Water Bill (HL Bill 97)

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

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

(7) 5In this section “the Minister” means the Secretary of State.

117N Designation of strategic sewerage provision

(1) Subsection (2) applies if at any time the Authority determines that
the removal of matter from a sewerage undertaker’s sewerage
system that the undertaker is required to permit under section 117C
10or 117D in accordance with a section 117E agreement constitutes
strategic sewerage provision.

(2) The Authority must designate the removal of matter as strategic
sewerage provision.

(3) Subsection (4) applies if—

(a) 15a sewerage undertaker requests the Authority to make a
determination that a particular removal of matter constitutes
strategic sewerage provision for the purposes of subsection
(1), or

(b) the Authority otherwise proposes to make a determination
20that a particular removal of matter constitutes strategic
sewerage provision for the purposes of subsection (1).

(4) The Authority must give notice of the request or proposed
determination to—

(a) the Secretary of State;

(b) 25the appropriate agency;

(c) the other party or parties, or the parties, to the section 117E
agreement; and

(d) such other persons (if any) as the Authority thinks it
appropriate to notify.

(5) 30A notice under subsection (4) must specify the time within which
representations or objections with respect to the request or proposed
determination may be made.

The time specified may not be less than 28 days from the date on
which the notice was given.

35The time specified may not be less than 28 days from the date on
which the notice was given.

(6) The Authority must consider any representations or objections
which are duly made and not withdrawn.

(7) If the Authority determines that a particular removal of matter
40designated under this section as strategic sewerage provision no
longer constitutes such provision, it must cancel its designation.

(8) If the Authority proposes to make a determination under subsection
(7) that a particular removal of matter no longer constitutes strategic
sewerage provision, it must give notice of the proposed
45determination to—

(a) the Secretary of State;

(b) the appropriate agency; and

(c) the parties to the section 117E agreements in question.

(9) Subsection (5) applies to a notice under subsection (8) as it applies to
a notice under subsection (4), and subsection (6) applies accordingly.

(10) For the purposes of this section, a removal of matter from a sewerage
system is strategic sewerage provision if, without that removal of
5matter, there is a substantial risk that the sewerage undertaker
would be unable—

(a) to maintain its services to its own customers, and

(b) to fulfil its obligations under section 117B to deal with matter
in its sewerage system.

(11) 10In this section and section 117O “the appropriate agency”, in relation
to a determination in respect of the removal of matter from a
sewerage undertaker’s system, means—

(a) the Environment Agency, in a case where the undertaker’s
area is wholly in England;

(b) 15both the Environment Agency and the NRBW, in a case
where the undertaker’s area is partly in England and partly
in Wales.

117O Designation of collective strategic sewerage provision

(1) Subsection (2) applies if at any time the Authority determines that
20two or more cases of the removal of matter from a sewerage
system—

(a) each of which is a removal by a sewerage licensee, and

(b) each of which is a removal that a sewerage undertaker is
required to permit under section 117C or 117D in accordance
25with a section 117E agreement,

constitute collective strategic sewerage provision.

(2) The Authority must designate the cases of the removal of matter as
collective strategic sewerage provision.

(3) Subsection (4) applies if—

(a) 30a sewerage undertaker requests the Authority to make a
determination that two or more cases of the removal of
matter from a sewerage system constitute collective strategic
sewerage provision for the purposes of subsection (1), or

(b) the Authority otherwise proposes to make a determination
35that two or more cases of the removal of matter from a
sewerage system constitute collective strategic sewerage
provision for the purposes of subsection (1).

(4) The Authority must give notice of the request or proposed
determination to—

(a) 40the Secretary of State;

(b) the appropriate agency;

(c) the other party or parties, or the parties, to the section 117E
agreements in question; and

(d) such other persons (if any) as the Authority thinks it
45appropriate to notify.

(5) A notice under subsection (4) must specify the time within which
representations or objections with respect to the request or proposed
determination may be made.

The time specified may not be less than 28 days from the date on
which the notice was given.

The time specified may not be less than 28 days from the date on
5which the notice was given.

(6) The Authority must consider any representations or objections
which are duly made and not withdrawn.

(7) If the Authority determines that the cases of the removal of matter
from a sewerage system designated under this section as collective
10strategic sewerage provision no longer constitute such provision, it
must cancel their designation.

(8) If the Authority proposes to make a determination under subsection
(7) that the cases of the removal of matter from a sewerage system no
longer constitute collective strategic sewerage provision, it must give
15notice of the proposed determination to—

(a) the Secretary of State;

(b) the appropriate agency; and

(c) the parties to the section 117E agreements in question.

(9) Subsection (5) applies to a notice under subsection (8) as it applies to
20a notice under subsection (4), and subsection (6) applies accordingly.

(10) For the purposes of this section, two or more cases of the removal of
matter from a sewerage system are collective strategic sewerage
provision if, without those cases of the removal of matter, there is a
substantial risk that the sewerage undertaker would be unable—

(a) 25to maintain its services to its own customers, and

(b) to fulfil its obligations under section 117B to deal with matter
in its sewerage system.

Offences

117P Prohibition on unauthorised use of sewerage system

(1) 30No person may use the sewerage system of a sewerage undertaker
whose area is wholly or mainly in England for the purpose of
providing sewerage services to premises of—

(a) a customer,

(b) the person so using that system, or

(c) 35a person associated with that person.

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

(3) Subsection (1) does not apply where that use of the system is made
by—

(a) the sewerage undertaker, or

(b) 40a sewerage licensee in pursuance of its sewerage licence.

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

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

(6) An undertaking entered into which involves a contravention of
45subsection (1) is unenforceable.

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

(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)—