Water Bill (HL Bill 88)

(4) In subsection (6), after paragraph (a) there is inserted—

“(aa) the NRBW, in relation to section 117E agreements made with
sewerage undertakers whose areas are wholly in Wales;”.

(5) The power to give a direction under section 117G(4) of the Water Industry
5Act 1991 (as substituted by this paragraph) may not be exercised by the
Secretary of State if, before the coming into force of this paragraph—

(a) the Secretary of State exercised the power to give a direction under
section 117G(4) of the Water Industry Act 1991 (inserted by Schedule
4), or

(b) 10the Secretary of State omitted to exercise that power to give a
direction.

42 (1) Section 117K (rules under section 117I: procedure) (inserted by Schedule 4)
is amended as follows.

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

“(aa) 15the Welsh Ministers;”.

(3) For subsection (5) there is substituted—

“(5) Before rules under section 117I prepared by the Authority are issued,
the Minister may direct the Authority not to issue the rules.

(5A) In subsection (5) “the Minister” means—

(a) 20the Secretary of State, so far as rules prepared by the
Authority relate to section 117E agreements made with
sewerage undertakers whose areas are wholly or mainly in
England;

(b) the Welsh Ministers, so far as rules prepared by the Authority
25relate to section 117E agreements made with sewerage
undertakers whose areas are wholly or mainly in Wales.”

(4) In subsection (7), after paragraph (a) there is inserted—

“(aa) the NRBW, in relation to section 117E agreements made with
sewerage undertakers whose areas are wholly in Wales;”.

43 (1) 30Section 117L (rules under section 117I: minor or urgent revisions) (inserted
by Schedule 4) is amended as follows.

(2) In subsections (3), (4) and (5)(b), for “the Secretary of State” there is
substituted “the Minister”.

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

“(9) 35In this section “the Minister” has the meaning given by section
117K.”

44 (1) Section 117M (rules under section 117I: guidance) (inserted by Schedule 4) is
amended as follows.

(2) In subsection (3), for the words from “are such” to the end there is
40substituted “are—

“(a) the Secretary of State;

(b) the Welsh Ministers;

(c) such other persons as the Minister thinks appropriate.”

(3) In subsection (7), for “means the Secretary of State.” there is substituted

“means—

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

(b) the Welsh Ministers, in relation to sewerage undertakers
5whose areas are wholly or mainly in Wales.”

45 (1) Section 117N (designation of strategic sewerage provision) (inserted by
Schedule 4) is amended as follows.

(2) In subsection (4), after paragraph (a) there is inserted—

“(aa) the Welsh Ministers;”.

(3) 10In subsection (8), after paragraph (a) there is inserted—

“(aa) the Welsh Ministers;”.

(4) In subsection (11), after paragraph (a) there is inserted—

“(aa) the NRBW, in a case where the undertaker's area is wholly in
Wales;”.

46 (1) 15Section 117O (designation of collective strategic sewerage provision)
(inserted by Schedule 4) is amended as follows.

(2) In subsection (4), after paragraph (a) there is inserted—

“(aa) the Welsh Ministers;”.

(3) In subsection (8), after paragraph (a) there is inserted—

“(aa) 20the Welsh Ministers;”.

47 In section 117P (prohibition on unauthorised use of sewerage system)
(inserted by Schedule 4), in subsection (1), the words “whose area is wholly
or mainly in England” are repealed.

48 In section 117Q (prohibition on unauthorised removal of matter from
25sewerage system) (inserted by Schedule 4), in subsection (1), the words
“whose area is wholly or mainly in England” are repealed.

49 In section 117S (section 117R: supplementary) (inserted by Schedule 4), at
the end there is inserted—

“(7) The power to—

(a) 30make an order under subsection (1) or (2) or section 117R(1),
or

(b) give a direction under subsection (3),

is exercisable by the Welsh Ministers (and not by the Secretary of
State) in relation to any supply system of a sewerage undertaker
35whose area is wholly or mainly in Wales.

(8) Accordingly, subsections (1) to (5) and section 117R apply in relation
to an order made or a direction given by the Welsh Ministers by
virtue of subsection (7) as they apply in relation to an order made or
direction given by the Secretary of State.

(9) 40A statutory instrument containing an order made by the Welsh
Ministers by virtue of subsection (7) is subject to annulment in
pursuance of a resolution of the Assembly.”

50 In section 195(3AA) (the Authority's register: consultation as regards water
supply licensees) (as amended by Schedule 7), after “water supply licensee”
there is inserted “or a sewerage licensee”.

51 In section 207D (exercise of adjudication functions by other persons)
5(inserted by section 39), in subsection (5), in paragraph (b) of the definition
of “the Minister”—

(a) the “or” following sub-paragraph (i) is repealed;

(b) after sub-paragraph (ii) there is inserted “, or

“(iii) in relation to a sewerage licensee using the
10sewerage system of such an undertaker (see
section 17BA);”.

52 (1) Schedule 2A (water supply licences: authorisations) (inserted by Schedule 1)
is amended as follows.

(2) Paragraphs 1 and 2 are repealed.

(3) 15Paragraphs 6 to 8 are repealed.

(4) In paragraph 9, for “requirements in paragraphs 4 and 7 are” there is
substituted “requirement in paragraph 4 is”.

(5) In paragraph 10, for “paragraphs 4 and 7” there is substituted “paragraph 4”.

Section 37

SCHEDULE 6 20Procedure on appeals under section 207A of the Water Industry Act 1991

Regulations as to procedure

1 The Secretary of State may by regulations make provision about the
procedure applying to appeals under section 207A.

Particular provision

2 25Regulations under this Schedule may in particular make provision about—

(a) making an application for permission to bring an appeal;

(b) imposing conditions on the granting of permission to appeal
(including conditions requiring an appeal to be considered together
with other appeals, whether relating to the same revision or the same
30code or not);

(c) the persons who may be party to an appeal;

(d) making an application for permission to be made party to an appeal;

(e) imposing conditions on the granting of permission to become party
to an appeal;

(f) 35enabling a member of the CMA to make decisions as to the matters
referred to in paragraphs (a), (b), (d) and (e);

(g) enabling a member of the CMA to direct, pending the determination
of the appeal, that the code in question—

(i) is to have effect without the revision, or

(ii) is to have effect with the revision but with modifications
5specified by the direction;

(h) the number of persons in a group constituted to hear an appeal;

(i) the making of a decision by the group;

(j) the participation of the Authority in the appeal (including provision
as to the making of representations and observations by the
10Authority otherwise than in connection with the consideration of the
appeal);

(k) the imposing of time limits (including provision for time limits to be
waived in certain cases by a member of the CMA);

(l) orders for costs;

(m) 15the recovery of the CMA's costs.

Consideration and determination of appeals

3 (1) Regulations under this Schedule may make provision about—

(a) the consideration and determination of the appeal;

(b) giving effect to the determination.

(2) 20Provision under sub-paragraph (1)(a) may include in particular—

(a) provision for disregarding, when determining an appeal, matters not
raised as required by the regulations;

(b) provision as to the time within which an appeal is to be determined.

Evidence

4 (1) 25Regulations under this Schedule may make provision about—

(a) requiring the production of documents;

(b) requiring persons to attend an oral hearing;

(c) requiring persons attending an oral hearing—

(i) to give evidence at the hearing;

(ii) 30to make representations and observations;

(d) requiring persons—

(i) to produce a written statement;

(ii) to verify the statement by a statement of truth.

(2) No person is to be compelled under the regulations—

(a) 35to produce a document that the person could not be compelled to
produce in civil proceedings in the High Court;

(b) to give evidence which the person could not be compelled to give in
civil proceedings in the High Court;

(c) to produce a written statement with respect to a matter about which
40the person could not be compelled to give evidence in civil
proceedings in the High Court.

(3) The regulations may provide for a notice requiring the production of
documents, attendance of a person, or the production of a written statement
to be issued by any member of the CMA.

5 (1) Regulations under this Schedule may provide for penalties to be imposed
where—

(a) a person fails without reasonable excuse to comply with a
requirement imposed in accordance with regulations under
5paragraph 4;

(b) having been required to produce a document in accordance with
paragraph 4, a person wilfully alters, suppresses or destroys the
document;

(c) having been required to produce a written statement in accordance
10with paragraph 4, a person makes without reasonable excuse a false
statement in the written statement produced;

(d) having been required by appeal rules to verify information with a
statement of truth, a person provides without reasonable excuse
information that is false in a material particular.

(2) 15The regulations may provide for conduct falling within sub-paragraph
(1)(a), (c) or (d) to be punished by the High Court as if the person had been
guilty of contempt.

(3) The regulations may provide that, where a body corporate may be punished
for contempt of court, the High Court has power to punish for contempt of
20court any director or other officer of the body (instead of or as well as the
body).

(4) The regulations may provide for conduct falling within sub-paragraph (1)(b)
to be an offence triable either summarily or on indictment.

(5) The regulations may provide for such an offence to be punishable—

(a) 25on summary conviction, by a fine not exceeding the statutory
maximum;

(b) on conviction on indictment, by imprisonment for a term not
exceeding two years or by a fine, or by both.

Appeal rules

6 (1) 30The CMA may make rules regulating the conduct and disposal of appeals.

(2) The rules may include provision supplementing regulations made under
this Schedule; and that provision may, in particular, impose time limits or
other restrictions on—

(a) the taking of evidence at an oral hearing;

(b) 35the making of representations or observations at such a hearing.

(3) The CMA must publish rules made under this paragraph in such manner as
it considers appropriate for the purpose of bringing them to the attention of
those likely to be affected by them.

(4) Before making rules under this paragraph, the CMA must consult such
40persons as it considers appropriate.

(5) Rules under this paragraph may make different provision for different cases.

Interpretation

7 In this Schedule—

• “appeal” means an appeal under section 207A;

Water BillPage 175

• “appeal rules” means rules under paragraph 6;

• “statement of truth” means a statement that the person producing the
  document believes the facts stated in the document to be true.”

Section 44

SCHEDULE 7 5Further amendments

Water Act 1989 (c. 15)Water Act 1989 (c. 15)

1 (1) Section 174 of the Water Act 1989 (general restrictions on disclosure of
information) is amended as follows.

(2) In subsection (2)(b)—

(a) 10for “company” there is substituted “person”;

(b) for “on it” there is substituted “on the undertaker or, as the case may
be, the person”.

(3) In subsection (6)(a)—

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

(b) 15for “its licence” there is substituted “the person's licence”.

Water Industry Act 1991 (c. 56)Water Industry Act 1991 (c. 56)

2 The Water Industry Act 1991 is amended as follows.

3 (1) Section 2 (general duties with respect to water industry) is amended as
follows.

(2) 20In subsection (1)(a), for “and of licensed water suppliers” there is substituted
“, water supply licensees and sewerage licensees”.

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

(4) In subsection (2C)—

(a) 25the “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
30under 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,”.

(5) In subsection (2D), for the words from “not eligible” to “the total quantity”
35there is substituted “below the consumption threshold if the total quantity”.

(6) In subsection (2DB) (inserted by section 22), in paragraph (b) (meaning of
sewerage systems), for the words from “a reference to the system
comprising” to the end there is substituted “to be construed in accordance
with section 17BA(7)”.

(7) 40In subsection (5A), in the definition of “the interests of consumers”—

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

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

(8) In subsection (6)—

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

(b) in paragraph (a), for the words from “contained in” to “153,”, there is
10substituted “contained in—

“(i) Part 2 of this Act (except section 27A and
Schedule 3A), or

(ii) any of sections 37A to 38, 38ZA, 39, 39ZA, 39B,
39C, 40B to 40F, 63AC to 63AF, 66B, 66CA,
1566D, 66DA to 66EA, 66F to 66H, 66K to 66M,
95, 95ZA, 96, 96ZA, 110C to 110G, 110L to
110O, 117E to 117O, 117R, 117S, 153,”;

(c) in paragraph (b), “43, 43A,” and “100 and 100A” are repealed;

(d) in paragraph (b), for “, 99,” there is substituted “and 99”.

4 20In section 2A (strategic priorities and objectives: England) (inserted by
section 24), in subsection (4)(d), for “licensed water suppliers” there is
substituted “water supply licensees and sewerage licensees”.

5 In section 2B (strategic priorities and objectives: Wales) (inserted by section
24), in subsection (4)(d), for “licensed water suppliers” there is substituted
25“water supply licensees”.

6 In section 6 (appointment of relevant undertakers), in subsection (5A), for “a
licensed water supplier” there is substituted “a water supply licensee or
sewerage licensee”.

7 (1) Section 10 (transitional provision with respect to replacement appointments)
30is amended as follows.

(2) In subsection (2), for “and (4)” there is substituted “to (4)”.

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

“(3A) To the extent that charging rules issued under section 144ZA relate
to charges imposed or security required by a relevant undertaker
35under section 185, those rules are to apply in relation to the new
undertaker as if the appointment or variation had come into force.”

8 In section 12 (determinations under conditions of appointment), in
subsection (3B) (application of certain provisions to references to
competition authority under section 12) for “sections 16A and 16B” there is
40substituted “sections 14A and 14B”.

9 For the heading of Chapter 1A of Part 2 there is substituted—

“Water supply licences and sewerage licences”.

10 (1) Section 17B (provision supplementary to section 17A) is amended as
follows.

(2) For the title there is substituted “Meaning of supply system”.

(3) Subsections (1) to (4) (provision as to guidance on extent of premises) are
repealed.

(4) Subsection (9) (references to a licensed water supplier) is repealed.

11 In section 17C (meaning of “household premises”), in subsection (1) for
5“section 17A(3)(a) above” there is substituted “paragraphs 4 and 7(a) of
Schedule 2A and paragraph 2 of Schedule 2B”.

12 (1) Section 17D (the threshold requirement) is amended as follows.

(2) In subsection (1) (purpose of section 17D)—

(a) for “section 17A(3)(b) above” there is substituted “paragraph 7(b) of
10Schedule 2A”;

(b) after “the supply of water to any premises” there is inserted “in
accordance with a restricted retail authorisation”.

(3) In subsection (2) (description of the requirement), for “licensed water
supplier” there is substituted “water supply licensee”.

(4) 15In subsection (3) (guidance on making estimate)—

(a) after “guidance issued” there is inserted “from time to time”;

(b) for “the Secretary of State” there is substituted “the Welsh Ministers”.

(5) Subsection (5) (duty of Secretary of State to consult the National Assembly
for Wales before issuing guidance) is repealed.

(6) 20Subsection (6) (application of guidance provision to threshold requirement)
is repealed.

(7) In subsection (7) (regulations as to entering into an undertaking to supply
water)—

(a) for “The Secretary of State” there is substituted “The Welsh
25Ministers”;

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

(c) the words “(subject to subsection (12) below)” are repealed.

(8) In subsection (8) (regulations to alter the threshold)—

(a) 30for “The Secretary of State” there is substituted “The Welsh
Ministers”;

(b) the words “(subject to subsection (12) below)” are repealed.

(9) In subsection (10) (procedure), for “each House of Parliament” there is
substituted “the Assembly”.

(10) 35In subsection (11) (consultation before making regulations)—

(a) for “the Secretary of State”, in the first place where those words
occur, there is substituted “the Welsh Ministers”;

(b) for “the Secretary of State thinks” there is substituted “the Welsh
Ministers think”.

(11) 40Subsections (12) and (13) (exercise of powers by Welsh Ministers) are
repealed.

13 After section 17D there is inserted—

“17DA Guidance

The Authority must publish guidance issued from time to time
under—

(a) 5section 17D(3),

(b) paragraph 10 of Schedule 2A, or

(c) paragraph 4 of Schedule 2B,

in such manner as the Authority considers appropriate for the
purpose of bringing it to the attention of persons likely to be affected
10by it.”

14 (1) Section 17E (determinations by the Authority) is amended as follows.

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

“(1) The Authority may determine, in a case referred to it by—

(a) a water supply licensee or a potential customer of a water
15supply licensee, or

(b) a sewerage licensee or a potential customer of a sewerage
licensee,

whether a proposed supply of water to, or proposed sewerage
services for, the customer would be in accordance with what is
20authorised by the licensee's licence.”

(3) In subsection (2)—

(a) in paragraph (a), for “section 17A(3) above” there is substituted
“paragraph 4 or 7(a) or (b) of Schedule 2A”;

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

“(aa) 25the extent of the premises to be served for the
purposes of paragraph 2 of Schedule 2B;”;

(c) in paragraph (b), after “to be supplied” there is inserted “or served”.

15 (1) Section 17F (procedure for granting water supply licences) is amended as
follows.

(2) 30In the title, after “water supply” there is inserted “and sewerage”.

(3) In subsection (4)—

(a) the words “the Secretary of State or” are repealed;

(b) the words “he or”, in each place they occur, are repealed.

(4) In subsection (7)—

(a) 35the words “the Secretary of State or” are repealed;

(b) for paragraph (g) there is substituted—

“(g) on each water supply licensee and sewerage licensee
(other than the holder of the licence in question);”;

(c) paragraph (h) is repealed;

(d) 40in paragraph (i), the words “if the licence or variation is granted by
the Authority,” are repealed.

(5) In subsection (8), the words “by the Secretary of State or” are repealed.

16 (1) Section 17G (water supply licence conditions) is amended as follows.

(2) For the title there is substituted “Licence conditions”.

(3) In subsection (1) (conditions to be included)—

(a) for “A water supply licence” there is substituted “A licence under
this Chapter”;

(b) 5in paragraph (a), the words “the Secretary of State or, as the case may
be,” are repealed;

(c) in paragraph (a), the words “him or” are repealed;

(d) in paragraph (b), for “the Secretary of State” there is substituted “the
Authority”;

(e) 10in paragraph (b), for “water supply licence” there is substituted
“licence under this Chapter”.

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

“(2A) Conditions may be included by virtue of subsection (1)(a) in a
sewerage licence whether or not they are connected with—

(a) 15effectual dealing with the contents of sewers, or

(b) the use of the sewerage system of a sewerage undertaker.”

(5) In subsection (3) (directions and determinations), for “water supply licence”
there is substituted “licence under this Chapter”.

(6) In subsection (4) (persons who may give directions etc), in paragraph (a)(iii),
20at the beginning there is inserted “so far as subsection (3) applies to water
supply licences,”.

(7) In subsection (5) (duration and modification of conditions), for “water
supply licence” there is substituted “licence under this Chapter”.

(8) In subsection (7) (payments received by Secretary of State paid into the
25Consolidated Fund), for “the Secretary of State” there is substituted “the
Authority”.

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

(2) For subsections (1) to (3) there is substituted—

“(1) 30The Secretary of State may determine the conditions that are to be the
standard conditions of water supply licences granted by the
Authority.

(1A) Before determining the standard conditions, the Secretary of State
must consult the Welsh Ministers as regards conditions relating to a
35restricted retail authorisation or a supplementary authorisation.

(1B) The Secretary of State is to publish the standard conditions in such
manner as the Secretary of State considers appropriate.

(2) The standard conditions may be different depending on the different
authorisations or combinations of authorisations to which the
40conditions are to relate.

(3) The power to determine standard conditions in relation to water
supply licences giving a particular authorisation or a particular
combination of authorisations may be exercised only before the
grant of the first licence to give that authorisation or that particular
45combination of authorisations (but this is without prejudice to the