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PART III |
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WATER |
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New regulatory arrangements |
| Water Advisory Panel. |
104. - (1) After section 1 of the Water Industry Act 1991 (in this Part referred to as "the 1991 Act") there is inserted-
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"Water Advisory Panel |
| Water Advisory Panel. |
1A. - (1) The Secretary of State shall establish a committee to advise the Director in the exercise of his functions.
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(2) The committee established under subsection (1) shall be known as the "Water Advisory Panel" (referred to in this Act as the "Panel").
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(3) The Panel shall consist of such members as may be appointed by the Secretary of State after consulting the Director and the National Assembly for Wales (referred to in this Act as "the Assembly").
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(4) The Director shall refer to the Panel for advice-
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(a) such matters relating to any water undertaker or sewerage undertaker whose area is wholly or mainly in Wales as the Assembly may, after consultation with the Director, determine from time to time; |
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(b) such other matters as the Secretary of State may, after consultation with the Director, determine from time to time; and |
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(c) such other matters as the Director may consider appropriate. |
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(5) A determination under subsection (4)(a) or (b) may include different circumstances in which different matters are required to be referred to the Panel.
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(6) The Director shall provide the Panel with such information and assistance as the Panel may require in exercising its functions under this section.
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(7) The Director shall in the exercise of his functions have regard to any advice given to him by the Panel under this section.
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(8) The provisions of Schedule 1A shall have effect with respect to the Panel."
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(2) After Schedule 1 to the 1991 Act there is inserted, as Schedule 1A, the provisions of Part I of Schedule 4 to this Act.
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(3) In section 206(3)(a) of the Water Industry Act 1991 (exemptions from the restriction on disclosure of information obtained under the Act) after "Director" there is inserted ", the Water Advisory Panel".
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| The Consumer Council for Water. |
105. - (1) After section 27 of the 1991 Act there is inserted-
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| "The Consumer Council for Water. |
27A. - (1) There shall be a body corporate to be known as the Consumer Council for Water (in this Act referred to as "the Council") for the purpose of carrying out the functions of the Council under this Act.
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(2) The Council shall not be regarded as a servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.
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(3) The Council shall-
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(a) establish one or more committees of the Council for relevant undertakers whose areas are wholly or mainly in Wales; and |
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(b) establish one or more committees of the Council for other relevant undertakers; |
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and committees so established are referred to in this Act as "regional committees".
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(4) The Council shall ensure that each relevant undertaker is allocated to a regional committee established under paragraph (a) or, as the case may be, paragraph (b) of subsection (3).
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(5) The purposes of a regional committee shall be-
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(a) the provision of advice and information to the Council on consumer matters affecting the areas of the relevant undertakers allocated to that committee; |
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(b) such other purposes as the Council may determine. |
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(6) In this Act "consumer matters" means matters connected with the interests of customers and potential customers of companies which hold an appointment or may be appointed under Chapter I of Part II.
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(7) The provisions of Schedule 3A shall have effect with respect to the Council.
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| Co-operation between Council and other authorities. |
27B. - (1) This section imposes duties on-
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(a) the Director and the Council; |
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(b) the Council and the Secretary of State; and |
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(c) the Council and the Assembly. |
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(2) It shall be the duty of the bodies mentioned in each paragraph of subsection (1) to make arrangements with a view to securing-
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(a) co-operation and the exchange of information between them; and |
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(b) the consistent treatment of matters which affect both of them. |
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(3) As soon as practicable after agreement is reached on any arrangements required by this section, the parties to them shall prepare a memorandum setting them out.
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(4) Arrangements under this section shall be kept under review by the parties to them.
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(5) As soon as practicable after agreement is reached on any changes to arrangements under this section, the parties to them shall revise their memorandum.
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(6) The Director and the Council shall send a copy of their memorandum, and any revised memorandum, to the Secretary of State and the Assembly.
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(7) The Council and the Secretary of State shall send a copy of their memorandum, and any revised memorandum, to the Director and the Assembly.
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(8) The Council and the Assembly shall send a copy of their memorandum, and any revised memorandum, to the Secretary of State and the Director.
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(9) The Secretary of State shall lay a copy of every memorandum or revised memorandum under this section before each House of Parliament."
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(2) After Schedule 1 to the 1991 Act there is inserted, as Schedule 3A, the provisions of Part II of Schedule 4 to this Act.
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(3) The customer service committees established under section 28(1) of the 1991 Act are abolished.
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| Transfer to Council of property etc of Director. |
106. - (1) The Secretary of State may make one or more schemes ("transfer schemes") for the transfer of any property, rights and liabilities of the Director General of Water Services to the Council.
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(2) A transfer scheme may provide for the transfer to the Council of rights and liabilities relating to persons employed in the civil service of the state.
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(3) On the day appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this subsection, be transferred in accordance with the provisions of the scheme.
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(4) Schedule 3 has effect in relation to transfer schemes and transfers under this section.
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| Conditions relating to costs of water regulation. |
107. - (1) The Director General of Water Services (the "Director") may, in accordance with this section, modify any condition included in an appointment under Chapter I of Part II of the 1991 Act-
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(a) by virtue of section 11(1)(c) of that Act, and |
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(b) relating to the costs incurred by the Director in the regulation and enforcement of appointments under Chapter I of Part II of that Act, |
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where he considers it necessary or expedient to do so in consequence of the establishment of the Consumer Council for Water or the Water Advisory Panel.
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(2) Before making modifications under this section the Director shall consult the company holding the appointment.
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(3) The power of the Director under this section may not be exercised after the end of the period of two years beginning with the commencement of this section.
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| Forward work programme and annual reports. |
108. - (1) Before section 193 of the 1991 Act there is inserted-
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| "Forward work programmes. |
192A. - (1) The Director and the Council shall, before each financial year, each publish a document (the "forward work programme") containing a general description of the projects, other than those comprising routine activities connected with the exercise of his or its functions, which he or it plans to undertake during the year.
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(2) That description shall include in particular-
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(a) the objectives of each project, and |
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(b) an estimate of the overall expenditure the Director or the Council expects to incur during the year in undertaking the projects. |
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(3) Before publishing the forward work programme for any year, the Director or the Council shall give notice-
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(a) containing a draft of the forward work programme, and |
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(b) specifying the time within which representations or objections to the proposals contained in it may be made, |
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and shall consider any representations or objections which are duly made and not withdrawn.
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(4) The notice under subsection (3) must be published by the Director or the Council in such manner as he or it considers appropriate for the purpose of bringing the matters contained in it to the attention of persons likely to be affected by them.
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(5) The Council must send a copy of the notice under subsection (3) to the Director, the Secretary of State and the Assembly.
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| Annual and other reports. |
192B. - (1) The Director shall, as soon as practicable after the end of each financial year, make to the Secretary of State a report (the "annual report" for that year) on-
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(a) his activities during that year, and |
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(b) the activities of the Competition Commission during that year in respect of any references made by him. |
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(2) The annual report for each year shall include-
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(a) a general survey of developments in respect of matters falling within the scope of the Director's functions, including in particular developments in the promotion of effective competition in furtherance of his principal objective in the carrying out of those functions; |
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(b) a report on the progress of the projects described in the forward work programme for that year; |
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(c) a summary of final and provisional orders made and penalties imposed, by the Director during the year; |
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(d) a report on such matters relating to any water undertaker or sewerage undertaker whose area is wholly or mainly in Wales as the Assembly may from time to time require; and |
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(e) a report on such other matters as the Secretary of State may from time to time require. |
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(3) The annual report for each year shall set out any general directions given by the Secretary of State under section 27(3).
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(4) The Secretary of State and the Assembly shall consult the Director before exercising the power under subsection (2)(d) or (e) in relation to any matter.
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(5) The Secretary of State shall-
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(a) lay a copy of each annual report before each House of Parliament; and |
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(b) arrange for the report to be published in such manner as he considers appropriate. |
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(6) The Director may also prepare other reports with respect to any matter falling within the scope of his functions and may arrange for any such report to be published in such manner as he considers appropriate.
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(7) The Director shall send a copy of each report under this section to the Assembly and the Council.
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(8) In making or preparing any report under this section the Director shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that person or body.".
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(2) Section 193 of the 1991 Act (which makes provision about annual and other reports by the Director) shall cease to have effect.
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Objectives of regulation of water industry |
| Objectives and duties under 1991 Act. |
109. - (1) Section 2 of the 1991 Act (general duties with respect to water industry) is amended as follows.
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(2) For subsection (2) there is substituted-
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"(2A) The Secretary of State or, as the case may be, the Director shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner which he considers is best calculated-
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(a) to further the consumer objective (consistently with paragraphs (b) and (c) below); |
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(b) to secure that the functions of a water undertaker and a sewerage undertaker are properly carried out as respects every area of England and Wales; and |
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(c) to secure that companies holding appointments under Chapter I of Part II of this Act as relevant undertakers are able to finance the proper carrying out of those functions. |
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(2B) The consumer objective mentioned in subsection (2A)(a) above is to protect the interests of consumers in relation to water and sewerage services, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the provision of such services.
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(2C) In performing the duty under subsection (2A)(a) above the Secretary of State or, as the case may be, the Director shall have regard to the interests of-
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(a) individuals who are disabled or chronically sick; |
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(b) individuals of pensionable age; |
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(c) individuals with low incomes; and |
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(d) individuals residing in rural areas; |
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but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer."
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(3) For subsections (3) and (4) there is substituted-
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"(3) Subject to subsection (2A) above, the Secretary of State or, as the case may be, the Director shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner that he considers is best calculated-
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(a) to promote economy and efficiency on the part of any company holding an appointment under Chapter I of Part II of this Act in the carrying out of the functions of a relevant undertaker; |
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(b) to secure that no undue preference is shown, and that there is no undue discrimination, in the fixing by relevant undertakers of water and drainage charges; |
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(c) to secure that the interests of customers and potential customers of such a company are protected as respects benefits that could be secured for them by the application in a particular manner of any of the proceeds of any disposal (whenever made) of any of that company's protected land or of any interest or right in or over any of that land." |
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(4) After subsection (5) there is inserted-
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"(5A) In this section "consumers" includes both existing and future consumers."
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(5) In subsections (6A) and (6B) for "subsections (2) to (4) above" there is substituted "(2A) and (3) above and section 2A below."
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(6) After subsection (6B) there is inserted-
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"(7) The duties imposed by subsections (2A) and (3) above and section 2A below do not affect the obligation of the Director or, as the case may be, the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment, by virtue of any Community obligation or otherwise)."
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