Water Bill (HL Bill 97)

(a) in paragraph (a), the words “in the case of a request under subsection
(1),” are repealed;

(b) paragraph (b) is repealed.

(4) In subsection (7)(a), the words “or (2)” are repealed.

(5) 5In subsection (8)(c), the words “or a restricted retail authorisation” are
repealed.

31 (1) Section 66AA (water supply from water undertaker) (inserted by Schedule
2) is amended as follows.

(2) Subsection (2) is repealed.

(3) 10In subsection (3)(a), the words “or, as the case may be, subsection (2)” are
repealed.

(4) In subsection (5)—

(a) in paragraph (a), the words “or, as the case may be, R” are repealed;

(b) in paragraph (b), the words “or, as the case may be, R” are repealed.

(5) 15In subsection (7)(a), the words “or (2)” are repealed.

32 (1) Section 66B (introduction of water into water undertaker’s supply system)
(inserted by Schedule 2) is amended as follows.

(2) Subsections (2) and (3) are repealed.

(3) In subsection (4)—

(a) 20in paragraph (a), the words “in a case falling within subsection (1),”
are repealed;

(b) paragraphs (b) and (c) are repealed;

(c) in paragraph (d), for “steps under paragraphs (a), (b) or (c) (as the
case may be)” there is substituted “such steps”.

(4) 25In subsection (6)(a), the words “, (2) or (3)” are repealed.

(5) Subsections (7) and (8) are repealed.

(6) In subsection (9), the words “or (b)(i) or (ii)” are repealed.

(7) Subsection (10)(b) is repealed.

33 (1) Section 66C (introduction of water provided by secondary undertaker)
30(inserted by Schedule 2) is amended as follows.

(2) In subsection (1), the words from “A request under paragraph (a)” to the end
are repealed.

(3) Subsections (2) to (4) are repealed.

(4) In subsection (5), the words “by virtue of subsection (1), (2) or (4)” are
35repealed.

(5) In subsection (6)(a), the words “, L2, L3 or R” are repealed.

(6) In subsection (7), the words “, L2 or R” are repealed.

(7) In subsection (9)(a), the words “, (2), (3) or (4)” are repealed.

(8) In subsection (11), the words “, (2), (3) or (4)” are repealed.

34 In section 66E (rules about charges) (inserted by Schedule 2), in subsection
(3), the words “or restricted retail authorisation” are repealed.

35 In section 66EA (rules about charges: provision about reduction in charges)
(inserted by Schedule 2), in subsection (1)(a), the words “or a restricted retail
5authorisation” are repealed.

36 In section 66G (designation of strategic supply) (as amended by Schedule 2),
in subsection (11), paragraph (b) and the “or” preceding it are repealed.

37 In section 66H (designation of collective strategic supply) (as amended by
Schedule 2), in subsection (11), paragraph (b) and the “or” preceding it are
10repealed.

38 (1) Section 68 (duties of water undertakers and licensed water suppliers with
respect to water quality) (as amended by Schedule 7) is amended as follows.

(2) In subsection (1A)—

(a) in paragraph (a), the words “or restricted retail authorisation” are
15repealed;

(b) in paragraph (b), the words “or restricted retail authorisation” are
repealed.

(3) In subsection (6), the words “or a restricted retail authorisation” are
repealed.

39 (1) 20Section 95ZA (standards of performance in connection with provision of
sewerage services: sewerage licensees) (inserted by section 30) is amended
as follows.

(2) In the following places—

(a) the opening words of subsection (1),

(b) 25subsection (1)(b)(i), and

(c) subsection (2),

for “the Secretary of State” there is substituted “the Minister”.

(3) In subsection (2), for “Secretary of State’s” there is substituted “Minister’s”.

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

“(6) 30In this section—

• “the Minister” means—

  (a)

  the Secretary of State, in respect of the provision of
  services by a sewerage licensee in accordance with the
  licensee’s retail authorisation using the sewerage
  35system of a sewerage undertaker whose area is
  wholly or mainly in England;

  (b)

  the Welsh Ministers, in respect of the provision of
  services by a sewerage licensee in accordance with the
  licensee’s retail authorisation using the sewerage
  40system of a sewerage undertaker whose area is
  wholly or mainly in Wales;

• “prescribed” means prescribed by regulations made by the
  Minister.”

40 In section 96ZA (procedure for regulations under section 95ZA) (inserted by

section 30), for subsection (2) there is substituted—

“(2) In the application of section 96 by virtue of subsection (1)—

(a) a reference to a sewerage undertaker is to be treated as a
reference to a sewerage licensee, and

(b) 5a reference to the Secretary of State is to be treated as a
reference to the Minister (as defined in section 95ZA(6)).

(3) Regulations under section 95ZA are to be made by statutory
instrument.

(4) A statutory instrument containing regulations under section 95ZA is
10subject to annulment in pursuance of a resolution of—

(a) either House of Parliament, in the case of regulations made
by the Secretary of State;

(b) the National Assembly for Wales, in the case of regulations
made by the Welsh Ministers.

(5) 15Section 213(2) to (2B) applies to regulations made by the Welsh
Ministers under section 95ZA as it applies to regulations made by the
Secretary of State.”

41 (1) Section 117G (codes under section 117F: procedure) (inserted by Schedule 4)
is amended as follows.

(2) 20In subsection (2), after paragraph (a) there is inserted—

“(aa) the Welsh Ministers;”.

(3) For subsection (4) there is substituted—

“(4) Before a code under section 117F prepared by the Authority is
issued, the Minister may direct the Authority—

(a) 25not to issue the code, or

(b) to issue the code with specified modifications.

(4A) Subsection (4) is subject to subsections (4C) and (4D).

(4B) In subsection (4) “the Minister” means—

(a) the Secretary of State, so far as a code prepared by the
30Authority relates to section 117E agreements made with
sewerage undertakers whose areas are wholly or mainly in
England;

(b) the Welsh Ministers, so far as a code prepared by the
Authority relates to section 117E agreements made with
35sewerage undertakers whose areas are wholly or mainly in
Wales.

(4C) The power under subsection (4) may not be exercised more than once
by the Secretary of State or the Welsh Ministers.

(4D) If the power under subsection (4) is not exercised by the Secretary of
40State or the Welsh Ministers on the first occasion on which it may be
exercised by the Secretary of State or (as the case may be) the Welsh
Ministers, it may not be exercised by the Secretary of State or (as the
case may be) the Welsh Ministers on a later occasion.”

(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 158 (powers to lay pipes in streets), in subsection (7)(a), the
following words are repealed—

(a) “or (b)(i)”;

(b) “or laid in pursuance of section 66B(4)(b)(ii)”.

51 In section 195(3AA) (the Authority’s register: consultation as regards water
supply licensees) (as amended by Schedule 7), after “water supply licensee”
5there is inserted “or a sewerage licensee”.

52 In section 207D (exercise of adjudication functions by other persons)
(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) 10after sub-paragraph (ii) there is inserted “, or

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

53 In section 213 (powers to make regulations), subsection (1ZA) (inserted by
15Schedule 7) is repealed (if not previously repealed by an order under section
3).

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

(2) Paragraphs 1 and 2 are repealed.

(3) 20Paragraphs 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 25Procedure 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 30Regulations 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
35code 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) enabling a member of the CMA to make decisions as to the matters
5referred 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
10specified 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
15Authority 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) 20the 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) 25Provision 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) 30Regulations 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) 35to 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) 40to 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
the 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
5documents, 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
10requirement imposed in accordance with regulations under
paragraph 4;

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

(c) 15having been required to produce a written statement in accordance
with 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
20information that is false in a material particular.

(2) The 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
25for contempt of court, the High Court has power to punish for contempt of
court 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) 30The regulations may provide for such an offence to be punishable—

(a) on 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.

35Appeal rules

6 (1) The 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) 40the taking of evidence at an oral hearing;

(b) the 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) 45Before making rules under this paragraph, the CMA must consult such
persons 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;

• 5“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 Further amendments

10Water 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) for “company” there is substituted “person”;

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

20Water 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) In subsection (1), for the words from “the following” to the end there is
25substituted “the powers and duties conferred or imposed on the Secretary of
State or the Authority by virtue of any of the relevant provisions.”

(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) 30the “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
35under 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”
there 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
5comprising” to the end there is substituted “to be construed in accordance
with section 17BA(7)”.

(7) In 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) 10in paragraph (b), for “by sewerage undertakers” there is substituted
“either by sewerage undertakers or by sewerage licensees acting in
their capacity as such”.

(8) In subsection (6)—

(a) in paragraph (a), for the words from “the provisions of” to “water
15suppliers” there is substituted “the relevant provisions”;

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

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

(ii) 20any of sections 37A to 38, 38ZA, 39, 39ZA, 39B
to 39D, 40E to 40J, 42, 51CD to 51CG, 63AC to
63AF, 66B, 66CA to 66H, 66K, 66L, 66O(2), 95,
95ZA, 96, 96ZA, 99, 105ZF to 105ZI, 110F to
110J, 110L to 110O, 117E to 117O, 117R, 117S,
25143B to 143E, 144ZA to 144ZF, 153, 181, 182,
185, 192A, 192B, 195, 195A and 201 to 203
below, and

(iii) section 42 of the Water Act 2014.”;

(c) paragraphs (b) and (c) are repealed.

4 30In 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
35“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)
40is 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
45under section 185, those rules are to apply in relation to the new
undertaker as if the appointment or variation had come into force.”