) the Welsh Ministers;

(d) the Consumer Council for Water;

(e) 10such other persons as the Authority thinks it appropriate to consult.

(8) The Minister may direct the Authority not to make a modification that it
proposes to make under this section; and the Authority must comply with such
a direction.

(9) In subsection (8) “the Minister” means—

(a) 15the Secretary of State, in relation to—

(i) a water or sewerage undertaker whose area is wholly or mainly
in England;

(ii) a person who holds a licence under Chapter 1A of Part 2 of the
Water Industry Act 1991;

(b) 20the Welsh Ministers, in relation to a water or sewerage undertaker
whose area is wholly or mainly in Wales.

43 Modification of appointment and licence conditions

(1) The Water Services Regulation Authority may modify the conditions of
appointment of a company appointed under Chapter 1 of Part 2 of the Water
25Industry Act 1991 to be a water or sewerage undertaker where it considers it
necessary or expedient to do so in consequence of provision made by or under
this Part.

(2) The Authority may modify the conditions of a licence under Chapter 1A of Part
2 of the Water Industry Act 1991 where it considers it necessary or expedient
30to do so in consequence of provision made by or under this Part.

(3) Where the Authority modifies—

(a) conditions of appointment under subsection (1), or

(b) conditions of a licence under subsection (2),

it may make such incidental or consequential modifications of other conditions
35of the appointment or, as the case may be, other conditions of the licence as it
considers necessary or expedient.

(4) Before making a modification under this section, the Authority must consult—

(a) the company holding the appointment or, as the case may be, the
person holding the licence;

(b) 40the Secretary of State;

(c) the Welsh Ministers;

(d) such other persons as the Authority thinks it appropriate to consult.

(5) The power of the Authority to modify—

(a) the conditions of a company’s appointment under subsection (1), or

(b) 45the conditions of a person’s licence under subsection (2),