Water Bill (HL Bill 88)

power to modify standard conditions in accordance with the
provisions of this Chapter).”

(3) In subsection (4) (general provision about standard conditions), for “of
either description” there is substituted “giving any particular authorisation
5or combination of authorisations”.

(4) In subsection (6) (power to exclude or modify standard conditions in a
particular case)—

(a) the words “the Secretary of State or” are repealed;

(b) the words “he or” are repealed.

(5) 10In subsection (7) (steps before exercising power in subsection (6))—

(a) the words “the Secretary of State or” are repealed;

(b) in paragraph (a), the words “he or” are repealed;

(c) in paragraph (b), the words “he or” are repealed.

(6) In subsection (8) (publication of notice of intention to modify standard
15conditions)—

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be)” are repealed;

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

“(i) if the notice relates to a water supply licence
20giving a restricted retail authorisation or a
restricted retail authorisation and a
supplementary authorisation, on the Welsh
Ministers;”;

(c) paragraph (b)(iii) is repealed;

(d) 25in paragraph (b)(iv), the words “if the notice is published by the
Authority,” are repealed;

(e) after paragraph (b)(iv) there is inserted—

“(v) on the Water Industry Commission for
Scotland.”

(7) 30In subsection (9) (direction not to exclude or modify a standard condition),
for “the Assembly” there is substituted “the Welsh Ministers in a case where
notice was served on them under subsection (8)(b)(i)”.

(8) In subsection (10) (power under subsection (6) not to be exercised in certain
circumstances)—

(a) 35the words “Secretary of State or the” are repealed;

(b) the words “he or” are repealed.

18 After section 17H there is inserted—

“17HA Standard conditions of sewerage licences

(1) The Secretary of State may determine the conditions that are to be the
40standard conditions of sewerage licences granted by the Authority.

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

(3) The standard conditions may be different depending on the different
authorisations or combinations of authorisations to which the
45conditions are to relate.

(4) The power to determine standard conditions in relation to sewerage
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 combination of
5authorisations (but this is without prejudice to the power to modify
standard conditions in accordance with the provisions of this
Chapter).

(5) The standard conditions for the purposes of sewerage licences giving
any particular authorisation or combination of authorisations may
10contain provision—

(a) for any standard condition included in a licence of that
description not to have effect until brought into operation in
such manner and in such circumstances as may be specified
in or determined under the standard conditions;

(b) 15for the effect of any standard condition included in such a
licence to be suspended in such manner, and in such
circumstances, as may be so specified or determined; and

(c) for any standard condition included in such a licence which
is for the time being suspended to be brought back into
20operation in such manner and in such circumstances as may
be so specified or determined.

(6) Subject to subsection (7), each condition which is a standard
condition is to be incorporated by reference in each sewerage licence
(or in each such licence to which the standard condition applies).

(7) 25Subject to the following provisions of this section, the Authority
may, in granting a licence, exclude or modify any of the standard
conditions to such extent as the Authority considers requisite to meet
the circumstances of a particular case.

(8) Before excluding any standard conditions or making any
30modifications under subsection (7), the Authority must give notice—

(a) stating that the Authority proposes to exclude the conditions
or make the modifications and setting out the effect of so
doing;

(b) stating the reasons why the Authority proposes to exclude
35the conditions or make the modifications; 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 proposed exclusions or
modifications may be made,

40and the Authority must consider any representations or objections
which are duly made and not withdrawn.

(9) A notice under subsection (8) must be given—

(a) by publishing the notice in such manner as the Authority
considers appropriate for the purpose of bringing the notice
45to the attention of persons likely to be affected by the making
of the exclusions or modifications; and

(b) by serving a copy of the notice—

(i) on the Secretary of State;

(ii) on the Environment Agency;

(iii) 50on the NRBW;

(iv) on the Water Industry Commission for Scotland.

(10) If, within the time specified in the notice under subsection (8), the
Secretary of State directs the Authority not to exclude or modify any
standard condition, the Authority must comply with the direction.

(11) 5The Authority may not exclude any conditions, or make any
modifications, under subsection (7) unless the Authority is of the
opinion that the exclusions or modifications are such that—

(a) the licence holder would not be unduly disadvantaged in
competing with other holders of sewerage licences; and

(b) 10no other holder of a sewerage licence would be unduly
disadvantaged in competing with other holders of such
licences (including the holder of the licence being granted).

(12) The modification under subsection (7) of part of a standard condition
is not to prevent any other part of the condition from continuing to
15be treated as a standard condition for the purposes of this Chapter.”

19 (1) Section 17I (modification of licences by agreement) is amended as follows.

(2) For the title there is substituted “Modification of licences by agreement”.

(3) In subsection (1) (power of Authority to modify licence), for the words from
“conditions of” to the end there is substituted “conditions of—

“(a) 20a particular water supply licence, or

(b) a particular sewerage licence.”

(4) In subsection (2)(b) (modification not to cause undue disadvantage)—

(a) in sub-paragraph (i), after “water supply licences” there is inserted
“or, as the case may be, sewerage licences”;

(b) 25in sub-paragraph (ii), after “a water supply licence” there is inserted
“or, as the case may be, a sewerage licence”.

(5) In subsection (4)(b) (persons to be served with notice of proposed
modifications), in sub-paragraph (iv), at the beginning there is inserted “if
the notice relates to a water supply licence,”.

(6) 30In subsection (5) (direction not to modify a condition), the words “(after
consulting the Assembly)” are repealed.

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

“(5A) The Secretary of State is to consult the Welsh Ministers before giving
a direction under subsection (5) in relation to a water supply licence.”

20 (1) 35Section 17J (general modification of standard conditions) is amended as
follows.

(2) For the title there is substituted “Modification of standard conditions”.

(3) In subsection (1) (power of Authority to modify standard conditions), for the
words from “may modify” to the end there is substituted “may modify—

“(a) 40the standard conditions of water supply licences, or

(b) the standard conditions of sewerage licences.”

(4) After subsection (1) there is inserted—

“(1A) Modifications may relate to—

(a) standard conditions contained in all water supply licences or
sewerage licences, or

(b) standard conditions contained in those water supply licences
or sewerage licences that grant a particular authorisation or
5combination of authorisations.”

(5) In subsection (2) (power to make incidental and consequential
modifications)—

(a) for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) 10for “any licence of that description” there is substituted “any licence
so affected”.

(6) In subsection (4)(b) (persons to be served with notice of proposed
modifications), in sub-paragraph (iv), at the beginning there is inserted “if
the notice relates to a water supply licence,”.

(7) 15In subsection (5) (direction not to modify a standard condition), the words
“(after consulting the Assembly)” are repealed.

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

“(5A) The Secretary of State is to consult the Welsh Ministers before giving
a direction under subsection (5) in relation to a water supply licence.”

(9) 20In subsection (6) (modification conditional on views of relevant licence
holders), for “retail licences or combined licences” there is substituted
“water supply licences or sewerage licences”.

(10) In subsection (8) (preconditions for modification of standard condition), in
paragraph (c) after “a water supply licence” there is inserted “or, as the case
25may be, a sewerage licence”.

(11) In subsection (10) (consultation with Welsh Ministers), after “subsection (6)
above” there is inserted “in relation to the standard conditions of water
supply licences”.

(12) In subsection (12) (changed standard conditions to be used in new
30licences)—

(a) for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

(c) 35after paragraph (b) there is inserted—

“Where the Authority modifies the standard conditions of
water supply licences or sewerage licences that grant
particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
40same authorisations or combinations of authorisations.”

(13) In subsection (13) (meaning of “relevant licence holder”), for “retail licences
or combined licences” there is substituted “water supply licences or
sewerage licences or of such of those licences as grant a particular
authorisation or combination of authorisations”.

21 (1) 45Section 17K (references to competition authority in relation to the
modification of licences) is amended as follows.

(2) For the title there is substituted “Modification references to competition
authority”.

(3) In subsection (1) (reference of a particular licence), in paragraph (a)(i), for “a
particular licence” there is substituted “a particular water supply or
5sewerage licence”.

(4) In subsection (2) (general matters that may be referred), in paragraph (a)(i),
for “retail licences or combined licences” there is substituted “water supply
licences or sewerage licences that grant a particular authorisation or
combination of authorisations”.

(5) 10In subsection (5)(b) (persons to be served with copy of reference or
variation), in sub-paragraph (iv), at the beginning there is inserted “in a case
relating to a water supply licence or licences,”.

22 (1) Section 17N (reports on modification references) is amended as follows.

(2) For the title there is substituted “Reports on modification references”.

(3) 15In subsection (10)(a) (persons to be served with report relating to a particular
licence), in sub-paragraph (iv), at the beginning there is inserted “if the
report relates to a water supply licence,”.

(4) In subsection (11)(a) (persons to be served with report relating to a standard
condition), in sub-paragraph (ii), at the beginning there is inserted “if the
20report relates to water supply licences,”.

(5) In subsection (12) (meaning of “relevant time”), in paragraph (a), after
“Secretary of State and” there is inserted “, if the report relates to water
supply licences,”.

23 (1) Section 17O (modification of licences following report) is amended as
25follows.

(2) For the title there is substituted “Modification of licences following report”.

(3) In subsection (2) (power to make incidental and consequential
modifications), for “the standard conditions of retail licences or combined
licences” there is substituted “—

“(a) 30the standard conditions of water supply licences or sewerage
licences, or

(b) the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
of authorisations,”.

(4) 35In subsection (5)(c)(iii), at the beginning there is inserted “in a case relating
to a water supply licence or licences,”.

(5) In subsection (10) (changed standard conditions to be used in new
licences)—

(a) for “retail licences or combined licences” there is substituted “water
40supply licences or sewerage licences”;

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

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

“Where the Authority modifies the standard conditions of
45water supply licences or sewerage licences that grant

particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
same authorisations or combinations of authorisations.”

24 (1) Section 17P (competition authority's power of veto following report) is
5amended as follows.

(2) For the title there is substituted “Power of veto following report”.

(3) In subsection (7)(b) (persons to be served with notice of modifications
proposed), in sub-paragraph (v), at the beginning there is inserted “if the
reference relates to water supply licences,”.

(4) 10In subsection (10) (power to make incidental and consequential
modifications), for “the standard conditions of retail licences or combined
licences” there is substituted “—

“(a) the standard conditions of water supply licences or sewerage
licences, or

(b) 15the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
of authorisations,”.

(5) In subsection (11) (changed standard conditions to be used in new
licences)—

(a) 20for “retail licences or combined licences” there is substituted “water
supply licences or sewerage licences”;

(b) in paragraph (a), for “licences of that description” there is substituted
“water supply licences or, as the case may be, sewerage licences”;

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

25“Where the Authority modifies the standard conditions of
water supply licences or sewerage licences that grant
particular authorisations or combinations of authorisations,
paragraph (a) has effect only as regards licences granting the
same authorisations or combinations of authorisations.”

25 (1) 30Section 17R (modification of licences by order under other enactments) is
amended as follows.

(2) For the title there is substituted “Modification by order under other
enactments”.

(3) In subsection (1) (power for the competition authorities and the Secretary of
35State to modify standard conditions in order to give effect to orders under
the Enterprise Act 2002), for paragraphs (a) and (b) there is substituted—

“(a) the conditions of a particular water supply or sewerage
licence,

(b) the standard conditions of water supply licences or sewerage
40licences, or

(c) the standard conditions of water supply licences or sewerage
licences that grant a particular authorisation or combination
of authorisations,”.

(4) In subsection (2) (identification of orders under the Enterprise Act 2002)—

(a) 45in paragraph (a)(i), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”;

(b) in paragraph (a)(ii), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”;

(c) in paragraph (b), for “a retail licence or combined licence” there is
substituted “a water supply licence or sewerage licence”.

(5) 5In subsection (4) (changed standard conditions to be included in new
licences and power to make incidental and consequential modifications of
existing licences)—

(a) for “subsection (1)(b)” there is substituted “subsection (1)(b) or (c)”;

(b) for “the standard conditions of retail licences or combined licences”
10there is substituted “the standard conditions of water supply licences
or sewerage licences or of water supply licences or sewerage licences
that grant a particular authorisation or combination of
authorisations”.

(6) In subsection (5) (publication of modifications), for “retail licences or
15combined licences” there is substituted “water supply licences or sewerage
licences”.

26 (1) Section 18 (orders for securing compliance with certain provisions) is
amended as follows.

(2) In subsection (1)—

(a) 20after “Part or” there is inserted “any person holding”;

(b) in paragraph (a), after “that company” there is inserted “or that
person”;

(c) in paragraph (a)(i), after “appointment or” there is inserted “the
person's”;

(d) 25in paragraph (b), after “that company” there is inserted “or that
person”.

(3) In subsection (1A)—

(a) in paragraph (a)(i), for “a company” there is substituted “a person”;

(b) in paragraph (b), for “any company” there is substituted “any
30person”;

(c) in that paragraph, for “the company” there is substituted “the
person”.

(4) In subsection (2), after “Part or” there is inserted “any person holding”.

(5) In subsection (6)(a), after “Part or” there is inserted “a person holding”.

27 35In section 19 (exceptions to the duty to enforce), for “company”, in each
place, there is substituted “person”.

28 In section 20 (procedure for enforcement orders), for “company to which”,
in each place, there is substituted “person to whom”.

29 (1) Section 21 (validity of enforcement orders) is amended as follows.

(2) 40In subsection (1)—

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

(b) for “company”, in the second place it occurs, there is substituted
“person”.

(3) In subsection (2), for “company” there is substituted “person”.

30 In section 22 (effect of enforcement order), in subsection (3)—

(a) for “company”, in each place, there is substituted “person”;

(b) for “it” there is substituted “the person”.

31 (1) Section 22A (penalties) is amended as follows.

(2) 5In subsection (1)—

(a) in paragraph (a)(ii), for “company” there is substituted “person”;

(b) in paragraph (b), in the opening words, for “company”, in both
places, there is substituted “person”;

(c) in the closing words, for “the company” there is substituted “that
10company or that person”.

(3) In subsection (2)—

(a) in paragraph (a)(ii), for “company” there is substituted “person”;

(b) in paragraph (b), in the opening words, for “company”, in both
places, there is substituted “person”;

(c) 15in the closing words, for “the company” there is substituted “that
company or that person”.

(4) In subsection (4), in the opening words, for “company” there is substituted
“person”.

(5) In subsection (6)—

(a) 20in the opening words, after “penalty” there is inserted “on a person”;

(b) in paragraph (a), for “company”, there is substituted “person”;

(c) in paragraph (d), for “company”, there is substituted “person”.

(6) In subsection (7)—

(a) for “company”, there is substituted “person on whom the penalty has
25been imposed”;

(b) the words “on it” are repealed.

(7) In subsection (8)(b), for “company”, there is substituted “person on whom
the penalty is to be or has been imposed”.

(8) In subsection (11), for the words from “10%” to “(determined” there is
30substituted “—

“(a) 10% of the turnover of the company, or

(b) in a case where the person on whom the penalty is imposed
is not a company, 10% of the turnover of the business of the
person,

35(determined”.

32 (1) Section 22C (time limits on the imposition of financial penalties) is amended
as follows.

(2) In subsection (1)—

(a) in the opening words, after “penalty” there is inserted “on a person”;

(b) 40in paragraph (a), for “company” there is substituted “person”;

(c) in paragraph (b), for “company” there is substituted “person”.

(3) In subsection (2), in the opening words—

(a) after the first “penalty” there is inserted “on a person”;

(b) for “company” there is substituted “person”.

33 (1) Section 22E (appeals) is amended as follows.

(2) In subsection (1), for “company on which” there is substituted “person on
whom”.

(3) In subsections (2)(a) and (b) (in both places) and (4)(b), for “company” there
5is substituted “person”.

34 In section 22F (recovery of penalties), for “company” there is substituted
“person”.

35 (1) Section 23 (meaning and effect of special administration orders) is amended
as follows.

(2) 10In subsection (1), for “a qualifying licensed water supplier” there is
substituted “a qualifying water supply licensee or a qualifying sewerage
licensee”.

(3) In subsection (2A)—

(a) for “a qualifying licensed water supplier” there is substituted “a
15qualifying water supply licensee”;

(b) for “subsection (6)(b)” there is substituted “subsection (7)”.

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

“(2AA) The purposes of a special administration order made in relation to a
company which is a qualifying sewerage licensee must be—

(a) 20the transfer to another company or companies, as a going
concern, of so much of the company's undertaking as it is
necessary to transfer in order to secure that the activities
relating to the removal or removals of matter mentioned in
subsection (9) may be properly carried on, and

(b) 25the carrying on of those activities pending the making of the
transfer.”

(5) In subsection (2B)(b)—

(a) in the opening words, for “or (2A)(a)” there is substituted “, (2A)(a)
or (2AA)(a)”;

(b) 30in sub-paragraph (ii), for “or (2A)(a)” there is substituted “, (2A)(a) or
(2AA)(a)”.

(6) In subsection (2C), for “and (2A)(b)” there is substituted “, (2A)(b) and
(2AA)(b)”.

(7) In subsection (4), for paragraph (b) there is substituted—

“(b) 35a company carries on activities relating to—

(i) the introduction or introductions of water mentioned
in subsection (7) formerly carried on by another
company; or

(ii) the removal or removals of matter mentioned in
40subsection (9) formerly carried on by another
company,”.

(8) In subsection (6)—

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

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

(c) for paragraphs (a) and (b) there is substituted—

“(a) it is the holder of a water supply licence giving it a
5wholesale or supplementary authorisation (within
the meaning of Chapter 1A of this Part), and

(b) the condition in subsection (7) is satisfied in relation
to it.”

(9) After subsection (6) there is inserted—

“(7) 10The condition in this subsection is that—

(a) the introduction of water by the licence holder which is
permitted under section 66B or 66C is designated as a
strategic supply under section 66G, or

(b) the introductions of water by the licence holder which are
15permitted under section 66B or 66C are designated as a
collective strategic supply under section 66H.”

(10) After subsection (7) (inserted by sub-paragraph (9)) there is inserted—

“(8) For the purposes of this section, sections 24 to 26 and Schedule 2, a
sewerage licensee is a qualifying sewerage licensee if—

(a) 20it is the holder of a sewerage licence giving it a wholesale or
disposal authorisation (within the meaning of Chapter 1A of
this Part), and

(b) the condition in subsection (9) is satisfied in relation to it.

(9) The condition in this subsection is that—

(a) 25the removal of matter by the licence holder which is
permitted under section 117C or 117D is designated as
strategic sewerage provision under section 117N, or

(b) the removals of matter by the licence holder which are
permitted under section 117C or 117D are designated as
30collective strategic sewerage provision under section 117O.”

36 (1) Section 24 (special administration orders made on special petitions) is
amended as follows.

(2) In subsection (1A)—

(a) in paragraphs (a) and (b), the words “(after consulting the
35Assembly)” are repealed;

(b) in paragraph (b), before “the Authority” there is inserted “by”;

(c) in the words following paragraph (b), for “qualifying licensed water
supplier” there is substituted “qualifying water supply licensee or
qualifying sewerage licensee”.

(3) 40After subsection (1A) there is inserted—

“(1B) Before presenting a petition under subsection (1A) in relation to a
qualifying water supply licensee whose licence gives it a
supplementary authorisation, the Secretary of State or the Authority
(as the case may be) must consult the Welsh Ministers.”

(4) 45In subsection (2)—