Water Bill

MARSHALLED
LIST OF AmendmentS
to be moved
on REPORT

The amendments have been marshalled in accordance with the Instruction of 17th March 2014, as follows—

Clause 1
Schedules 1 and 2
Clauses 2 to 4
Schedules 3 and 4
Clause 5
Schedule 5
Clauses 6 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]

Clause 1

LORD WHITTY

LORD GRANTCHESTER

1*

Page 2, line 4, at end insert—

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

Schedule 1

THE EARL OF SELBORNE

2

Page 126, line 29, at end insert “for the purpose of, or in relation to, its participation
in arrangements made by the undertaker for the introduction of water into its
supply system”

3

Page 126, line 30, leave out paragraphs (a) and (b)

4

Page 127, line 16, at end insert “for the purpose of, or in relation to, its participation
in arrangements made by the undertaker for the introduction of water into its
supply system”

5

Page 127, line 17, leave out paragraphs (a) and (b)

Schedule 2

THE EARL OF SELBORNE

6

Page 128, leave out lines 35 to 38

7

Page 129, line 1, leave out from “66B(2)” to end of line 3

8

Page 131, line 2, leave out “introduce” and insert “participate in arrangements
made by the undertaker for the introduction of”

9

Page 131, line 3, leave out from “system” to end of line 7 and insert “by the holders
of such authorisations”

10

Page 131, line 10, leave out “introduce” and insert “participate in arrangements
made by the undertaker for the introduction of”

11

Page 131, line 11, leave out from “system” to end of line 15 and insert “by the
holders of such authorisations”

12

Page 131, line 18, leave out “introduce” and insert “participate in arrangements
made by the undertaker for the introduction of”

13

Page 131, line 19, at end insert “and”

14

Page 131, line 20, leave out “that” and insert “such”

15

Page 131, line 21, leave out “introduce” and insert “participate in the arrangements
for the introduction of”

16

Page 131, line 22, leave out from “system” to the end of line 25

17

Page 133, line 6, leave out from “that” to “, and” in line 9 and insert “L1 may
participate in arrangements made for the holders of such authorisations”

18

Page 133, line 11, leave out “introduce that” and insert “participate in
arrangements made by the primary water undertaker for the introduction of”

19

Page 133, leave out lines 13 and 14

20

Page 133, line 22, leave out from “may” to “, and” in line 25 and insert “participate
in arrangements made for the holders of such authorisations”

21

Page 133, line 27, leave out “introduce that” and insert “participate in
arrangements made by the primary water undertaker for the introduction of”

22

Page 133, leave out lines 29 and 30

23

Page 133, line 43, leave out “introduce that” and insert “participate in
arrangements made by the primary water undertaker for the introduction of”

24

Page 133, leave out lines 45 and 46

25

Page 134, line 1, leave out from “may” to “, and” in line 4 and insert “participate in
arrangements made for holders of such authorisations”

26

Page 134, line 6, leave out “introduce that” and insert “participate in arrangements
made by the primary water undertaker for the introduction of”

27

Page 134, leave out lines 8 and 9

28

Page 135, line 21, leave out from “making” to end of line 22 and insert “a supply of
water to premises”

29

Page 137, line 42, at end insert—

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

30

Page 141, line 32, at end insert—

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

Schedule 3

THE EARL OF SELBORNE

31

Page 146, line 12, leave out “where” and insert “for the purpose of, or in relation to,
its participation in arrangements made by the undertaker for the removal of matter
from the undertaker’s sewerage system by the holders of such authorisations”

32

Page 146, leave out lines 13 to 18

Schedule 4

THE EARL OF SELBORNE

33

Page 147, leave out lines 28 and 29

34

Page 149, line 6, leave out “remove certain quantities” and insert “participate in
arrangements made by the undertaker for the removal”

35

Page 149, line 7, leave out from “system” to end of line 13 and insert “by the holders
of such authorisations”

36

Page 151, line 39, at end insert—

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

37

Page 154, line 33, at end insert—

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

Schedule 5

LORD DE MAULEY

38

Page 171, line 42, at end insert—

“      In section 158 (powers to lay pipes in streets), in subsection (7)(a), the
following words are repealed—

(a)   “or (b)(i)”;

(b)   “or laid in pursuance of section 66B(4)(b)(ii)”.”

39

Page 172, line 11, at end insert—

“      In section 213 (powers to make regulations), subsection (1ZA) (inserted
by Schedule 7) is repealed (if not previously repealed by an order under
section 3).”

After Clause 7

LORD MOYNIHAN

40

Insert the following new Clause—

“Facilitation of licensed functions

Power to make regulations

(1)     The Secretary of State may, by regulation, make provision (including
provision for the making of transfer schemes or similar arrangements) for
the purpose specified in subsection (2).

(2)     The power conferred by this section shall be used for the purpose of
enabling any company holding an appointment immediately before the
passing of this Act as the water or sewerage undertaker for any area of
England and Wales to transfer such of its assets and undertaking to—

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

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

as may be necessary or desirable to facilitate the carrying on by relevant
transferee(s) of the activities authorised by its (or their) licence(s).

(3)     For the purposes of this section, 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.

(4)     The references in subsection (3) to a wholly owned subsidiary shall be
construed in accordance with section 1159 of the Companies Act 2006.”

LORD WHITTY

LORD GRANTCHESTER

41*

Insert the following new Clause—

“Abstraction reform

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

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

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

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

Clause 8

LORD DE MAULEY

BARONESS PARMINTER

42

Page 9, line 25, at end insert “, in particular about whether the proposed supply of
water would secure an efficient use of water resources, taking into account the
effect on the environment of the proposed supply.”

43

Page 10, line 33, leave out “40I” and insert “40J”

44

Page 11, line 2, at end insert “, in particular about whether the proposed variation
or termination of the bulk supply agreement would secure an efficient use of water
resources, taking into account the effect on the environment of what is proposed.”

45

Page 11, line 37, leave out “40I” and insert “40J”

46

Page 12, line 10, at end insert—

“(2A)    A code must include provision requiring persons proposing to
make, vary or terminate a bulk supply agreement to consult the
appropriate agency.”

47

Page 12, line 25, at end insert—

“( )     In this section “the appropriate agency”, in relation to a bulk supply
agreement or proposed bulk supply agreement, means the body
that would be consulted by the Authority under section 40(4) or
40A(2) if an order under section 40(3) or 40A(1) were being
considered in relation to the agreement or proposed agreement.”

48

Page 12, line 28, at end insert—

“(aa)   consult the appropriate agency;”

49

Page 12, line 29, after “such” insert “other”

50

Page 13, line 30, at end insert—

“( )     In this section “the appropriate agency” means—

(a)   the Environment Agency, so far as a proposed code relates
to bulk supply agreements to which all parties are persons
mentioned in section 40(10)(a)(i) or (ii);

(b)   the NRBW, so far as a proposed code relates to bulk supply
agreements to which all parties are persons mentioned in
section 40(10)(b)(i) or (ii);

(c)   both the Environment Agency and the NRBW, in any other
case.”

51

Page 17, line 37, at end insert—

“40J          Duty to provide information about bulk supplies

(1)     A supplier under a bulk supply agreement must provide such
information as the appropriate agency may request in relation to
water supplied under the agreement.

(2)     The requirement in subsection (1) is enforceable by the Authority
under section 18.

(3)     In subsection (1) “the appropriate agency” means the body that
would be consulted by the Authority under section 40A(2) if the
agreement were to be varied or terminated by an order under
section 40A(1).”

52

Page 17, line 38, leave out “40I” and insert “40J”

Clause 12

LORD DE MAULEY

BARONESS PARMINTER

53

Page 46, line 9, at end insert—

“(aa)   provision requiring the Authority to consult the
Environment Agency, the NRBW or both of them before
making an order;”

After Clause 15

LORD WHITTY

LORD GRANTCHESTER

54*

Insert the following new Clause—

“Retail exit

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

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

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

(a)   approval by the Secretary of State;

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

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

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

55*

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.”

56*

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.”

Clause 16

LORD DE MAULEY

57

Page 52, line 33, at end insert—

“(6ZA)   The Authority must issue rules (and, if it revises rules it has issued,
must issue revised rules) about consulting the Council about
proposed charges schemes.

(6ZB)    The rules must require a relevant undertaker that proposes to make
a charges scheme to consult the Council about its proposed scheme.

(6ZC)    If the Authority considers that a relevant undertaker has not
complied with those rules, it may give the undertaker a direction to
do, or not to do, a thing specified in the direction.”

58

Page 52, line 35, after “(6)” insert “or (6ZC)”

THE EARL OF SELBORNE

59

Page 52, line 36, at end insert—

“(1A)    In section 143(4)(a) of the Water Industry Act 1991 for the word “or” there
is substituted “but excluding different”.”

60

Page 53, line 30, leave out “or” and insert “but excluding different”

Clause 22

LORD DE MAULEY

LORD REDESDALE

BARONESS PARMINTER

61

Page 63, line 20, after “promoting” insert “—

(i)   ”

62

Page 63, line 21, after “and” insert “(ii)”

63

Page 63, line 22, after “ways” insert “, and to increase efficiency in the use of water”

After Clause 22

LORD WHITTY

LORD GRANTCHESTER

64*

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 24

LORD DE MAULEY

BARONESS PARMINTER

65

Page 64, line 15, leave out “and”

66

Page 64, line 16, leave out “may” and insert “must”

67

Page 64, line 16, leave out “amongst other things” and insert “and

(c)   may have regard to such other matters as the Secretary of
State thinks fit.”

68

Page 65, line 11, leave out “and”

69

Page 65, line 12, leave out “may” and insert “must”

70

Page 65, line 12, leave out “amongst other things” and insert “and

(c)   may have regard to such other matters as the Welsh
Ministers think fit.”

After Clause 24

LORD WHITTY

LORD GRANTCHESTER

71*

Insert the following new Clause—

“Collection of debt from tenants

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

(2)     After section 147 (charging for emergency use of water) there is inserted—

“147AA           Charges to recover losses from bad debt

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

(2)     Where an undertaker does not have information about a resident in
a property who is using water, if the occupants of that property are
tenants, the landlord must, on request, provide to the undertaker
contact details for the tenants.

(3)     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.””

After Clause 29

LORD HARRISON

72*

Insert the following new Clause—

“Duty to provide a supply of water etc for fire fighting

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

(2)     In section 57 (duty to provide a supply of water etc for fire fighting), at the
end of subsection (1) there is inserted “, including service pipes connected
from those mains to consumers’ premises, where equipment is installed for
extinguishing fires such as fire suppression systems, and this water may be
taken via manually operated or automatic apparatus.””

Clause 37

LORD DE MAULEY

73

Page 87, line 19, at end insert—

“( )     In section 213 (powers to make regulations), in subsection (1A) (affirmative
resolution procedure to apply on first exercise of power), for “each of
sections 89 and 90 above, the instrument” there is substituted “—

(a)   each of sections 89 and 90, and

(b)   each of sections 207A and 207C and Schedule 16;

the instrument””

After Clause 38

LORD OXBURGH

74

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 (restrictions on undertakers’ power to require fixing of
charges by reference to volume), after subsection (1) there is inserted—

“(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 39

LORD DE MAULEY

75

Page 91, line 31, leave out from “section” to “House” in line 32 and insert “may not
be made unless a draft of the instrument has been laid before, and approved by a
resolution of, each”

76

Page 91, line 34, leave out from “section” to “the” in line 35 and insert “may not be
made unless a draft of the instrument has been laid before, and approved by a
resolution of,”

77

Page 91, leave out lines 36 to 48

After Clause 44

LORD WHITTY

LORD GRANTCHESTER

78*

Insert the following new Clause—

“Duties of undertakers to furnish the Secretary of State and Authority with
information

(1)     In granting, reviewing or renewing licences under this Chapter, the
Authority will be required by the Secretary of State to take into account
broader issues when conducting or reopening a price review and such
broader issues may include for any licensee or applicant licensee—

(a)   their corporate structure and financial structure;

(b)   the total amount of investment in England and Wales;

(c)   the total amount of dividends paid to owners and shareholders;

(d)   their taxation structure;

(e)   their company and group overall performance; and

(f)   their corporate social responsibility strategy.

(2)     Licensed water undertakers must furnish the Authority and the Secretary
of State with information on the above and publish such information in an
annual return or otherwise.”

Schedule 7

LORD DE MAULEY

79

Page 175, line 20, leave out sub-paragraph (2) and insert—

“( )     In subsection (1), for the words from “the following” to the end there is
substituted “the powers and duties conferred or imposed on the
Secretary of State or the Authority by virtue of any of the relevant
provisions.””

80

Page 176, line 7, leave out paragraph (a) and insert—

“( )   in paragraph (a), for the words from “the provisions of” to “water
suppliers” there is substituted “the relevant provisions”;”

81

Page 176, line 9, leave out ““153,”” and insert “the end”

82

Page 176, line 12, leave out from “3A),” to end of line 17 and insert—

“(ii)   any of sections 37A to 38, 38ZA, 39, 39ZA, 39B to 39D, 40E
to 40J, 42, 51CD to 51CG, 63AC to 63AF, 66B, 66CA to
66H, 66K, 66L, 66O(2), 95, 95ZA, 96, 96ZA, 99, 105ZF to
105ZI, 110F to 110J, 110L to 110O, 117E to 117O, 117R,
117S, 143B to 143E, 144ZA to 144ZF, 153, 181, 182, 185,
192A, 192B, 195, 195A and 201 to 203 below, or

(iii)   section 42 of the Water Act 2014.””

83

Page 176, line 18, leave out paragraphs (c) and (d) and insert—

“( )   paragraphs (b) and (c) are repealed.”

84

Page 202, line 10, at end insert—

“      In section 158 (powers to lay pipes in streets), in subsection (7)(a), for the
words from “section 66B(3)(a)(ii) above” to “section 66B(3)(a)(iii) above”
there is substituted “section 66B(4)(a)(i) or (b)(i) which is used for the
purpose of supplying water other than for domestic or food production
purposes or laid in pursuance of section 66B(4)(b)(ii)”.”

85

Page 205, line 25, leave out sub-paragraph (2) and insert—

“(2)     In subsection (1)—

(a)   the words “17D(8),” (inserted by section 35(2) of the Flood and
Water Management Act 2010) are repealed;

(b)   the words “or 17D(8)” (inserted by paragraph 49 of Schedule 8 to
the Water Act 2003) are repealed (if they remain in force to any
extent);

(c)   before “or 105A” there is inserted “, 66M”.

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

“(1ZA)   The requirement in subsection (1) does not apply in the case of
regulations made by the Welsh Ministers under section 17D(8).””

86

Page 210, line 27, at end insert—

“      In section 35 (provision of infrastructure), in subsection (2), in the words
inserted into section 213(1) of the Water Industry Act 1991, the words
“17D(8),” are repealed (if section 35(2) remains to be brought into force
to any extent).”

Before Clause 45

LORD DE MAULEY

BARONESS PARMINTER

87

Insert the following new Clause—

“Report on water abstraction reform

(1)     The Secretary of State must prepare a report setting out progress made in
reforming the arrangements for managing water abstraction in England.

(2)     The Secretary of State must lay before Parliament a copy of the report.

(3)     The report must be prepared and laid before the end of the period of five
years beginning with the day on which this Act is passed.”

Clause 49

LORD DE MAULEY

88

Page 107, line 18, leave out subsection (12) and insert—

“(12)    If the statutory instrument contains any regulations which, on their own,
would make the instrument subject to the affirmative resolution
procedure, the instrument is subject to that procedure.”

Clause 51

THE EARL OF LYTTON

89

Page 108, line 18, at end insert—

“(6A)    Regulations under subsection (5) shall provide that every policy which is
subject to a levy for the purposes of the Flood Reinsurance Scheme shall be
covered by the Flood Reinsurance Scheme.”

Clause 53

THE EARL OF LYTTON

90

Page 108, line 34, at end insert—

“(1A)    The levy referred to in subsection (1)(a) shall be proportionate to the
relevant council tax band relating to the household premises concerned.”

After Clause 73

LORD HOWARD OF RISING

91

Insert the following new Clause—

“Internal drainage boards: apportionment of drainage expenses

(1)     The Land Drainage Act 1991 is amended as follows.

(2)     In section 37(5) (apportionment of drainage expenses), at end insert—

“(f)   in the case of—

(i)   any land to which none of the paragraphs (a) to (d)
applies and it is not possible to calculate a value
under paragraph (e)(ii) as the relevant rating lists no
longer exist or cannot be located, or

(ii)   land to which one of paragraphs (a) to (c) does apply
but for which the relevant rating lists no longer exist
or cannot be located,

the Secretary of State may by order define an equivalent measure for valuing the land”.”

Clause 80

LORD DE MAULEY

92

Page 125, line 18, after “water” insert “or sewerage”

93

Page 125, line 24, at end insert—

“( )   section (Report on water abstraction reform);”

94

Page 125, line 36, at end insert—

“( )     The power of the Secretary of State or the Welsh Ministers to make an order
under subsection (3) is to be exercisable by statutory instrument.”

Schedule 12

LORD DE MAULEY

95

Page 232, line 23, leave out “paragraph 3” and insert “this Schedule”

96

Page 232, line 25, leave out “(as amended by section 2 of this Act)”

97

Page 232, line 29, leave out “(as inserted by section 4 of this Act)”

Prepared 22nd March 2014