Water Bill (HL Bill 88)

(1) Before issuing rules under section 110F, the Authority must—

(a) 45prepare a draft of the proposed rules, and

(b) consult such persons about the proposed rules as it thinks
appropriate.

(2) The Authority must specify the period (“the consultation period”)
within which persons may make representations about the proposed
5rules.

(3) The Authority must have regard to guidance issued under section 110J
in making rules under section 110F.

(4) Before rules under section 110F prepared by the Authority are issued,
the Minister may direct the Authority not to issue the rules.

(5) 10In subsection (4) “the Minister” means—

(a) the Secretary of State, so far as rules prepared by the Authority
relate to main connection agreements under which—

(i) the main connection into a sewerage system, or

(ii) each such connection,

15is or would be a main connection into the sewerage system of a
sewerage undertaker whose area is wholly or mainly in
England for the benefit of another such undertaker;

(b) the Welsh Ministers, so far as rules prepared by the Authority
relate to main connection agreements under which—

(i) 20the main connection into a sewerage system, or

(ii) each such connection,

is or would be a main connection into the sewerage system of a
sewerage undertaker whose area is wholly or mainly in Wales
for the benefit of another such undertaker;

(c) 25the Secretary of State and the Welsh Ministers acting jointly, so
far as rules prepared by the Authority relate to main connection
agreements under which one main connection into a sewerage
system is or would be—

(i) a main connection into the sewerage system of a
30sewerage undertaker whose area is wholly or mainly in
England for the benefit of a sewerage undertaker whose
area is wholly or mainly in Wales, or

(ii) a main connection into the sewerage system of a
sewerage undertaker whose area is wholly or mainly in
35Wales for the benefit of a sewerage undertaker whose
area is wholly or mainly in England.

(6) A direction under subsection (4) must be given within the period of 28
days beginning with the day after the end of the consultation period,
and rules may not be issued before that period of 28 days has expired.

(7) 40This section is subject to section 110I.

110I Rules under section 110F: minor or urgent revisions

(1) This section applies if the Authority proposes to issue revised rules
under section 110F and, in the view of the Authority, the revision or
each of the revisions proposed to be made is—

(a) 45a revision for which consultation is unnecessary, or

(b) a revision that it is necessary or desirable to make without
delay.

(2) Section 110H does not apply to the proposed revised rules.

(3) Before issuing the revised rules, the Authority must give notice to the
Minister of its intention to issue revised rules.

(4) Before the revised rules are issued, the Minister may direct the
5Authority not to issue the revised rules.

(5) A direction under subsection (4) must be given within the period of 14
days beginning with the day after the day on which notice is given
under subsection (3), and the Authority may not issue the revised rules
in question before—

(a) 10that period of 14 days expires, or

(b) the Minister notifies the Authority that no direction under
subsection (4) will be given in relation to the revised rules,

whichever is the sooner.

(6) Once the Authority has issued the revised rules, it must give notice as
15soon as reasonably practicable of—

(a) the issuing of the revised rules, and

(b) as regards each revision contained in them, whether in the view
of the Authority the revision falls within paragraph (a) or (b) of
subsection (1).

(7) 20Notice under subsection (6) is to be given to such persons as the
Authority considers appropriate.

(8) Unless the Authority gives notice that a revision in revised rules is in
the view of the Authority a revision falling within subsection (1)(a), the
revision ceases to have effect at the end of the period of six months
25beginning with the day after that on which the revised rules are issued.

(9) In this section “the Minister” has the meaning given by section 110H.

110J Rules under section 110F: guidance

(1) The Minister may issue guidance as to the content of rules under
section 110F.

(2) 30Before issuing the guidance, the Minister must—

(a) prepare a draft of the proposed guidance;

(b) consult the relevant persons about the draft.

(3) The relevant persons are—

(a) the Welsh Ministers;

(b) 35the Secretary of State;

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

(4) The Minister may from time to time revise the guidance and issue
revised guidance.

(5) Subsections (2) and (3) apply to revised guidance as they apply to the
40original guidance.

(6) The Minister must arrange for the publication of guidance issued under
this section.

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

(a) the Secretary of State, in relation to main connection agreements
under which—

(i) any main connection into a sewerage system, or

(ii) each such connection,

5is or would be a main connection into the sewerage system of a
sewerage undertaker whose area is wholly or mainly in
England for the benefit of another such undertaker;

(b) the Welsh Ministers, in relation to main connection agreements
under which—

(i) 10any main connection into a sewerage system, or

(ii) each such connection,

is or would be a main connection into the sewerage system of a
sewerage undertaker whose area is wholly or mainly in Wales
for the benefit of another such undertaker;

(c) 15the Secretary of State and the Welsh Ministers acting jointly, in
relation to main connection agreements under which one main
connection into a sewerage system is or would be—

(i) a main connection into the sewerage system of a
sewerage undertaker whose area is wholly or mainly in
20England for the benefit of a sewerage undertaker whose
area is wholly or mainly in Wales, or

(ii) a main connection into the sewerage system of a
sewerage undertaker whose area is wholly or mainly in
Wales for the benefit of a sewerage undertaker whose
25area is wholly or mainly in England.”

(2) In sections 110B to 110J of the Water Industry Act 1991 (as substituted by
subsection (1))—

(a) a reference to a main connection agreement includes a reference to an
old main connection agreement, and

(b) 30a reference to an established undertaker, in relation to a main
connection agreement, is to be construed accordingly.

(3) For the purposes of subsection (2)—

(a) “old main connection agreement” means an agreement made before the
coming into force of subsection (1) that is an agreement with one or
35more sewerage undertakers for that undertaker or each of them to
permit a main connection into its sewerage system, and includes an
order under old section 110A which is deemed to be an agreement by
virtue of old section 110A(5);

(b) references to old section 110A are references to section 110A, as that
40section had effect before being substituted under subsection (1).

Agreements to adopt infrastructure

10 Agreements by water undertakers to adopt infrastructure

(1) The Water Industry Act 1991 is amended as follows.

(2) In section 51A (agreements to adopt a water main or service pipe at a future
45date)—

(a) in subsection (3) (application to make an agreement under section 51A),
for the words from “make an application” to the end there is substituted
“request a water undertaker to make an agreement under this section.”;

(b) subsections (4) to (8) are repealed;

(c) 5after subsection (9) there is inserted—

“(9A) The reference in subsection (9) to an agreement made under this
section includes a reference to—

(a) an order under section 51B which is deemed to be an
agreement by virtue of section 51B(5), and

(b) 10an agreement which has been varied by order under
section 51C(1).”

(3) For section 51B (appeals with respect to adoption) and section 51C (financial
conditions of compliance) there is substituted—

“51B Adoption at a future date: orders by Authority

(1) 15This section applies where a person constructing or proposing to
construct a water main or service pipe makes a request to a water
undertaker under section 51A(3).

(2) The person or the water undertaker may apply to the Authority for an
order under subsection (4) if the person and the water undertaker have
20not made such agreement as was requested by the person.

(3) The Authority may, on the application of the person or the water
undertaker, make an order under subsection (4) if the Authority is
satisfied that—

(a) it is appropriate for work proposed to be done by a person other
25than the water undertaker to be so done, and

(b) the person and the water undertaker cannot reach agreement
within a reasonable time.

(4) The Authority may by order—

(a) require the water undertaker to give such undertakings as to the
30vesting of the water main or service pipe in the undertaker as
the Authority may specify, and

(b) impose such terms and conditions as regards taking the benefit
of the undertakings as the Authority may specify.

(5) An order under subsection (4) has effect as an agreement under section
3551A between the person and the water undertaker.

(6) The Authority may not, by order under subsection (4), require a water
undertaker to vest in itself a water main or service pipe as regards
which there is a contravention of any of the requirements of section 74
that are prescribed for the purposes of this subsection.

(7) 40The Authority may not make an order under subsection (4) with
respect to a water main or service pipe that is situated within the area
of another water undertaker, until either—

(a) that other undertaker has consented in writing to the making of
the order, or

(b) 45the Minister, on an application made to the Minister, has
disapplied paragraph (a), either unconditionally or subject to
such conditions as the Minister thinks fit.

(8) “The Minister” means—

(a) the Secretary of State, as regards the consent of a water
undertaker whose area is wholly or mainly in England;

(b) the Welsh Ministers, as regards the consent of a water
5undertaker whose area is wholly or mainly in Wales.

(9) Neither the CMA nor the Authority may exercise, in respect of an
agreement for the vesting of a water main or service pipe in a water
undertaker at a future date, the powers conferred by—

(a) section 32 of the Competition Act 1998 (directions in relation to
10agreements);

(b) section 35(2) of that Act (interim directions).

(10) Subsection (9)(b) does not apply to the exercise of powers in respect of
conduct—

(a) which is connected with an agreement for the vesting of a water
15main or service pipe at a future date, and

(b) in respect of which section 35(1) of the Competition Act 1998
applies because of an investigation under section 25 of that Act
relating to a suspected infringement of the Chapter 2
prohibition imposed by section 18(1) of that Act.

(11) 20In exercising its functions under this section, the Authority must have
regard to the desirability of—

(a) facilitating effective competition within the water supply
industry;

(b) the recovery by the water undertaker of the expenses of
25complying with its obligations by virtue of this section and
securing a reasonable return on its capital;

(c) the ability of the water undertaker to meet its existing
obligations, and likely future obligations, to supply water
without having to incur unreasonable expenditure in carrying
30out works;

(d) not putting at risk the ability of the water undertaker to meet its
existing obligations, or likely future obligations, to supply
water.

51C Variation and termination of section 51A agreements

(1) 35On the application of a party to a section 51A agreement to vary (or
terminate) the agreement, the Authority may—

(a) if it appears to the Authority that it is necessary or expedient
that the section 51A agreement should be varied (or
terminated),

(b) 40if the Authority is satisfied, in the case of an application to vary
the agreement, that it is appropriate for work proposed to be
done by a person other than the water undertaker to be so done,
and

(c) if the Authority is satisfied that variation (or termination)
45cannot be achieved by agreement within a reasonable time,

by order vary (or terminate) the section 51A agreement.

(2) If an order under subsection (1) is made in relation to a section 51A
agreement, the agreement—

(a) has effect subject to the provision made by the order, or