(8) Provision under subsection (7)(e) or (f) may allow for the omission of
information publication of which would in the opinion of the regulator be
against the public interest.

(9) The intervention power may be exercised in respect of an obligation imposed
5by regulations under section 57(1) only so as to disapply the obligation (and
not so as to modify it).

(10) The regulations may apply, or make provision corresponding to, any of the
provisions of the Financial Services and Markets Act 2000 or the Financial
Services Act 2012, with or without modification.

(11) 10The provisions of the Financial Services and Markets Act 2000 or the Financial
Services Act 2012 referred to in subsection (10) include in particular—

(a) provisions about gathering information and investigating, including
provisions as to powers of entry and search;

(b) provisions as to criminal offences and disciplinary measures;

(c) 15provisions for the grant of an injunction in relation to a contravention
or anticipated contravention;

(d) provisions giving the Treasury, the FCA or the PRA powers to make
subordinate legislation;

(e) provisions for the FCA or the PRA to charge fees;

(f) 20provisions restricting liability in damages in relation to the discharge of
functions of the FCA or the PRA.

(12) In this section “regulator” means the FCA or the PRA.

(13) For—

• “objective of the PRA”, see section 2F of the Financial Services and
  25Markets Act 2000;

• “operational objective of the FCA”, see section 1B(3) of that Act;

• “overseas regulator”, see section 55Q of that Act;

• “threshold condition”, see section 55B of that Act.

General

69 30Interpretation

(1) The Secretary of State may by regulations define for the purposes of this Part—

• “insurer”;

• “relevant insurer”.

(2) Before making regulations under subsection (1) as to the meaning of “relevant
35insurer”, the Secretary of State must consult such persons as the Secretary of
State thinks appropriate.

(3) The Secretary of State may by regulations define for the purposes of sections 51
to 56—

• “flood insurance”;

• 40“household premises”.

(4) The Secretary of State may by regulations define for the purposes of sections 57
to 68—

• “greater flood risk”;

Water BillPage 121

• “flood”;

• “flood risk”;

• “household premises”;

• “insurance policy”;

• 5“issue”, in relation to an insurance policy;

• “the qualifying interest”, in relation to household premises.

(5) Regulations under subsection (4) as to the meaning of “flood” may specify
descriptions of water that are, or are not, to be taken into account.

(6) In sections 57 to 68—

• 10“the FCA” means the Financial Conduct Authority;

• “the PRA” means the Prudential Regulation Authority;

• “registered premises” means premises registered in the register
  maintained under section 61;

• “risk band” has the meaning given by section 61(2).

70 15Period of operation

(1) Sections 51 to 68 are repealed at the end of the period of 25 years beginning
with the day on which this Act is passed.

(2) The Secretary of State may by order amend subsection (1) so as to bring
forward the day on which—

(a) 20sections 51 to 56 are repealed;

(b) sections 57 to 65 are repealed.

(3) The Secretary of State may by order make provision in connection with—

(a) the repeal of—

(i) sections 51 to 56, or

(ii) 25sections 57 to 65 or

(b) the revocation of a scheme's designation under section 51(1)(b) without
a new designation being made under that provision, at any time before
sections 51 to 56 are repealed,

including provision amending or repealing an enactment.

(4) 30Provision made in an order by virtue of subsection (3) may, in particular,
include—

(a) such provision for the transfer of property, rights and liabilities
(including pension liabilities of staff) relating to the FR Scheme as the
Secretary of State thinks fit;

(b) 35provision about legal proceedings relating to anything done in
connection with the FR Scheme;

(c) provision about the accounts of the FR Scheme;

(d) provision about information held by the FR Scheme administrator.

(5) Before making an order under subsection (3)(a)(i) or (b) which includes
40provision for the transfer of an amount of the reserves of the FR Scheme, the
Secretary of State must consult the FR Scheme administrator about the amount
to be transferred.

(6) The Secretary of State may by regulations define “reserves” for the purposes of
subsection (5).

(7) The Treasury may by order amend subsection (1) so as to bring forward the
day on which sections 66 to 68 are repealed.

(8) The Treasury may by order make provision in consequence of the repeal of
sections 66 to 68, including provision amending or repealing an enactment.

71 5Regulations and orders

(1) A power to make regulations or an order under this Part is exercisable by
statutory instrument.

(2) A power to make regulations or an order under this Part includes power to
make different provision for different purposes and different areas.

(3) 10A power to make regulations or an order under this Part includes power to
make incidental, supplementary, consequential, transitional or transitory
provision or savings.

(4) Subject to subsection (5), a statutory instrument containing regulations or an
order made under this Part is subject to annulment in pursuance of a resolution
15of either House of Parliament.

(5) A statutory instrument containing—

(a) regulations under section 53(1) (FR Scheme funding),

(b) regulations under section 64 (expenses of relevant bodies in connection
with the register),

(c) 20regulations under section 66 (functions of FCA),

(d) regulations under section 68 (intervention by FCA or PRA), or

(e) an order under section 70 (period of operation),

may not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.

25Part 5 Miscellaneous

72 Internal drainage boards: procedure for orders confirming reorganisation

(1) Schedule 3 to the Land Drainage Act 1991 (procedure for certain orders) is
amended as follows.

(2) 30In paragraph 4 (publication of order after it is made and availability of special
parliamentary procedure), after sub-paragraph (1) there is inserted—

“(1A) But this paragraph does not apply to an order confirming a scheme
under section 3 of this Act.”

(3) In paragraph 5 (orders subject to special parliamentary procedure)—

(a) 35in sub-paragraph (1), for “this Schedule” there is substituted
“paragraph 4”;

(b) after sub-paragraph (3) there is inserted—

“(3A) But sub-paragraph (3) does not apply to an order confirming
a scheme under section 3 of this Act.”

73 Internal drainage boards in England: alternative procedure for byelaws

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

(2) In section 65 (land drainage regulations), at the beginning of subsection (2)
there is inserted “Subject to section 66A(4),”.

(3) 5In section 66 (powers of internal drainage boards and local authorities to make
byelaws), after subsection (5) (procedure) there is inserted—

“(5A) Subsection (5) is subject to section 66A(1).”

(4) After section 66 there is inserted—

“66A Alternative procedure for byelaws made by internal drainage boards

(1) 10The Secretary of State may by regulations —

(a) provide that section 66(5) and Schedule 5 do not apply to
byelaws made under section 66 by internal drainage boards for
internal drainage districts which are neither wholly nor partly
in Wales, and

(b) 15make provision about the procedure for the making and coming
into force of such byelaws.

(2) The regulations may, in particular, include provision about—

(a) consultation to be undertaken before a byelaw is made;

(b) publicising a byelaw after it is made.

(3) 20The regulations may make such incidental, consequential, transitional
or supplemental provision (including provision amending or repealing
any provision of this Act) as the Secretary of State considers
appropriate.

(4) Regulations may not be made under subsection (1) unless a draft of the
25instrument containing the regulations has been laid before, and
approved by a resolution of, each House of Parliament.”

74 Publication requirements under the Land Drainage Act 1991

Schedule 9 (amendments of the Land Drainage Act 1991 to remove certain
restrictions on the way in which documents have to be published) has effect.

75 30Amendments relating to Regional Flood and Coastal Committees

Schedule 10 (amendments relating to Regional Flood and Coastal Committees)
has effect.

Part 6 General and final

76 35Power to make consequential provision

(1) The Secretary of State may by order made by statutory instrument make such
provision as the Secretary of State considers appropriate in consequence of this
Act.

(2) The power conferred by subsection (1) includes power—

(a) to make transitional, transitory or saving provision;

(b) to amend, repeal, revoke or otherwise modify any provision made by
or under an enactment (whenever passed or made).

(3) A statutory instrument containing (whether alone or with other provision) an
5order under this section which amends or repeals any provision of an Act of
Parliament, or of an Act or Measure of the National Assembly for Wales, is not
to be made unless a draft of the instrument has been laid before, and approved
by a resolution of, each House of Parliament.

(4) A statutory instrument containing any other order under this section is subject
10to annulment in pursuance of a resolution of either House of Parliament.

77 Transitional, transitory or saving provision

(1) The Secretary of State may by order made by statutory instrument make such
transitional, transitory or saving provision as the Secretary of State considers
appropriate in connection with the coming into force of any provision of this
15Act.

(2) Subsection (1) does not apply if or to the extent that subsection (3) or (4)
applies.

(3) If a provision of this Act is brought into force to any extent by the Welsh
Ministers acting alone under section 80(3), the Welsh Ministers may by order
20made by statutory instrument make such transitional, transitory or saving
provision as the Welsh Ministers consider appropriate in connection with the
coming into force of so much of that provision as is so brought into force.

(4) If a provision of this Act is brought into force to any extent by the Secretary of
State and the Welsh Ministers acting jointly under section 80(3), the Secretary
25of State and the Welsh Ministers may, acting jointly, by order made by
statutory instrument make such transitional, transitory or saving provision as
they, together, consider appropriate in connection with the coming into force
of so much of that provision as is so brought into force.

(5) Schedule 11 (further provision about orders under this section) has effect.

78 30Financial provisions

There shall be paid out of money provided by Parliament—

(a) expenditure incurred under or by virtue of this Act by the Secretary of
State;

(b) any increase attributable to this Act in the sums payable under any
35other Act out of money so provided.

79 Extent

(1) This Act extends to England and Wales only, subject as follows.

(2) Sections 48 and 49 and Schedule 8 extend also to Scotland, but only so far as
required for the purposes of regulations applying as mentioned in section
4048(11)(b).

(3) Part 4 and this Part extend to England and Wales, Scotland and Northern
Ireland.

(4) An amendment or repeal made by this Act has the same extent as the
enactment to which it relates.

80 Commencement

(1) The following provisions of this Act come into force on the day on which it is
5passed—

(a) section 56;

(b) section 76;

(c) section 77 and Schedule 11;

(d) sections 78 and 79;

(e) 10this section and Schedule 12;

(f) section 81.

(2) The following provisions of this Act come into force at the end of the period of
two months beginning with the day on which it is passed—

(a) section 3;

(b) 15section 13;

(c) section 15;

(d) section 21;

(e) section 22, so far as relating to water undertakers whose areas are
wholly or mainly in England;

(f) 20section 25(3);

(g) sections 26 to 28;

(h) section 33;

(i) section 34(1) and (2);

(j) sections 35 and 36;

(k) 25section 45;

(l) section 47;

(m) sections 48 and 49 and Schedule 8;

(n) section 50;

(o) sections 72 to 74;

(p) 30section 75 and Schedule 10;

(q) paragraph 8 of Schedule 7 (and section 44 so far as relating to paragraph
8);

(r) paragraph 106 of Schedule 7 (and section 44 so far as relating to
paragraph 106).

(3) 35The remaining provisions of this Act come into force on such day as the
appropriate authority may by order appoint.

(4) Different days may be appointed for different purposes.

(5) Except as stated in the table in Schedule 12, the appropriate authority for the
purposes of subsection (3) is the Secretary of State.

81 40Short title

This Act may be cited as the Water Act 2014.

SCHEDULES

Section 1

SCHEDULE 1 Water supply licences: authorisations

Operation of the authorisations in England and Wales

1 5In the descriptions of the following authorisations, a reference to the supply
system of a water undertaker is a reference to the supply system of a water
undertaker whose area is wholly or mainly in England—

(a) a retail authorisation;

(b) a wholesale authorisation.

2 10In the descriptions of the following authorisations, a reference to the supply
system of a water undertaker is a reference to the supply system of a water
undertaker whose area is wholly or mainly in Wales—

(a) a restricted retail authorisation;

(b) a supplementary authorisation.

15Retail authorisation

3 A retail authorisation given by a water supply licence is an authorisation to
the water supply licensee to use the supply system of a water undertaker for
the purpose of supplying water to the premises of—

(a) the licensee,

(b) 20persons associated with the licensee, or

(c) the licensee's customers.

4 None of the premises supplied by a water supply licensee under a retail
authorisation may be household premises (as defined in section 17C).

Wholesale authorisation

5 25A wholesale authorisation given by a water supply licence is an
authorisation to the water supply licensee to introduce water into the supply
system of a water undertaker—

(a) by means of which system any particular supply in accordance with
a retail authorisation (whether the licensee's or another water supply
30licensee's) is to take place, and

(b) where that introduction is to be made in connection with that
intended supply.

Restricted retail authorisation

6 A restricted retail authorisation given by a water supply licence is an
authorisation to the water supply licensee to use the supply system of a
water undertaker for the purpose of supplying water to the premises of the
5licensee's customers.

7 The following requirements must be satisfied in relation to each of the
premises to be supplied by a water supply licensee under a restricted retail
authorisation—

(a) the requirement that the premises are not household premises (as
10defined in section 17C);

(b) the threshold requirement (construed in accordance with section
17D).

Supplementary authorisation

8 A supplementary authorisation given by a water supply licence is an
15authorisation to the water supply licensee to introduce water into the supply
system of a water undertaker—

(a) by means of which system any particular supply in accordance with
the licensee's restricted retail authorisation is to take place, and

(b) where that introduction is to be made in connection with that
20intended supply.

Enforcement and guidance

9 The requirements in paragraphs 4 and 7 are enforceable by the Authority
under section 18.

10 (1) The Authority may from time to time, with the approval of the Secretary of
25State, issue guidance as to the factors that are, or are not, to be taken into
account in determining the extent of any premises for the purposes of
paragraphs 4 and 7.

(2) Before giving approval under sub-paragraph (1) the Secretary of State must
consult the Welsh Ministers.

30Interpretation

11 For the purposes of this Schedule, a person (A) is associated with a water
supply licensee (L) if—

(a) where A and L are bodies corporate, one of them is a subsidiary of
the other or both are subsidiaries of the same body corporate;

(b) 35where A or L is an individual or an unincorporated association and
the other is a body corporate, that individual or unincorporated
association controls the other or a body corporate of which the other
is a subsidiary;

(c) A is a partnership of which L is a member.

12 40In paragraph 11 “subsidiary” has the meaning given by section 1159 of the
Companies Act 2006; and sections 450(1) to (4) and 451(1) to (3) of the
Corporation Taxes Act 2010 (control of a company) apply for the purposes
of paragraph 11 as they apply for the purposes of Part 10 of that Act.”

Section 1

SCHEDULE 2 Water undertakers' duties as regards water supply licensees

1 For sections 66A to 66C of the Water Industry Act 1991, and the Chapter
heading and italic heading preceding section 66A, there is substituted—

5 “Supply duties etc: water supply licensees

Duties of undertakers to supply water supply licensees etc

66A Use of water undertaker's supply system

(1) This section applies where a water supply licensee with a retail
authorisation (“L”) requests a water undertaker to permit the use of
10the undertaker's supply system for the purpose of supplying water
to premises that—

(a) L is to supply in accordance with L's retail authorisation, and

(b) are in the area of the undertaker.

(2) This section also applies where a water supply licensee with a
15restricted retail authorisation (“R”) requests a water undertaker to
permit the use of the undertaker's supply system for the purpose of
supplying water to premises that—

(a) R is to supply in accordance with R's restricted retail
authorisation, and

(b) 20are in the area of the undertaker.

(3) Where this section applies, the undertaker must in accordance with
a section 66D agreement take such steps—

(a) for the purpose of connecting the premises in question with
the undertaker's supply system, or

(b) 25in respect of that system,

as may be provided for in that agreement in order to enable the
requested use of the undertaker's supply system.

(4) A water undertaker is not required by this section to permit the use
of its supply system, or to take any steps to enable its use, if the first
30or second ground applies.

(5) The first ground is that—

(a) in the case of a request under subsection (1), the water supply
licensee has not secured by means of—

(i) a request under section 66AA(1) made by the licensee,

(ii) 35a request under section 66B(1) or 66C(1), (2) or (3)
made by the licensee or another water supply
licensee, or

(iii) a combination of such requests,

a supply of water, or the introduction of a supply of water, in
40connection with which the premises in question are to be
supplied;

(b) in the case of a request under subsection (2), the water supply
licensee has not secured by means of—

(i) a request under section 66AA(2), 66B(2) or (3) or
66C(4), or

(ii) a combination of such requests,

a supply of water, or the introduction of a supply of water, in
5connection with which the premises in question are to be
supplied.

(6) The second ground is that there is, in relation to the water fittings
used or to be used in connection with—

(a) the supply of water to the premises in question, or

(b) 10the use of water in those premises,

a contravention of such of the requirements of regulations under
section 74 as are prescribed for the purposes of this subsection.

(7) Where—

(a) a request has been made by a water supply licensee for the
15purposes of subsection (1) or (2), and

(b) the steps which the undertaker is required to take by virtue
of that request include steps for the purpose of obtaining any
necessary authority for, or agreement to, any exercise by it of
any of its powers or the carrying out by it of any works,

20the failure of the undertaker to acquire the necessary authority or
agreement does not affect the liability of the licensee to reimburse the
undertaker in respect of some or all of the expenses incurred by it in
taking those steps, if the section 66D agreement provides for such
liability as regards those steps.

(8) 25For the purposes of this section and sections 66AA to 66C—

(a) premises which are outside a water undertaker's area are to
be treated as being within that area if they are supplied with
water using the undertaker's supply system, and

(b) any pipes of the water undertaker which are used for the
30purpose of supplying premises as mentioned in paragraph
(a) are to be treated as being part of the undertaker's supply
system (if they would not otherwise be part of it).

(9) In this section and sections 66AA to 66C—

(a) “prescribed” means, in relation to a water undertaker whose
35area is wholly or mainly in Wales, prescribed by regulations
made by the Welsh Ministers by statutory instrument, which
is subject to annulment in pursuance of a resolution of the
Assembly;

(b) a reference to the supply system of a water undertaker is to
40be construed in accordance with section 17B;

(c) references to a retail authorisation or a restricted retail
authorisation are to be construed in accordance with
Schedule 2A.

66AA Water supply from water undertaker

(1) 45This section applies where a water supply licensee with a retail
authorisation (“L”) requests a water undertaker to provide L with a
supply of water for the purpose of supplying water to premises
that—

(a) L is to supply in accordance with L's retail authorisation, and