Water Bill (HL Bill 88)

(3) For the purposes of section 110L, premises which are outside a
sewerage undertaker's area are to be treated as being within that area
if they are provided with sewerage services using the undertaker's
sewerage system.

(4) 5In subsection (3), the reference to the undertaker's sewerage system is
to be construed in accordance with section 17BA(7).

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

110N Interim licensees: schemes for terms and conditions

(1) 10A person who is an eligible sewerage licensee for the purposes of
section 110L must make, and from time to time revise, a scheme
containing the terms and conditions which, in the absence of agreed
terms and conditions, are to apply to the provision of sewerage services
by the licensee by virtue of a direction given under section 110L(3).

(2) 15A scheme under this section may make different provision for different
purposes, or for different areas.

(3) As soon as practicable after a sewerage licensee makes or revises a
scheme under this section the licensee is to—

(a) publish the scheme, or revised scheme, on the licensee's
20website, and

(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) 25A 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
30subsection (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
35that 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) 40the 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
licensee ceased to provide sewerage services to premises for the
purposes of section 110L;

(e) terms and conditions contained in schemes made under section
5110N;

(f) eligible sewerage licensees informing owners or occupiers of
premises 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) 10the giving of notices as mentioned in section 110L(8) (that a new
licensee is to continue the provision of the sewerage services
provided by the previous licensee) including, in particular,
provision about—

(i) the earliest time that a notice may specify as the time
15from which a new licensee is to continue the provision
of the sewerage services provided by a previous
licensee;

(ii) the procedure for serving a notice.

(3) If the Authority considers that a sewerage licensee is not acting as
20required by provision contained in the code as mentioned in subsection
(2)(e) or (f), the Authority may give the licensee a direction to do, or not
to 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) 25The 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
question.”

33 30Notice 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) If an undertaker makes an agreement that falls within subsection (2)(b),
35it 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
relevant undertakers and licensees)—

(a) 40in 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) in subsection (3), after “that provision” there is inserted “or that
45information”;

(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
information about an agreement falling within section 142(2)(b)
5as 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) Section 195 of the Water Industry Act 1991 (the Water Services Regulation
10Authority'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
repealed.

(3) 15After 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
under a bulk supply agreement);

(b) 20a 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
25under a section 117E agreement).”

35 Operation 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) 30The Authority must publish a notice setting out—

(a) the 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) 35the fees that must be paid for, or in connection with, the supply
by 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
40the Authority as being a true extract.

(4A) The 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) during such hours, and

(b) on payment of such fees,

5as are set out in the notice under subsection (4) that is for the time being
in force.”

36 Obtaining information for enforcement purposes

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

(2) 10For subsection (1) there is substituted—

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

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

(b) 15a 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) may be contravening, or may have contravened, a condition of
the appointment or a statutory or other requirement
20enforceable under section 18,

(b) may be causing or contributing to, or may have caused or
contributed to, a contravention by another company holding an
appointment as a relevant undertaker of a condition of the
appointment or a statutory or other requirement enforceable
25under section 18,

(c) may be causing or contributing to, or may have caused or
contributed to, a contravention by a 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) 30has 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
connection with the provision of sewerage services.

(1B) Condition 2 is that the person—

(a) 35may be contravening, or may have contravened, a condition of
the licence 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 a company holding an
40appointment 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 another person holding a
45licence under 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 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) 5The notice may be served—

(a) on 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
10words occur, there is substituted “Minister”.

(4) In 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) 15the Secretary of State in respect of—

(i) any 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
20sewerage system of any such undertaker;

(b) the 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
25out licensed activities using the supply system or
sewerage system of any such undertaker.

(9) In this section—

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

(b) 30references to the sewerage system of a sewerage undertaker are
to be construed in accordance with section 17BA(7).”

Appeals relating to codes

37 Appeals 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) The Secretary of State may by regulations provide for an appeal to lie
5to 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
Act about a proposed revision to a designated code, not to make
10the 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
section.

(3) 15The 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
only in such cases as may be determined in accordance with the
20regulations;

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

(i) by such persons,

(ii) in accordance with such procedures, and

(iii) 25by 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
30an appeal;

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

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

(a) make different provision in relation to different codes or
35different parts of a code;

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

(7) The regulations must—

(a) provide for appeals to be brought only where the CMA grants
40permission for an appeal;

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

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

(a) the Welsh Ministers;

(b) the Authority;

(c) 5such other persons as the Secretary of State considers
appropriate.

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
10the CMA by a group constituted for the purpose by the chair of the
CMA 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) 15The Secretary of State may by regulations provide for the
determination 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
20performing the powers and duties mentioned in section 2(1).

(3) The 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,
25but

(b) must 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
30allowed.

(5) The 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
35purposes for which the code in question is issued;

(c) that 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) 40if it allows the appeal;

(b) if 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
the 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) 5to take effect—

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

(ii) at 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
10paragraph 2 of Schedule 16); and

(e) to be published.

(9) Provision 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
15might, significantly harm the legitimate business interests of an
undertaking to which it relates;

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

(3) 20After Schedule 15 there is inserted the Schedule set out in Schedule 6 to this
Act.

Guidance relating to rules about charges

38 Guidance relating to rules about charges

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

25“General guidance on charges

144ZE General guidance on charges

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

(a) rules under section 66E;

(b) 30rules 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) 35rules 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) 40Guidance 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
relevant undertakers or water supply or sewerage licensees.

(5) 5Guidance 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
guidance relating to those rules issued under another provision of this
10Act).

(7) If—

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

(b) the Authority, having regard to that guidance, considers that it
15is 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) consult the relevant persons about the draft;

(c) 20comply with the requirements of section 144ZF.

(9) The relevant persons are—

(a) the Secretary of State;

(b) the Welsh Ministers;

(c) the Council;

(d) 25any 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) such other persons as the Minister thinks appropriate.

(10) 30The 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
35this section.

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

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

(b) the Welsh Ministers, in relation to relevant undertakers whose
40areas are wholly or mainly in Wales.

144ZF Guidance under section 144ZE: procedure

(1) Before issuing guidance under section 144ZE, the Secretary of State
must 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
Parliament, or

(b) 5if 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) In reckoning any period of 40 days for the purposes of subsection (2),
10no 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
lay a draft of the proposed guidance before the Assembly.

(6) 15The 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
should not be issued, the Welsh Ministers may not issue it.

(8) 20In 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
Ministers issuing a single document containing guidance under section
25144ZE, and preparing draft guidance accordingly.”

Adjudication functions

39 Exercise of adjudication functions by other persons

After section 207C of the Water Industry Act 1991 (inserted by section 37) there
is inserted—

30“Adjudication

207D Exercise of adjudication functions by other persons

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

(a) 35on 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
person as may be specified in the order, at the option of the
Authority in any particular case.

(2) 40An order under subsection (1) may—