Water Bill (HL Bill 71)

and the Authority must consider any representations or objections
which are duly made and not withdrawn.

(9) A notice under subsection (8) must be given—

(a) by publishing the notice in such manner as the Authority
5considers appropriate for the purpose of bringing the notice
to the attention of persons likely to be affected by the making
of the exclusions or modifications; and

(b) by serving a copy of the notice—

(i) on the Secretary of State;

(ii) 10on the Environment Agency;

(iii) on the NRBW;

(iv) on the Water Industry Commission for Scotland.

(10) If, within the time specified in the notice under subsection (8), the
Secretary of State directs the Authority not to exclude or modify any
15standard condition, the Authority must comply with the direction.

(11) The Authority may not exclude any conditions, or make any
modifications, under subsection (7) unless the Authority is of the
opinion that the exclusions or modifications are such that—

(a) the licence holder would not be unduly disadvantaged in
20competing with other holders of sewerage licences; and

(b) no other holder of a sewerage licence would be unduly
disadvantaged in competing with other holders of such
licences (including the holder of the licence being granted).

(12) The modification under subsection (7) of part of a standard condition
25is not to prevent any other part of the condition from continuing to
be treated as a standard condition for the purposes of this Chapter.”

16 (1) Section 17I (modification of licences by agreement) is amended as follows.

(2) For the title there is substituted “Modification of licences by agreement”.

(3) In subsection (1) (power of Authority to modify licence), for the words from
30“conditions of” to the end there is substituted “conditions of—

“(a) a particular water supply licence, or

(b) a particular sewerage licence.”

(4) In subsection (2)(b) (modification not to cause undue disadvantage)—

(a) in sub-paragraph (i), after “water supply licences” there is inserted
35“or, as the case may be, sewerage licences”;

(b) in sub-paragraph (ii), after “a water supply licence” there is inserted
“or, as the case may be, a sewerage licence”.

(5) In subsection (4)(b) (persons to be served with notice of proposed
modifications), in sub-paragraph (iv), at the beginning there is inserted “if
40the notice relates to a water supply licence,”.

(6) In subsection (5) (direction not to modify a condition), the words “(after
consulting the Assembly)” are repealed.

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

“(5A) The Secretary of State is to consult the Welsh Ministers before giving
45a direction under subsection (5) in relation to a water supply licence.”

17 (1) Section 17J (general modification of standard conditions) is amended as
follows.

(2) For the title there is substituted “Modification of standard conditions”.

(3) In subsection (1) (power of Authority to modify standard conditions), for the
5words from “may modify” to the end there is substituted “may modify—

“(a) the standard conditions of water supply licences, or

(b) the standard conditions of sewerage licences.”

(4) After subsection (1) there is inserted—

“(1A) Modifications may relate to—

(a) 10standard conditions contained in all water supply licences or
sewerage licences, or

(b) standard conditions contained in those water supply licences
or sewerage licences that grant a particular authorisation or
combination of authorisations.”

(5) 15In subsection (2) (power to make incidental and consequential
modifications)—

(a) for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) for “any licence of that description” there is substituted “any licence
20so affected”.

(6) In subsection (4)(b) (persons to be served with notice of proposed
modifications), in sub-paragraph (iv), at the beginning there is inserted “if
the notice relates to a water supply licence,”.

(7) In subsection (5) (direction not to modify a standard condition), the words
25“(after consulting the Assembly)” are repealed.

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

“(5A) The Secretary of State is to consult the Welsh Ministers before giving
a direction under subsection (5) in relation to a water supply licence.”

(9) In subsection (6) (modification conditional on views of relevant licence
30holders), for “retail licences or combined licences” there is substituted
“water supply licences or sewerage licences”.

(10) In subsection (8) (preconditions for modification of standard condition), in
paragraph (c) after “a water supply licence” there is inserted “or, as the case
may be, a sewerage licence”.

(11) 35In subsection (10) (consultation with Welsh Ministers), after “subsection (6)
above” there is inserted “in relation to the standard conditions of water
supply licences”.

(12) In subsection (12) (changed standard conditions to be used in new
licences)—

(a) 40for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

(c) after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of
water supply licences or sewerage licences that grant
particular authorisations or combinations of authorisations,
5paragraph (a) has effect only as regards licences granting the
same authorisations or combinations of authorisations.”

(13) In subsection (13) (meaning of “relevant licence holder”), for “retail licences
or combined licences” there is substituted “water supply licences or
sewerage licences or of such of those licences as grant a particular
10authorisation or combination of authorisations”.

18 (1) Section 17K (references to competition authority in relation to the
modification of licences) is amended as follows.

(2) For the title there is substituted “Modification references to competition
authority”.

(3) 15In subsection (1) (reference of a particular licence), in paragraph (a)(i), for “a
particular licence” there is substituted “a particular water supply or
sewerage licence”.

(4) In subsection (2) (general matters that may be referred), in paragraph (a)(i),
for “retail licences or combined licences” there is substituted “water supply
20licences or sewerage licences that grant a particular authorisation or
combination of authorisations”.

(5) In subsection (5)(b) (persons to be served with copy of reference or
variation), in sub-paragraph (iv), at the beginning there is inserted “in a case
relating to a water supply licence or licences,”.

19 (1) 25Section 17N (reports on modification references) is amended as follows.

(2) For the title there is substituted “Reports on modification references”.

(3) In subsection (10)(a) (persons to be served with report relating to a particular
licence), in sub-paragraph (iv), at the beginning there is inserted “if the
report relates to a water supply licence,”.

(4) 30In subsection (11)(a) (persons to be served with report relating to a standard
condition), in sub-paragraph (ii), at the beginning there is inserted “if the
report relates to water supply licences,”.

(5) In subsection (12) (meaning of “relevant time”), in paragraph (a), after
“Secretary of State and” there is inserted “, if the report relates to water
35supply licences,”.

20 (1) Section 17O (modification of licences following report) is amended as
follows.

(2) For the title there is substituted “Modification of licences following report”.

(3) In subsection (2) (power to make incidental and consequential
40modifications), for “the standard conditions of retail licences or combined
licences” there is substituted “—

“(a) the standard conditions of water supply licences or sewerage
licences, or

(b) the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
of authorisations,”.

(4) In subsection (5)(c)(iii), at the beginning there is inserted “in a case relating
5to a water supply licence or licences,”.

(5) In subsection (10) (changed standard conditions to be used in new
licences)—

(a) for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) 10in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

(c) after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of
water supply licences or sewerage licences that grant
15particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
same authorisations or combinations of authorisations.”

21 (1) Section 17P (competition authority’s power of veto following report) is
amended as follows.

(2) 20For the title there is substituted “Power of veto following report”.

(3) In subsection (7)(b) (persons to be served with notice of modifications
proposed), in sub-paragraph (v), at the beginning there is inserted “if the
reference relates to water supply licences,”.

(4) In subsection (10) (power to make incidental and consequential
25modifications), for “the standard conditions of retail licences or combined
licences” there is substituted “—

“(a) the standard conditions of water supply licences or sewerage
licences, or

(b) the standard conditions of water supply licences or sewerage
30licences that grant a particular authorisation or combination
of authorisations,”.

(5) In subsection (11) (changed standard conditions to be used in new
licences)—

(a) for “retail licences or combined licences” there is substituted “water
35supply licences or sewerage licences”;

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

(c) after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of
40water supply licences or sewerage licences that grant
particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
same authorisations or combinations of authorisations.”

22 (1) Section 17R (modification of licences by order under other enactments) is
45amended as follows.

(2) For the title there is substituted “Modification by order under other
enactments”.

(3) In subsection (1) (power for the competition authorities and the Secretary of
State to modify standard conditions in order to give effect to orders under
the Enterprise Act 2002), for paragraphs (a) and (b) there is substituted—

“(a) the conditions of a particular water supply or sewerage
5licence,

(b) the standard conditions of water supply licences or sewerage
licences, or

(c) the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
10of authorisations,”.

(4) In subsection (2) (identification of orders under the Enterprise Act 2002)—

(a) in paragraph (a)(i), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”;

(b) in paragraph (a)(ii), for “a retail licence or combined licence” there is
15substituted “a water supply licence or sewerage licence”;

(c) in paragraph (b), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”.

(5) In subsection (4) (changed standard conditions to be included in new
licences and power to make incidental and consequential modifications of
20existing licences)—

(a) for “subsection (1)(b)” there is substituted “subsection (1)(b) or (c)”;

(b) for “the standard conditions of retail licences or combined licences”
there is substituted “the standard conditions of water supply licences
or sewerage licences or of water supply licences or sewerage licences
25that grant a particular authorisation or combination of
authorisations”.

(6) In subsection (5) (publication of modifications), for “retail licences or
combined licences” there is substituted “water supply licences or sewerage
licences”.

23 (1) 30Section 18 (orders for securing compliance with certain provisions) is
amended as follows.

(2) In subsection (1)—

(a) after “Part or” there is inserted “any person holding”;

(b) in paragraph (a), after “that company” there is inserted “or that
35person”;

(c) in paragraph (a)(i), after “appointment or” there is inserted “the
person’s”;

(d) in paragraph (b), after “that company” there is inserted “or that
person”.

(3) 40In subsection (1A)—

(a) in paragraph (a)(i), for “a company” there is substituted “a person”;

(b) in paragraph (b), for “any company” there is substituted “any
person”;

(c) in that paragraph, for “the company” there is substituted “the
45person”.

(4) In subsection (2), after “Part or” there is inserted “any person holding”.

(5) In subsection (6)(a), after “Part or” there is inserted “a person holding”.

24 In section 19 (exceptions to the duty to enforce), for “company”, in each
place, there is substituted “person”.

25 In section 20 (procedure for enforcement orders), for “company to which”,
in each place, there is substituted “person to whom”.

26 (1) 5Section 21 (validity of enforcement orders) is amended as follows.

(2) In subsection (1)—

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

(b) for “company”, in the second place it occurs, there is substituted
“person”.

(3) 10In subsection (2), for “company” there is substituted “person”.

27 In section 22 (effect of enforcement order), in subsection (3)—

(a) for “company”, in each place, there is substituted “person”;

(b) for “it” there is substituted “the person”.

28 (1) Section 22A (penalties) is amended as follows.

(2) 15In subsection (1)—

(a) in paragraph (a)(ii), for “company” there is substituted “person”;

(b) in paragraph (b), in the opening words, for “company”, in both
places, there is substituted “person”;

(c) in the closing words, for “the company” there is substituted “that
20company or that person”.

(3) In subsection (2)—

(a) in paragraph (a)(ii), for “company” there is substituted “person”;

(b) in paragraph (b), in the opening words, for “company”, in both
places, there is substituted “person”;

(c) 25in the closing words, for “the company” there is substituted “that
company or that person”.

(4) In subsection (4), in the opening words, for “company” there is substituted
“person”.

(5) In subsection (6)—

(a) 30in the opening words, after “penalty” there is inserted “on a person”;

(b) in paragraph (a), for “company”, there is substituted “person”;

(c) in paragraph (d), for “company”, there is substituted “person”.

(6) In subsection (7)—

(a) for “company”, there is substituted “person on whom the penalty has
35been imposed”;

(b) the words “on it” are repealed.

(7) In subsection (8)(b), for “company”, there is substituted “person on whom
the penalty is to be or has been imposed”.

(8) In subsection (11), for the words from “10%” to “(determined” there is
40substituted “—

“(a) 10% of the turnover of the company, or

(b) in a case where the person on whom the penalty is imposed
is not a company, 10% of the turnover of the business of the
person,

(determined”.

29 (1) Section 22C (time limits on the imposition of financial penalties) is amended
as follows.

(2) In subsection (1)—

(a) 5in the opening words, after “penalty” there is inserted “on a person”;

(b) in paragraph (a), for “company” there is substituted “person”;

(c) in paragraph (b), for “company” there is substituted “person”.

(3) In subsection (2), in the opening words—

(a) after the first “penalty” there is inserted “on a person”;

(b) 10for “company” there is substituted “person”.

30 (1) Section 22E (appeals) is amended as follows.

(2) In subsection (1), for “company on which” there is substituted “person on
whom”.

(3) In subsections (2)(a) and (b) (in both places) and (4)(b), for “company” there
15is substituted “person”.

31 In section 22F (recovery of penalties), for “company” there is substituted
“person”.

32 (1) Section 23 (meaning and effect of special administration orders) is amended
as follows.

(2) 20In subsection (1), for “a qualifying licensed water supplier” there is
substituted “a qualifying water supply licensee or a qualifying sewerage
licensee”.

(3) In subsection (2A)—

(a) for “a qualifying licensed water supplier” there is substituted “a
25qualifying water supply licensee”;

(b) for “subsection (6)(b)” there is substituted “subsection (7)”.

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

“(2AA) The purposes of a special administration order made in relation to a
company which is a qualifying sewerage licensee must be—

(a) 30the transfer to another company or companies, as a going
concern, of so much of the company’s undertaking as it is
necessary to transfer in order to secure that the activities
relating to the removal or removals of matter mentioned in
subsection (9) may be properly carried on, and

(b) 35the carrying on of those activities pending the making of the
transfer.”

(5) In subsection (2B)(b)—

(a) in the opening words, for “or (2A)(a)” there is substituted “, (2A)(a)
or (2AA)(a)”;

(b) 40in sub-paragraph (ii), for “or (2A)(a)” there is substituted “, (2A)(a) or
(2AA)(a)”.

(6) In subsection (2C), for “and (2A)(b)” there is substituted “, (2A)(b) and
(2AA)(b)”.

(7) In subsection (4), for paragraph (b) there is substituted—

“(b) a company carries on activities relating to—

(i) the introduction or introductions of water mentioned
in subsection (7) formerly carried on by another
5company; or

(ii) the removal or removals of matter mentioned in
subsection (9) formerly carried on by another
company,”.

(8) In subsection (6)—

(a) 10for “licensed water supplier” there is substituted “water supply
licensee”;

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

(c) for paragraphs (a) and (b) there is substituted—

“(a) 15it is the holder of a water supply licence giving it a
wholesale or supplementary authorisation (within
the meaning of Chapter 1A of this Part), and

(b) the condition in subsection (7) is satisfied in relation
to it.”

(9) 20After subsection (6) there is inserted—

“(7) The condition in this subsection is that—

(a) the introduction of water by the licence holder which is
permitted under section 66B or 66C is designated as a
strategic supply under section 66G, or

(b) 25the introductions of water by the licence holder which are
permitted under section 66B or 66C are designated as a
collective strategic supply under section 66H.”

(10) After subsection (7) (inserted by sub-paragraph (9)) there is inserted—

“(8) For the purposes of this section, sections 24 to 26 and Schedule 2, a
30sewerage licensee is a qualifying sewerage licensee if—

(a) it is the holder of a sewerage licence giving it a wholesale or
disposal authorisation (within the meaning of Chapter 1A of
this Part), and

(b) the condition in subsection (9) is satisfied in relation to it.

(9) 35The condition in this subsection is that—

(a) the removal of matter by the licence holder which is
permitted under section 117C or 117D is designated as
strategic sewerage provision under section 117N, or

(b) the removals of matter by the licence holder which are
40permitted under section 117C or 117D are designated as
collective strategic sewerage provision under section 117O.”

33 (1) Section 24 (special administration orders made on special petitions) is
amended as follows.

(2) In subsection (1A)—

(a) 45in paragraphs (a) and (b), the words “(after consulting the
Assembly)” are repealed;

(b) in paragraph (b), before “the Authority” there is inserted “by”;

(c) in the words following paragraph (b), for “qualifying licensed water
supplier” there is substituted “qualifying water supply licensee or
qualifying sewerage licensee”.

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

“(1B) 5Before presenting a petition under subsection (1A) in relation to a
qualifying water supply licensee whose licence gives it a
supplementary authorisation, the Secretary of State or the Authority
(as the case may be) must consult the Welsh Ministers.”

(4) In subsection (2)—

(a) 10in paragraph (bb), for “qualifying licensed water supplier” there is
substituted “qualifying water supply licensee”;

(b) after paragraph (bb) there is inserted—

“(bc) in the case of a company which is a qualifying
sewerage licensee, that—

(i) 15action taken by the company has caused a
contravention by a sewerage undertaker of
any principal duty; and

(ii) that action is serious enough to make it
inappropriate for the company to continue to
20hold its licence;”;

(c) in paragraph (d), for “qualifying licensed water supplier” there is
substituted “qualifying water supply licensee or a qualifying
sewerage licensee”.

(5) In subsection (7)(b), for “qualifying licensed water supplier” there is
25substituted “qualifying water supply licensee or a qualifying sewerage
licensee”.

34 In section 25 (power to make special administration order on winding-up
petition) for “qualifying licensed water supplier”, in both places, there is
substituted “qualifying water supply licensee or a qualifying sewerage
30licensee”.

35 In section 26 (restrictions on voluntary winding up and insolvency
proceedings), in subsection (1), for “qualifying licensed water supplier”
there is substituted “qualifying water supply licensee or a qualifying
sewerage licensee”.

36 (1) 35Section 27 (general duty of Authority to keep matters under review) is
amended as follows.

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

(3) In subsection (2)—

(a) 40in paragraph (aa), for “companies” there is substituted “persons”;

(b) in paragraph (b), after “company” there is inserted “or person”.

(4) In subsection (4)—

(a) in paragraph (c), for the words from “retail” to “Part)” there is
substituted “the authorisations or combinations of authorisations
45given by licences under Chapter 1A of this Part (see sections 17A and
17BA)”;

(b) in paragraph (d), for “company” there is substituted “person”.

37 In section 27A (establishment of the Council and committees), in subsection
(13), in the definition of “the interests of consumers”—

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

(b) 5in paragraph (b), for “by sewerage undertakers” there is substituted
“ either by sewerage undertakers or by sewerage licensees acting in
their capacity as such”.

38 (1) Section 27C (the interests of consumers) is amended as follows.

(2) In subsection (1)—

(a) 10the “and” after paragraph (d) is repealed;

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

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

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

(3) In subsection (2), for the words from “not eligible” to “the total quantity”
20there is substituted “below the consumption threshold if the total quantity”.

39 In section 27E (provision of advice and information to public authorities), in
subsection (1), for “licensed water suppliers” there is substituted “water
supply licensees, sewerage licensees”.

40 (1) Section 27H (provision of information to the Council) is amended as follows.

(2) 25In subsection (1)—

(a) the “or” at the end of paragraph (b) is repealed;

(b) in paragraph (c) for “a licensed water supplier” there is substituted
“a water supply licensee, or”;

(c) after paragraph (c) there is inserted—

“(d) 30a sewerage licensee,”.

(3) In subsections (2), (3) and (4), after “body”, in each place, there is inserted “or
person”.

(4) In subsection (4)—

(a) for “it” there is substituted “the body or person”;

(b) 35for “its” there is substituted “the”.

41 (1) Section 27K (sections 27H to 27J: supplementary) is amended as follows.

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

(3) In subsection (5), for “and a licensed water supplier” there is substituted “, a
40water supply licensee and a sewerage licensee”.

42 (1) Section 29 (consumer complaints) is amended as follows.

(2) In subsection (1)—

(a) for “or a licensed water supplier” there is substituted “, a water
supply licensee or a sewerage licensee”;