68 Reports by the FCA

(1) The Treasury may by regulations provide for the FCA to prepare reports on its
discharge of the functions conferred on it under section 67.

(2) The regulations may—

(a) 5make provision about the contents of the reports;

(b) make provision about the timing of the reports;

(c) provide for copies of the report to be given to the Secretary of State and
such other persons as the regulations may specify;

(d) provide for publication of the reports.

69 10Intervention by the FCA or the PRA

(1) The Treasury may by regulations confer on a regulator the power to disapply
or modify, in relation to a relevant insurer, an obligation imposed by
regulations under—

(a) section 58 (flood insurance obligations),

(b) 15section 60 (information), or

(c) section 66 (compliance reports).

(2) In this section “the intervention power” means the power conferred by
regulations under subsection (1).

(3) The regulations may specify which obligations, or which descriptions of
20obligations, a regulator may disapply or modify under the intervention power.

(4) The regulations may specify what modifications, or what descriptions of
modifications, may be made by a regulator under the intervention power.

(5) The regulations may specify the circumstances in which, and the conditions
subject to which, a regulator may exercise the intervention power.

(6) 25Provision under subsection (5) may in particular provide for a regulator to
exercise the intervention power in relation to a relevant insurer—

(a) where the relevant insurer is failing, or is likely to fail, to satisfy the
threshold conditions for which the regulator is responsible,

(b) in connection with advancing—

(i) 30if the regulator is the FCA, one or more of the FCA’s operational
objectives, or

(ii) if the regulator is the PRA, one or more of the PRA’s objectives,

(c) in conjunction with the exercise by the regulator, in respect of the
relevant insurer, of a power that is conferred on the regulator by or
35under an enactment and is specified in the regulations, or

(d) at the request of, or for the purpose of assisting, an overseas regulator
of a kind specified in the regulations.

(7) The regulations may—

(a) make provision about the procedure to be followed when exercising
40the intervention power, including provision about consulting such
persons as may be specified in the regulations about a proposed
exercise of the power;

(b) make provision requiring a regulator to give a relevant insurer notice
in writing specifying how the intervention power has been exercised in
45relation to that relevant insurer;

(c) make provision about when an exercise of the intervention power takes
effect;

(d) make provision about the period for which a provision of regulations
may be disapplied or modified under the intervention power,
5including—

(i) provision enabling a regulator to specify the period for which a
provision of regulations is disapplied or modified;

(ii) provision for disapplying or modifying a provision of
regulations until a regulator provides for it to apply again or to
10apply again without modification;

(e) make provision requiring a regulator—

(i) to send copies of a notice under paragraph (b) to the Secretary
of State and such other persons as may be specified in the
regulations;

(ii) 15to notify such persons as may be specified in the regulations of
the exercise of the intervention power;

(f) make provision requiring a regulator to publish such details about the
exercise of the intervention power as may be specified in the
regulations;

(g) 20make provision requiring a regulator to keep under review each case in
which a provision of regulations is disapplied or modified;

(h) make provision about the matters to which a regulator is to have regard
in exercising its functions under the regulations.

(8) Provision under subsection (7)(e) or (f) may allow for the omission of
25information 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
by regulations under section 58(1) only so as to disapply the obligation (and
not so as to modify it).

(10) 30The 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) The provisions of the Financial Services and Markets Act 2000 or the Financial
Services Act 2012 referred to in subsection (10) include in particular—

(a) 35provisions about gathering information and investigating, including
provisions as to powers of entry and search;

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

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

(d) 40provisions 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) provisions restricting liability in damages in relation to the discharge of
functions of the FCA or the PRA.

(12) 45In this section “regulator” means the FCA or the PRA.

(13) For—

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

Water BillPage 122

• “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

70 5Interpretation

(1) In this Part “insurer” means—

(a) a person who—

(i) is authorised for the purposes of the Financial Services and
Markets Act 2000 (see section 31 of that Act), and

(ii) 10has permission to carry on the activities specified in Article 10
of the Financial Services and Markets (Regulated Activities)
Order 2001 (S.I. 2001/544S.I. 2001/544), or

(b) a member of the Society (within the meaning of the Lloyd’s Act 1982).

(2) The Secretary of State may by regulations amend the definition of “insurer” in
15subsection (1).

(3) The Secretary of State may by regulations define “relevant insurer” for the
purposes of this Part.

(4) Before making regulations under subsection (3) as to the meaning of “relevant
insurer”, the Secretary of State must consult such persons as the Secretary of
20State thinks appropriate.

(5) The Secretary of State may by regulations define for the purposes of sections 52
to 57—

• “flood”;

• “flood risk”;

• 25“household premises”.

(6) The Secretary of State may by regulations define for the purposes of sections 58
to 69—

• “flood”;

• “flood risk”;

• 30“greater flood risk”;

• “household premises”;

• “insurance policy”;

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

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

(7) 35Regulations under subsection (5) or (6) as to the meaning of “flood” may
specify descriptions of water that are, or are not, to be taken into account.

(8) In sections 58 to 69—

• “the FCA” means the Financial Conduct Authority;

• “the PRA” means the Prudential Regulation Authority;

• 40“registered premises” means premises registered in the register
  maintained under section 62;

• “risk band” has the meaning given by section 62(2).

71 Period of operation

(1) Sections 52 to 69 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
5forward the day on which—

(a) sections 52 to 57 are repealed;

(b) sections 58 to 66 are repealed.

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

(a) the repeal of—

(i) 10sections 52 to 57, or

(ii) sections 58 to 66, or

(b) the revocation of a scheme’s designation under section 52(1)(b) without
a new designation being made under that provision, at any time before
sections 52 to 57 are repealed,

15including provision amending or repealing an enactment.

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

(a) such provision for the transfer of property, rights and liabilities
(whether or not otherwise capable of being transferred, and including
20pension liabilities of staff) relating to the FR Scheme as the Secretary of
State thinks fit;

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

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

(d) 25provision about information held by the FR Scheme administrator.

(5) Before making an order under subsection (3)(a)(i) or (b) which includes
provision 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) 30The 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 67 to 69 are repealed.

(8) The Treasury may by order make provision in consequence of the repeal of
35sections 67 to 69, including provision amending or repealing an enactment.

72 Regulations and orders

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

(2) Subsection (1) does not apply in relation to an order under section 71(3) if the
40only provision made by the order is provision for, or in connection with, the
transfer of property, rights and liabilities.

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

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

(5) Subject to subsection (6), a statutory instrument containing regulations or an
5order made under this Part is subject to annulment in pursuance of a resolution
of either House of Parliament.

(6) A statutory instrument containing—

(a) regulations under section 52 (the Flood Reinsurance Scheme),

(b) regulations under section 53 (Scheme administrator),

(c) 10regulations under section 54 (FR Scheme funding),

(d) regulations under section 55 (Scheme administration),

(e) regulations under section 57 (disclosure of HMRC council tax
information),

(f) regulations under section 58 (flood insurance obligations),

(g) 15the first regulations to be made under section 59 (target number),

(h) regulations under section 60 or 61 (information),

(i) the first regulations to be made under section 62 (register of premises
subject to greater flood risk),

(j) regulations under section 65 (expenses of relevant bodies in connection
20with the register),

(k) regulations under section 66 (compliance reports),

(l) regulations under section 67 (functions of FCA),

(m) regulations under section 69 (intervention by FCA or PRA),

(n) regulations under section 70 (interpretation), or

(o) 25an order under section 71 (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.

(7) If a draft of an instrument containing an order under section 71(3) would, apart
from this subsection, be treated for the purposes of the Standing Orders of
30either House of Parliament as a hybrid instrument, it is to proceed in that
House as if it were not a hybrid instrument.

Part 5 Miscellaneous

73 Internal drainage boards: procedure for orders confirming reorganisation

(1) 35Schedule 3 to the Land Drainage Act 1991 (procedure for certain orders) is
amended as follows.

(2) In 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
40under section 3 of this Act.”

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

(a) in 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.”

74 Internal drainage boards in England: alternative procedure for byelaws

(1) 5The 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) In section 66 (powers of internal drainage boards and local authorities to make
byelaws), after subsection (5) (procedure) there is inserted—

“(5A) 10Subsection (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) The Secretary of State may by regulations —

(a) provide that section 66(5) and Schedule 5 do not apply to
15byelaws made under section 66 by internal drainage boards for
internal drainage districts which are neither wholly nor partly
in Wales, and

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

(2) 20The 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) The regulations may make such incidental, consequential, transitional
or supplemental provision (including provision amending or repealing
25any 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
instrument containing the regulations has been laid before, and
approved by a resolution of, each House of Parliament.”

75 30Publication 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.

76 Sustainable drainage systems: non-performance bonds

In Schedule 3 to the Flood and Water Management Act 2010 (sustainable
35drainage), in paragraph 12 (non-performance bonds), in sub-paragraph
(4)(c)—

(a) after “sums received” there is inserted “from a person”;

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

77 Amendments relating to Regional Flood and Coastal Committees

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

Part 6 5General and final

78 Power 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) 10The 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
15order 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
20to annulment in pursuance of a resolution of either House of Parliament.

79 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
25Act.

(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 82(3), the Welsh Ministers may by order
30made 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 82(3), the Secretary
35of 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.

80 40Financial 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
other Act out of money so provided.

81 5Extent

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

(2) Sections 49 and 50 and Schedule 8 extend also to Scotland, but only so far as
required for the purposes of regulations applying as mentioned in section
49(11)(b).

(3) 10Part 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.

82 Commencement

(1) 15The following provisions of this Act come into force on the day on which it is
passed—

(a) section 57, so far as relating to the power to disclose information under
section 57(1)(a);

(b) section 78;

(c) 20section 79 and Schedule 11;

(d) sections 80 and 81;

(e) this section and Schedule 12;

(f) section 83.

(2) The following provisions of this Act come into force at the end of the period of
25two months beginning with the day on which it is passed—

(a) section 3;

(b) section 13;

(c) section 15;

(d) section 21;

(e) 30section 22, so far as relating to water or sewerage undertakers whose
areas are wholly or mainly in England;

(f) section 25(3);

(g) sections 26 to 28;

(h) section 33;

(i) 35section 34(1) and (2);

(j) sections 35 and 36;

(k) section 45;

(l) section 46;

(m) section 48;

(n) 40sections 49 and 50 and Schedule 8;

(o) section 51;

(p) sections 73 to 75;

(q) section 76;

(r) section 77 and Schedule 10;

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

(t) paragraph 107 of Schedule 7 (and section 44 so far as relating to
paragraph 107).

(3) 5The remaining provisions of this Act come into force on such day as the
appropriate authority may by order appoint.

(4) The power of the Secretary of State or the Welsh Ministers to make an order
under subsection (3) is to be exercisable by statutory instrument.

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

(6) 10Except as stated in the table in Schedule 12, the appropriate authority for the
purposes of subsection (3) is the Secretary of State.

83 Short 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.