Water Bill (HL Bill 71)

46 In section 117P (prohibition on unauthorised use of sewerage system)
(inserted by Schedule 4), in subsection (1), the words “whose area is wholly
or mainly in England” are repealed.

47 In section 117Q (prohibition on unauthorised removal of matter from
5sewerage system) (inserted by Schedule 4), in subsection (1), the words
“whose area is wholly or mainly in England” are repealed.

48 In section 117S (section 117R: supplementary) (inserted by Schedule 4), at
the end there is inserted—

“(7) The power to—

(a) 10make an order under subsection (1) or (2) or section 117R(1),
or

(b) give a direction under subsection (3),

is exercisable by the Welsh Ministers (and not by the Secretary of
State) in relation to any supply system of a sewerage undertaker
15whose area is wholly or mainly in Wales.

(8) Accordingly, subsections (1) to (5) and section 117R apply in relation
to an order made or a direction given by the Welsh Ministers by
virtue of subsection (7) as they apply in relation to an order made or
direction given by the Secretary of State.

(9) 20A statutory instrument containing an order made by the Welsh
Ministers by virtue of subsection (7) is subject to annulment in
pursuance of a resolution of the Assembly.”

49 In section 195(3AA), after “water supply licensee” there is inserted “or a
sewerage licensee”.

50 25In section 207E (exercise of adjudication functions by other persons)
(inserted by section 39), in subsection (5), in paragraph (b) of the definition
of “the Minister”—

(a) the “or” following sub-paragraph (i) is repealed;

(b) after sub-paragraph (ii) there is inserted “, or

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

51 (1) Schedule 2A (water supply licences: authorisations) (inserted by Schedule 1)
is amended as follows.

(2) 35Paragraphs 1 and 2 are repealed.

(3) Paragraphs 6 to 8 are repealed.

(4) In paragraph 9, for “requirements in paragraphs 4 and 7 are” there is
substituted “requirement in paragraph 4 is”.

(5) In paragraph 10, for “paragraphs 4 and 7” there is substituted “paragraph 4”.

Section 37

SCHEDULE 6 Procedure on appeals under section 207A of the Water Industry Act 1991

Regulations as to procedure

1 The Secretary of State may by regulations make provision about the
5procedure applying to appeals under section 207A.

Particular provision

2 Regulations under this Schedule may in particular make provision about—

(a) making an application for permission to bring an appeal;

(b) imposing conditions on the granting of permission to appeal
10(including conditions requiring an appeal to be considered together
with other appeals, whether relating to the same revision or the same
code or not);

(c) the persons who may be party to an appeal;

(d) making an application for permission to be made party to an appeal;

(e) 15imposing conditions on the granting of permission to become party
to an appeal;

(f) enabling a member of the CMA to make decisions as to the matters
referred to in paragraphs (a), (b), (d) and (e);

(g) enabling a member of the CMA to direct, pending the determination
20of the appeal, that the code in question—

(i) is to have effect without the revision, or

(ii) is to have effect with the revision but with modifications
specified by the direction;

(h) the number of persons in a group constituted to hear an appeal;

(i) 25the making of a decision by the group;

(j) the participation of the Authority in the appeal (including provision
as to the making of representations and observations by the
Authority otherwise than in connection with the consideration of the
appeal);

(k) 30the imposing of time limits (including provision for time limits to be
waived in certain cases by a member of the CMA);

(l) orders for costs;

(m) the recovery of the CMA’s costs.

Consideration and determination of appeals

3 (1) 35Regulations under this Schedule may make provision about—

(a) the consideration and determination of the appeal;

(b) giving effect to the determination.

(2) Provision under sub-paragraph (1)(a) may include in particular—

(a) provision for disregarding, when determining an appeal, matters not
40raised as required by the regulations;

(b) provision as to the time within which an appeal is to be determined.

Evidence

4 (1) Regulations under this Schedule may make provision about—

(a) requiring the production of documents;

(b) 5requiring persons to attend an oral hearing;

(c) requiring persons attending an oral hearing—

(i) to give evidence at the hearing;

(ii) to make representations and observations;

(d) requiring persons—

(i) 10to produce a written statement;

(ii) to verify the statement by a statement of truth.

(2) No person is to be compelled under the regulations—

(a) to produce a document that the person could not be compelled to
produce in civil proceedings in the High Court;

(b) 15to give evidence which the person could not be compelled to give in
civil proceedings in the High Court;

(c) to produce a written statement with respect to a matter about which
the person could not be compelled to give evidence in civil
proceedings in the High Court.

(3) 20The regulations may provide for a notice requiring the production of
documents, attendance of a person, or the production of a written statement
to be issued by any member of the CMA.

5 (1) Regulations under this Schedule may provide for penalties to be imposed
where—

(a) 25a person fails without reasonable excuse to comply with a
requirement imposed in accordance with regulations under
paragraph 4;

(b) having been required to produce a document in accordance with
paragraph 4, a person wilfully alters, suppresses or destroys the
30document;

(c) having been required to produce a written statement in accordance
with paragraph 4, a person makes without reasonable excuse a false
statement in the written statement produced;

(d) having been required by appeal rules to verify information with a
35statement of truth, a person provides without reasonable excuse
information that is false in a material particular.

(2) The regulations may provide for conduct falling within sub-paragraph
(1)(a), (c) or (d) to be punished by the High Court as if the person had been
guilty of contempt.

(3) 40The regulations may provide that, where a body corporate may be punished
for contempt of court, the High Court has power to punish for contempt of
court any director or other officer of the body (instead of or as well as the
body).

(4) The regulations may provide for conduct falling within sub-paragraph (1)(b)
45to be an offence triable either summarily or on indictment.

(5) The regulations may provide for such an offence to be punishable—

(a) on summary conviction, by a fine not exceeding the statutory
maximum;

(b) on conviction on indictment, by imprisonment for a term not
exceeding two years or by a fine, or by both.

5Appeal rules

6 (1) The CMA may make rules regulating the conduct and disposal of appeals.

(2) The rules may include provision supplementing regulations made under
this Schedule; and that provision may, in particular, impose time limits or
other restrictions on—

(a) 10the taking of evidence at an oral hearing;

(b) the making of representations or observations at such a hearing.

(3) The CMA must publish rules made under this paragraph in such manner as
it considers appropriate for the purpose of bringing them to the attention of
those likely to be affected by them.

(4) 15Before making rules under this paragraph, the CMA must consult such
persons as it considers appropriate.

(5) Rules under this paragraph may make different provision for different cases.

Interpretation

7 In this Schedule—

• 20“appeal” means an appeal under section 207A;

• “appeal rules” means rules under paragraph 6;

• “statement of truth” means a statement that the person producing the
  document believes the facts stated in the document to be true.”

Section 44

SCHEDULE 7 25Further amendments

Water Act 1989 (c. 15)Water Act 1989 (c. 15)

1 (1) Section 174 of the Water Act 1989 (general restrictions on disclosure of
information) is amended as follows.

(2) In subsection (2)(b)—

(a) 30for “company” there is substituted “person”;

(b) for “on it” there is substituted “on the undertaker or, as the case may
be, the person”.

(3) In subsection (6)(a)—

(a) for “company” there is substituted “person”;

(b) 35for “its licence” there is substituted “the person’s licence”.

Water Industry Act 1991 (c. 56)Water Industry Act 1991 (c. 56)

2 The Water Industry Act 1991 is amended as follows.

3 (1) Section 2 (general duties with respect to water industry) is amended as
follows.

(2) In subsection (1)(a), for “and of licensed water suppliers” there is substituted
“, water supply licensees and sewerage licensees”.

(3) 5In subsection (2A)(d), for “of a licensed water supplier” there is substituted
“of a water supply licensee or sewerage licensee”.

(4) In subsection (2C)—

(a) the “and” after paragraph (d) is repealed;

(b) in paragraph (e), for the words from “not eligible” to the end there is
10substituted “household premises (as defined in section 17C)”;

(c) after paragraph (e) there is inserted “; and

“(f) customers, of companies holding an appointment
under Chapter 1 of Part 2 of this Act, whose premises
are below the consumption threshold and in the area
15of a relevant undertaker whose area is wholly or
mainly in Wales,”.

(5) In subsection (2D), for the words from “not eligible” to “the total quantity”
there is substituted “below the consumption threshold if the total quantity”.

(6) In subsection (2DB) (inserted by section 22), in paragraph (b) (meaning of
20sewerage systems), for the words from “a reference to the system
comprising” to the end there is substituted “to be construed in accordance
with section 17BA(7)”.

(7) In subsection (5A), in the definition of “the interests of consumers”—

(a) in paragraph (a), for “licensed water suppliers” there is substituted
25“water supply licensees”;

(b) in paragraph (b), for “by sewerage undertakers” there is substituted
“either by sewerage undertakers or by sewerage licensees acting in
their capacity as such”.

(8) In subsection (6)—

(a) 30in paragraph (a), for “and of licensed water suppliers” there is
substituted “, water supply licensees and sewerage licensees”;

(b) in paragraph (a), for the words from “contained in” to “153,”, there is
substituted “contained in—

“(i) Part 2 of this Act (except section 27A and
35Schedule 3A), or

(ii) any of sections 37A to 38, 38ZA, 39, 39ZA, 39B,
39C, 40B to 40F, 63AC to 63AF, 66B, 66CA,
66D, 66DA to 66EA, 66F to 66H, 66K to 66M,
95, 95ZA, 96, 96ZA, 110C to 110G, 110L to
40110O, 117E to 117O, 117R, 117S, 153,”;

(c) in paragraph (b), “43, 43A,” and “100 and 100A” are repealed;

(d) in paragraph (b), for “, 99,” there is substituted “and 99”.

4 In section 6 (appointment of relevant undertakers), in subsection (5A), for “a
licensed water supplier” there is substituted “a water supply licensee or
45sewerage licensee”.

5 In section 12 (determinations under conditions of appointment), in
subsection (3B) (application of certain provisions to references to

competition authority under section 12) for “sections 16A and 16B” there is
substituted “sections 14A and 14B”.

6 For the heading of Chapter 1A of Part 2 there is substituted—

“Water supply licences and sewerage licences”.

7 (1) Section 17B (provision supplementary to section 17A) is amended as
5follows.

(2) For the title there is substituted “Meaning of supply system”.

(3) Subsections (1) to (4) (provision as to guidance on extent of premises) are
repealed.

(4) Subsection (9) (references to a licensed water supplier) is repealed.

8 10In section 17C (meaning of “household premises”), in subsection (1) for
“section 17A(3)(a) above” there is substituted “paragraphs 4 and 7(a) of
Schedule 2A and paragraph 2 of Schedule 2B”.

9 (1) Section 17D (the threshold requirement) is amended as follows.

(2) In subsection (1) (purpose of section 17D)—

(a) 15for “section 17A(3)(b) above” there is substituted “paragraph 7(b) of
Schedule 2A”;

(b) after “the supply of water to any premises” there is inserted “in
accordance with a restricted retail authorisation”.

(3) In subsection (2) (description of the requirement), for “licensed water
20supplier” there is substituted “water supply licensee”.

(4) In subsection (3) (guidance on making estimate)—

(a) after “guidance issued” there is inserted “from time to time”;

(b) for “the Secretary of State” there is substituted “the Welsh Ministers”.

(5) Subsection (5) (duty of Secretary of State to consult the National Assembly
25for Wales before issuing guidance) is repealed.

(6) Subsection (6) (application of guidance provision to threshold requirement)
is repealed.

(7) In subsection (7) (regulations as to entering into an undertaking to supply
water)—

(a) 30for “The Secretary of State” there is substituted “The Welsh
Ministers”;

(b) for “licensed water supplier” there is substituted “water supply
licensee”;

(c) the words “(subject to subsection (12) below)” are repealed.

(8) 35In subsection (8) (regulations to alter the threshold)—

(a) for “The Secretary of State” there is substituted “The Welsh
Ministers”;

(b) the words “(subject to subsection (12) below)” are repealed.

(9) In subsection (10) (procedure), for “each House of Parliament” there is
40substituted “the Assembly”.

(10) In subsection (11) (consultation before making regulations)—

(a) for “the Secretary of State”, in the first place where those words
occur, there is substituted “the Welsh Ministers”;

(b) for “the Secretary of State thinks” there is substituted “the Welsh
Ministers think”.

(11) 5Subsections (12) and (13) (exercise of powers by Welsh Ministers) are
repealed.

10 After section 17D there is inserted—

“17DA Guidance

The Authority must publish guidance issued from time to time
10under—

(a) section 17D(3),

(b) paragraph 10 of Schedule 2A, or

(c) paragraph 4 of Schedule 2B,

in such manner as the Authority considers appropriate for the
15purpose of bringing it to the attention of persons likely to be affected
by it.”

11 (1) Section 17E (determinations by the Authority) is amended as follows.

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

“(1) The Authority may determine, in a case referred to it by—

(a) 20a water supply licensee or a potential customer of a water
supply licensee, or

(b) a sewerage licensee or a potential customer of a sewerage
licensee,

whether a proposed supply of water to, or proposed sewerage
25services for, the customer would be in accordance with what is
authorised by the licensee’s licence.”

(3) In subsection (2)—

(a) in paragraph (a), for “section 17A(3) above” there is substituted
“paragraph 4 or 7(a) or (b) of Schedule 2A”;

(b) 30after paragraph (a) there is inserted—

“(aa) the extent of the premises to be served for the
purposes of paragraph 2 of Schedule 2B;”;

(c) in paragraph (b), after “to be supplied” there is inserted “or served”.

12 (1) Section 17F (procedure for granting water supply licences) is amended as
35follows.

(2) In the title, after “water supply” there is inserted “and sewerage”.

(3) In subsection (4)—

(a) the words “the Secretary of State or” are repealed;

(b) the words “he or”, in each place they occur, are repealed.

(4) 40In subsection (7)—

(a) the words “the Secretary of State or” are repealed;

(b) for paragraph (g) there is substituted—

“(g) on each water supply licensee and sewerage licensee
(other than the holder of the licence in question);”;

(c) paragraph (h) is repealed;

(d) in paragraph (i), the words “if the licence or variation is granted by
the Authority,” are repealed.

(5) In subsection (8), the words “by the Secretary of State or” are repealed.

13 (1) 5Section 17G (water supply licence conditions) is amended as follows.

(2) For the title there is substituted “Licence conditions”.

(3) In subsection (1) (conditions to be included)—

(a) for “A water supply licence” there is substituted “A licence under
this Chapter”;

(b) 10in paragraph (a), the words “the Secretary of State or, as the case may
be,” are repealed;

(c) in paragraph (a), the words “him or” are repealed;

(d) in paragraph (b), for “the Secretary of State” there is substituted “the
Authority”;

(e) 15in paragraph (b), for “water supply licence” there is substituted
“licence under this Chapter”.

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

“(2A) Conditions may be included by virtue of subsection (1)(a) in a
sewerage licence whether or not they are connected with—

(a) 20effectual dealing with the contents of sewers, or

(b) the use of the sewerage system of a sewerage undertaker.”

(5) In subsection (3) (directions and determinations), for “water supply licence”
there is substituted “licence under this Chapter”.

(6) In subsection (4) (persons who may give directions etc), in paragraph (a)(iii),
25at the beginning there is inserted “so far as subsection (3) applies to water
supply licences,”.

(7) In subsection (5) (duration and modification of conditions), for “water
supply licence” there is substituted “licence under this Chapter”.

(8) In subsection (7) (payments received by Secretary of State paid into the
30Consolidated Fund), for “the Secretary of State” there is substituted “the
Authority”.

14 (1) Section 17H (standard conditions of water supply licences) is amended as
follows.

(2) For subsections (1) to (3) there is substituted—

“(1) 35The Secretary of State may determine the conditions that are to be the
standard conditions of water supply licences granted by the
Authority.

(1A) Before determining the standard conditions, the Secretary of State
must consult the Welsh Ministers as regards conditions relating to a
40restricted retail authorisation or a supplementary authorisation.

(1B) The Secretary of State is to publish the standard conditions in such
manner as the Secretary of State considers appropriate.

(2) The standard conditions may be different depending on the different
authorisations or combinations of authorisations to which the
conditions are to relate.

(3) The power to determine standard conditions in relation to water
5supply licences giving a particular authorisation or a particular
combination of authorisations may be exercised only before the
grant of the first licence to give that authorisation or that particular
combination of authorisations (but this is without prejudice to the
power to modify standard conditions in accordance with the
10provisions of this Chapter).”

(3) In subsection (4) (general provision about standard conditions), for “of
either description” there is substituted “giving any particular authorisation
or combination of authorisations”.

(4) In subsection (6) (power to exclude or modify standard conditions in a
15particular case)—

(a) the words “the Secretary of State or” are repealed;

(b) the words “he or” are repealed.

(5) In subsection (7) (steps before exercising power in subsection (6))—

(a) the words “the Secretary of State or” are repealed;

(b) 20in paragraph (a), the words “he or” are repealed;

(c) in paragraph (b), the words “he or” are repealed.

(6) In subsection (8) (publication of notice of intention to modify standard
conditions)—

(a) in paragraph (a), the words “the Secretary of State or (as the case may
25be)” are repealed;

(b) for paragraph (b)(i) there is substituted—

“(i) if the notice relates to a water supply licence
giving a restricted retail authorisation or a
restricted retail authorisation and a
30supplementary authorisation, on the Welsh
Ministers;”;

(c) paragraph (b)(iii) is repealed;

(d) in paragraph (b)(iv), the words “if the notice is published by the
Authority,” are repealed;

(e) 35after paragraph (b)(iv) there is inserted—

“(v) on the Water Industry Commission for
Scotland.”

(7) In subsection (9) (direction not to exclude or modify a standard condition),
for “the Assembly” there is substituted “the Welsh Ministers in a case where
40notice was served on them under subsection (8)(b)(i)”.

(8) In subsection (10) (power under subsection (6) not to be exercised in certain
circumstances)—

(a) the words “Secretary of State or the” are repealed;

(b) the words “he or” are repealed.

15 After section 17H there is inserted—

“17HA Standard conditions of sewerage licences

(1) The Secretary of State may determine the conditions that are to be the
standard conditions of sewerage licences granted by the Authority.

(2) 5The Secretary of State is to publish the standard conditions in such
manner as the Secretary of State considers appropriate.

(3) The standard conditions may be different depending on the different
authorisations or combinations of authorisations to which the
conditions are to relate.

(4) 10The power to determine standard conditions in relation to sewerage
licences giving a particular authorisation or a particular combination
of authorisations may be exercised only before the grant of the first
licence to give that authorisation or that particular combination of
authorisations (but this is without prejudice to the power to modify
15standard conditions in accordance with the provisions of this
Chapter).

(5) The standard conditions for the purposes of sewerage licences giving
any particular authorisation or combination of authorisations may
contain provision—

(a) 20for any standard condition included in a licence of that
description not to have effect until brought into operation in
such manner and in such circumstances as may be specified
in or determined under the standard conditions;

(b) for the effect of any standard condition included in such a
25licence to be suspended in such manner, and in such
circumstances, as may be so specified or determined; and

(c) for any standard condition included in such a licence which
is for the time being suspended to be brought back into
operation in such manner and in such circumstances as may
30be so specified or determined.

(6) Subject to subsection (7), each condition which is a standard
condition is to be incorporated by reference in each sewerage licence
(or in each such licence to which the standard condition applies).

(7) Subject to the following provisions of this section, the Authority
35may, in granting a licence, exclude or modify any of the standard
conditions to such extent as the Authority considers requisite to meet
the circumstances of a particular case.

(8) Before excluding any standard conditions or making any
modifications under subsection (7), the Authority must give notice—

(a) 40stating that the Authority proposes to exclude the conditions
or make the modifications and setting out the effect of so
doing;

(b) stating the reasons why the Authority proposes to exclude
the conditions or make the modifications; and

(c) 45specifying the time (not being less than 28 days from the date
of publication of the notice) within which representations or
objections with respect to the proposed exclusions or
modifications may be made,