Water Bill (HL Bill 97)

(9) In sub-paragraph (8) “relevant person” means—

(a) the Water Services Regulation Authority, except in relation to
appeals from the determination of claims for compensation,

(b) the Competition and Markets Authority, or

(c) 5any other public authority (within the meaning of section 6 of the
Human Rights Act 1998).

(10) A section 79 order may provide for functions of the Competition and
Markets Authority (“the CMA”) relating to compensation payable under a
qualifying scheme to be carried out on behalf of the CMA by a group
10constituted for the purpose by the chair of the CMA under Schedule 4 to the
Enterprise and Regulatory Reform Act 2013.

Modification of conditions of old water supply licences

3 (1) Where a section 79 order makes provision for old water supply licences to
continue in effect, that provision may include provision for applying new
15sections 17I to 17R to old water supply licences, with such modifications as
appear to the Secretary of State to be appropriate.

(2) Provision under sub-paragraph (1) may include provision for treating a
reference to a new water supply licence as including a reference to an old
water supply licence.

(3) 20Provision under sub-paragraph (1) may include provision for treating—

(a) a reference to a standard condition of a new water supply licence as
including a reference to a standard condition of an old water supply
licence, if the two conditions are in, or as nearly as may be are in, the
same terms;

(b) 25a reference to a standard condition of a new water supply licence
giving the holder a new retail authorisation as including a reference
to a standard condition of an old water supply licence giving the
holder a retail authorisation, if the two conditions are in, or as nearly
as may be are in, the same terms;

(c) 30a reference to a standard condition of a new water supply licence
giving the holder a new restricted retail authorisation as including a
reference to a standard condition of an old water supply licence
giving the holder a retail authorisation, if the two conditions are in,
or as nearly as may be are in, the same terms;

(d) 35a reference to a standard condition of a new water supply licence
giving the holder a new wholesale authorisation as including a
reference to a standard condition of an old water supply licence
giving the holder a supplementary authorisation, if the two
conditions are in, or as nearly as may be are in, the same terms.

(e) 40a reference to a standard condition of a new water supply licence
giving the holder a new supplementary authorisation as including a
reference to a standard condition of an old water supply licence
giving the holder a supplementary authorisation, if the two
conditions are in, or as nearly as may be are in, the same terms.

45Changes in water supply licensing: Wales

4 (1) A section 79 order may make provision in connection with the extension of
new retail authorisations and new wholesale authorisations to the use of
supply systems of water undertakers whose areas are wholly or mainly in

Wales, where that extension takes place after the introduction of new water
supply licences.

(2) A section 79 order may in particular include provision for or in relation to
the payment by the Water Services Regulation Authority of compensation to
5any person holding a new water supply licence who—

(a) following the coming into force of any provision of this Act, is unable
to carry on activities that had previously been authorised by a new
restricted retail authorisation, or a new restricted retail authorisation
and a new supplementary authorisation, given by the licence as a
10result of—

(i) a new retail authorisation or a new wholesale authorisation
or both having been required in respect of them, and

(ii) the person’s licence not having been varied to add a new
retail authorisation or a new wholesale authorisation or both,
15because the person did not apply to vary the licence, or did
not apply to add the appropriate authorisation or
authorisations, or because the person’s application to vary
the licence was refused or granted only as to one
authorisation, and

(b) 20has suffered loss or damage as a result of not having a licence that
enables the person to carry on all those activities.

Introduction of sewerage licensing

5 (1) A section 79 order may make provision in connection with the introduction
of sewerage licences.

(2) 25A section 79 order may in particular include provision for or in relation to
the payment by the Water Services Regulation Authority of compensation to
any person who—

(a) before 31 March 2014 was carrying on any activities in relation to the
sewerage system of a sewerage undertaker,

(b) 30following the coming into force of any provision of this Act—

(i) is unable to continue to carry on those activities as a result of
their having been prohibited,

(ii) is unable to continue to carry on those activities as a result of
a sewerage licence having been required in respect of them,
35and the person’s not having applied for, or the person’s
having been refused, a sewerage licence, or

(iii) is unable to continue to carry on those activities in the same
manner as a result of the person’s having been granted a
sewerage licence the effect of which is to restrict the carrying
40on of the activities, and

(c) has suffered loss or damage as a result of—

(i) those activities having been prohibited,

(ii) a sewerage licence not having been granted, or

(iii) those activities having been restricted.

45New retail authorisations and the threshold requirement

6 (1) A section 79 order may make provision for the threshold requirement (see
section 17D of the Water Industry Act 1991) to have effect for a relevant
period in relation to the supply of water to any premises, where the supply

to those premises is made in connection with the introduction of water into
the supply system of a water undertaker under a new wholesale
authorisation.

(2) Provision under sub-paragraph (1) may in particular include such
5modifications of Schedule 2A to the Water Industry Act 1991 (forms of
authorisations given by water supply licences) as appear to the Secretary of
State to be appropriate.

Modifications relating to new wholesale authorisations

7 (1) Where a section 79 order makes provision as regards new wholesale
10authorisations, that provision may include provision for provisions of the
Water Industry Act 1991 to have effect for a relevant period with such
modifications as appear to the Secretary of State to be appropriate.

(2) Provision under sub-paragraph (1) may include provision for applying old
provisions of the Water Industry Act 1991 with such modifications as appear
15to the Secretary of State to be appropriate.

(3) Provision under sub-paragraph (2) may in particular provide for the
application of provision in old section 66D(2) to (8) for the purpose of
determining—

(a) the period for which, and

(b) 20the terms and conditions on which,

a water undertaker’s duties under new section 66B or 66C are to be
performed.

(4) Provision under sub-paragraph (2) may in particular provide for the
application of provision in old section 66E for the purpose of determining
25charges payable in respect of the performance of a water undertaker’s duties
under new section 66B or 66C.

(5) Provision under sub-paragraph (1) may in particular make provision about
the interpretation of references to a water undertaker’s supply system,
including in particular provision for such references to be treated as
30references to the supply system of a water undertaker as it is described in old
section 17B.

(6) Provision under sub-paragraph (1) may provide for modifications to have
effect for different relevant periods.

(7) Provision under sub-paragraph (1) may make provision—

(a) 35in relation to new wholesale authorisations that authorise the
introduction of water into the supply system of a water undertaker
whose area is wholly or mainly in England,

(b) in relation to new wholesale authorisations that authorise the
introduction of water into the supply system of a water undertaker
40whose area is wholly or mainly in Wales, or

(c) in relation to new wholesale authorisations that authorise the
introduction of water into the supply system of any water
undertaker.

(8) Before making provision falling within sub-paragraph (7)(b) or (c), the
45Secretary of State must consult the Welsh Ministers.

Modifications relating to new supplementary authorisations

8 (1) Where a section 79 order makes provision as regards new supplementary
authorisations, that provision may include provision for provisions of the
Water Industry Act 1991 to have effect for a relevant period with such
5modifications as appear to the Secretary of State to be appropriate.

(2) Provision under sub-paragraph (1) may include provision for applying old
provisions of the Water Industry Act 1991 with such modifications as appear
to the Secretary of State to be appropriate.

(3) Provision under sub-paragraph (2) may in particular provide for the
10application of provision in old section 66D(2) to (8) for the purpose of
determining—

(a) the period for which, and

(b) the terms and conditions on which,

a water undertaker’s duties under new section 66B or 66C are to be
15performed.

(4) Provision under sub-paragraph (2) may in particular provide for the
application of provision in old section 66E for the purpose of determining
charges payable in respect of the performance of a water undertaker’s duties
under new section 66B or 66C.

(5) 20Provision under sub-paragraph (1) may provide for modifications to have
effect for different relevant periods.

(6) Before making provision under this paragraph, the Secretary of State must
consult the Welsh Ministers.

Old section 66D agreements and new water supply licences

9 (1) 25A section 79 order may include provision for securing that an old section
66D agreement continues to have effect in a case where the person who
entered into the agreement as the holder of an old water supply licence is
granted a new water supply licence.

(2) Provision under sub-paragraph (1) may provide for the modification of the
30agreement and may in particular include—

(a) provision for treating a reference in the agreement to the old water
supply licence as a reference to the new water supply licence;

(b) provision for treating a reference in the agreement to an
authorisation given under the old licence as a reference to an
35authorisation or authorisations given under the new licence;

(c) provision for the Water Services Regulation Authority to vary the
agreement by order, on application by a party to the agreement.

(3) Before making provision under this paragraph in relation to old section 66D
agreements to which a water undertaker whose area is wholly or mainly in
40Wales is party, the Secretary of State must consult the Welsh Ministers.

New section 66E and old section 66D agreements

10 (1) A section 79 order may provide for new section 66E (rules about charges that
may be imposed under a section 66D agreement) to have effect as regards—

(a) charges payable under old section 66D agreements, or

(b) specified descriptions of charges payable under old section 66D
agreements.

(2) Provision under sub-paragraph (1) may include provision for making such
modifications of—

(a) 5new sections 66E to 66ED, and

(b) old sections 66A to 66D and 66F,

as appear to the Secretary of State to be appropriate.

(3) Provision under sub-paragraph (1) may provide for the modification of old
section 66D agreements and may in particular include provision for the
10Water Services Regulation Authority to vary the agreement by order, on
application by a party to the agreement.

(4) Before making provision under this paragraph in relation to the supply of
water using the supply system of a water undertaker whose area is wholly
or mainly in Wales, the Secretary of State must consult the Welsh Ministers.

15Interpretation

11 (1) In this Schedule—

• “new restricted retail authorisation” means a restricted retail
  authorisation given by a new water supply licence;

• “new retail authorisation” means a retail authorisation given by a new
  20water supply licence;

• “new supplementary authorisation” means a supplementary
  authorisation given by a new water supply licence;

• “new water supply licence” means a water supply licence granted
  under new section 17A;

• 25“new wholesale authorisation” means a wholesale authorisation given
  by a new water supply licence;

• “old section 66D agreement” means such agreement or determination
  as is mentioned in old section 66D(3);

• “old water supply licence” means a water supply licence granted under
  30old section 17A;

• “sewerage licence” means a sewerage licence granted under section
  17BA of the Water Industry Act 1991.

(2) In this Schedule “relevant period” means—

(a) a period specified in or determined in accordance with a section 79
35order, or

(b) a period that—

(i) begins at a time specified in or determined in accordance
with a section 79 order, and

(ii) ends at such time as the Secretary of State may specify by
40order.

(3) Before making provision under sub-paragraph (2)(a) or (b)(i) or making an
order under sub-paragraph (2)(b)(ii) that affects provision to which
paragraph 7(8), 8(6) or 10(4) applies, the Secretary of State must consult the
Welsh Ministers.

(4) 45In this Schedule a reference to an old provision is a reference to a provision
of the Water Industry Act 1991 as it has effect before the coming into force of
an amendment or repeal of that provision made by this Act.

(5) In this Schedule a reference to a new provision is a reference to—

(a) a provision of the Water Industry Act 1991 after an amendment of
that provision made by this Act has come into force, or

(b) a provision of the Water Industry Act 1991 inserted by this Act.

Section 82(5)

5SCHEDULE 12 Commencement orders: appropriate authority

1 In relation to the sections and Schedules listed in the first column of this
table, the appropriate authority for the purposes of section 82(3) is as listed
in the second column (see paragraph 3 as regards interpretation of terms
10used in the table)—

2 A statutory instrument containing an order to be made by the Welsh
Ministers under section 82(3) in relation to section 5 and Schedule 5 may not
be made unless a draft has been laid before and approved by a resolution of
the National Assembly for Wales.

3 45In the table in paragraph 1—

(a) “wholly or mainly English water undertakers” means water
undertakers whose areas are wholly or mainly in England;

(b) “wholly or mainly English sewerage undertakers” means sewerage
undertakers whose areas are wholly or mainly in England;

(c) 50“wholly or mainly English undertakers” means undertakers falling
within paragraph (a) or (b);

(d) “wholly or mainly English water supply licensees” means water
supply licensees using the supply systems of water undertakers
whose areas are wholly or mainly in England;

(e) “wholly or mainly English sewerage licensees” means sewerage
5licensees using the sewerage systems of sewerage undertakers
whose areas are wholly or mainly in England;

(f) “wholly or mainly English licensees” means licensees falling within
paragraph (d) or (e);

(g) “wholly or mainly Welsh water undertakers” means water
10undertakers whose areas are wholly or mainly in Wales;

(h) “wholly or mainly Welsh sewerage undertakers” means sewerage
undertakers whose areas are wholly or mainly in Wales;

(i) “wholly or mainly Welsh undertakers” means undertakers falling
within paragraph (g) or (h);

(j) 15“wholly or mainly Welsh water supply licensees” means water
supply licensees using the supply systems of water undertakers
whose areas are wholly or mainly in Wales;

(k) “wholly or mainly Welsh sewerage licensees” means sewerage
licensees using the sewerage systems of sewerage undertakers
20whose areas are wholly or mainly in Wales;

(l) “wholly or mainly Welsh licensees” means licensees falling within
paragraph (j) or (k).

4 In this Schedule—

(a) references to water undertakers’ supply systems are to be construed
25in accordance with section 17B of the Water Industry Act 1991;

(b) references to sewerage undertakers’ sewerage systems are to be
construed in accordance with section 17BA(7) of the Water Industry
Act 1991.