Water Bill (HL Bill 88)

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

(b) on conviction on indictment, to a fine.

(8) Proceedings for an offence under this section may not be instituted
5except by—

(a) the Secretary of State, or

(b) the Authority.

(9) For the purposes of this section, a person (A) is associated with
another person (B) if they would be associated with each other for the
10purposes of Schedule 2B if A were a sewerage licensee.

(10) In this section and sections 117Q and 117R, references to the
sewerage system of a sewerage undertaker are to be construed in
accordance with section 17BA(7).

117Q Prohibition on unauthorised removal of matter from sewerage system

(1) 15No person other than the undertaker may remove matter from the
sewerage system of a sewerage undertaker whose area is wholly or
mainly in England.

(2) Subsection (1) is subject to subsections (3) and (4) and section 117R.

(3) Subsection (1) does not apply where —

(a) 20matter is removed by a sewerage licensee in pursuance of its
sewerage licence, or

(b) matter is removed by another sewerage undertaker under a
main connection agreement (within the meaning of section
110A).

(4) 25The Secretary of State may by regulations specify further
circumstances in which subsection (1) does not apply.

(5) An undertaking entered into which involves a contravention of
subsection (1) is unenforceable.

(6) A person who contravenes subsection (1) is guilty of an offence.

(7) 30A person guilty of an offence under this section is liable—

(a) on summary conviction, to a fine not exceeding £20,000;

(b) on conviction on indictment, to a fine.

(8) For the purposes of section 210, the penalty on conviction on
indictment of an offence under this section is to be deemed to include
35imprisonment for a term not exceeding two years (in addition to or
instead of a fine).

(9) Proceedings for an offence under this section may not be instituted
except by—

(a) the Secretary of State, or

(b) 40the Authority.

117R Sections 117P and 117Q: exemptions

(1) The Secretary of State may by order made by statutory instrument
grant exemption from section 117P(1) or 117Q(1) to—

(a) a person or persons of a class;

(b) generally or to such extent as may be specified in the order;

(c) unconditionally or subject to such conditions as may be
specified in the order.

(2) 5Before making an order under subsection (1), the Secretary of State
must give notice—

(a) stating that the Secretary of State proposes to make such an
order and setting out the terms of the proposed order;

(b) stating the reasons why the Secretary of State proposes to
10make the order in the terms proposed; and

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

and must consider any representations or objections which are duly
15made and not withdrawn.

(3) The notice required by subsection (2) is to be given—

(a) by serving a copy of it on the Authority, and

(b) by publishing it in such manner as the Secretary of State
considers appropriate for bringing it to the attention of those
20likely to be affected by the proposed order.

(4) Notice of an exemption granted to a particular person is to be
given—

(a) by serving a copy of the exemption on the person, and

(b) by publishing the exemption in such manner as the Secretary
25of State considers appropriate for bringing it to the attention
of other persons who may be affected by it.

(5) Notice of an exemption granted to persons of a particular class is to
be given by publishing the exemption in such manner as the
Secretary of State considers appropriate for bringing it to the
30attention of—

(a) persons of that class, and

(b) other persons who may be affected by it.

(6) An exemption may be granted—

(a) indefinitely, or

(b) 35for a period specified in, or determined by or under, the
exemption.

(7) The conditions that may be specified may, in particular, require any
person carrying on any activity allowed by the exemption—

(a) to comply with any direction given by the Secretary of State
40or the Authority as to such matters as are specified in the
exemption or are of a description so specified;

(b) except in so far as the Secretary of State or the Authority
consents to the person's doing or not doing them, not to do
or to do such things as are specified in the exemption or are
45of a description so specified;

(c) to refer for determination by the Secretary of State or the
Authority such questions arising under the exemption as are
specified in the exemption or are of a description so specified.

117S Section 117R: supplementary

(1) The Secretary of State may by order made by statutory instrument
revoke an order by which an exemption was granted to a particular
person under section 117R(1) or vary an order by which more than
5one exemption was so granted so as to terminate any of the
exemptions—

(a) at the person's request,

(b) in accordance with any provision of the order by which the
exemption was granted, or

(c) 10if it appears to the Secretary of State inappropriate that the
exemption should continue to have effect.

(2) The Secretary of State may by order made by statutory instrument
revoke an order by which an exemption was granted to persons of a
particular class under section 117R(1) or vary an order by which
15more than one exemption was so granted so as to terminate any of
the exemptions—

(a) in accordance with any provision of the order by which the
exemption was granted, or

(b) if it appears to the Secretary of State inappropriate that the
20exemption should continue to have effect.

(3) The Secretary of State may by direction withdraw an exemption
granted to persons of a particular class under section 117R(1) from
any person of that class—

(a) at the person's request,

(b) 25in accordance with any provision of the order by which the
exemption was granted, or

(c) if it appears to the Secretary of State inappropriate that the
exemption should continue to have effect in the case of the
person.

(4) 30Before making an order under subsection (1)(b) or (c) or (2) or giving
a direction under subsection (3)(b) or (c), the Secretary of State
must—

(a) consult the Authority, and

(b) give notice—

(i) 35stating that the Secretary of State proposes to make
such an order or give such a direction,

(ii) stating the reasons why the Secretary of State
proposes to make such an order or give such a
direction, and

(iii) 40specifying the time (not being less than 28 days from
the date of publication of the notice) within which
representations or objections with respect to the
proposals may be made,

and must consider any representations or objections which are duly
45made and not withdrawn.

(5) The notice required by subsection (4)(b) is to be given—

(a) where the Secretary of State is proposing to make an order
under subsection (1)(b) or (c), by serving a copy of it on the
person to whom the exemption was granted;

(b) where the Secretary of State is proposing to make an order
under subsection (2), by publishing it in such manner as the
Secretary of State considers appropriate for bringing it to the
attention of persons of the class of persons to whom the
5exemption was granted;

(c) where the Secretary of State is proposing to give a direction
under subsection (3)(b) or (c), by serving a copy of it on the
person from whom the Secretary of State proposes to
withdraw the exemption.

(6) 10A statutory instrument containing—

(a) an order under subsection (1) or (2), or

(b) an order under section 117R(1),

is subject to annulment in pursuance of a resolution of either House
of Parliament.”

Section 5

15SCHEDULE 5 Extension of licensing provisions in relation to Wales

1 The Water Industry Act 1991 is amended as follows.

2 In section 2 (general duties with respect to water industry) (as amended by
Schedule 7)—

(a) 20in subsection (2C)—

(i) after paragraph (d) there is inserted “and”;

(ii) paragraph (f) and the “and” preceding it are repealed;

(b) subsection (2D) is repealed.

3 In section 2B (strategic priorities and objectives: Wales) (as inserted by
25section 24 and amended by Schedule 7), in subsection (4)(d), after “water
supply licensees” there is inserted “and sewerage licensees”.

4 (1) Section 17A (water supply licences) (as substituted by section 1) is amended
as follows.

(2) In subsection (2)—

(a) 30the words from “one or more” to “combination of authorisations” are
repealed;

(b) after paragraph (b) there is inserted “or

“(ba) a retail authorisation and a wholesale authorisation.”;

(c) paragraphs (c) and (d) are repealed.

(3) 35In subsection (3), the words “(including their operation in England and
Wales)” are repealed.

5 (1) Section 17AA (water supply licences: restrictions on grants) (as substituted
by section 1) is amended as follows.

(2) In subsection (1), after paragraph (b) there is inserted—

“(ba) 40the Welsh Ministers;

(bb) the Chief Inspector of Drinking Water for Wales if there is
one;”.

(3) Subsection (2) is repealed.

(4) In subsection (5), paragraphs (b) and (c) are repealed.

6 In section 17B (guidance and interpretation) (as amended by section 2)—

(a) in subsection (4A), the words “, in the case of an undertaker whose
5area is wholly or mainly in England,” are repealed;

(b) subsections (5) to (8) are repealed.

7 (1) Section 17BA (sewerage licences) (inserted by section 4) is amended as
follows.

(2) In subsection (1), the words “whose area is wholly or mainly in England” are
10repealed.

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

“(5A) Before giving a general authorisation, the Secretary of State must
consult the Welsh Ministers.”

8 In section 17BB (sewerage licences: restrictions on grants) (inserted by
15section 4), in subsection (1), after “of State” there is inserted “, the Welsh
Ministers”.

9 In section 17C (meaning of household premises) (as amended by Schedule
7), in subsection (1), for “paragraphs 4 and 7(a)” there is substituted
“paragraph 4”.

10 20Section 17D (the threshold requirement) is repealed (if not previously
repealed by an order under section 3).

11 In section 17DA (guidance) (inserted by Schedule 7), paragraph (a) is
repealed.

12 In section 17E (determinations by the Authority) (as amended by Schedule
257), in subsection (2)—

(a) in paragraph (a), the words “or 7(a) or (b)” are repealed;

(b) paragraph (c) is repealed.

13 (1) Section 17FA (arrangements with the Water Industry Commission for
Scotland) (inserted by section 6) is amended as follows.

(2) 30In subsection (1)(a), the words “or a restricted retail authorisation or both”
are repealed.

(3) In subsection (2)(a), the words “or particular authorisations” are repealed.

14 In section 17G (water supply licence conditions) (as amended by Schedule
7), in subsection (4)(a)(iii), the words “so far as subsection (3) applies to
35water supply licences,” are repealed.

15 (1) Section 17H (standard conditions of water supply licences) (as amended by
Schedule 7) is amended as follows.

(2) Subsection (1A) is repealed.

(3) In subsection (2), for the words from “the different” to the end there is
40substituted “whether the conditions are to relate to a retail authorisation or
a wholesale authorisation or both types of authorisation.”

(4) In subsection (3)—

(a) for “giving a particular authorisation or a particular combination of
authorisations” there is substituted “giving a retail authorisation or a
wholesale authorisation or both authorisations”;

(b) for “that particular combination of authorisations” there is
5substituted “those authorisations”.

(5) In subsection (4), for “any particular authorisation or combination of
authorisations” there is substituted “one or other or both authorisations”.

(6) In subsection (8)(b)(i), the words from “if the” to “supplementary
authorisation,” are repealed.

(7) 10In subsection (9), the words from “in a case” to “subsection (8)(b)(i)” are
repealed.

16 (1) Section 17HA (standard conditions of sewerage licences) (inserted by
Schedule 7) is amended as follows.

(2) In subsection (9)(b), after sub-paragraph (i) there is inserted—

“(ia) 15on the Welsh Ministers.”

(3) In subsection (10), after “of State” there is inserted “(after consulting the
Welsh Ministers)”.

17 In section 17I (modifications of water supply licences by agreement) (as
amended by Schedule 7)—

(a) 20in subsection (4)(b)(iv), the words from the beginning to “supply
licence,” are repealed;

(b) in subsection (5A), the words “in relation to a water supply licence”
are repealed.

18 (1) Section 17J (modification of standard conditions of water supply licences)
25(as amended by Schedule 7) is amended as follows.

(2) In subsection (4)(b)(iv), the words from the beginning to “licence,” are
repealed.

(3) In subsection (5A), the words “in relation to a water supply licence” are
repealed.

(4) 30In subsection (10), the words “in relation to the standard conditions of water
supply licences” are repealed.

19 In section 17K (water supply licences: modification references to
Competition Commission) (as amended by Schedule 7), in subsection
(5)(b)(iv), the words from the beginning to “licences,” are repealed.

20 (1) 35Section 17N (water supply licences: reports on modification references) (as
amended by Schedule 7) is amended as follows.

(2) In subsection (10)(a)(iv), the words from the beginning to “licence,” are
repealed.

(3) In subsection (11)(a)(ii), the words from the beginning to “licences,” are
40repealed.

(4) In subsection (12), the words “, if the report relates to water supply licences,”
are repealed.

21 In section 17O (modification of licences following report) (as amended by
Schedule 7), in subsection (5)(c)(iii), the words from the beginning to “or
licences,” are repealed.

22 In section 17P (water supply licences: Commission's power of veto
5following report) (as amended by Schedule 7), in subsection (7)(b)(v), the
words from the beginning to “licences,” are repealed.

23 In section 23 (meaning and effect of special administration order) (as
amended by Schedule 7), in subsection (6)(a), the words “or supplementary”
are repealed.

24 10In section 24 (special administration orders made on special petitions) (as
amended by Schedule 7), in subsection (1B), the words from “in relation to”
to “supplementary authorisation,” are repealed.

25 In section 27C (the interests of consumers) (as amended by Schedule 7)—

(a) in subsection (1)—

(i) 15after paragraph (d) there is inserted “and”;

(ii) paragraph (f) and the “and” preceding it are repealed;

(b) subsection (2) is repealed.

26 (1) Section 38ZA (standards of performance in connection with the supply of
water: water supply licensees) (inserted by section 29) is amended as
20follows.

(2) In subsection (1), the words “or restricted retail authorisations” are repealed.

(3) In subsection (6), for the definition of “the Minister” there is substituted—

• ““the Minister” means—

  (a)

  the Secretary of State, in respect of the supply of water by a
  25water supply licensee in accordance with the licensee's retail
  authorisation using the supply system of a water undertaker
  whose area is wholly or mainly in England;

  (b)

  the Welsh Ministers, in respect of the supply of water by a
  water supply licensee in accordance with the licensee's retail
  30authorisation using the supply system of a water undertaker
  whose area is wholly or mainly in Wales;”.

27 In section 52 (the domestic supply duty) (as amended by Schedule 7), in
subsection (4A)—

(a) after paragraph (a) there is inserted “and”;

(b) 35paragraph (c) and the “and” preceding it are repealed.

28 In section 55 (supplies for non-domestic purposes) (as amended by Schedule
7), in subsection (1A)(b), the words from “or, in the case” to “that subsection”
are repealed.

29 In section 63AC(4) (as substituted by section 31), the words “or a restricted
40retail authorisation” are repealed.

30 (1) Section 66A (use of water undertaker's supply system) (inserted by
Schedule 2) is amended as follows.

(2) Subsection (2) is repealed.

(3) In subsection (5)—

(a) in paragraph (a), the words “in the case of a request under subsection
(1),” are repealed;

(b) paragraph (b) is repealed.

(4) In subsection (7)(a), the words “or (2)” are repealed.

(5) 5In subsection (8)(c), the words “or a restricted retail authorisation” are
repealed.

31 (1) Section 66AA (water supply from water undertaker) (inserted by Schedule
2) is amended as follows.

(2) Subsection (2) is repealed.

(3) 10In subsection (3)(a), the words “or, as the case may be, subsection (2)” are
repealed.

(4) In subsection (5)—

(a) in paragraph (a), the words “or, as the case may be, R” are repealed;

(b) in paragraph (b), the words “or, as the case may be, R” are repealed.

(5) 15In subsection (7)(a), the words “or (2)” are repealed.

32 (1) Section 66B (introduction of water into water undertaker's supply system)
(inserted by Schedule 2) is amended as follows.

(2) Subsections (2) and (3) are repealed.

(3) In subsection (4)—

(a) 20in paragraph (a), the words “in a case falling within subsection (1),”
are repealed;

(b) paragraphs (b) and (c) are repealed;

(c) in paragraph (d), for “steps under paragraphs (a), (b) or (c) (as the
case may be)” there is substituted “such steps”.

(4) 25In subsection (6)(a), the words “, (2) or (3)” are repealed.

(5) Subsections (7) and (8) are repealed.

(6) In subsection (9), the words “or (b)(i) or (ii)” are repealed.

(7) Subsection (10)(b) is repealed.

33 (1) Section 66C (introduction of water provided by secondary undertaker)
30(inserted by Schedule 2) is amended as follows.

(2) In subsection (1), the words from “A request under paragraph (a)” to the end
are repealed.

(3) Subsections (2) to (4) are repealed.

(4) In subsection (5), the words “by virtue of subsection (1), (2) or (4)” are
35repealed.

(5) In subsection (6)(a), the words “, L2, L3 or R” are repealed.

(6) In subsection (7), the words “, L2 or R” are repealed.

(7) In subsection (9)(a), the words “, (2), (3) or (4)” are repealed.

(8) In subsection (11), the words “, (2), (3) or (4)” are repealed.

34 In section 66E (rules about charges) (inserted by Schedule 2), in subsection
(3), the words “or restricted retail authorisation” are repealed.

35 In section 66EA (rules about charges: provision about reduction in charges)
(inserted by Schedule 2), in subsection (1)(a), the words “or a restricted retail
5authorisation” are repealed.

36 In section 66G (designation of strategic supply) (as amended by Schedule 2),
in subsection (11), paragraph (b) and the “or” preceding it are repealed.

37 In section 66H (designation of collective strategic supply) (as amended by
Schedule 2), in subsection (11), paragraph (b) and the “or” preceding it are
10repealed.

38 (1) Section 68 (duties of water undertakers and licensed water suppliers with
respect to water quality) (as amended by Schedule 7) is amended as follows.

(2) In subsection (1A)—

(a) in paragraph (a), the words “or restricted retail authorisation” are
15repealed;

(b) in paragraph (b), the words “or restricted retail authorisation” are
repealed.

(3) In subsection (6), the words “or a restricted retail authorisation” are
repealed.

39 (1) 20Section 95ZA (standards of performance in connection with provision of
sewerage services: sewerage licensees) (inserted by section 30) is amended
as follows.

(2) In the following places—

(a) the opening words of subsection (1),

(b) 25subsection (1)(b)(i), and

(c) subsection (2),

for “the Secretary of State” there is substituted “the Minister”.

(3) In subsection (2), for “Secretary of State's” there is substituted “Minister's”.

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

“(6) 30In this section—

• “the Minister” means—

  (a)

  the Secretary of State, in respect of the provision of
  services by a sewerage licensee in accordance with the
  licensee's retail authorisation using the sewerage
  35system of a sewerage undertaker whose area is
  wholly or mainly in England;

  (b)

  the Welsh Ministers, in respect of the provision of
  services by a sewerage licensee in accordance with the
  licensee's retail authorisation using the sewerage
  40system of a sewerage undertaker whose area is
  wholly or mainly in Wales;

• “prescribed” means prescribed by regulations made by the
  Minister.”

40 In section 96ZA (procedure for regulations under section 95ZA) (inserted by

section 30), for subsection (2) there is substituted—

“(2) In the application of section 96 by virtue of subsection (1)—

(a) a reference to a sewerage undertaker is to be treated as a
reference to a sewerage licensee, and

(b) 5a reference to the Secretary of State is to be treated as a
reference to the Minister (as defined in section 95ZA(6)).

(3) Regulations under section 95ZA are to be made by statutory
instrument.

(4) A statutory instrument containing regulations under section 95ZA is
10subject to annulment in pursuance of a resolution of—

(a) either House of Parliament, in the case of regulations made
by the Secretary of State;

(b) the National Assembly for Wales, in the case of regulations
made by the Welsh Ministers.

(5) 15Section 213(2) to (2B) applies to regulations made by the Welsh
Ministers under section 95ZA as it applies to regulations made by the
Secretary of State.”

41 (1) Section 117G (codes under section 117F: procedure) (inserted by Schedule 4)
is amended as follows.

(2) 20In subsection (2), after paragraph (a) there is inserted—

“(aa) the Welsh Ministers;”.

(3) For subsection (4) there is substituted—

“(4) Before a code under section 117F prepared by the Authority is
issued, the Minister may direct the Authority—

(a) 25not to issue the code, or

(b) to issue the code with specified modifications.

(4A) Subsection (4) is subject to subsections (4C) and (4D).

(4B) In subsection (4) “the Minister” means—

(a) the Secretary of State, so far as a code prepared by the
30Authority relates to section 117E agreements made with
sewerage undertakers whose areas are wholly or mainly in
England;

(b) the Welsh Ministers, so far as a code prepared by the
Authority relates to section 117E agreements made with
35sewerage undertakers whose areas are wholly or mainly in
Wales.

(4C) The power under subsection (4) may not be exercised more than once
by the Secretary of State or the Welsh Ministers.

(4D) If the power under subsection (4) is not exercised by the Secretary of
40State or the Welsh Ministers on the first occasion on which it may be
exercised by the Secretary of State or (as the case may be) the Welsh
Ministers, it may not be exercised by the Secretary of State or (as the
case may be) the Welsh Ministers on a later occasion.”